Third Quarter 1996 Earnings
ARLINGTON, Va — Gannett announced today that earnings per share from continuing operations advanced 28 percent in the third quarter to 82 cents per share, a new record. In the year earlier quarter, earnings from
continuing operations were 64 cents per share. Results include the
operations of Multimedia, Inc., a South Carolina-based media company
purchased in December 1995.
The sale of the Gannett Outdoor operations was completed in August
1996. Operating results for the third quarter exclude contributions from
the Outdoor Division which is reported as a discontinued operation in the
Company’s financial statements. Prior year results have been reclassified
to conform with the current year presentation. The sale resulted in a
third quarter 1996 after tax gain of $295 million, or $2.09 per share.
After tax income from discontinued operations, for the seven weeks Gannett
Outdoor was owned in the third quarter of 1996, was $4,723,000, or 3 cents
per share. For the full quarter in 1995, income from discontinued
operations was $5,823,000, or 5 cents per share.
Operating revenues from continuing operations gained 29 percent to
$1,117,741,000, from $864,863,000 in the year earlier quarter. If Gannett
had owned the same complement of properties in both quarters, revenues from
continuing operations would have increased 9 percent. Operating income
from continuing operations increased 51 percent to $240,476,000 from
$159,691,000 in the year earlier quarter. Operating cash flow from
continuing operations advanced to $313,392,000 from $205,206,000 in the
prior year reflecting contributions from the new properties, very strong
advertising growth at USA TODAY, a vibrant television environment,
particularly for NBC-affiliated stations, and a favorable comparison year
to year at The Detroit News.
For the first nine months, earnings per share from continuing
operations advanced 11 percent to $2.47, compared to $2.22 in 1995. Income
from continuing operations was $348,189,000, compared to $311,024,000.
Operating cash flow from continuing operations was $948,839,000, compared
to $693,053,000 in 1995. Operating revenues from continuing operations
were 24 percent higher at $3,309,614,000, while operating income from
continuing operations gained 31 percent to $729,713,000 from $554,974,000
in 1995.
In a statement, the company said that the properties acquired from
Multimedia continued to boost operating cash flow, but incremental
interest, taxes and goodwill amortization associated with the transaction
tempered their contribution to earnings per share. The broadcast group
achieved record results, buoyed by Summer Olympics advertising on its nine
NBC-affiliated television stations. Newspaper profitability benefited from
robust advertising demand at USA TODAY and from the cycling through of the
Detroit strike which began on July 13, 1995. The loss at The Detroit News
was substantially lower in the third quarter of 1996 than in the same
quarter in 1995. Newsprint expense rose 14 percent for the third quarter.
If current pricing trends continue, newsprint expense for the fourth
quarter will be lower than in the fourth quarter of 1995.
Operating cash flow from newspapers was 16 percent higher than last
year and revenues in the quarter grew 13 percent. If the same group of
newspapers had been held in both periods, revenues would have gained 8
percent, including a 9 percent gain in pro forma advertising revenues.
Classified advertising revenues grew 10 percent, while national advertising
revenue increased 27 percent. Pro forma newspaper advertising volume was
flat for the quarter.
Fueled by Olympic-related advertising, paid advertising pages at USA
TODAY jumped 46 percent to 1,250 compared to 858 in the third quarter of
1995. Advertising revenues soared 44 percent. For the nine months, paid
pages totaled 3,583 compared to 2,779 last year, and advertising revenues
gained 32 percent.
Broadcast cash flow advanced 96 percent in the quarter to $89,002,000
as revenues gained 71 percent to $178,879,000. Pro forma revenues
increased 25 percent propelled by strong demand for television advertising
during the Summer Olympics. Radio revenues rose 2 percent in the quarter.
Cable revenues were $48,237,000 in the third quarter of 1996, and
operating cash flow was $23,942,000. Basic subscribers totalled 460,422 at
the end of the quarter, equal to 61 percent of homes passed. Pay units
numbered 334,799 at Sept. 30, 1996.
Revenues from other businesses increased 448 percent to $41,405,000,
and operating cash flow reached $12,643,000, reflecting results for the
entertainment and alarm security businesses acquired in the Multimedia
acquisition.
On Sept. 26 Gannett announced that it had entered into an
agreement to acquire WTSP-TV, the CBS affiliate in Tampa, from Jacor
Communications, Inc., in exchange for KIIS AM/FM, Los Angeles, KSDO-AM/KKBH-FM,
San Diego and WDAE-AM/WUSA-FM, Tampa. Closing is expected to
occur as soon as regulatory approvals are obtained.
Gannett is a nationwide news and information company that publishes 92
newspapers, including USA TODAY, and USA WEEKEND, a newspaper magazine.
Gannett also has entertainment programming, operates 15 television
stations, 11 radio stations, cable television systems in five states and
alarm security services.
CONDENSED CONSOLIDATED BALANCE SHEETS
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Sept. 29, 1996 Dec. 31, 1995
------------- -------------
ASSETS
Cash and marketable securities $ 52,576 $ 46,985
Accounts receivables, net 519,025 587,896
Inventories 82,675 111,653
Prepaid expenses and other current assets 121,409 107,550
--------- ---------
Total current assets 775,685 854,084
Property, plant and equipment, net 1,969,503 2,070,687
Excess of acquisition cost over
the value of assets acquired, net 3,287,854 3,386,600
Other assets 212,255 192,429
--------- ---------
Total $6,245,297 $6,503,800
========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Current maturities of long-term debt $ 29 $ 90,751
Accounts payable and current portion
of film contracts payable 213,871 279,594
Accrued expenses and other current liab 388,716 378,148
Dividend payable 52,105 49,208
Income taxes 261,496 15,071
--------- ---------
Total current liabilities 916,217 812,772
Deferred income taxes 293,764 327,916
Long-term debt, less current portion 1,930,863 2,767,880
Postretirement medical and life
insurance liabilities 308,739 305,700
Other long-term liabilities 127,760 143,884
--------- ---------
Shareholders' equity 2,667,954 2,145,648
--------- ---------
Total $6,245,297 $6,503,800
========= =========
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Thirteen weeks ended % Inc
Sept 29, 1996 Sept 24, 1995 (Dec)
Net Operating Revenues:
Newspaper advertising $ 585,814 $508,821 15.1
Newspaper circulation 229,197 209,445 9.4
Broadcasting 178,879 104,787 70.7
Cable 48,237
Other 75,614 41,810 80.9
--------- ------- -----
Total 1,117,741 864,863 29.2
--------- ------- -----
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 627,345 510,661 22.8
Selling, general and administrative
expenses, exclusive of depreciation 177,004 148,996 18.8
Depreciation 48,876 34,347 42.3
Amortization of intangible assets 24,040 11,168 115.3
--------- ------- -----
Total 877,265 705,172 24.4
--------- ------- -----
Operating income 240,476 159,691 50.6
--------- ------- -----
Non-operating income (expense):
Interest expense (34,111) (9,113) (274.3)
Other (3,917) 1,100 (456.1)
--------- ------- -----
Total (38,028) (8,013) (374.6)
--------- ------- -----
Income before income taxes 202,448 151,678 33.5
Provision for income taxes 87,100 61,400 41.9
--------- ------- -----
Income from continuing operations 115,348 90,278 27.8
Discontinued operations:
Income from outdoor operations, net of
taxes of $3,140 and $3,900 respectively 4,723 5,823 (18.9)
Gain on sale of outdoor, net of taxes of
$195,000 294,580
--------- ------- -----
Net income $ 414,651 $ 96,101 331.5
========= ======= =====
Earnings per share:
Earnings from continuing operations $0.82 $0.64 28.1
Earnings from discontinued operations:
Outdoor operations, net of tax 0.03 0.05 (40.0)
Gain on sale of outdoor business,
net of tax 2.09
---- ---- -----
Net income per share $2.94 $0.69 326.1
==== ==== =====
Dividends per share $0.36 $0.35 2.9
==== ==== =====
(See note on page 2 of Consolidated statements of income)
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Thirty-nine weeks ended % Inc
Sept 29, 1996 Sept 24, 1995 (Dec)
Net Operating Revenues:
Newspaper advertising $ 1,747,679 $ 1,592,697 9.7
Newspaper circulation 685,874 635,454 7.9
Broadcasting 496,873 322,650 54.0
Cable 143,483
Other 235,705 122,639 92.2
--------- --------- -----
Total 3,309,614 2,673,440 23.8
--------- --------- -----
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 1,841,173 1,519,507 21.2
Selling, general and administrative
expenses, exclusive of depreciation 519,602 460,880 12.7
Depreciation 146,954 104,543 40.6
Amortization of intangible assets 72,172 33,536 115.2
--------- --------- -----
Total 2,579,901 2,118,466 21.8
--------- --------- -----
Operating income 729,713 554,974 31.5
--------- --------- -----
Non-operating income (expense):
Interest expense (112,042) (31,723) (253.2)
Other (6,157) (627) (882.0)
--------- --------- -----
Total (118,199) (32,350) (265.4)
--------- --------- -----
Income before income taxes 611,514 522,624 17.0
Provision for income taxes 263,325 211,600 24.4
--------- --------- -----
Income from continuing operations 348,189 311,024 11.9
Discontinued operations:
Income from outdoor operations, net of
taxes of $7,540 and $7,300, respectively 11,248 10,706 5.1
Gain on sale of outdoor, net of taxes of
$195,000 294,580
--------- --------- -----
Net income $ 654,017 $ 321,730 103.3
========= ========= =====
Earnings per share:
Earnings from continuing operations $2.47 $2.22 11.3
Earnings from discontinued operations:
Outdoor operations, net of tax 0.08 0.08 0.0
Gain on sale of outdoor business,
net of tax 2.09
---- ---- -----
Net income per share $4.64 $2.30 101.7
==== ==== =====
Dividends per share $1.06 $1.03 2.9
==== ==== =====
Note: The Company sold its Outdoor Advertising business in August, 1996 and
for financial statement purposes for 1996 and all prior periods is reporting
Outdoor Advertising as a discontinued operation. Outdoor results are
therefore excluded from the above results above and instead are reflected
separately as discontinued operations one-line, net of tax basis.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Thirty-nine weeks ended
Sept. 29, 1996 Sept. 24, 1995
Cash flows from operating activities
Net income $ 654,017 $ 321,730
Adjustments to reconcile net income to
operating cash flows:
Discontinued operations (305,828) (10,706)
Depreciation 146,954 104,543
Amortization of intangibles 72,172 33,536
Deferred income taxes (13,351) (13,168)
Gain on sale of assets (574) (123)
Other, net 13,312 21,011
Changes in other assets &
liabilities, net (10,669) (60,824)
--------- --------
Net cash flow from operating activities 556,033 395,999
--------- --------
Cash flows from investing activities
Purchase of property, plant & equipment (195,322) (106,376)
Change in other investments (18,341) (2,320)
Proceeds from sale of certain assets 720,928 1,622
Collection of long-term receivables 1,205 4,711
--------- --------
Net cash provided by (used for)
investing activities 508,470 (102,363)
--------- --------
Cash flow from financing activities
Payments of long-term debt (927,739) (166,936)
Dividends paid (146,407) (142,915)
Cost of common shares repurchased (1,436)
Proceeds from issuance of common stock 16,906 7,227
--------- --------
Net cash used for financing activities (1,058,676) (302,624)
--------- --------
Effect of currency exchange rate change (236) 273
--------- --------
Net increase (decrease) in cash and cash
equivalents 5,591 (8,715)
Balance of cash & cash equivalents at
beginning of year 46,985 44,252
--------- --------
Balance of cash and cash equivalents at
end of third quarter $ 52,576 $ 35,537
========= ========
Management’s Discussion and Analysis of Operations
SALE OF OUTDOOR ADVERTISING BUSINESS
On August 22, 1996, the Company completed the sale of its Outdoor advertising business to
Outdoor Systems, Inc. for a purchase price of $713,000,000 in cash. The Company recorded
an after-tax gain of $294,580,000 or $2.09 per share on this sale. Operating results for
the third quarter and year-to-date exclude this gain as well as earnings from the outdoor
division for the period leading up to the sale. The gain, along with Outdoor operating
results, are reported as a discontinued operation in the Company’s financial statements.
Prior year results have been reclassified to conform with the current year presentation.
EXCHANGE OF GANNETT RADIO STATIONS FOR WTSP-TV, TAMPA
On September 26, 1996, the Company entered into an agreement with Jacor Communications,
Inc., to exchange the Company’s radio stations KIIS-AM/FM, Los Angeles; KSDO-AM/KKBH-FM,
San Diego; and WDAE-AM/WUSA-FM, Tampa, for WTSP-TV, the CBS television affiliate in Tampa.
Closing is expected to occur in the fourth quarter, as soon as regulatory approvals
are obtained.
OPERATING SUMMARY
Operating income for the third quarter of 1996 rose $80.8 million or 51% from the year
earlier quarter, reflecting in part earnings from Multimedia properties acquired in
December 1995. Earnings from broadcasting rose sharply, up $37.6 million or 98%.
Multimedia television stations contributed to this growth along with significant earnings
gains from the Company’s other stations as a group. Strong demand for television
advertising during the Summer Olympics was a significant factor in the earnings
improvement. The Company’s new cable business reported operating income of $10.4 million
for the quarter.
Newspaper publishing earnings rose $23.1 million or 17% from the year earlier quarter.
The improved earnings reflect the results of Multimedia newspapers as well as higher
earnings at USA Today, fueled principally by the Olympics. A strike began at The Detroit
News on July 13, 1995. The level of losses from the early months of the strike has
declined, thus contributing to overall earnings gains. Newspaper earnings gains were
tempered by higher newsprint prices and consumption.
Income from the Company’s other businesses was $8.6 million, reflecting the results of the
alarm security and entertainment businesses acquired with the Multimedia purchase.
Operating income for the first nine months of 1996 rose $174.7 million or 31%.
NEWSPAPERS
Reported newspaper publishing revenues rose $96.7 million or 13% for the third quarter of
1996 and $210.2 million or 9% for the year-to-date, reflecting in part revenues reported
by Multimedia newspapers. Newspaper advertising revenue rose $77 million or 15% for the
quarter and $155 million or 10% for the first nine months.
The tables below provide, on a pro forma basis, further details of newspaper ad revenue
and linage and preprint distribution for the third quarter and year-to-date periods of
1996 and 1995:
Advertising revenue, in thousands of dollars (pro forma)
Third quarter 1996 1995 % Change
Local $193,516 $185,523 4
National 93,428 73,812 27
Classified 212,956 193,098 10
Total Run-of-Press 499,900 452,433 10
Preprint and
other advertising 85,254 83,916 2
------- ------- --
Total ad revenue $585,154 $536,349 9
======= ======= --
Advertising linage, in thousands of inches (pro forma)
Third quarter 1996 1995 % Change
Local 7,710 7,916 (3)
National 542 525 3
Classified 9,289 9,014 3
------ ------ --
Total Run-of-Press
linage 17,541 17,455 0
====== ====== ==
Preprint distribution (000's) 1,476 1,450 2
Advertising revenue, in thousands of dollars (pro forma)
Year-to-date 1996 1995 % Change
Local $ 589,652 $ 590,706 0
National 281,997 243,878 16
Classified 615,260 580,401 6
--------- ---------
Total Run-of-Press 1,486,909 1,414,985 5
Preprint and
other advertising 258,424 261,597 (1)
--------- --------- --
Total ad revenue $1,745,333 $1,676,582 4
========= ========= ==
Advertising linage, in thousands of inches (pro forma)
Year-to-date 1996 1995 % Change
Local 23,179 24,315 (5)
National 1,696 1,685 1
Classified 26,973 26,609 1
------ ------ --
Total Run-of-Press
linage 51,848 52,609 (1)
====== ====== ==
Preprint distribution (000's) 4,453 4,548 (2)
In the pro forma presentation above, total advertising revenues for the Company’s
newspapers rose 9% for the quarter and 4% for the first nine months. Local ad revenues
increased 4% for the quarter and were even for the year-to-date. National ad revenue
rose 27% for the quarter and 16% year-to-date, reflecting strong advertising revenue gains
by USA Today. Classified advertising, up 10% for the quarter and 6% year-to-date,
reflects gains across the newspaper group, with continued improvement in the employment,
auto and real estate categories. Ad revenues in all categories were bolstered by
improvement at The Detroit News.
Reported newspaper circulation revenues rose 9% for the quarter and 8% for the
year-to-date. On a pro forma basis, circulation revenues were up 5% for the quarter and
3% for the year-to-date. Net paid daily circulation for the Company’s local newspapers
was down 2% for the quarter and 3% for the first nine months, while Sunday circulation
declined 4% for the quarter and 5% for the year-to-date. The decline in local daily and
Sunday circulation was due in part to the effect of the strike in Detroit. USA Today
reported an average daily paid circulation of 2,130,847 in the ABC Publisher’s statement
for the nine months ended September 29, 1996, which, subject to audit, is a 3% increase
over the comparable period a year ago.
Operating costs for the newspaper segment rose $73.6 million or 12% for the quarter and
$192.4 million or 10% for the year-to-date, reflecting added costs from the Multimedia
newspapers. Higher newsprint prices continued to have a negative effect on cost
comparisons. In total, reported newsprint expense rose 14% for the quarter and 31% for
the year-to-date. Consumption was above 1995 levels for both the quarter and the
year-to-date periods, including added usage of Multimedia newspapers and greater usage at
The Detroit News and at USA Today. Pro forma consumption was up 4% for the quarter and
was even for the year-to-date. Newsprint prices have softened in recent months and for
the fourth quarter of 1996 will be below prior-year levels. Newspaper cost increases also
reflect higher benefit costs, goodwill amortization, and one-time costs associated with a
new labor agreement and changes in circulation operations in major newspaper markets.
Reported newspaper operating income increased $23.1 million or 17% for the quarter and
$17.8 million or 4% for the first nine months.
BROADCASTING
Broadcast revenues increased $74 million or 71% for the third quarter and $174.2 million
or 54% for the first nine months, while operating costs were up $36.5 million or 55% for
the quarter and $78.1 million or 37% for the year-to-date. Results for the 1996 quarter
and year-to-date periods include the Multimedia television stations. On a pro forma
basis, broadcast revenues increased 25% for the quarter and 14% for the first nine months,
reflecting strong demand for television advertising, particularly during the Summer
Olympics.
Pro forma local television ad revenues grew 30% for the quarter and 17% year-to-date,
while national revenues increased 35% for the quarter and 17% for the first nine months.
Pro forma radio revenues were up slightly for the quarter and for the first nine months.
Broadcasting operating income rose $37.6 million or 98% for the quarter and $96.1 million
or 86% for the year-to-date, reflecting earnings from the new Multimedia stations as well
as improved results from most of the Company’s other television stations. The Company’s
nine NBC affiliates reported substantial year-over-year gains for the quarter and first
nine months of 1996, driven by the Olympics and generally strong ratings for the network’s
programs. Pro forma operating income for the radio group was up 9% for the quarter and
15% for the first nine months of 1996.
In May, 1996, the Company sold two Macon, Ga., radio stations which were acquired as part
of the Multimedia purchase in December, 1995. This transaction does not significantly
affect broadcast operating results comparisons for 1996.
CABLE
Cable television revenues were $48 million in the third quarter of 1996 and $143.5 million
for the first nine months. On a pro forma basis, cable revenues increased 8% for the
quarter and 10% for the year-to-date. Basic subscribers totaled approximately 460,000 at
the end of the quarter, equal to 61% of homes passed. Pay subscribers totaled
approximately 335,000 at September 30, 1996. Operating income from cable totaled $10.4
million for the quarter and $32.1 million for the year-to-date, and operating cash flow
was $23.9 million for the quarter and $72 million for the first nine months.
OTHER BUSINESSES
The principal businesses included in this segment are the television entertainment
programming and alarm security businesses acquired in the Multimedia purchase.
The entertainment programming and alarm security businesses were both profitable for the
quarter and for the year-to-date. The revenue and earnings for the alarm security
business are growing; however, revenue and earnings for the entertainment business have
been adversely affected by the cessation of the Donahue show and by competition.
NON-OPERATING INCOME AND EXPENSE
Interest expense rose $25 million or 274% for the quarter and $80.3 million or 253% for
the year-to-date, reflecting interest on commercial paper borrowings to finance the
Multimedia acquisition in December, 1995. Average rates were lower for both the quarter
and the year-to-date periods.
PROVISION FOR INCOME TAXES
The Company’s effective income tax rate on earnings from continuing operations was 43% for
the quarter and for the year-to-date. The increase in the effective rate from 40.5% in
1995 is attributable to amortization of non-deductible intangible assets recorded in
connection with the Multimedia acquisition.
INCOME FROM CONTINUING OPERATIONS AND NET INCOME
Income from continuing operations rose $25 million or 28% for the third quarter and $37.2
million or 12% for the year-to-date. Earnings per share from continuing operations rose
to $.82 from $.64 for the quarter, an increase of 28%, and were $2.47 for the first nine
months of 1996, an increase of 11% over 1995.
Net income including discontinued operations totaled $414.7 million for the quarter and
$654 million for the first nine months. Including discontinued operations, net income per
share was $2.94 for the quarter and $4.64 for the year-to-date. Discontinued operations,
including the after-tax gain on the sale of Outdoor and the after-tax earnings of Outdoor
for the months leading up to the sale, totaled $299.3 million or $2.12 per share for the
quarter compared to $5.8 million or $.05 per share for the year-earlier quarter. For the
year-to-date, earnings from discontinued operations totaled $305.8 million or $2.17 per
share compared to $10.7 million or $.08 per share in 1995.
The weighted average number of shares outstanding totaled 140,944,000 for the third
quarter of 1996, compared to 140,181,000 for the third quarter of 1995. Average shares
outstanding for the year-to-date totaled 140,823,000 for 1996 and 140,103,000 for 1995.
The increase in the number of shares outstanding for the quarter and year-to-date periods
is due mainly to the exercise of stock options.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow from operating activities as reported in the accompanying Consolidated
Statements of Cash Flow totaled $556 million for the first nine months of 1996, compared
with $396 million a year ago. The increase is due principally to operating cash flow from
Multimedia properties acquired in December, 1995. Principal uses of cash flow in 1996
were capital expenditures, reduction of debt and dividends.
Capital expenditures for the year-to-date totaled $195.3 million in 1996, compared to
$106.4 million in 1995. The increase reflects capital spending for the newly acquired
Multimedia businesses, particularly cable and alarm security, and the purchase of land in
Fairfax County, Va., for possible use as a future site for corporate headquarters and
perhaps other operations.
The Company’s long-term debt was reduced by $928 million in the first nine months of 1996
from the sale of the Outdoor advertising business and from operating cash flow. The
Company declared regular quarterly dividends of $0.35 per share in the first and second
quarters of 1996 and $0.36 per share in the third quarter. Dividends declared totaled
$149.3 million.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Quarter ended % Inc
Sept 29, 1995 Sept 24, 1992 (Dec)
Operating Revenues:
Newspaper publishing $849,220 $752,527 12.8
Broadcasting 178,879 104,787 70.7
Cable 48,237
Other businesses 41,405 7,549 448.5
--------- ------- -----
Total $1,117,741 $864,863 29.2
========= ======= =====Operating Income (net of depreciation and amortization):
Newspaper publishing $159,732 $136,603 16.9
Broadcasting 76,116 38,513 97.6
Cable 10,410 -
Other businesses 8,625 (259) ***
Corporate (14,407) (15,166) 5.0
------- ------- ----
Total $240,476 $159,691 50.6
====== ======= ====
Depreciation and Amortization:
Newspaper publishing $40,013 $35,885 11.5
Broadcasting 12,886 6,991 84.3
Cable 13,532 -
Other businesses 4,018 284 ***
Corporate 2,467 2,355 4.8
------ ------ ----
Total $72,916 $45,515 60.2
====== ====== ====
Operating Cash Flow:
Newspaper publishing $199,745 $172,488 15.8
Broadcasting 89,002 45,504 95.6
Cable 23,942 -
Other businesses 12,643 25 ***
Corporate (11,940) (12,811) 6.8
------- ------- ----
Total $313,392 $205,206 52.7
======= ======= ====(See notes on business segment information)
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Year-to-date % Inc
Sept 29, 1996 Sept 24, 1995 (Dec)
Operating Revenues:
Newspaper publishing $2,538,627 $2,328,422 9.0
Broadcasting 496,873 322,650 54.0
Cable 143,483 -
Other businesses 130,631 22,368 484.0
--------- --------- -----
Total $3,309,614 $2,673,440 23.8
========= ========= =====Operating Income (net of depreciation and amortization):
Newspaper publishing $510,394 $492,623 3.6
Broadcasting 208,264 112,119 85.8
Cable 32,133 -
Other businesses 26,333 (188) ***
Corporate (47,411) (49,580) 4.4
------- ------- ----
Total $729,713 $554,974 31.5
======= ======= ====
Depreciation and Amortization:
Newspaper publishing $120,989 $108,746 11.3
Broadcasting 38,904 21,061 84.7
Cable 39,883 -
Other businesses 11,771 839 ***
Corporate 7,579 7,433 2.0
------- ------- ----
Total $219,126 $138,079 58.7
======= ======= ====
Operating Cash Flow:
Newspaper publishing $631,383 $601,369 5.0
Broadcasting 247,168 133,180 85.6
Cable 72,016 -
Other businesses 38,104 651 ***
Corporate (39,832) (42,147) 5.5
------- ------- ----
Total $948,839 $693,053 36.9
======= ======= ====NOTES:
(1) The Company sold its Outdoor Advertising business in August, 1996
and for financial statement purposes for 1996 and all prior periods is
reporting Outdoor Advertising as a discontinued operation. Outdoor results are
therefore excluded from the "Other businesses" segment reflected above.(2) Operating Cash Flow represents operating income for each of the Company's
business segments plus related depreciation and amortization expense.QUARTERLY STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
In thousands of dollars (except per share amounts)Thirty-nine weeks ended September 29, 1996
1ST QTR 2ND QTR 3RD QTR Total
Net Operating Revenues:
Newspaper advertising $556,885 $604,980 $585,814 $1,747,679
Newspaper circulation 229,417 227,260 229,197 685,874
Broadcasting 141,688 176,306 178,879 496,873
Cable 47,208 48,038 48,237 143,483
Other 77,831 82,260 75,614 235,705
--------- --------- --------- ---------
Total 1,053,029 1,138,844 1,117,741 3,309,614
--------- --------- --------- ---------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 607,899 605,929 627,345 1,841,173
Selling, general and admin
expenses, exclusive of
depreciation 171,335 171,263 177,004 519,602
Depreciation 48,941 49,137 48,876 146,954
Amortization of intangible
assets 24,083 24,049 24,040 72,172
--------- --------- --------- ---------
Total 852,258 850,378 877,265 2,579,901
--------- --------- --------- ---------
Operating income 200,771 288,466 240,476 729,713
--------- --------- --------- ---------
Non-operating income (expense):
Interest expense (39,528) (38,403) (34,111) (112,042)
Other (1,583) (657) (3,917) (6,157)
--------- --------- --------- ---------
Total (41,111) (39,060) (38,028) (118,199)
--------- --------- --------- ---------
Income before income taxes 159,660 249,406 202,448 611,514
Provision for income taxes 68,450 107,775 87,100 263,325
--------- --------- --------- ---------
Income from continuing
operations 91,210 141,631 115,348 348,189
Discontinued operations:
Income from outdoor
operations, net of tax (1,860) 8,385 4,723 11,248
Gain on sale of outdoor,
net of tax 294,580 294,580
--------- --------- --------- ---------
Net income $89,350 $150,016 $414,651 $654,017
========= ========= ========= =========
Earnings per share:
E.P.S.from contin. oper.(1) $0.65 $1.01 $0.82 $2.47
E.P.S.from discontinued operations:
Outdoor operations, net of tax (0.01) 0.06 0.03 0.08
Gain on sale of Outdoor business,
net of tax 2.09 2.09
---- ---- ---- ----
Net income per share (1) $0.64 $1.07 $2.94 $4.64
==== ==== ==== ====
NOTES:
(1) As a result of rounding, the total of the quarters' earnings per share does
not equal the earnings per share for the year to date.(2) The Company sold its Outdoor Advertising business in August, 1996 and for
financial statement purposes for 1996 and all prior periods is reporting
Outdoor
Advertising as a discontinued operation. Outdoor results are therefore
excluded
from continuing operations reflected above and instead are reflected separately
as discontinued operations on a one-line, net of tax basis.QUARTERLY STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
In thousands of dollars (except per share amounts)Fiscal year ended December 31, 1995
1ST QTR 2ND QTR 3RD QTR 4TH QTR Total
Net Operating Revenues:
Newspaper advertising $516,742 $567,134 $508,821 $626,553 $2,219,250
Newspaper circulation 211,964 214,045 209,445 233,719 869,173
Broadcasting 96,983 120,880 104,787 143,537 466,187
Cable 15,061 15,061
Other 37,535 43,294 41,810 60,585 183,224
------- ------- ------- --------- ---------
Total 863,224 945,353 864,863 1,079,455 3,752,895
------- ------- ------- --------- ---------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 501,776 507,070 510,661 595,522 2,115,029
Selling, general and admin
expenses, exclusive of
depreciation 155,004 156,880 148,996 159,757 620,637
Depreciation 35,248 34,948 34,347 39,214 143,757
Amortization of intangible
assets 11,201 11,167 11,168 15,986 49,522
------- ------- ------- --------- ---------
Total 703,229 710,065 705,172 810,479 2,928,945
------- ------- ------- --------- ---------
Operating income 159,995 235,288 159,691 268,976 823,950
------- ------- ------- --------- ---------
Non-operating income (expense):
Interest expense (11,732) (10,878) (9,113) (20,452) (52,175)
Other (529) (1,198) 1,100 4,381 3,754
------- ------- ------- --------- ---------
Total (12,261) (12,076) (8,013) (16,071) (48,421)
------- ------- ------- --------- ---------
Income before income taxes 147,734 223,212 151,678 252,905 775,529
Provision for income taxes 59,700 90,500 61,400 103,400 315,000
------- ------- ------- --------- ---------
Income from continuing
operations 88,034 132,712 90,278 149,505 460,529
Discontinued operations:
Income from outdoor
operations, net of tax (1,828) 6,711 5,823 6,027 16,733
------- ------- ------- --------- ---------
Net income $86,206 $139,423 $96,101 $155,532 $477,262
======= ======= ======= ========= =========
Earnings per share:
E.P.S.from contin. oper. $0.63 $0.95 $0.64 $1.07 $3.29
E.P.S.discontinued operations:
Outdoor oper. net of tax (1) (0.01) 0.05 0.05 0.04 0.12
---- ---- ---- ---- ----
Net income per share (1) $0.62 $1.00 $0.69 $1.11 $3.41
==== ==== ==== ==== ====
NOTES:
(1) As a result of rounding, the total of the four quarters' earnings per share
does not equal the earnings per share for the year.(2) The Company sold its Outdoor Advertising business in August, 1996 and for
financial statement purposes for 1996 and all prior periods is reporting
Outdoor
Outdoor Advertising as a discontinued operation. Outdoor results are therefore
excluded from continuing operations reflected above and instead are reflected
separately as discontined operations on a one-line, net of tax basis.BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
In thousands of dollars
1st Qtr 2nd Qtr 3rd Qtr
1996 1996 1996 Total
Operating Revenues:Newspaper publish. $820,372 $869,035 $849,220 $2,538,627
Broadcasting 141,688 176,306 178,879 496,873
Cable 47,208 48,038 48,237 143,483
Other businesses 43,761 45,465 41,405 130,631
---------- ---------- ---------- ----------
Total $1,053,029 $1,138,844 $1,117,741 $3,309,614Operating Income (net of depreciation and amortization):
Newspaper publish. $147,551 203111 159732 $510,394
Broadcasting 50,039 82,109 76,116 208,264
Cable 10,909 10,814 10,410 32,133
Other businesses 8,690 9,018 8,625 26,333
Corporate (16,418) (16,586) (14,407) (47,411)
---------- ---------- ---------- ----------
Total $200,771 $288,466 $240,476 $729,713Depreciation and Amortization:
Newspaper publish. $40,538 $40,438 $40,013 $120,989
Broadcasting 13,119 12,899 12,886 38,904
Cable 13,054 13,297 13,532 39,883
Other businesses 3,757 3,996 4,018 11,771
Corporate 2,556 2,556 2,467 7,579
---------- ---------- ---------- ----------
Total $73,024 $73,186 $72,916 $219,126Operating Cash Flow:
Newspaper publish. $188,089 $243,549 $199,745 $631,383
Broadcasting 63,158 95,008 89,002 247,168
Cable 23,963 24,111 23,942 72,016
Other businesses 12,447 13,014 12,643 38,104
Corporate (13,862) (14,030) (11,940) (39,832)
---------- ---------- ---------- ----------
Total $273,795 $361,652 $313,392 $948,839NOTES:
(1) The Company sold its Outdoor Advertising business in August, 1996
and for financial statement purposes for 1996 and all prior periods
is reporting Outdoor Advertising as a discontinued operation. Outdoor
results are therefore excluded from the "Other businesses" segment
reflected above.(2) Operating Cash Flow represents operating income for each of the
Company's business segments plus related depreciation and amortization
expense.BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
In thousands of dollars
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
1995 1995 1995 1995 Total
Operating Revenues:Newspaper publish. $759,636 $816,259 $752,527 $900,699 $3,229,121
Broadcasting 96,983 120,880 104,787 143,537 466,187
Cable 15,061 15,061
Other businesses 6,605 8,214 7,549 20,158 42,526
---------- ---------- ---------- ---------- ----------
Total $863,224 $945,353 $864,863 $1,079,455 $3,752,895Operating Income (net of depreciation and amortization):
Newspaper publish. $150,856 $205,164 $136,603 $208,945 $701,568
Broadcasting 26,240 47,366 38,513 70,746 182,865
Cable 4,065 4,065
Other businesses (115) 186 (259) 2,943 2,755
Corporate (16,986) (17,428) (15,166) (17,723) (67,303)
---------- ---------- ---------- ---------- ----------
Total $159,995 $235,288 $159,691 $268,976 $823,950Depreciation and Amortization:
Newspaper publish. $36,450 $36,411 $35,885 $38,965 $147,711
Broadcasting 7,064 7,006 6,991 9,046 30,107
Cable 3,798 3,798
Other businesses 274 281 284 1,203 2,042
Corporate 2,661 2,417 2,355 2,188 9,621
---------- ---------- ---------- ---------- ----------
Total $46,449 $46,115 $45,515 $55,200 $193,279Operating Cash Flow:
Newspaper publish. $187,306 $241,575 $172,488 $247,910 $849,279
Broadcasting 33,304 54,372 45,504 79,792 212,972
Cable 7,863 7,863
Other businesses 159 467 25 4,146 4,797
Corporate (14,325) (15,011) (12,811) (15,535) (57,682)
---------- ---------- ---------- ---------- ----------
Total $206,444 $281,403 $205,206 $324,176 $1,017,229NOTES:
(1) The Company sold its Outdoor Advertising business in August, 1996
and for financial statement purposes for 1996 and all prior periods is
reporting Outdoor Advertising as a discontinued operation. Outdoor
results are therefore excluded from the "Other businesses" segment
reflected above.(2) Operating Cash Flow represents operating income for each of the
Company's business segments plus related depreciation and amortization
expense.