SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
CURRENT REPORT
PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):
July 13, 2004
Commission file number 1-6961
GANNETT CO., INC.
(Exact name of registrant as specified in charter)
| Delaware | 16-0442930 | |
| (State or Other Jurisdiction of Incorporation or Organization of Registrant) | (I.R.S. Employer Identification No.) | |
| 7950 Jones Branch Drive, McLean, Virginia | 22107-0910 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (703) 854-6000.
Item 12. Results of Operations and Financial Condition
On July 13, 2004, Gannett Co., Inc. reported its consolidated financial results for the second quarter ended June 27, 2004 and announced increased share repurchase authority. On July 13, 2004, the company also issued a press release announcing the company's statistical report for the period and quarter ended June 27, 2004. Copies of these press releases are furnished with this report as exhibits.
SIGNATURE
Pursuant to requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Gannett Co., Inc. | ||
|
Date: July 13, 2004 |
By: | /s/ George R. Gavagan |
| George R. Gavagan | ||
| Vice President and Controller |
Exhibit Index
|
Exhibit |
Description | |
|
99.1 |
Gannett Co., Inc. Earnings Press Release dated July 13, 2004 | |
|
99.2 |
Gannett Co., Inc. Statistical Report Press Release dated July 13, 2004 |
News Release
Tuesday, July 13, 2004
Gannett Co., Inc. Reports Second Quarter Results
and Announces Increased Share Repurchase Authority
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that 2004 second quarter earnings per diluted share, on a GAAP (generally accepted accounting principles) basis, were $1.30 versus $1.20 for the second quarter of 2003, an 8.3 percent increase. The company's record results reflected increased advertising demand for all of its operating divisions.
Diluted earnings per share for the first six months of 2004 were $2.29 compared with $2.12 for the same interval in 2003.
Total operating revenues for the company were $1.87 billion for the second quarter compared to $1.71 billion for the same period last year, a 9.9 percent increase. Net income rose 9.3 percent to $354.4 million versus $324.3 million in 2003's second quarter. Operating cash flow (defined as operating income plus depreciation and amortization) increased to $638.5 million from $585.4 million for the same quarter a year ago.
For the first six months of 2004, total revenues were $3.60 billion, a 10.6 percent increase. Net income rose 9.5 percent to $628.8 million from $574.1 million and operating cash flow rose 8.9 percent to $1.15 billion.
Average diluted shares outstanding in the second quarter totaled 273,541,000 compared with 271,281,000 in 2003's second quarter. Approximately 5.3 million shares were repurchased during the quarter. The company also announced today that its Board of Directors has authorized the repurchase of an additional $1.0 billion of its common stock. Prior to today's action, a substantial portion of the $500 million authorized for repurchase under the program announced on May 12, 2004 had been used.
Commenting on the company's results, Douglas H. McCorkindale, Chairman, President and CEO said: "We are pleased to again report record operating results in the face of an uneven economic recovery. Our newspaper segment produced industry leading ad revenue growth, benefiting particularly from strong growth in classified employment advertising, and acquisitions. Higher newsprint and certain employee benefit costs, however, continue to impact expenses. Our UK operations again made a strong contribution to earnings as demand for advertising in the UK continues to improve. We also benefited from a favorable exchange rate. The Broadcast segment achieved solid results reflecting, in part, an increase in political advertising demand."
NEWSPAPERS
Newspaper segment results in the quarter and year-to-date include the SMG Publishing business, (acquired in April 2003), Clipper Magazine, Inc. (acquired in October 2003), and NurseWeek (acquired in February 2004).
Total newspaper segment operating revenues were $1.66 billion for the quarter, a 9.8 percent increase year-over-year. Assuming Gannett had owned the same group of properties in the second quarter of 2004 and 2003, advertising revenues would have increased 9.2 percent. On the same basis, classified advertising rose 12.2 percent, national revenues advanced 10.4 percent and local advertising revenues increased 5.9 percent. Total newspaper segment expenses rose 10.3 percent in the quarter due primarily to acquisitions, higher exchange rates, higher medical and other benefit expenses, and higher newsprint expense. Newsprint expense rose 13.1 percent reflecting higher year-over-year prices, the exchange rate and modestly higher usage. Total newspaper segment operating cash flow, which includes USA TODAY and our UK properties, rose 8.6 percent to $537.6 million, versus $495.3 million in the same quarter of 2003.
At USA TODAY, advertising revenues increased 15.5 percent in the second quarter. Paid advertising pages totaled 1,267 compared with 1,220 in 2003's second quarter, a 3.9 percent increase. For the year-to-date, USA TODAY's advertising revenues increased 12.9 percent and paid pages totaled 2,366 compared to 2,316 for the same period in 2003.
BROADCASTING
Broadcasting segment results in the quarter include Captivate Network Inc., acquired in April 2004. In the second quarter, broadcasting revenues increased 10.3 percent to $212.5 million from $192.7 million in the same quarter in 2003. Broadcasting operating cash flow increased 11.4 percent to $113.8 million from $102.2 million in the corresponding interval in 2003.
Excluding Captivate, television revenues rose 8.6
percent, operating expenses increased 5.0 percent and operating cash flow was up
11.7 percent for the quarter.
NON-OPERATING ITEMS
The company's interest expense was $32.0 million in the quarter, down from $36.3 million in the second quarter of 2003, reflecting lower debt levels and lower short term interest rates. Other non-operating expense primarily reflects non-operating charges for minority interest and Internet investments.
At the end of the quarter, Gannett had more than 110 domestic publishing Web sites, including USATODAY.com, one of the most popular newspaper sites on the Web. The company also had Web sites in all of its 19 television markets. In May, Gannett's consolidated domestic Internet audience share totaled 18.2 million unique visitors reaching approximately 11.9 percent of the Internet audience according to Nielsen//NetRatings. Newsquest is also an Internet leader in the United Kingdom where its network Web sites attracted more than 26.6 million monthly page impressions from more than 2.7 million unique users.
* * *
All references in this release and attachments to "operating cash flow" are to a non-GAAP financial measure. Management believes that use of this measure allows investors and management to analyze and compare the company's performance in a more meaningful and consistent manner. A reconciliation of these non-GAAP amounts to the company's consolidated statements of income is presented on an attachment.
As previously announced, the company will hold an earnings conference call at 10:00 a.m. EDT today. The call can be accessed via a live Webcast through the Investor Relations section of the company's Web site, www.gannett.com, or listen-only conference lines, by dialing 1-800-915-4836 (in the U.S.) and 1-973-317-5319 (outside the U.S.) at least 10 minutes prior to the scheduled start of the call. Replay of the conference call will be available about two hours after the live call. To access the replay, dial 1-800-428-6051 (in the U.S.) and 1-973-709-2089 (outside the U.S.). The access code for the replay is 360264. Materials related to the call will be available through the Investor Relations section of the company's Web site Tuesday morning.
Gannett Co., Inc. is a leading international news and information company that publishes 101 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns in excess of 500 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
Certain statements in this press release may be forward looking in nature or "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company's SEC reports, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this press release should be evaluated in light of these important risk factors.
Gannett is not responsible for updating the
information contained in this press release beyond the published date, or for
changes made to this press release by wire services, Internet service providers
or other media.
For investor inquiries, contact:
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
For media inquiries, contact:
Tara Connell
Vice President of Corporate Communications
703-854-6049
tjconnel@gannett.com
# # #
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Thirteen weeks ended % Inc
June 27, 2004 June 29, 2003 (Dec)
Net Operating Revenues:
Newspaper advertising $ 1,252,951 $ 1,115,381 12.3
Newspaper circulation 306,598 303,180 1.1
Broadcasting 212,520 192,727 10.3
Other 101,234 93,995 7.7
------------- ------------- ------
Total 1,873,303 1,705,283 9.9
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 946,552 856,972 10.5
Selling, general and
administrative expenses,
exclusive of depreciation 288,286 262,917 9.6
Depreciation 59,129 55,078 7.4
Amortization of intangible
assets 2,955 2,174 35.9
------------- ------------- ------
Total 1,296,922 1,177,141 10.2
------------- ------------- ------
Operating income 576,381 528,142 9.1
------------- ------------- ------
Non-operating income
(expense):
Interest expense (32,042) (36,334) (11.8)
Other (7,007) 899 ***
------------- ------------- ------
Total (39,049) (35,435) 10.2
------------- ------------- ------
Income before income taxes 537,332 492,707 9.1
Provision for income taxes 182,900 168,400 8.6
------------- ------------- ------
Net income $ 354,432 $ 324,307 9.3
============= ============= ======
Net income per share-basic $1.31 $1.21 8.3
===== ===== ======
Net income per share-diluted $1.30 $1.20 8.3
===== ===== ======
Dividends per share $0.25 $0.24 4.2
===== ===== ======
Broadcasting includes results from the company's 22 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Twenty-six weeks ended % Inc
June 27, 2004 June 29, 2003 (Dec)
Net Operating Revenues:
Newspaper advertising $ 2,408,962 $ 2,121,428 13.6
Newspaper circulation 618,987 605,611 2.2
Broadcasting 381,978 350,903 8.9
Other 193,060 179,586 7.5
------------- ------------- ------
Total 3,602,987 3,257,528 10.6
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 1,886,000 1,693,594 11.4
Selling, general and
administrative expenses,
exclusive of depreciation 571,316 511,488 11.7
Depreciation 118,103 109,307 8.0
Amortization of intangible
assets 5,338 4,004 33.3
------------- ------------- ------
Total 2,580,757 2,318,393 11.3
------------- ------------- ------
Operating income 1,022,230 939,135 8.8
------------- ------------- ------
Non-operating income
(expense):
Interest expense (63,833) (72,443) (11.9)
Other (4,157) 5,751 ***
------------- ------------- ------
Total (67,990) (66,692) 1.9
------------- ------------- ------
Income before income taxes 954,240 872,443 9.4
Provision for income taxes 325,400 298,300 9.1
------------- ------------- ------
Net income $ 628,840 $ 574,143 9.5
============= ============= ======
Net income per share-basic $2.32 $2.14 8.4
===== ===== ======
Net income per share-diluted $2.29 $2.12 8.0
===== ===== ======
Dividends per share $0.50 $0.48 4.2
===== ===== ======
Broadcasting includes results from the company's 22 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Thirteen weeks ended % Inc
June 27, 2004 June 29, 2003 (Dec)
Net Operating Revenues:
Newspaper publishing $ 1,660,783 $ 1,512,556 9.8
Broadcasting 212,520 192,727 10.3
------------- ------------- ------
Total $ 1,873,303 $ 1,705,283 9.9
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 487,018 $ 448,476 8.6
Broadcasting 106,291 95,587 11.2
Corporate (16,928) (15,921) (6.3)
------------- ------------- ------
Total $ 576,381 $ 528,142 9.1
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 50,595 $ 46,782 8.2
Broadcasting 7,550 6,642 13.7
Corporate 3,939 3,828 2.9
------------- ------------- ------
Total $ 62,084 $ 57,252 8.4
============= ============= ======
Operating Cash Flow:
Newspaper publishing $ 537,613 $ 495,258 8.6
Broadcasting 113,841 102,229 11.4
Corporate (12,989) (12,093) (7.4)
------------- ------------- ------
Total $ 638,465 $ 585,394 9.1
============= ============= ======
Broadcasting includes results from the company's 22 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
Operating Cash Flow represents operating income for each of the company's
business segments plus related depreciation and amortization expense. See
attachment for reconciliation of amounts to the Consolidated Statements of
Income.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Twenty-six weeks ended % Inc
June 27, 2004 June 29, 2003 (Dec)
Net Operating Revenues:
Newspaper publishing $ 3,221,009 $ 2,906,625 10.8
Broadcasting 381,978 350,903 8.9
------------- ------------- ------
Total $ 3,602,987 $ 3,257,528 10.6
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 879,283 $ 810,961 8.4
Broadcasting 176,449 159,542 10.6
Corporate (33,502) (31,368) (6.8)
------------- ------------- ------
Total $ 1,022,230 $ 939,135 8.8
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 101,133 $ 92,364 9.5
Broadcasting 14,431 13,213 9.2
Corporate 7,877 7,734 1.8
------------- ------------- ------
Total $ 123,441 $ 113,311 8.9
============= ============= ======
Operating Cash Flow:
Newspaper publishing $ 980,416 $ 903,325 8.5
Broadcasting 190,880 172,755 10.5
Corporate (25,625) (23,634) (8.4)
------------- ------------- ------
Total $ 1,145,671 $ 1,052,446 8.9
============= ============= ======
Broadcasting includes results from the company's 22 television stations and
Captivate Network, Inc. Captivate is a national news and entertainment network
which delivers programming and full motion video advertising through wireless
digital video screens in elevators of premier office towers. Captivate was
acquired in early April 2004.
Operating Cash Flow represents operating income for each of the company's
business segments plus related depreciation and amortization expense. See
attachment for reconciliation of amounts to the Consolidated Statements of
Income.
NON-GAAP FINANCIAL INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
"Operating Cash Flow", a non-GAAP measure, is defined as operating
income plus depreciation and amortization of intangible assets.
Management believes that the use of this measure allows investors and
management to measure, analyze and compare the cash resources
generated from its business segment operations in a meaningful and
consistent manner. The focus on operating cash flow is appropriate
given the consistent and generally predictable strength of cash flow
generation by newspaper and television operations, and the short
period of time it takes to convert new orders to cash.
A reconciliation of these non-GAAP amounts to the company's operating
income, which the company believes is the most directly comparable
financial measure calculated and presented in accordance with GAAP on
the company's consolidated statements of income, follows:
Thirteen weeks ended June 27, 2004
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 537,613 $ 113,841 $ (12,989) $ 638,465
Less:
Depreciation (47,640) (7,550) (3,939) (59,129)
Amortization (2,955) - - (2,955)
---------- ---------- --------- ------------
Operating Income $ 487,018 $ 106,291 $ (16,928) $ 576,381
========== ========== ========= ============
Thirteen weeks ended June 29, 2003
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 495,258 $ 102,229 $ (12,093) $ 585,394
Less:
Depreciation (44,608) (6,642) (3,828) (55,078)
Amortization (2,174) - - (2,174)
---------- ---------- --------- ------------
Operating Income $ 448,476 $ 95,587 $ (15,921) $ 528,142
========== ========== ========= ============
Twenty-six weeks ended June 27, 2004
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 980,416 $ 190,880 $ (25,625) $ 1,145,671
Less:
Depreciation (95,795) (14,431) (7,877) (118,103)
Amortization (5,338) - - (5,338)
---------- ---------- --------- ------------
Operating Income $ 879,283 $ 176,449 $ (33,502) $ 1,022,230
========== ========== ========= ============
Twenty-six weeks ended June 29, 2003
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 903,325 $ 172,755 $ (23,634) $ 1,052,446
Less:
Depreciation (88,360) (13,213) (7,734) (109,307)
Amortization (4,004) - - (4,004)
---------- ---------- --------- ------------
Operating Income $ 810,961 $ 159,542 $ (31,368) $ 939,135
========== ========== ========= ============
News Release
Tuesday, July 13, 2004
Gannett Co., Inc. Releases June Statistical Report
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the sixth period ended June 27, 2004 increased 7.9 percent, as a result of solid advertising demand particularly in classified employment and local advertising. Broadcasting continued to benefit from politically-driven ad spending. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year affected results for the company's UK operations. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have been up 6.0 percent for the period.
June
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in June rose 9.8 percent compared with 2003's sixth period on a 1.1 percent increase in ROP volume and a 9.4 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have increased 7.6 percent.
Pro forma classified revenues increased 11.3 percent in the sixth period on a 1.6 percent increase in ROP ad volume. Employment revenues advanced 21.2 percent, real estate revenues rose 11.6 percent, and automotive fell 3.5 percent compared to last year. On a constant currency basis, employment and real estate revenues advanced 16.0 percent and 7.6 percent, respectively, while automotive would have decreased 5.3 percent. On a constant currency basis, pro forma classified revenues would have risen 7.7 percent for June.
Pro forma local advertising revenues increased 8.6 percent on a 1.0 percent increase in ROP ad volume in June. The performance of the company's small and medium-sized advertisers in its domestic newspapers outpaced the revenue performance of its largest advertisers. In the U.S., across all products, local ad revenue gains were achieved in the furniture, health, financial, restaurant, office supplies and telecommunications categories while the department store, consumer electronics, grocery and home improvement categories declined compared to the sixth period in 2003. On a constant currency basis, pro forma local advertising would have increased 7.3 percent.
Pro forma national advertising revenues in June advanced 8.9 percent on a 4.9 percent decline in ad volume. National volume at the company's local domestic newspapers fell 4.6 percent in the period. USA WEEKEND, our weekly newspaper magazine and our UK operations experienced higher national ad revenues during the period. While our revenue statistics include their results, USA WEEKEND's and Newsquest's ad volume is not included in the linage numbers. At USA TODAY, advertising revenues were up 9.8 percent on a 5.1 percent decrease in paid ad pages to 388 from 408. For the sixth period, at USA TODAY, results for the entertainment, retail and financial categories were particularly strong, while the travel, telecommunications and auto categories decreased.
Pro forma broadcasting revenues, which include
Captivate, increased 8.4 percent in the period. Television revenues were up 8.1
percent with local revenues flat while national revenues advanced
19.4 percent.
Second Quarter
For the second quarter of 2004, total pro forma operating revenues were up 7.6 percent and would have increased 5.8 percent on a constant currency basis.
Newspaper advertising revenues, on a pro forma basis, for the second quarter increased 9.2 percent and 7.0 percent on a constant currency basis.
Pro forma classified revenues for the quarter increased 12.2 percent and on a constant currency basis would have been up 8.6 percent. Employment revenues rose 23.3 percent, real estate was up 10.5 percent while auto declined 1.4 percent. On a constant currency basis for the quarter, employment and real estate would have advanced 18.1 percent and 6.5 percent, respectively, while auto would have declined 3.2 percent.
For the second quarter, pro forma local advertising increased 5.9 percent and would have increased 4.6 percent on a constant currency basis.
Pro forma national advertising increased 10.4 percent for the second quarter. If the exchange rate had remained constant year-over-year, national advertising would have increased 9.5 percent.
Pro forma broadcasting revenues increased 8.8 percent
and television revenues were up 8.6 percent for the quarter reflecting, in part,
higher political advertising. Based on current pacings, television revenues for
the third quarter would be ahead of last year's third quarter results in the mid
to high teens.
* * *
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for May from Nielsen//NetRatings. In May, Gannett's domestic Websites had 18.2 million unique visitors reaching 11.9 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of Captivate (acquired in April 2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired in October 2003), the SMG (Newsquest's Scottish Media Group) publishing business and the Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest, Clipper and NurseWeek are not included in the ad volume statistics. Circulation volume numbers for Newsquest's paid daily newspapers are included in the enclosed statistics, but volume from unpaid daily and non-daily publications is not included in the circulation volume statistics.
Prior to 2004, the company had included online
revenues in the classified advertising revenue total but not in the specific
classified categories of help wanted, automotive and real estate. Print and
online ad revenues are now reported on a combined basis to calculate the
percentage changes in these categories. Results for each period of 2003 have
been reclassified to reflect this change.
Gannett Co., Inc. is a leading international news and information company that publishes 101 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns more than 500 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by most of its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
Certain statements in this press release may be forward looking in nature or "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company's SEC reports, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this press release should be evaluated in light of these important risk factors.
Gannett is not responsible for updating the
information contained in this press release beyond the published date, or for
changes made to this press release by wire services, Internet service providers
or other media.
Contact: Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
# # #
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 6 (May 31, 2004 - June 27, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 167,990,000 $ 154,634,000 $ 13,356,000 8.6
National 67,658,000 62,133,000 5,525,000 8.9
Classified 183,075,000 164,415,000 18,660,000 11.3
------------- ------------- ------------ ----
Total Advertising $ 418,723,000 $ 381,182,000 $ 37,541,000 9.8
Circulation 97,714,000 97,223,000 491,000 0.5
Other revenue 33,088,000 30,944,000 2,144,000 6.9
Broadcasting 63,167,000 58,284,000 4,883,000 8.4
------------- ------------- ------------ ----
Total Revenue $ 612,692,000 $ 567,633,000 $ 45,059,000 7.9
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,965,914 2,936,698 29,216 1.0
National 350,719 368,633 (17,914) (4.9)
Classified 4,890,838 4,811,973 78,865 1.6
------------- ------------- ------------ ----
Total ROP 8,207,471 8,117,304 90,167 1.1
============= ============= ============ ====
Preprint Distribution
(in thousands) 919,135 840,346 78,789 9.4
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,916,202 6,813,277 102,925 1.5
Evening 1,209,525 1,203,837 5,688 0.5
------------- ------------- ------------ ----
Total Daily 8,125,727 8,017,114 108,613 1.4
============= ============= ============ ====
Sunday 6,782,941 6,856,014 (73,073) (1.1)
============= ============= ============ ====
Year-to-Date through June 27, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 995,982,000 $ 941,087,000 $ 54,895,000 5.8
National 388,209,000 351,538,000 36,671,000 10.4
Classified 1,027,108,000 913,879,000 113,229,000 12.4
-------------- -------------- ------------- ----
Total Advertising $ 2,411,299,000 $ 2,206,504,000 $ 204,795,000 9.3
Circulation 618,862,000 613,235,000 5,627,000 0.9
Other revenue 193,200,000 185,227,000 7,973,000 4.3
Broadcasting 384,638,000 355,869,000 28,769,000 8.1
-------------- -------------- ------------- ----
Total Revenue $ 3,607,999,000 $ 3,360,835,000 $ 247,164,000 7.4
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 18,197,455 18,153,911 43,544 0.2
National 2,139,714 1,991,637 148,077 7.4
Classified 29,610,053 28,738,450 871,603 3.0
-------------- -------------- ------------- ----
Total ROP 49,947,222 48,883,998 1,063,224 2.2
============== ============== ============= ====
Preprint Distribution
(in thousands) 5,465,089 5,338,126 126,963 2.4
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,136,684 7,102,483 34,201 0.5
Evening 1,225,055 1,250,496 (25,441) (2.0)
-------------- -------------- ------------- ----
Total Daily 8,361,739 8,352,979 8,760 0.1
============== ============== ============= ====
Sunday 6,925,185 7,048,436 (123,251) (1.7)
============== ============== ============= ====
Note: The operating results from the company's newspapers participating in
joint operating agencies, and which are accounted for under the equity
method of accounting, are reported as a single amount in other operating
revenues. Advertising linage statistics from these newspapers are not
included above, however, circulation volume statistics for these
newspapers are included above.
The above revenue amounts and statistics have been restated to include
all companies presently owned including Captivate (acquired in April
2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired
in late October 2003), SMG Publishing (acquired in April 2003) and 100%
of the Texas-New Mexico Newspapers Partnership (established in March
2003). Captivate is a national news and entertainment network that
delivers quality programming and full motion video advertising to more
than 1.4 million consumers and business professionals each day
through wireless digital video screens in the elevators of premier
office towers across North America. Captivate is included above in
Broadcasting revenue. NurseWeek is a multimedia company with print
publications focused on the recruitment, recognition and education of
nurses. Clipper Magazine is a direct-mail advertising magazine company
publishing over 345 individual market editions in 24 states, which are
mailed to over 100 million American homes annually. SMG Publishing
consists of three Scottish newspapers: The Herald, Sunday Herald and
Evening Times; eleven specialty consumer and business-to-business
magazine titles; and an online advertising and content business.
Newsquest (which includes SMG Publishing) is a regional newspaper
publisher in the United Kingdom with more than 300 titles, including
paid and unpaid daily and non-daily products. Circulation volume
statistics for Newsquest's seventeen paid daily newspapers are included
above. Circulation volume statistics for Sunday Herald are included
above in the Sunday statistics. Circulation volume statistics for
Newsquest's unpaid daily and non-daily publications are not reflected
above. Advertising linage for Newsquest publications is not reflected
above.
Circulation volume and advertising linage statistics for non-daily
products, including NurseWeek and Clipper Magazine are not reflected
above.
Certain online advertising revenues in 2003 have been reclassified to
conform with the 2004 presentation. There was no effect on total
revenues.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
2nd Quarter 2004 (March 29 - June 27, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 522,574,000 $ 493,672,000 $ 28,902,000 5.9
National 204,014,000 184,793,000 19,221,000 10.4
Classified 526,651,000 469,342,000 57,309,000 12.2
-------------- -------------- ------------- ----
Total Advertising $ 1,253,239,000 $ 1,147,807,000 $ 105,432,000 9.2
Circulation 306,617,000 302,828,000 3,789,000 1.3
Other revenue 101,149,000 94,967,000 6,182,000 6.5
Broadcasting 212,520,000 195,325,000 17,195,000 8.8
-------------- -------------- ------------- ----
Total Revenue $ 1,873,525,000 $ 1,740,927,000 $ 132,598,000 7.6
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 9,532,647 9,502,183 30,464 0.3
National 1,091,311 1,063,986 27,325 2.6
Classified 15,413,766 15,105,825 307,941 2.0
-------------- -------------- ------------- ----
Total ROP 26,037,724 25,671,994 365,730 1.4
============== ============== ============= ====
Preprint Distribution
(in thousands) 2,823,198 2,769,971 53,227 1.9
============== ============== ============= ====
Note: The operating results from the company's newspapers participating in
joint operating agencies, and which are accounted for under the equity
method of accounting, are reported as a single amount in other operating
revenues. Advertising linage statistics from these newspapers are not
included above, however, circulation volume statistics for these
newspapers are included above.
The above revenue amounts and statistics have been restated to include
all companies presently owned including Captivate (acquired in April
2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired
in late October 2003), SMG Publishing (acquired in April 2003) and 100%
of the Texas-New Mexico Newspapers Partnership (established in March
2003). Captivate is a national news and entertainment network that
delivers quality programming and full motion video advertising to more
than 1.4 million consumers and business professionals each day
through wireless digital video screens in the elevators of premier
office towers across North America. Captivate is included above in
Broadcasting revenue. NurseWeek is a multimedia company with print
publications focused on the recruitment, recognition and education of
nurses. Clipper Magazine is a direct-mail advertising magazine company
publishing over 345 individual market editions in 24 states, which are
mailed to over 100 million American homes annually. SMG Publishing
consists of three Scottish newspapers: The Herald, Sunday Herald and
Evening Times; eleven specialty consumer and business-to-business
magazine titles; and an online advertising and content business.
Newsquest (which includes SMG Publishing) is a regional newspaper
publisher in the United Kingdom with more than 300 titles, including
paid and unpaid daily and non-daily products. Circulation volume
statistics for Newsquest's seventeen paid daily newspapers are included
above. Circulation volume statistics for Sunday Herald are included
above in the Sunday statistics. Circulation volume statistics for
Newsquest's unpaid daily and non-daily publications are not reflected
above. Advertising linage for Newsquest publications is not reflected
above.
Circulation volume and advertising linage statistics for non-daily
products, including NurseWeek and Clipper Magazine are not reflected
above.
Certain online advertising revenues in 2003 have been reclassified to
conform with the 2004 presentation. There was no effect on total
revenues.
Gannett Online Internet Audience
May 2004
Nielsen//NetRatings
Home/Work Panel Combined
|
Unique Visitors Per Month |
Percentage Reach of Internet Audience |
|
| Gannett Online |
18,201,000 |
11.9% |