UNITED STATES
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):
October 12, 2004
GANNETT CO., INC.
(Exact name of registrant as specified in charter)
| Delaware | 1-6961 | 16-0442930 |
| (State or Other
Jurisdiction of Incorporation or Organization of Registrant) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| 7950 Jones Branch Drive, McLean, Virginia | 22107-0910 | |
| (Address of principal executive offices) | (Zip Code) | |
| (703) 854-6000 | ||
| (Registrant's telephone number, including area code) | ||
| Not Applicable | ||
| (Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On October 12, 2004, Gannett Co., Inc. reported its consolidated financial results for the third quarter ended September 26, 2004. On October 12, 2004, the company also issued a press release announcing the company's statistical report for the period and quarter ended September 26, 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: October 12, 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 October 12, 2004. | |
|
99.2 |
Gannett Co., Inc. Statistical Report Press Release dated October 12, 2004. |
News Release
Tuesday, October 12, 2004
Gannett Co., Inc. Reports Third Quarter Results
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that 2004 third quarter earnings per diluted share, on a GAAP (generally accepted accounting principles) basis, were $1.18 versus $1.03 for the third quarter of 2003, a 14.6 percent increase.
Diluted earnings per share for the first nine months of 2004 were $3.47 compared with $3.15 for the same interval in 2003.
Total operating revenues for the company were $1.82 billion for the third quarter compared to $1.63 billion for the same period last year, an 11.3 percent increase. Net income rose 11.2 percent to $310.2 million versus $279.0 million in 2003's third quarter. Operating cash flow (defined as operating income plus depreciation and amortization) increased to $572.8 million from $523.0 million for the same quarter a year ago.
For the first nine months of 2004, total revenues were $5.42 billion, a 10.8 percent increase over last year. Net income rose 10.1 percent to $939.0 million from $853.2 million and operating cash flow rose 9.1 percent to $1.72 billion.
Average diluted shares outstanding in the third quarter totaled 263,804,000 compared with 272,174,000 in 2003's third quarter. Approximately 10.1 million shares were repurchased during the quarter.
Commenting on the company's performance, Douglas H. McCorkindale, Chairman, President and CEO said: "Gannett achieved solid results in the quarter fueled by industry leading revenue growth. Our newspaper operations posted strong year-over-year gains in advertising, most notably in classified employment and real estate. Our results were tempered, however, by the hurricanes in the Southeast that impacted revenue growth and added to expenses at our newspapers and television stations in Florida. In addition, higher newsprint expense and certain employee benefit costs continue to affect results. Overseas, our Newsquest team made another strong contribution to our results which were also helped by a favorable exchange rate. Our broadcasting segment benefited from Summer Olympics-related advertising on our NBC affiliated stations and strong political advertising."
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 $1.61 billion for the quarter, a 10.3 percent increase year-over-year. Assuming Gannett had owned the same group of properties in the third quarter of 2004 and 2003, advertising revenues would have increased 9.6 percent. On the same pro forma basis, classified advertising advanced 11.9 percent, national revenues rose 8.7 percent and local advertising revenues were up 7.5 percent. Total newspaper segment expenses rose 12.0 percent in the quarter due primarily to higher exchange rates, medical and other benefit expenses, and newsprint expense. Newsprint expense increased 15.1 percent reflecting higher year-over-year prices, moderately higher usage and the impact of a higher Sterling exchange rate. Also, significant costs associated with the single copy circulation price increase at USA TODAY were included in newspaper segment expenses this quarter. Operating cash flow from our newspaper operations, which include USA TODAY and our UK properties, rose 5.1 percent to $478.7 million, versus $455.4 million in the same quarter of 2003.
At USA TODAY, advertising revenues increased 10.2 percent in the third quarter. Paid advertising pages totaled 1,082 compared with 1,023 in 2003's third quarter, a 5.8 percent increase. For the year-to-date, USA TODAY's advertising revenues increased 12.0 percent and paid pages totaled 3,448 compared to 3,338 for the same period in 2003.
BROADCASTING
Broadcasting segment results in the quarter include Captivate Network Inc., acquired in April 2004. In the third quarter, broadcasting operating cash flow increased 34.4 percent to $106.6 million from $79.3 million in the corresponding interval in 2003. Broadcasting revenues rose 19.7 percent to $206.2 million, reflecting strong Olympic and political advertising in the quarter.
Excluding Captivate, television revenues increased 17.3 percent, operating expenses increased 2.2 percent and operating cash flow was up 35.2 percent for the quarter.
NON-OPERATING ITEMS
The company's interest expense was $35.8 million in the quarter, up from $33.9 million in the third quarter of 2003, reflecting higher debt levels from share repurchases and higher short term interest rates. Other non-operating expense primarily reflects non-operating charges for minority interest and Internet investments.
* * *
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. ET 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 1-800-946-0741 (in the U.S.) and 1-719-457-2649 (outside the U.S.) at least 10 minutes prior to the scheduled start of the call. The confirmation code for the conference call is 802641. Replay of the conference call will be available about two hours after the live call. To access the replay, dial 1-888-203-1112 (in the U.S.) and 1-719-457-0820 (outside the U.S.). The access code for the replay is 802641. 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 more than 600 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 21 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
Sept. 26, 2004 Sept. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper advertising $ 1,204,058 $ 1,067,039 12.8
Newspaper circulation 304,610 300,277 1.4
Broadcasting 206,170 172,302 19.7
Other 101,046 91,665 10.2
------------- ------------- ------
Total 1,815,884 1,631,283 11.3
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 952,349 849,088 12.2
Selling, general and
administrative expenses,
exclusive of depreciation 290,707 259,147 12.2
Depreciation 57,680 58,452 (1.3)
Amortization of intangible
assets 2,972 2,134 39.3
------------- ------------- ------
Total 1,303,708 1,168,821 11.5
------------- ------------- ------
Operating income 512,176 462,462 10.7
------------- ------------- ------
Non-operating income
(expense):
Interest expense (35,771) (33,857) 5.7
Other (6,496) (4,573) 42.1
------------- ------------- ------
Total (42,267) (38,430) 10.0
------------- ------------- ------
Income before income taxes 469,909 424,032 10.8
Provision for income taxes 159,700 145,000 10.1
------------- ------------- ------
Net income $ 310,209 $ 279,032 11.2
============= ============= ======
Net income per share-basic $1.19 $1.03 15.5
===== ===== ======
Net income per share-diluted $1.18 $1.03 14.6
===== ===== ======
Dividends per share $0.27 $0.25 8.0
===== ===== ======
Broadcasting includes results from the company's 21 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)
Thirty-nine weeks ended % Inc
Sept. 26, 2004 Sept. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper advertising $ 3,613,020 $ 3,188,467 13.3
Newspaper circulation 923,597 905,888 2.0
Broadcasting 588,148 523,205 12.4
Other 294,106 271,251 8.4
------------- ------------- ------
Total 5,418,871 4,888,811 10.8
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 2,838,349 2,542,682 11.6
Selling, general and
administrative expenses,
exclusive of depreciation 862,023 770,635 11.9
Depreciation 175,783 167,759 4.8
Amortization of intangible
assets 8,310 6,138 35.4
------------- ------------- ------
Total 3,884,465 3,487,214 11.4
------------- ------------- ------
Operating income 1,534,406 1,401,597 9.5
------------- ------------- ------
Non-operating income
(expense):
Interest expense (99,604) (106,300) (6.3)
Other (10,653) 1,178 ***
------------- ------------- ------
Total (110,257) (105,122) 4.9
------------- ------------- ------
Income before income taxes 1,424,149 1,296,475 9.8
Provision for income taxes 485,100 443,300 9.4
------------- ------------- ------
Net income $ 939,049 $ 853,175 10.1
============= ============= ======
Net income per share-basic $3.51 $3.17 10.7
===== ===== ======
Net income per share-diluted $3.47 $3.15 10.2
===== ===== ======
Dividends per share $0.77 $0.73 5.5
===== ===== ======
Broadcasting includes results from the company's 21 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
Sept. 26, 2004 Sept. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper publishing $ 1,609,714 $ 1,458,981 10.3
Broadcasting 206,170 172,302 19.7
------------- ------------- ------
Total $ 1,815,884 $ 1,631,283 11.3
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 429,539 $ 405,339 6.0
Broadcasting 99,030 72,622 36.4
Corporate (16,393) (15,499) (5.8)
------------- ------------- ------
Total $ 512,176 $ 462,462 10.7
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 49,174 $ 50,055 (1.8)
Broadcasting 7,540 6,644 13.5
Corporate 3,938 3,887 1.3
------------- ------------- ------
Total $ 60,652 $ 60,586 0.1
============= ============= ======
Operating Cash Flow:
Newspaper publishing $ 478,713 $ 455,394 5.1
Broadcasting 106,570 79,266 34.4
Corporate (12,455) (11,612) (7.3)
------------- ------------- ------
Total $ 572,828 $ 523,048 9.5
============= ============= ======
Broadcasting includes results from the company's 21 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
Thirty-nine weeks ended % Inc
Sept. 26, 2004 Sept. 28, 2003 (Dec)
Net Operating Revenues:
Newspaper publishing $ 4,830,723 $ 4,365,606 10.7
Broadcasting 588,148 523,205 12.4
------------- ------------- ------
Total $ 5,418,871 $ 4,888,811 10.8
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 1,308,822 $ 1,216,300 7.6
Broadcasting 275,479 232,164 18.7
Corporate (49,895) (46,867) (6.5)
------------- ------------- ------
Total $ 1,534,406 $ 1,401,597 9.5
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 150,307 $ 142,419 5.5
Broadcasting 21,971 19,857 10.6
Corporate 11,815 11,621 1.7
------------- ------------- ------
Total $ 184,093 $ 173,897 5.9
============= ============= ======
Operating Cash Flow:
Newspaper publishing $ 1,459,129 $ 1,358,719 7.4
Broadcasting 297,450 252,021 18.0
Corporate (38,080) (35,246) (8.0)
------------- ------------- ------
Total $ 1,718,499 $ 1,575,494 9.1
============= ============= ======
Broadcasting includes results from the company's 21 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 Sept. 26, 2004
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 478,713 $ 106,570 $ (12,455) $ 572,828
Less:
Depreciation (46,515) (7,227) (3,938) (57,680)
Amortization (2,659) (313) - (2,972)
---------- ---------- --------- ------------
Operating Income $ 429,539 $ 99,030 $ (16,393) $ 512,176
========== ========== ========= ============
Thirteen weeks ended Sept. 28, 2003
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 455,394 $ 79,266 $ (11,612) $ 523,048
Less:
Depreciation (47,921) (6,644) (3,887) (58,452)
Amortization (2,134) - - (2,134)
---------- ---------- --------- ------------
Operating Income $ 405,339 $ 72,622 $ (15,499) $ 462,462
========== ========== ========= ============
Thirty-nine weeks ended Sept. 26, 2004
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $1,459,129 $ 297,450 $ (38,080) $ 1,718,499
Less:
Depreciation (142,310) (21,658) (11,815) (175,783)
Amortization (7,997) (313) - (8,310)
---------- ---------- --------- ------------
Operating Income $1,308,822 $ 275,479 $ (49,895) $ 1,534,406
========== ========== ========= ============
Thirty-nine weeks ended Sept. 28, 2003
Newspaper Consolidated
Publishing Broadcasting Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $1,358,719 $ 252,021 $ (35,246) $ 1,575,494
Less:
Depreciation (136,281) (19,857) (11,621) (167,759)
Amortization (6,138) - - (6,138)
---------- ---------- --------- ------------
Operating Income $1,216,300 $ 232,164 $ (46,867) $ 1,401,597
========== ========== ========= ============
News Release
Tuesday, October 12, 2004
Gannett Co., Inc. Releases September Statistical Report
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the ninth period ended September 26, 2004 increased 7.2 percent, as a result of strength in local and classified advertising. Results for the month were tempered, in part, by the effects of the hurricanes in Florida on our newspaper and television stations there, and the shift of Labor Day into Period 9 this year. 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 increased 5.0 percent for the period.
September
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in September grew 9.1 percent compared with 2003's ninth period on a 1.2 percent decrease in ROP volume and a 7.4 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have risen 6.5 percent.
Pro forma local advertising revenues rose 10.4 percent on an almost one percent increase in ROP ad volume in September. 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, consumer electronics, health, telecommunications and home improvement categories while the department store, entertainment, grocery, financial and restaurant categories lagged last year's comparable period. On a constant currency basis, pro forma local advertising would have increased 8.7 percent.
Pro forma classified revenues advanced 9.8 percent in the ninth period on a 2.2 percent decrease in ROP ad volume. On a constant currency basis, pro forma classified revenues would have advanced 5.7 percent for September. Employment revenues increased 15.0 percent, real estate revenues advanced 13.3 percent, and automotive declined 3.4 percent compared to last year. On a constant currency basis, employment and real estate revenues would have increased 9.6 percent and 8.9 percent, respectively, while automotive would have decreased 5.5 percent.
Pro forma national advertising revenues in September increased 3.9 percent on a 2.4 percent decline in ad volume. National volume at the company's local domestic newspapers fell 1.2 percent in the period. USA WEEKEND, our weekly newspaper magazine, and our UK operations experienced significantly higher national ad revenues in 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 decreased 1.9 percent on a 3.6 percent decline in paid ad pages to 372 from 386. For the ninth period, at USA TODAY, strength in the travel, automotive, financial and packaged goods categories was more than offset by weakness in the entertainment, technology, telecommunications, retail and pharmaceutical categories.
Pro forma broadcasting revenues, which include
Captivate, grew 5.8 percent in the period. Television revenues were 5.1 percent
higher with national revenues up 11.4 percent and local revenues
up 1.4 percent.
Third Quarter
For the third quarter of 2004, total pro forma operating revenues were up 9.0 percent and would have increased 6.9 percent on a constant currency basis.
Newspaper advertising revenues, on a pro forma basis,
for the third quarter advanced
9.6 percent and 7.1 percent on a constant currency basis.
For the third quarter, pro forma local advertising
rose 7.5 percent and would have increased
6.1 percent on a constant currency basis.
Pro forma classified revenues for the quarter increased 11.9 percent and on a constant currency basis would have been 7.9 percent higher. Employment revenues increased 20.4 percent, real estate was up 14.1 percent while auto was down 2.1 percent. On a constant currency basis for the quarter, employment and real estate would have advanced 15.0 percent and 9.7 percent, respectively, while auto would have declined 4.2 percent.
Pro forma national advertising was up 8.7 percent for the third quarter. If the exchange rate had remained constant year-over-year, national advertising would have advanced 7.7 percent. At USA TODAY advertising revenues increased 10.2 percent in the third quarter reflecting a 5.8 percent increase in paid advertising pages to 1,082 compared to 1,023 in the year-ago period.
Pro forma broadcasting revenues increased 18.0
percent and television revenues advanced
17.3 percent for the quarter benefiting, in part, from Olympic and
election-related advertising demand. Based on current pacings, television
revenues for the fourth quarter would be ahead of last year's fourth quarter
results in the low double digits.
* * *
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for August from Nielsen//NetRatings. In August, Gannett's domestic Websites had over 19 million unique visitors reaching 13.1 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 600 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 21 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.
Contact: Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
# # #
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 9 (August 30, 2004 - September 26, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 174,429,000 $ 158,067,000 $ 16,362,000 10.4
National 65,681,000 63,213,000 2,468,000 3.9
Classified 185,067,000 168,563,000 16,504,000 9.8
------------- ------------- ------------ ----
Total Advertising $ 425,177,000 $ 389,843,000 $ 35,334,000 9.1
Circulation 101,498,000 98,787,000 2,711,000 2.7
Other revenue 34,954,000 34,359,000 595,000 1.7
Broadcasting 63,549,000 60,049,000 3,500,000 5.8
------------- ------------- ------------ ----
Total Revenue $ 625,178,000 $ 583,038,000 $ 42,140,000 7.2
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,923,932 2,901,700 22,232 0.8
National 319,356 327,250 (7,894) (2.4)
Classified 4,761,350 4,869,181 (107,831) (2.2)
------------- ------------- ------------ ----
Total ROP 8,004,638 8,098,131 (93,493) (1.2)
============= ============= ============ ====
Preprint Distribution
(in thousands) 933,796 869,805 63,991 7.4
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,108,916 7,158,728 (49,812) (0.7)
Evening 1,193,097 1,234,223 (41,126) (3.3)
------------- ------------- ------------ ----
Total Daily 8,302,013 8,392,951 (90,938) (1.1)
============= ============= ============ ====
Sunday 6,826,266 7,008,375 (182,109) (2.6)
============= ============= ============ ====
Year-to-Date through September 26, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,492,734,000 $ 1,404,536,000 $ 88,198,000 6.3
National 569,629,000 518,311,000 51,318,000 9.9
Classified 1,558,812,000 1,388,190,000 170,622,000 12.3
-------------- -------------- ------------- ----
Total Advertising $ 3,621,175,000 $ 3,311,037,000 $ 310,138,000 9.4
Circulation 923,471,000 913,193,000 10,278,000 1.1
Other revenue 294,247,000 277,465,000 16,782,000 6.0
Broadcasting 590,807,000 530,576,000 60,231,000 11.4
-------------- -------------- ------------- ----
Total Revenue $ 5,429,700,000 $ 5,032,271,000 $ 397,429,000 7.9
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 27,324,508 27,259,932 64,576 0.2
National 3,064,176 2,933,545 130,631 4.5
Classified 45,357,015 44,272,802 1,084,213 2.4
-------------- -------------- ------------- ----
Total ROP 75,745,699 74,466,279 1,279,420 1.7
============== ============== ============= ====
Preprint Distribution
(in thousands) 8,198,532 7,928,054 270,478 3.4
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,093,014 7,066,505 26,509 0.4
Evening 1,212,824 1,242,113 (29,289) (2.4)
-------------- -------------- ------------- ----
Total Daily 8,305,838 8,308,618 (2,780) (0.0)
============== ============== ============= ====
Sunday 6,877,266 7,026,425 (149,159) (2.1)
============== ============== ============= ====
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
3rd Quarter 2004 (June 28 - September 26, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 493,684,000 $ 459,092,000 $ 34,592,000 7.5
National 181,348,000 166,773,000 14,575,000 8.7
Classified 529,715,000 473,301,000 56,414,000 11.9
-------------- -------------- ------------- ----
Total Advertising $ 1,204,747,000 $ 1,099,166,000 $ 105,581,000 9.6
Circulation 304,610,000 299,959,000 4,651,000 1.6
Other revenue 101,078,000 92,394,000 8,684,000 9.4
Broadcasting 206,170,000 174,707,000 31,463,000 18.0
-------------- -------------- ------------- ----
Total Revenue $ 1,816,605,000 $ 1,666,226,000 $ 150,379,000 9.0
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 9,127,053 9,106,021 21,032 0.2
National 924,462 941,908 (17,446) (1.9)
Classified 15,746,962 15,534,352 212,610 1.4
-------------- -------------- ------------- ----
Total ROP 25,798,477 25,582,281 216,196 0.8
============== ============== ============= ====
Preprint Distribution
(in thousands) 2,733,443 2,589,928 143,515 5.5
============== ============== ============= ====
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
August 2004
Nielsen//NetRatings
Home/Work Panel Combined
|
Unique Visitors Per Month |
Percentage Reach of Internet Audience |
|
| Gannett Online |
19,291,000 |
13.1% |