Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Needham Conference 2022
22 slides from Usa Today's conference presentation, Jan 13, 2022
Slide 1: The Path Forward
The Path Forward January 13, 2022 1
Slide 2: Disclaimer and Notes
Disclaimer and Notes In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” Gannett Co., Inc. is referred to in this Pres
Slide 3: Gannett operates a scalable, data-driven digital media platform
Gannett operates a scalable, data-driven digital media platform that is fully aligned with consumer and digital marketing trends. We are a subscription-led and digitally focused media and marketing solutions company that is committed to empowering communities to thrive. Our strategy is focused on dr
Slide 4: Gannett At-a-Glance
Gannett At-a-Glance Key Highlights(1) 1.5M+ $1.0B $467M ~50% Digitally focused content company LTM Digital Quarter End LTM Adjusted Expected Free Cash (2) Digital-Only Revenue (31% of EBITDA Flow Conversion in ▪ Strong local and national brands create significant scale for marketing B2C and B2B Subs
Slide 5: Our Operating Matrix
Our Operating Matrix Strong Focus On Sustainable Value Creation 5
Slide 6: Pillar One: Accelerating Digital Subscriptions
Pillar One: Accelerating Digital Subscriptions Commitment to customer obsessed, subscription led model based on honest, authentic, unbiased premium journalism Test and implement new Elevate product Make content our core Nimble content and operating models and experience and Leverage data insights cu
Slide 7: Pillar Two: Driving DMS Growth
Pillar Two: Driving DMS Growth The LOCALiQ platform is used by local businesses to find, convert and keep customers. It’s an all-in-one marketing platform that optimizes any marketing budget to deliver more relevant messages to local consumers with a suite of marketing automation, channel campaign m
Slide 8: Pillar Two: Driving DMS Growth - Go-to-market Model Expansion
Pillar Two: Driving DMS Growth DMS Go-to-market Model Expansion Both go-to-market models compliment each other and cater to different market segments Current Model 2022 Model Expansion Marketing Led Awareness & Account Creation Customer LOCALiQ Sales Rep Freemium Service Rep Platform Goal: Goal: Con
Slide 9: Pillar Three: Optimizing Traditional Print Business
Pillar Three: Optimizing Traditional Print Business Evolving experience to embrace digital future while benefitting audience and customers Strategically evolve business model including: − Full electronic Saturday edition (e-Edition) in majority of markets expected in Q1 2022 − Expanded e-Edition ben
Slide 10: Pillar Four: Prioritize Investments in Growth Businesses such as USA TODAY Network Ventures
Pillar Four: Prioritize Investments in Growth Businesses such as USA TODAY Network Ventures (1) USA TODAY NETWORK Ventures builds community through enviable local reach Building community experiences across the U.S. and U.K., both in-person and virtually Revenue Mix Representative Events Annual Even
Slide 11: Pillar Five: Build on Inclusive & Diverse Culture
Pillar Five: Build on Inclusive & Diverse Culture Transparency & Commitment Committed Goals by 2025: Our Actions – We Will: By the end of 2021, expand the demographic data we track, providing Transparently sharing our workforce demographics both internally and employees the opportunity to voluntaril
Slide 12: Balance Sheet and Liquidity
Balance Sheet and Liquidity Commitment to Deleveraging (1) Cash Outflows Unlocking Free Cash Flow $462M • Significantly improved Free Cash Flow conversion in 2021 and expect continued improvement into 2022 due to reduction in interest expense via $393M $386M refinancing and a decrease in pension obl
Slide 13: Framing the Opportunity...For Shareholder Return
Framing the Opportunity...For Shareholder Return Bottom Line Organic Growth Creation. We have a digital subscription business that leverages our content platform and a digital marketing solutions business that leverages our LocaliQ platform; both of which capitalize on our B2C and B2B businesses. We
Slide 14: Appendix
Appendix 14
Slide 15: Company History
Company History New Media’s acquisition of Gannett in November 2019 created the largest local-to-national media network in the U.S. ✓ Refinanced remaining $1.0 Gannett separates from billion of debt in Q1 and again its broadcasting and in Q3 to Term Loan B due digital businesses (now 2026 and Senior
Slide 16: Q3 2021 Results and Non-GAAP Highlights
Q3 2021 Results and Non-GAAP Highlights(1) GAAP Results Non-GAAP Results(1) Total Operating Revenue Adjusted EBITDA $800.2M Same store total revenues increased 0.9% $102.1M AEBTIDA grew $14.1M or 16.0% to prior year quarter Net Income attributable to Gannett Adjusted Net Income attributable to $14.7
Slide 17: Pillar One: Accelerating Digital Subscriptions
Pillar One: Accelerating Digital Subscriptions We believe growth segments are well–positioned to capitalize on positive digital media tailwinds Digital-only Subscription Growth • Paid digital-only subscribers grew 1,800,000 0.6 1.54M 46.1% in Q3 2021 over the prior 1,600,000 0.5 1.38M year quarter t
Slide 18: Pillar Two: Driving DMS Growth
Pillar Two: Driving DMS Growth Digital Marketing Solutions - Core Platform (1) Revenue (M) Client Count (K) (2) $112.7 17.1 $104.7 16.1 15.4 15.3 15.4 $93.4 $89.6 $95.7 $93.9 13.3 13.6 $78.7 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 2021 - 26% growth YOY
Slide 19: Bringing it All Together...and Looking Forward
Bringing it All Together...and Looking Forward Higher Recurring and Visible Business Subscription-Based Revenue Recurring LocaliQ Platform Revenue Note: LTM 2021 Q3 Circulation revenue Note: LTM 2021 Q3 Digital Media/Classified and DMS Revenue 51% 82% Recurring digital revenue Flighted revenue Subsc
Slide 20: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) Adjusted EBITDA and Cash Outflows Q3 2021 LTM Total Company (in thousands) LTM Ended 9/30/21 (in thousands) LTM Ended 9/30/21 Net loss attributable to Gannett (234,688) Cash Tax (8,340) Provision (benefit) for income taxes 316 Cash Interest 121,885 Interest expense
Slide 21: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) Adjusted EBITDA for Q3’21 Total Company Digital Marketing Solutions Segment 3 months ended 3 months ended (in thousands) (in thousands) September 30, 2021 September 30, 2021 Net income attributable to Gannett $14,687 Net income attributable to Gannett $5,005 Provis
Slide 22: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) Adjusted Net Income attributable to Gannett and Free cash flow for Q3’21 3 months ended 3 months ended (in thousands) (in thousands) September 30, 2021 September 30, 2021 Net income attributable to Gannett $14,687 Net cash flow provided by operating activities (GAA