Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q4 2020 Earnings Presentation
27 slides from Usa Today's earnings presentation, Feb 25, 2021
Slide 1: Q4 and Full Year 2020 Earnings
Q4 and Full Year 2020 Earnings February 25, 2021 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.” Prior to November 19, 2019, our corporate nam
Slide 3: Gannett is a subscription-led and digitally focused media and marketing solutions company
Gannett is a subscription-led and digitally focused media and marketing solutions company committed to empowering communities to thrive. Our strategy is focused on driving audience growth and engagement by delivering deeper content experiences to our consumers, while offering the products and market
Slide 4: Key Operating Priorities
Key Operating Priorities strong opportunity for creating stakeholder value Drive digital Accelerate digital Optimize traditional Prioritize investments Build on inclusive & marketing services subscriber growth print business in growth businesses diverse culture (DMS) growth Expect to reach 10 Signif
Slide 5: Topline Stats: Community Engagement
Topline Stats: Community Engagement local reach across U.S. and U.K.(1) 191M 5.5B 367M 100K+ 14.7M Average Monthly Total Pageviews Total Video Views Paid Race U.S. Daily and U.K. Audience (UVs) (on platform) Participants Weekly Print Readership 1. For the quarter ending December 31, 2020. 5
Slide 6: Topline Stats: Growth Drivers
Topline Stats: Growth Drivers local reach across U.S. and U.K.(1) 1.1M 21K 88% Digital-only DMS Customers Events + Promotions Subscribers Revenue Compared to FY 2019 with pivot to virtual 1. As of December 31, 2020. 6
Slide 7: Performance Highlights: Financial Performance
Performance Highlights: Financial Performance Q4 2020, FY 2020, and subsequent events (1,2) Q4 2020 FY 2020 Revenue of $875.4 million for the quarter, down 16.3% on a Revenue of $3.4 billion for the year, down 18.5% on a same same store pro forma basis to the prior year quarter due to store pro form
Slide 8: Performance Highlights: Balance Sheet and Liquidity
Performance Highlights: Balance Sheet and Liquidity Q4 2020 and subsequent events (1,2) Q4 2020 Term Loan Refinancing Cash on the balance sheet of $170.7 million at the end of Q4 Refinanced remaining 11.5% term loan in February 2021 − Additional debt repayment of $32.6 million subsequent − $1.045 bi
Slide 9: Q4 2020 Results and Non-GAAP Highlights
Q4 2020 Results and Non-GAAP Highlights(1) GAAP Results Non-GAAP Results(1) Total Operating Revenue $875.4M Same store total revenues on a pro $148.8M Adjusted EBITDA forma basis decreased 16.3% Net loss attributable to Gannett ($122.2M) Reflects $74.3 million non-cash loss on the ($24.5M) Free Cash
Slide 10: Balance Sheet and Liquidity
Balance Sheet and Liquidity Significant Debt Repayment $2,000 $1,792M $1,759M $1,746M $1,739M $1,732M $1,800 $1,575M $1,545M $171M Cash on the balance sheet $1,600 at YE 2020 $1,400 $1,200 $1,000 $800 Cash interest savings expected $600 $90M in 2021 as compared to 2020 $400 due to debt repayment and
Slide 11: Integration and Synergy Update
Integration and Synergy Update Annualized synergies target committed to achieve by the In Q4 2020 expense savings $300M end of 2021 – Company $61M from synergies implemented to expects to outperform date In annualized synergies $245M $177M In FY 2020 expense savings from implemented as of year-end s
Slide 12: Integration and Synergy Update
Integration and Synergy Update Estimated Run-Rate Synergies Areas Targeted for Savings Quarterly Update Rationalization of Consolidated 2 print sites in Q4 2020; 37 sites manufacturing and distribution Newspaper consolidated during 2020 $115+ million Centralization of management Operations Manufactu
Slide 13: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights USA TODAY Network covered all aspects of Inauguration Day. With threats of violence in D.C. and state capitals, our newsrooms throughout the country were ready to cover the potential unrest. Fortunately, protesters were sparse, and the transition of power in a
Slide 14: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights A six-part USA TODAY Network series, “Deadly Discrimination,” explored how the policies of the past and present have made people of color prime targets for COVID-19. Reporters traveled to five counties across the country that embody the effects of systemic raci
Slide 15: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights The Impartial Reporter – Amnesty International U.K. Media Award 2020 The outstanding journalism and investigation into historical sexual abuse in Fermanagh by The Impartial Reporter was recognized in October 2020 when The Impartial Reporter scooped The Regional
Slide 16: Quarterly Business Update
Quarterly Business Update 16
Slide 17: Quarterly Business Update: Consumer Marketing
Quarterly Business Update: Consumer Marketing Digital-only Subscription Growth Pro forma paid digital-only subscribers grew 29% over the prior year quarter to ~1,099,000(1) 1. Historical figures adjusted to include Newsquest and Sport Media Group digital subscriptions, based on an updated view from
Slide 18: Quarterly Business Update: B2B Marketing Solutions
Quarterly Business Update: B2B Marketing Solutions ReachLocal’s core sales team saw year-over-year growth every month of Q4 Digital Marketing Solutions segment Q4 same store pro forma revenue trend improved 710 bps over its Q3 2020 trend National sales grew 23% compared to the prior year driven by c
Slide 19: Quarterly Business Update: Events + Promotions
Quarterly Business Update: Events + Promotions Hosted 83 virtual Official Community’s Choice Awards® events including markets such as Oklahoma City, Providence, Austin, Columbus, Indianapolis, Jacksonville, Guam, Rochester, Palm Springs and Nashville with a viewership of more than 58K Premiered the
Slide 20: Appendix
Appendix 20
Slide 21: Gannett Diversified Revenue
Gannett Diversified Revenue(1) Q4 2020 % of FY 2020 % of ($ in millions) Q4 2020 $ FY 2020 $ Total Total Print Advertising Revenue(1) $233.0 26.62% $884.4 25.97% Digital Marketing Services $104.2 11.91% $403.4 11.85% Digital Media $103.5 11.82% $334.3 9.82% Digital Classified $11.9 1.36% $58.0 1.70%
Slide 22: Debt and Leverage Overview
Debt and Leverage Overview Ending Balance as Ending Balance as ($ in millions) Rate of December 31, of February 25, 2020 2021 Convertible Senior Notes due 2024 4.75% $3.3 $3.3 Convertible Senior Notes due 2027 6.0% $497.1 $497.1 Acquisition Credit Facility 11.5% $1,075.2 5-Year Term Loan 7.75%(1) $1
Slide 23: Same Store Pro Forma Revenue Metrics
Same Store Pro Forma Revenue(1) Metrics Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Print Advertising -17.6% -16.8% -17.2% -18.4% 17.6% -21.1% -45% -31.0% -26.9% -31.1% Digital Advertising and Marketing Services -5.1% -4.5% -1.5% 1.7% -2.8% 2.1% -26.2% -13.8% -3.2
Slide 24: Gannett Same Store Revenue Reconciliation
Gannett Same Store Revenue Reconciliation 3 months 3 months Year ended Year ended ended ended (in thousands) $ Variance % Variance December December $ Variance % Variance December December 31, 2020 31, 2019 31, 2020 31, 2019 Total Pro Forma Gannett Revenue $875,447 $1,054,252 ($178,805) -17.0% $4,18
Slide 25: Pro Forma 2019 Quarterly Review
Pro Forma 2019 Quarterly Review ($ in millions) Q1 Q2 Q3 Q4 FY Legacy GCI Print Advertising 186,192 184,246 161,609 177,991 710,038 Digital Advertising and Marketing Services 179,044 184,083 183,614 187,786 734,527 Advertising and Marketing Services 365,236 368,329 345,223 365,777 1,444,565 Circulat
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not be con
Slide 27: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) 3 months ended Year ended 3 months ended Year ended (in thousands) December 31, 2020 December 31, 2020 (in thousands) December 31, December 31, 2020 2020 Net loss attributable to Gannett (122,174) (670,479) Net cash flow provided by operating Provision (benefit) fo