Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q4 2023 Earnings Presentation
32 slides from Usa Today's earnings presentation, Feb 22, 2024
Slide 1: Q4 2023 Earnings
Q4 2023 Earnings February 22, 2024 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 is a diversified media company with expansive reach
Gannett is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. We seek to inspire, inform, and connect audiences as a sustainable, growth- focused media and digital marketing solutions company. Our strategy prioritizes m
Slide 4: Key Stats and Value Drivers
Key Stats and Value Drivers Executed on Growth Segments and Investment Strategy in Q4 2023 Drive Digital Subscription Drive Digital Marketing Value Drivers Growth Solutions (DMS) Growth $41.9M $119.4M $277.1M (4) (6) Digital-only Subscription Revenues DMS Core Platform Revenues Total Digital Revenue
Slide 5: Q4 2023 Results and Non-GAAP Highlights
(1) Q4 2023 Results and Non-GAAP Highlights (1) Revenues Adjusted EBITDA ◦ $669.4M Total Revenues (1) ◦ $74.1M Adjusted EBITDA ◦ Same store revenues improved to down 8.0% compared to ◦ Adjusted EBITDA improvement of $14.6 million sequentially the same period in the prior year. This represents a sequ
Slide 6: Full Year 2023 Results and Non-GAAP Highlights
Full Year 2023 Results and Non-GAAP Highlights(1) (1) Revenues Adjusted EBITDA ◦ $2.7B Total Revenues (1) ◦ $267.7M Adjusted EBITDA ◦ Same store revenues decreased 8.6% compared to the same ◦ Adjusted EBITDA up $10.4 million, or 4.0%, compared to the period in the prior year prior year (2) ◦ $1.1B T
Slide 7: Balance Sheet and Liquidity
Balance Sheet and Liquidity Q4 2023 Significant Debt Repayment Q4 2023 + Cash and cash equivalents of $100.2 million at the end of Q4 2023 $1,759M $1,575M + Total debt principal outstanding at December 31, 2023 of $1,130.6 million $1,369M + Net leverage ratio (1) of 3.8x $1,272M $1,235M $1,220M $1,1
Slide 8: Business Outlook
(1) Business Outlook Full Year 2024 Full Year 2025 & Full Year 2026 Expected to accelerate with growth exceeding 10% year- Total Digital over-year (2) Expected growth of approximately 10% Revenues Expected to make up 50% of total revenues in 2025 and exceed 55% of total revenues in 2026 Expected to
Slide 9: Key Operating Pillars
Key Operating Pillars Fourth Quarter 2023 Update 9
Slide 10: Gannett: Drive Digital Subscription Growth
Gannett: Drive Digital Subscription Growth Driving growth through trusted and unbiased content, data analytics, and improved product experience Digital-only Subscription(1) Growth Digital-only Subscription Revenue Growth 2.03M $41.9M 1.98M 2.02M 1.95M 1.96M 1.99M $40.0M $37.9M $34.5M $35.5M $35.8M $
Slide 11: Digital Marketing Solutions: Drive DMS Growth
Digital Marketing Solutions: Drive DMS Growth Digital Marketing Solutions – Driving Growth and Further Value for our Shareholders Our DMS business is focused on: + Helping SMBs (1) Build their online presence, (2) Drive awareness & leads, (3) Manage & nurture leads and (4) Measure what works + While
Slide 12: Digital Marketing Solutions: Core Platform
Digital Marketing Solutions: Drive DMS Growth Digital Marketing Solutions - Core Platform (1)(2) (2) Revenues (M) Average Customer Count (K) $118.7 $119.7 $121.6 $120.8 $119.4 15.8 15.3 15.3 15.3 $111.4 14.7 14.9 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 (2) (3) ARPU Cu
Slide 13: Appendix
Appendix 13
Slide 14: Gannett Diversified Revenues
Gannett Diversified Revenues(1) Full Year Full Year 2022 Q4 2023 Full Year Full Year 2023 ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 % of Total % of Total 2023 % of Total Print Advertising $670.9 22.8% $148.0 $149.3 $137.2 $142.2 21.2% $576.5 21.6% Digital Marketing Services $467.9 15.9% $
Slide 15: Debt and Leverage Overview
Debt and Leverage Overview ($ in millions) Rate Balance as of December 31, 2023 2024 Notes 4.75% $3.3 2027 Notes 6.0% $485.3 (1) (2) Senior Secured Term Loan (due 2026) 10.46% $350.4 2026 Senior Notes 6.0% $291.6 Total Debt Outstanding 7.38% Blended Rate $1,130.6 (3) Q4 2023 LTM Adjusted EBITDA $267
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a U.S. GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not b
Slide 17: Key Performance Indicators
Key Performance Indicators A key performance indicator ("KPI") is generally defined as a quantifiable measurement or metric used to gauge performance, specifically to help determine strategic, financial, and operational achievements, especially compared to those of similar businesses. We define Digi
Slide 18: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA Digital Marketing Solutions Segment Digital Marketing Solutions Segment 3 months ended 3 months ended (in thousands) (in thousands) December 31, 2023 December 31, 2022 Net income attributable to Gannett $8,043 Net income attributable to Gannett $11
Slide 19: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA Total Company Total Company 3 months ended 3 months ended (in thousands) (in thousands) December 31, 2023 December 31, 2022 Net loss attributable to Gannett $(22,892) Net income attributable to Gannett $32,767 Provision for income taxes 21,581 Bene
Slide 20: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted Net Income attributable to Gannett and Free Cash Flow Total Company Total Company 3 months ended 3 months ended (in thousands) (in thousands) December 31, 2023 December 31, 2023 Net loss attributable to Gannett $(22,892) Cash flow from operating activitie
Slide 21: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Full Year 2023 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Loss attributable to Gannett, and Free Cash Flow Total Company Total Company Full Year ended Full Year ended (in thousands) (in thousands) December 31, 2023 December 31, 2023 Net loss attributabl
Slide 22: Same Store Year-over-Year Revenues Metrics
(1) Same Store Year-over-Year Revenues Metrics FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Print Advertising (8.9)% (7.0)% (11.3)% (12.1)% (16.8)% (11.9)% (10.7)% (8.9)% (11.1)% (11.6)% (10.5)% Digital Advertising and Marketing 7.1% 4.4% (3.5)% (7.8)% (4.3
Slide 23: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Q4 2023 and Q3 2023 Same Store Year-over-Year Revenues Metrics 3 months ended 3 months ended 3 months ended 3 months ended (in thousands) $ Variance % Variance (in thousands) $ Variance % Variance December 31, 2023 December 31, 2022 September 3
Slide 24: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Full Year 2023 Same Store Year-over-Year Revenues Metrics Full Year ended Full Year ended (in thousands) $ Variance % Variance December 31, 2023 December 31, 2022 Print Advertising Revenues $576,545 $670,882 ($94,337) (14.1)% Acquired revenues
Slide 25: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Full Year 2022 and Full Year 2021 Same Store Year-over-Year Revenues Metrics 12 months ended 12 months ended 12 months ended 12 months ended (in thousands) $ Variance % Variance (in thousands) $ Variance % Variance December 31, 2022 December 31
Slide 26: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Q2 2023 and Q1 2023 Same Store Year-over-Year Revenues Metrics 3 months ended 3 months ended 3 months ended 3 months ended (in thousands) $ Variance % Variance (in thousands) $ Variance % Variance June 30, 2023 June 30, 2022 March 31, 2023 Marc
Slide 27: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Q4 2022 and Q3 2022 Same Store Year-over-Year Revenues Metrics 3 months ended 3 months ended 3 months ended 3 months ended (in thousands) $ Variance % Variance (in thousands) $ Variance % Variance December 31, 2022 December 31, 2021 September 3
Slide 28: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Q2 2022 and Q1 2022 Same Store Year-over-Year Revenues Metrics 3 months ended 3 months ended 3 months ended 3 months ended (in thousands) $ Variance % Variance (in thousands) $ Variance % Variance June 30, 2022 June 30, 2021 March 31, 2022 Marc
Slide 29: Gannett Same Store Non-GAAP Revenues Reconciliation
(1) Gannett Same Store Non-GAAP Revenues Reconciliation Q4 2023 and Full Year 2023 Total Digital Revenues, Digital Media Revenues and Digital-only Subscription Revenues 3 months ended 3 months ended Full Year ended Full Year ended (in thousands) $ Change % Change (in thousands) $ Change % Change Dec
Slide 30: Domestic Gannett Media Same Store Non-GAAP Revenues Reconciliation
(1) Domestic Gannett Media Same Store Non-GAAP Revenues Reconciliation Q4 2023 and Full Year 2023 Domestic Gannett Media Total Revenues and Total Digital Revenues 3 months ended 3 months ended Full Year ended Full Year ended (in thousands) $ Change % Change (in thousands) $ Change % Change December
Slide 31: Domestic Gannett Media Same Store Non-GAAP Revenues Reconciliation
(1) Domestic Gannett Media Same Store Non-GAAP Revenues Reconciliation Q4 2022 and Full Year 2022 Domestic Gannett Media Total Digital Revenues 3 months ended 3 months ended Full Year Full Year (in thousands) $ Change % Change (in thousands) $ Change % Change December 31, 2022 December 31, 2021 Dece
Slide 32: Newsquest Same Store Non-GAAP Revenues Reconciliation
(1) Newsquest Same Store Non-GAAP Revenues Reconciliation Q4 2023 and Full Year 2023 Newsquest Total Revenues 3 months ended 3 months ended Full Year ended Full Year ended (in thousands) $ Change % Change (in thousands) $ Change % Change December 31, 2023 December 31, 2022 December 31, 2023 December