Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q1 2021 Earnings Presentation
27 slides from Usa Today's earnings presentation, May 7, 2021
Slide 1: Q1 2021 Earnings
GANNETT Q1 2021 Earnings May 7, 2021
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 Pillars
Key Operating Pillars 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 Significa
Slide 5: Topline Stats: Community Engagement
Topline Stats: Community Engagement local reach across U.S. and U.K.(1) 187M 5.5B 369M 38K+ 13.0M Average Monthly Total Pageviews Total Video Views Event Attendees U.S. Daily & U.K. Audience (UVs) (on platform) Weekly Print Readership 1. For the quarter ending March 31, 2021. 5
Slide 6: Topline Stats: Growth Drivers
Topline Stats: Growth Drivers local reach across U.S. and U.K.(1) Drive digital Accelerate digital Optimize traditional Prioritize investments Build on inclusive & marketing services subscriber growth print business in growth businesses diverse culture (DMS) growth 1.2M 20K 2.4M 1st Digital-only DMS
Slide 7: Performance Highlights: Financial Performance
Performance Highlights: Financial Performance Q1 2021 and subsequent events (1) Revenue of $777.1 million for the quarter, down 16.5% on a same store basis to the prior year quarter due to COVID-19 pandemic Same store revenue trend negatively impacted by termination of an industry-wide marketing inc
Slide 8: Performance Highlights: Balance Sheet and Liquidity
Performance Highlights: Balance Sheet and Liquidity Q1 2021 and subsequent events (1) Q1 2021 Term Loan Refinancing Cash on the balance sheet of $163.5 million at the end of Q1 Refinanced remaining 11.5% term loan in February 2021 − $1.045 billion 5-year, senior secured term loan facility − LIBOR+70
Slide 9: Q1 2021 Results and Non-GAAP Highlights
Q1 2021 Results and Non-GAAP Highlights(1) GAAP Results Non-GAAP Results(1) Total Operating Revenue $777.1M Same store total revenues $100.5M Adjusted EBITDA decreased 16.5% Net loss attributable to Gannett $142.3M Reflects $126.6 million non-cash loss on $53.7M Free Cash Flow the derivative associa
Slide 10: Balance Sheet and Liquidity
Balance Sheet and Liquidity Significant Debt Repayment $163.5M Cash on the balance sheet on March 31, 2021 Cash interest savings expected $100M in 2021 as compared to 2020 due to debt repayment and refinancing (1) (2) 1. Acquisition Term Loan included ~$234 million for settlement of the 2024 Convert
Slide 11: Integration and Synergy Update
Integration and Synergy Update Annualized synergies target committed to achieve by the Implemented Q1 2021 $300M end of 2021 $11M synergies Met as of Q1 2021 Additional annualized measures In expense savings from synergies $25M+ expected above original target $182M implemented to date 11
Slide 12: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights The wild weather seasons have increased intensity, and in late February 2021, journalists at the Austin American-Statesman —despite personal challenges to their own comfort and security — continued to produce story after story, exposing failures and delivering
Slide 13: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights After a jury found Des Moines Register reporter Andrea Sahouri not guilty stemming from her arrest while covering protests last May, she reflected on how the verdict sends a message about the rights of journalists to do their jobs. From Amnesty International to
Slide 14: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights The National Wales There was great excitement around the launch of The National Wales, a new national title for Wales filling a major void in the media landscape in a country of 3.1 million people. The need for the title had become clear during the COVID crisis
Slide 15: Quarterly Business Update
Quarterly Business Update 15
Slide 16: Quarterly Business Update: Accelerating Digital Subscriptions
Quarterly Business Update: Accelerating Digital Subscriptions Digital-only Subscription Growth Paid digital-only subscribers grew 37.2% over the prior year quarter to 1.219M 16
Slide 17: Quarterly Business Update: Driving DMS Growth
Quarterly Business Update: Driving DMS Growth ReachLocal’s core sales team continued to achieve year- DMS Clients over-year growth every month of Q1, with the trend Core systems growing into the teens for March 2021 integration Pandemic shutdown ReachLocal’s core sales team achieved highest producti
Slide 18: Quarterly Business Update: Optimizing Traditional Print Business
Quarterly Business Update: Optimizing Traditional Print Business Total Print Subscribers Meeting improved demand for traditional advertising, driving print advertising revenue trends to improvement of 200 basis points over Q4 20 trend Increased investment in retaining print subscribers: − Expanded c
Slide 19: Quarterly Business Update: Prioritize Investments in Growth Businesses
Quarterly Business Update: Prioritize Investments in Growth Businesses USA TODAY NETWORK Ventures Hosted 38,000+ attendees across in-person and virtual events during Q1 2021 Executed first live show since the pandemic began − Columbus (OH) Home & Garden Show was executed at 50% capacity restrictions
Slide 20: Quarterly Business Update: Build on Inclusive & Diverse Culture
Quarterly Business Update: Build on Inclusive & Diverse Culture Launched First Inclusion Report Recognition Received in Q1 2021 Represents our first installment of an annual report focused on our inclusion, diversity & equity efforts It outlines current workforce diversity data as well as the steps
Slide 21: Appendix
Appendix 21
Slide 22: Gannett Diversified Revenue
Gannett Diversified Revenue(1) Q1 2021 % of ($ in millions) Q1 2021 $ Total Print Advertising Revenue(1) $191.7 24.66% Digital Marketing Services $101.3 13.03% Digital Media $79.0 10.16% Digital Classified $13.2 1.70% Total Digital Advertising and Marketing Services Revenue (1) $193.5 24.90% Circula
Slide 23: Debt and Leverage Overview
Debt and Leverage Overview Ending Balance as ($ in millions) Rate of March 31, 2021 Convertible Senior Notes due 2024 4.75% $3.3 Convertible Senior Notes due 2027 6.0% $497.1 5-Year Term Loan 7.75%(1) $1,036.4 7.18% Blended Rate Total Debt Outstanding $1,536.8 post refinancing Q1 2021 LTM Adjusted E
Slide 24: Same Store Revenue Metrics
Same Store Revenue(1) Metrics Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Print Advertising -17.6% -16.8% -17.2% -18.4% 17.6% -21.1% -45% -31.0% -26.9% -31.1% -24.9% Digital Advertising and Marketing Services -5.1% -4.5% -1.5% 1.7% -2.8% 2.1% -26.2% -13.8%
Slide 25: Gannett Same Store Revenue Reconciliation
Gannett Same Store Revenue Reconciliation 3 months 3 months ended ended (in thousands) $ Variance % Variance March 31, March 31, 2021 2020 Total Gannett Revenue $777,084 $948,682 ($171,598) -18.1% Currency Impacts (4,541) - Exited Operations (25) (25,565) Deferred Revenue Adjustments - 1,834 Same St
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 3 months ended (in thousands) (in thousands) March 31, 2021 March 31, 2021 Net loss attributable to Gannett ($142,316) Net cash flow provided by operating $61,316 activities (GAAP basis) Benefit for income taxes (9,109) Capital expenditures (7,607) I