Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Needham 16th Annual Technology & Media Conference 2021
19 slides from Usa Today's conference presentation, May 18, 2021
Slide 1: Needham 16th Annual Technology & Media Conference
Needham 16th Annual Technology & Media Conference May 18, 2021 1
Slide 2: Disclaimer and Notes
2 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 n
Slide 3: Today's Presenters
3 Today’s Presenters Michael ReedChairman & Chief Executive OfficerMayur GuptaChief Marketing & Strategy Officer Doug HorneChief Financial OfficerKris BartonChief Product Officer
Slide 4: Subscription-led, 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 5: Company History
Company HistoryNew Media’s acquisition of Gannett in November 2019 created the largest local-to-national media network in the U.S. 2015 Gannett separates from its broadcasting and digital businesses (now TEGNA) 2019 New Media acquires Gannett for $2.1 billion in a cash and stock transaction in Novem
Slide 6: Significant Achievement Against 2020 Gannett Priorities
6 Significant Achievement Against 2020 Gannett Priorities Implement $300M in synergies by year end 2021 Continue normal course cost reduction programs to mitigate pandemic Aggressively pay down debt with goal to refinance term loan at end of 2021 Stabilize revenue trends by reducing reliance on prin
Slide 7: Key Operating Pillars
7 Key Operating Pillarsstrong opportunity for creating stakeholder value Accelerate digital subscriber growth Drive digital marketing services (DMS) growth Optimize traditional print business Prioritize investments in growth businesses Build on inclusive & diverse culture Significant digital scaleLe
Slide 8: Accelerate Digital Subscriptions: 4 Priorities
Launch New Subscriber Products To Expand TAM Strengthen Retention & Diversify Subscriber Acquisition Optimize Content, Product, Marketing (Customer Obsession) Data Foundation & Agile Growth Rhythm Accelerate Digital Subscriptions: 4 Priorities USA TODAY opportunityNew product launchesTest & learn ne
Slide 9: Drive DMS Growth: Opportunity & Value Creation
9 Drive DMS Growth: Opportunity & Value Creation Significant local community footprint, trusted brands, in-market sales teams create unique opportunity to help local businesses thriveAccess and reach national brands do not haveAlready one of the largest DMS players in the marketNational competitors
Slide 10: Drive DMS Growth: 3 Priorities
Client Experience Go-to-Market Channel Expansion Product Expansion Drive DMS Growth: 3 Priorities Client Engagement with the LOCALiQ platformImproved customer service experiences Fully managed, one-stop shop integrated solutions forBuilding digital presenceDriving awareness & leadsManage & nurturing
Slide 11: Optimizing Traditional Print Business: Retain & Engage
11 Optimizing Traditional Print Business: Retain & Engage Increased investment in retaining print subscribers:Expanded content in response to customer feedbackEnhanced customer service through completed integration to a centralized customer service centerLoyalty programs and subscriber-only offering
Slide 12: Prioritize Investments in Growth Businesses: Identify – Test – Invest
12 Prioritize Investments in Growth Businesses: Identify – Test - Invest Identify: Sports Betting / Online GamingActively in discussions with online gaming partners to leverage our unparalleled assets and footprint in a partnershipAnnouncement pending Q2 2021Test: NFTsTesting first auction in severa
Slide 13: Build on Inclusive & Diverse Culture
13 Build on Inclusive & Diverse Culture: Transparency & Commitment By the end of 2021, expand the demographic data we track, providing employees the opportunity to voluntarily self-identify in order to better understand and serve our workforce, including those who are living with a disability, are L
Slide 14: Topline Stats: Community Engagement
14 Topline Stats: Community Engagementlocal reach across U.S. and U.K.(1) For the quarter ending March 31, 2021. Average Monthly Audience (UVs) 187M Total Pageviews Total Video Views (on platform) Event Attendees 5.5B 369M 38K+ U.S. Daily & U.K. Weekly Print Readership 13.0M
Slide 15: Topline Stats: Growth Drivers
15 Topline Stats: Growth Driverslocal reach across U.S. and U.K.(1) As of May 7, 2021. Digital-only Subscribers 1.2M DMS Customers Live Event HeldSince Onset of PandemicSafely welcomed 18,000+ attendees over 3 days 20K Accelerate digital subscriber growth Drive digital marketing services (DMS) growt
Slide 16: Q1 2021 Results and Non-GAAP Highlights
16 Q1 2021 Results and Non-GAAP Highlights(1) Total Operating RevenueSame store total revenues on a pro forma basis decreased 16.5% $777.1M Adjusted EBITDAUp 1.4% to prior year quarter Free Cash Flow $100.5M $53.7M Net Cash Flow Providedby Operating Activities $61.3M Non-GAAP Results(1) GAAP Results
Slide 17: Non-GAAP Reconciliation
17 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
Slide 18: Gannett Non-GAAP Reconciliation
18 Gannett Non-GAAP Reconciliation(1) (in thousands) 3 months endedMarch 31, 2021 Net loss attributable to Gannett ($142,316) Benefit for income taxes (9,109) Interest expense 39,503 Loss on early extinguishment of debt 19,401 Non-operating pension income (23,878) Loss on Convertible notes derivativ
Slide 19: Gannett Same Store Revenue Reconciliation
19 Gannett Same Store Revenue Reconciliation (in thousands) 3 months endedDecember 31, 2020 3 months endedDecember 31, 2019 $ Variance % Variance Total Pro Forma Gannett Revenue $777,084 $948,682 ($171,598) -18.1% Acquired Revenue - - Currency Impacts (4,541) - Exited Operations (25) (25,565) Deferr
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