Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q3 2021 Earnings Presentation
29 slides from Usa Today's earnings presentation, Nov 5, 2021
Slide 1: Q3 2021 Earnings
Q3 2021 Earnings November 5, 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.” 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: Topline Stats: Growth Drivers
Topline Stats: Growth Drivers local and national reach across U.S. and U.K. in Q3 2021 Drive digital Accelerate digital Optimize traditional Prioritize investments Build on inclusive & marketing solutions subscriber growth print business in growth businesses diverse culture (DMS) growth 1.5M+ 15K 2.
Slide 5: Topline Stats: Community Engagement
Topline Stats: Community Engagement local and national reach across U.S. and U.K. in Q3 2021 179M 5.0B 389M 2.1M 11.7M Average Monthly Total Quarterly Total Quarterly Total Quarterly U.S. Daily & U.K. Digital Audience Pageviews Video Views Event Attendees Average Weekly (on platform) Live and Virtua
Slide 6: 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 $102.1M AEBTIDA grew $14.1M or 16.0% to prior 0.9% year quarter Net Income attributable to Adjusted Net Income $14.7M Gannett $26.5M attribu
Slide 7: Performance Highlights: Financial Performance
Performance Highlights: Financial Performance Q3 2021 Revenue of $800.2 million for the quarter, up 0.9% year over year on a same store basis Same store revenue trend growth reflects the cycling of third quarter 2020 when revenue trends remained negatively impacted by the COVID-19 pandemic Two-year
Slide 8: Balance Sheet and Liquidity
Balance Sheet and Liquidity Q3 2021 and subsequent events (1) Significant Debt Repayment Q3 2021 Cash on the balance sheet of $141.3 million at the end of Q3 Total debt principal outstanding at September 30, 2021 of $2,000 $1.400 billion $1,792M $1,759M $1,746M $1,800 $1,739M $1,732M − Net leverage
Slide 9: Key Operating Pillars
Key Operating Pillars Third Quarter 2021 Update 9
Slide 10: 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 11: Pillar One: Accelerating Digital Subscriptions
Pillar One: Accelerating Digital Subscriptions 1,700,000 Digital-only Subscription Growth 1.65M+0.6 1.54M 1,500,000 1.38M 50.2% 0.5 1,300,000 1.22M 46.1% 1.06M 1.10M 1,100,000 40.9% 0.4 0.98M 37.2% 0.86M 0.89M 900,000 0.3 28.5% 700,000 500,000 0.2 300,000 0.1 100,000 (100,000) Dec-19 Mar-20 Jun-20 S
Slide 12: 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 95.7 93.9 89.6 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 ARPU (3
Slide 13: Pillar Three: Optimizing Traditional Print Business
Pillar Three: Optimizing Traditional Print Business Print advertising revenue trend on a same store basis in Q3 improved by 280 basis points compared to Q2 on a two-year pro forma CAGR (1) Increased investment in retaining print subscribers is improving retention metrics year over year: − Expanded c
Slide 14: Pillar Four: Prioritize Investments in Growth Businesses
Pillar Four: Prioritize Investments in Growth Businesses USA TODAY NETWORK Ventures Hosted 2.1 million attendees across 71 in-person and virtual events during Q3 2021 − Ventures hosted 24 races from RAGBRAI to in-person marathons to virtual Justice League Run Series 33% growth year-over-year in Vent
Slide 15: Pillar Five: Build on Inclusive & Diverse Culture
Pillar Five: Build on Inclusive & Diverse Culture New Employee Resource Group (ERG) Gannett launched our 11th ERG, MENA Forward – a group that creates a safe, supportive space committed to empowering and amplifying the voices of our Middle Eastern and North African employees and allies while expandi
Slide 16: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights 9/11: 20 years later Olympics: By the numbers Our journalists covered countless • More than 150 journalists across angles on how our lives have changed Gannett registered bylines and many over the last two decades. USA TODAY others lent their time and talent to
Slide 17: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights Exiting Afghanistan ‘Death Sentence’ investigation When Kabul fell, USA TODAY freelancer An investigation by the Indianapolis Star Fatema Hosseini needed to get out fast. revealed that since 2010, more than 300 As a female journalist and as a member people have
Slide 18: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights Newsquest’s journalism received a phenomenal 10 awards in this year’s UK Regional Press Awards These annual awards in the UK recognise reporters, columnists, designers, photographers, scoops, campaigns and digital initiatives. Among the accolades that Newsquest
Slide 19: Appendix
Appendix 19
Slide 20: Integration and Synergy Update
Integration and Synergy Update Annualized synergies target committed to achieve by the Implemented Q3 2021 $300M end of 2021 $20.6M synergies Met as of Q1 2021 Additional annualized measures expected above original target In expense savings from synergies $25M+ Met as of Q3 2021 $295M implemented to
Slide 21: Debt and Leverage Overview
Debt and Leverage Overview Q3 2021 principal payments brought 5-Year Term Loan below $1B Ending Balance as ($ in millions) Rate of September 30, 2021 2024 Convertible Senior Notes 4.75% $3.3 2027 Convertible Senior Notes 6.0% $497.1 5-Year Term Loan 7.75%(1) $899.4 Total Debt Outstanding 7.12% Blend
Slide 22: Debt and Leverage Overview – Pro Forma for October 2021 Refinancing
Debt and Leverage Overview – Pro Forma for October 2021 Refinancing Pro Forma Balance ($ in millions) Rate as of September 30, 2021 2024 Convertible Senior Notes 4.75% $3.3 2027 Convertible Senior Notes 6.0% $497.1 5-Year Term Loan 7.75% $0.0 New Senior Secured 5-Year Term Loan 5.50%(1) $516.0 2026
Slide 23: Pillar Two: Driving DMS Growth
Pillar Two: Driving DMS Growth (2) Digital Marketing Solutions Revenue Digital Marketing Solutions Client Count (K) Pandemic shutdown Core system integration / product alignment 140.0 $121.3 M 23.8 $116.8 M 25.0 120.0 $107.3 M $110.0 M 22.1 $105.4 M 21.2 20.8 $102.3 M 20.2 20.0 100.0 $94.6 M 20.0 18
Slide 24: Gannett Diversified Revenue
Gannett Diversified Revenue(1) Q3 2021 ($ in millions) Q1 2021 Q2 2021 Q3 2021 % of Total Print Advertising Revenue(2) $193.2 $201.0 $190.0 23.7% Digital Marketing Services $101.5 $111.4 $117.0 14.6% Digital Media $80.5 $95.0 $91.6 11.4% Digital Classified $13.2 $12.8 $13.3 1.7% Total Digital Advert
Slide 25: Same Store Year-over-Year Revenue Metrics
Same Store Year-over-Year Revenue(1) Metrics Q1 Q2 Q3 Q4 Q2 Q3 Q4 FY Q1 Q2 Q3 FY 2019 Q1 2020 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 Print Advertising -17.6% -16.8% -17.2% -18.4% 17.6% -21.1% -45% -31.0% -26.9% -31.1% -24.9% 10.5% -4.2% Digital Advertising and Marketing -5.1% -4.5% -
Slide 26: Gannett Same Store Revenue Reconciliation
Gannett Same Store Revenue Reconciliation 3 months 3 months ended ended $ % (in thousands) September September 30, Variance Variance 30, 2021 2020 Total Revenue $800,185 $814,539 ($14,354) -1.8% Currency Impacts (3,778) - Exited Operations - (26,168) Deferred Revenue Adjustments(1) - 563 Same Store
Slide 27: 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 28: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) Adjusted EBITDA 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 Provision for in
Slide 29: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) Adjusted Net Income attributable to Gannett and Free cash flow 3 months ended 3 months ended (in thousands) September 30, 2021 (in thousands) September 30, 2021 Net income attributable to Gannett $14,687 Net cash flow provided by operating activities Loss on early