Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q2 2021 Earnings Presentation
26 slides from Usa Today's earnings presentation, Aug 6, 2021
Slide 1: Q2 2021 Earnings
Q2 2021 Earnings August 6, 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.” Cautionary Statement Regarding Forward-Lookin
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. Drive digital Accelerate digital Optimize traditional Prioritize investments Build on inclusive & marketing services subscriber growth print business in growth businesses diverse culture (DMS) growth ≈ 1.4M 20K 2.4M $90M Dig
Slide 5: Topline Stats: Community Engagement
Topline Stats: Community Engagement local and national reach across U.S. and U.K.(1) 174M 4.8B 312M 176K 12.5M 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 June 30, 2021. 5
Slide 6: Q2 2021 Results and Non-GAAP Highlights
Q2 2021 Results and Non-GAAP Highlights(1) GAAP Results Non-GAAP Results(1) Total Operating Revenue Adjusted EBITDA $804.3M Same store total revenues increased $115.8M AEBTIDA grew $37.8M or 48.4% to prior 6.8% year quarter Net Income attributable to Adjusted Net Income $15.1M Gannett $30.1M attribu
Slide 7: Performance Highlights: Financial Performance
Performance Highlights: Financial Performance Q2 2021 Revenue of $804.3 million for the quarter, up 6.8% year over year on a same store basis Same store revenue trend growth impacted by cycling of second quarter 2020, the quarter most negatively impacted by the COVID-19 pandemic Digital-only circula
Slide 8: Balance Sheet and Liquidity
Balance Sheet and Liquidity Q2 2021 and subsequent events (1) Significant Debt Repayment Q2 2021 Cash on the balance sheet of $158.6 million at the end of Q2 $2,000 $1,792M Total debt principal outstanding at June 30, 2021 of $1.491 $1,759M $1,800 $1,746M $1,739M $1,732M billion $1,575M $1,537M $1,6
Slide 9: Key Operating Pillars
Key Operating Pillars Second 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 Digital-only Subscription Growth 1.379M 1.219M 1.099M 1.056M .979M .888M .855M Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Paid digital-only subscribers grew 41% over the prior year quarter to 1.379M 160K net new subscribers quarter over quarter, l
Slide 12: Pillar Two: Driving DMS Growth
Pillar Two: Driving DMS Growth (2) Digital Marketing Solutions Revenue Digital Marketing Solutions Client Count Pandemic shutdown Core system integration / product alignment 140.0 $121.3 M 23.8 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 80.0 15.0 60.0
Slide 13: Pillar Two: Driving DMS Growth
Pillar Two: Driving DMS Growth Digital Marketing Solutions - Core Platform (1) Revenue (M) Client Count (K) (2) 17.1 $105 16.1 15.4 15.3 $93 $96 $94 $90 13.3 13.6 $79 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 2021 - 33% growth YOY YOY client count reduction result of
Slide 14: Pillar Three: Optimizing Traditional Print Business
Pillar Three: Optimizing Traditional Print Business Continued to drive profitability of our traditional print operations through economies of scale, growing commercial revenue 18% over Q1 Improved print advertising trends, up 7% year over year and 4% over Q1 Increased investment in retaining print s
Slide 15: Pillar Four: Prioritize Investments in Growth Businesses
Pillar Four: Prioritize Investments in Growth Businesses USA TODAY NETWORK Ventures Hosted 176,000+ attendees across in-person and virtual events during Q2 2021 USA TODAY High School Sports Awards, the largest high school sports recognition program in the country, kicked off in Q2 − 104 local, regio
Slide 16: Pillar Five: Build on Inclusive & Diverse Culture
Pillar Five: Build on Inclusive & Diverse Culture Current Workforce Demographics as of July 1, 2021(1) 16 1. Race/Ethnicity data is US only. Gender data is global. All data is self reported. Diversity data is published bi-annually at usatodaynetworkcareers.com/workforce-diversity
Slide 17: Pillar Five: Build on Inclusive & Diverse Culture
Pillar Five: Build on Inclusive & Diverse Culture Current Workforce Demographics as of July 1, 2021(1) 17 1. Race/Ethnicity data is US only. Gender data is global. All data is self reported. Diversity data is published bi-annually at usatodaynetworkcareers.com/workforce-diversity
Slide 18: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights Pulitzer Prize Winner: National Reporting ‘Mauled: When Police Dogs Are Weapons’ The Indianapolis Star won the Pulitzer Prize for National Reporting with partners(1) for “Mauled,” a year-long investigation into police dog attacks. Pulitzer Prize Finalist: Break
Slide 19: Journalism Update: Newsroom Highlights
Journalism Update: Newsroom Highlights Society of Professional Journalists’ Sigma Delta Chi awards Deadline reporting: The Nashville tornadoes Immersion journalism: “Inside the Storm” Staff, The Tennessean Non-deadline reporting: “Maricella’s Last Breath” Rory Linnane, Milwaukee Journal Sentinel Inv
Slide 20: Appendix
Appendix 20
Slide 21: Integration and Synergy Update
Integration and Synergy Update Annualized synergies target committed to achieve by the Implemented Q2 2021 $300M end of 2021 $18.1M synergies Met as of Q1 2021 Additional annualized measures In expense savings from synergies $25M+ expected above original target $263M implemented to date 21
Slide 22: Debt and Leverage Overview
Debt and Leverage Overview Q2 2021 principal payments brought 5-Year Term Loan below $1B Ending Balance as ($ in millions) Rate of June 30, 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) $990.5 7.18% Blended Rate Total Debt O
Slide 23: 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 Q2 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% Digital Advertising and Marketing Services -5.1% -4.5% -1.5% 1.7% -2.8% 2.1%
Slide 24: Gannett Same Store Revenue Reconciliation
Gannett Same Store Revenue Reconciliation 3 months 3 months ended ended (in thousands) $ Variance % Variance June 30, June 30, 2021 2020 Total Gannett Revenue $804,275 $767,000 $37,275 4.9% Currency Impacts (7,321) - Exited Operations 7 (21,465) Deferred Revenue Adjustments - 980 Same Store Revenue,
Slide 25: 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 26: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) 3 months ended 3 months ended (in thousands) (in thousands) June 30, 2021 June 30, 2021 Net income attributable to Gannett $15,115 Net income attributable to Gannett $15,115 Provision for income taxes 17,692 Loss on early extinguishment of debt 2,834 Interest expen