Gannet (GCI)

Q4 2010 Earnings Call

January 31, 2011 10:00 am ET


Gracia Martore - President and Chief Operating Officer

Craig Dubow - Chairman of the Board, Chief Executive Officer, Chairman of Executive Committee and Member of Digital Technology Committee


Douglas Arthur - Evercore Partners Inc.

James Goss - Barrington Research Associates, Inc.

Leo Kulp - Citigroup Inc

Craig Huber -

Michael Kupinski - Noble Financial Group

Alexia Quadrani - JP Morgan Chase & Co

John Janedis - UBS Investment Bank

Edward Atorino - The Benchmark Company, LLC



Good day, everyone, and welcome to Gannett's Fourth Quarter and Year-end 2010 Earnings Conference Call. [Operator Instructions]

Our speakers for today will be Craig Dubow, Chairman and Chief Executive Officer; and Gracia Martore, President and Chief Operating Officer. At this time, I would like to turn the conference over to Gracia Martore. Please go ahead.

Gracia Martore

Thanks, Sarah. Good morning, and welcome to our conference call and webcast to review Gannett's fourth quarter 2010 results which we released prior to the market open this morning. Hopefully, you had an opportunity to review them. You can also find them at

Before we get started, as always, I need to remind you that our conference call and webcast today may include forward-looking statements, and our actual results may differ. Factors that might cause them to differ are outlined in our SEC filings. This presentation also includes certain non-GAAP financial measures. We have provided a reconciliation of those measures to the most directly comparable GAAP measures in the press release and on the Investor Relations portion of our website.

With me today, in addition to Craig, are Paul Saleh, our CFO; Jeff Heinz, our Head of IR. Craig will provide an update on several strategic efforts and summarize our results for the fourth quarter and full year. And then, I'll review the quarter and results for each of our business segments in a little more detail. Given the update we just provided at the UBS conference in December, we'll keep our comments relatively brief.


Craig Dubow

Thank you, Gracia, and good morning, everyone. We are pleased with a positive results that we delivered for the fourth quarter and full year. We recognized that the media landscape was changing and that we would need to take proactive measures to ensure the Gannet is best positioned to adapt to the changing environment and continues to operate successfully. Over the last year, we have strengthened our balance sheet and enhanced our financial flexibility, created and customized attractive multi-platform content for our customers, improved our production and distribution functions, enhanced our local market presence in both our Publishing and Broadcast segments and restructured costs and created efficiencies throughout the organization, among others. As a result of our actions, we've improved the profitability of each of our business segments and generated operating cash flow of $1.3 billion this year despite the challenging operating environment.

Now let me turn to the fourth quarter results. Our were fourth quarter results reflect another quarter of significantly better profitability and overall revenue growth. Our Broadcasting and Digital segment revenue growth was higher compared to last year, dramatically higher in the case of Broadcasting. We progressed on the year-over-year comparisons in our Publishing segment, although our results mirrored the state of the economy here and in the U.K. Domestically, results were strong in auto and employment, while real estate continued to show slower growth.

In the U.K., operating environment remains very challenging for us. Our focus on strategically identifying efficiency opportunities resulted in substantial growth in our profitability overall compared to the fourth quarter last year. I am pleased to report another quarter of significant earnings per share growth. Excluding special items, our EPS for the fourth quarter was $0.83, up about 19% from the fourth quarter of 2009. Most importantly, we generated operating cash flow of almost $400 million in the quarter. Gracia will discuss our quarterly results in more detail in just a moment.

But before that, let me raise a few things that I want to discuss about our strategic initiatives in more detail, the three key actions that reflect our commitment to enhancing and customizing our marketing solutions for advertisers to help their businesses grow, extending our reach and broadening our engagement in our local markets and delivering content on any platform consumers want, anywhere they want it.

Our partnership with Yahoo! is a great example of our ability to adapt to changing advertiser choices and customizing our advertisers solutions to help their business. In this environment, it is critically important for us to have Digital solutions for advertisers in our local markets, and Yahoo! enhances the digital alternatives turn it did for our marketing and sales team.

To be clear, the partnership with Yahoo! leverages the strength of our local market presence, our trusted brands and our local advertising relationships with Yahoo!'s audience and display advertising leadership. With Yahoo!, we have a significant competitive advantage in our markets. We can offer our advertisers unmatched audience reach and the ability to target their customers precisely based on attributes like demography, geography and behavior. Thus far, the partnership is working as planned. In U.S. Community Publishing, 39 sites have rollout Yahoo and several other sites will be completed by the end of March. Our local Digital sales teams have started the remaining launches.

In Broadcasting, all seven of our targeted markets have launched Yahoo! The final market, KPNX, launched about two weeks ago with the Arizona Republic. Building on our already strong presence in our local TV markets is a top priority for our Broadcasting management team. As we have reported in the past, we have partnered with DataSphere to launch hyper-local sites in an effort to deliver localized content to our consumers and a digital ad solution to small local businesses, something that we have not offered in the past.

Read the rest of this transcript for free on

If you liked this article you might like

Towers Watson & Co. - Analyst/Investor Day

Towers Watson & Co. - Analyst/Investor Day

Cresud's CEO Discusses F2Q12 Results - Earnings Call Transcript

Cresud's CEO Discusses F2Q12 Results - Earnings Call Transcript

Ocean Power Technologies Management Discusses Q1 2013 Results - Earnings Call Transcript

Ocean Power Technologies Management Discusses Q1 2013 Results - Earnings Call Transcript

Microsemi Corporation - Analyst/Investor Day

Microsemi Corporation - Analyst/Investor Day

Lattice Semiconductor's CEO Presents At Deutsche Bank's DbAccess 2012 Technology Conference (Transcript)

Lattice Semiconductor's CEO Presents At Deutsche Bank's DbAccess 2012 Technology Conference (Transcript)