Fourth Quarter and Full Year 1995 Earnings
ARLINGTON, Va. — Gannett announced earnings per share of $1.11 in the
fourth quarter of 1995, a new record. In 1994’s quarter, Gannett earned
$1.07 per share.
Results for the quarter include the operations of Multimedia beginning Dec.
4, when Gannett’s acquisition of that company was completed. The Multimedia
acquisition had no material impact on Gannett’s earnings in 1995.
Net income in the 14-week interval reached $155,532,000, a gain of 4 percent
over the 1994 period, which spanned 13 weeks. Operating revenues advanced 9
percent to $1,146,734,000, compared to $1,048,590,000 in 1994. Operating
income was 11 percent higher at $278,903,000. In 1994’s fourth quarter,
operating income was $252,383,000.
Average shares outstanding in the quarter totaled 140,304,000, compared to
139,348,000 in 1994’s fourth quarter.
For the year, earnings per share advanced 6 percent to a record $3.41, from
$3.23 in 1994. Net income was $477,262,000, compared to $465,399,000 in
1994. Operating revenues gained 5 percent to $4,006,736,000. Operating
income in 1995 was $851,883,000, an increase of 5 percent over 1994’s
$812,778,000. Average shares outstanding in 1995 were 140,156,000, compared
to 144,276,000 in 1994.
In a statement, the company said that its broadcasting group achieved record
results for the fourth quarter and full year. Newspaper earnings were lower,
reflecting the impact of sharply higher newsprint costs and a strike at the
Detroit News, which began July 13.
Newspaper profits fell 7 percent in the fourth quarter to $208,945,000.
Newspaper revenues were 5 percent higher at $900,700,000. Advertising
revenues grew 5 percent to $626,553,000, led by continuing gains in
classified advertising.
At USA TODAY, advertising revenues advanced 9 percent in the fourth
quarter. Paid advertising pages increased 8 percent to 1,174 from last
year’s 1,088. For the full year, advertising pages increased 3 percent to
3,953, compared to 3,828 in 1994. Advertising revenues gained 7 percent in 1995 to $200
million.
Broadcasting earnings gained 73 percent in the fourth quarter to
$70,746,000, making 1995 a record year for television and radio profits.
Revenues advanced 20 percent in the quarter to $143,537,000. The Multimedia
acquisition expanded the division to 15 television stations, of
which 9 are affiliated with NBC, four with CBS and two with ABC.
Outdoor profits rose significantly in the fourth quarter, reflecting a 3
percent increase in revenues and reduced operating costs.
Gannett is a nationwide news and information company that publishes 92
newspapers, including USA TODAY, and USA WEEKEND, a newspaper magazine.
Gannett also produces entertainment programming, operates 15 television
stations, 13 radio stations, cable television systems in five states,
security systems and the largest outdoor advertising company in North America.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Gannett Co., Inc. and Subsidiaries
(In thousands)
Quarter ended %
Dec. 31, 1995 Dec. 25, 1994 Chg
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NET OPERATING REVENUES:
Newspaper advertising.................. $ 626,553 $ 598,339 5
Newspaper circulation.................. 233,719 213,652 9
Broadcasting........................... 143,537 119,919 20
Cable.................................. 15,061 0 -
All Other.............................. 127,864 116,680 10
--------- --------- -----
Total.................................. 1,146,734 1,048,590 9
--------- --------- -----
OPERATING EXPENSES:
Cost of sales and operating expenses,
exclusive of depreciation............ 629,750 550,287 14
Selling, general and administrative
expenses, exclusive of depreciation.. 178,822 194,289 (8)
Depreciation........................... 43,079 40,038 8
Amortization of intangible assets...... 16,180 11,593 40
--------- --------- -----
Total.................................. 867,831 796,207 9
--------- --------- -----
OPERATING INCOME....................... 278,903 252,383 11
--------- --------- -----
NON�OPERATING INCOME (EXPENSE):
Interest expense....................... (20,452) (13,420) 52
Other.................................. 4,381 12,721 (66)
--------- --------- -----
Total.................................. (16,071) (699) 2,199
--------- -------- -----
Income before income taxes............. 262,832 251,684 4
Provision for income taxes............. 107,300 102,300 5
--------- --------- -----
Net Income............................. $ 155,532 $ 149,384 4
========= ========= =====
Net income per share................... $1.11 $1.07 4
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Dividends per share.................... $0.35 $0.34 3
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CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Gannett Co., Inc. and Subsidiaries
(In thousands)
Fiscal year ended %
Dec. 31, 1995 Dec. 25, 1994 Chg
------------- ------------- ---
NET OPERATING REVENUES:
Newspaper advertising.................. $2,219,250 $2,152,671 3
Newspaper circulation.................. 869,173 849,461 2
Broadcasting........................... 466,187 406,608 15
Cable.................................. 15,061 0 -
All Other.............................. 437,065 415,783 5
--------- --------- --
Total.................................. 4,006,736 3,824,523 5
--------- --------- --
OPERATING EXPENSES:
Cost of sales and operating expenses,
exclusive of depreciation............ 2,252,540 2,106,810 7
Selling, general and administrative....
expenses, exclusive of depreciation.. 692,358 696,139 (1)
Depreciation........................... 159,657 163,242 (2)
Amortization of intangible assets...... 50,298 45,554 10
--------- --------- --
Total.................................. 3,154,853 3,011,745 5
--------- --------- --
OPERATING INCOME....................... 851,883 812,778 5
--------- --------- --
NON-OPERATING INCOME (EXPENSE):
Interest expense....................... (52,175) (45,624) 14
Other.................................. 3,754 14,945 (75)
--------- --------- --
Total.................................. (48,421) (30,679) 58
--------- --------- --
Income before income taxes............. 803,462 782,099 3
Provision for income taxes............. 326,200 316,700 3
--------- --------- --
Net income............................. $ 477,262 $ 465,399 3
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Net income per share................... $3.41 $3.23 6
========= ========= ==
Dividends per share.................... $1.38 $1.34 3
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BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
(In thousands)
Quarter ended %
Dec. 31, 1995 Dec. 25, 1994 Chg
------------- -------------- ---
OPERATING REVENUES:
Newspaper publishing................. $ 900,700 $ 854,354 5
Broadcasting......................... 143,537 119,919 20
Cable................................ 15,061 0 -
Other businesses..................... 87,436 74,317 18
--------- --------- --
$1,146,734 $1,048,590 9
========= ========= ==
OPERATING INCOME (NET OF DEPRECIATION AND AMORTIZATION):
Newspaper publishing................. $ 208,945 $ 223,661 (7)
Broadcasting......................... 70,746 40,961 73
Cable................................ 4,065 0 -
Other businesses..................... 12,870 6,458 99
Corporate............................ (17,723) (18,697) 5
--------- --------- --
$ 278,903 $ 252,383 11
========= ========= ==
DEPRECIATION & AMORTIZATION:
Newspaper publishing................. $ 38,965 $ 36,223 8
Broadcasting......................... 9,046 7,619 19
Cable................................ 3,798 0 -
Other businesses..................... 5,262 4,784 10
Corporate............................ 2,188 3,005 (27)
--------- ---------- --
$ 59,259 $ 51,631 15
========= ========== ==
OPERATING CASH FLOW:
Newspaper Publishing................. $ 247,910 $ 259,884 (5)
Broadcasting......................... 79,792 48,580 64
Cable................................ 7,863 0 -
Other businesses..................... 18,132 11,242 61
Corporate............................ (15,535) (15,692) 1
--------- ---------- --
$ 338,162 $ 304,014 11
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Notes:
(1) For financial reporting purposes, the Company has established four
separate segments: newspapers; broadcasting (television and radio); cable
television; and a segment for all other business operations. In prior years,
the Companyis operations were reported in three segments: newspapers;
broadcasting; and outdoor advertising. Upon the completion of the Multimedia
acquisition, the Company established a separate business segment for the
acquired cable television division. At the same time, the Company elected to
group its outdoor advertising business along with security alarm and
entertainment businesses acquired from Multimedia in its fourth iOther
Businessesi reporting segment. Additionally, certain businesses previously
reported in the newspaper segment are now reflected in the iOther Businessesi
segment. Prior-year and prior-quarter segment data has been restated to
reflect this reporting change.
(2) Operating Cash Flow represents operating income for each of the Companyis
business segments plus related depreciation and amortization expense.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
(In thousands)
Fiscal Year Ended %
Dec. 31, 1995 Dec. 25, 1994 Chg
------------- ------------- ---
OPERATING REVENUES:
Newspaper publishing................. $3,229,121 $3,136,816 3
Broadcasting......................... 466,187 406,608 15
Cable................................ 15,061 0 -
Other businesses..................... 296,367 281,099 5
--------- --------- --
$4,006,736 $3,824,523 5
========= ========= ==
OPERATING INCOME (NET OF DEPRECIATION AND AMORTIZATION):
Newspaper publishing................. $ 701,568 $ 734,717 (5)
Broadcasting......................... 182,865 128,863 42
Cable................................ 4,065 0 -
Other businesses..................... 30,688 16,311 88
Corporate............................ (67,303) (67,113) 0
--------- --------- --
$ 851,883 $ 812,778 5
========= ========= ==
DEPRECIATION & AMORTIZATION:
Newspaper publishing................. $ 147,711 $ 149,063 (1)
Broadcasting......................... 30,107 29,089 3
Cable................................ 3,798 0 -
Other businesses..................... 18,718 20,245 (8)
Corporate............................ 9,621 10,399 (7)
--------- --------- --
$ 209,955 $ 208,796 1
========= ========= ==
OPERATING CASH FLOW:
Newspaper Publishing................. $ 849,279 $ 883,780 (4)
Broadcasting......................... 212,972 157,952 35
Cable................................ 7,863 0 -
Other businesses..................... 49,406 36,556 35
Corporate............................ (57,682) (56,714) (2)
--------- ---------- --
$1,061,838 $1,021,574 4
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