Gannett(GCI) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 were $571.6 million, a decrease of 10.1$635.8 million in Q1 2024[13] - Operating income for Q1 2025 was $9.8 million, a significant improvement from an operating loss of$49.9 million in Q1 2024[13] - Net loss attributable to Gannett was $7.3 million, compared to a net loss of$84.8 million in the prior year, reflecting a 91.4% reduction in losses[13] - Adjusted EBITDA for the three months ended March 31, 2025, was $50.509 million, down from$57.589 million in the same period of 2024, representing a decline of 12.1%[103][104] - The company recognized a pre-tax gain of approximately $20.8 million from the sale of the Statesman to Hearst Corporation on February 28, 2025[105] Revenue Breakdown - Digital revenues decreased to$250.4 million, down 6.4% from $267.5 million in the same period last year[13] - Print and commercial revenues fell by 12.8$321.2 million from $368.3 million year-over-year[13] - Digital revenues accounted for$250.394 million, which is 43.8% of total revenues for Q1 2025, compared to $267.499 million or 42.0$108.709 million in revenue for Q1 2025, down from $117.045 million in Q1 2024[28][29] Cash Flow and Assets - Cash provided by operating activities was$23.3 million, slightly up from $22.5 million in Q1 2024[14] - The company reported a decrease in cash and cash equivalents to$85.9 million from $106.3 million at the end of 2024[11] - Total assets decreased to$1.95 billion as of March 31, 2025, down from $2.04 billion at the end of 2024[11] - Total liabilities decreased to$1.80 billion, down from $1.89 billion at the end of 2024[11] - The company’s total equity decreased to$149.6 million as of March 31, 2025, down from $152.6 million at the end of 2024[11] Debt and Interest - Total debt as of March 31, 2025, was$1.008 billion, down from $1.080 billion at the end of 2024, representing a decrease of 6.7$20.1 million, significantly higher than $9.3 million in the prior year, marking a 116.2$1.3 million on early extinguishment of debt due to prepayments on the 2029 Term Loan Facility[47] Operational Costs - Integration and reorganization costs for the three months ended March 31, 2025, amounted to $9.498 million, compared to$17.881 million in the same period of 2024[103][104] - The company recorded an impairment charge of approximately $1.9 million for the three months ended March 31, 2025, compared to$46.0 million in the prior year[118][119] - Corporate and other operating expenses decreased by 62% to $26.5 million for the three months ended March 31, 2025, compared to$70.0 million in the same period of 2024[191] Shareholder Information - The company did not repurchase any shares of Common Stock under the Stock Repurchase Program during the three months ended March 31, 2025, leaving approximately $96.9 million remaining authorized for repurchase[89] - The company does not currently pay a quarterly dividend and has restrictions on dividend payments due to the terms of its indebtedness[207] Taxation - The effective tax rate for the three months ended March 31, 2025, was 48.2$43.6 million, an increase from $41.7 million as of December 31, 2024[79] Legal Proceedings - The company is involved in ongoing legal proceedings, including a civil action against Google for anticompetitive practices, but does not expect these to materially affect its financial position[95][96] Digital Strategy - The company is focused on a digital-first strategy to drive audience growth and engagement while diversifying revenue streams through its digital marketing solutions brand, LocaliQ[113]