Gannett(US:GCI)2024-02-21 16:00Debt and Interest Expenses - As of December 31, 2023, the company had total variable and fixed-rate debt of $350.4 million and $780.2 million, respectively[455]. - A hypothetical interest rate increase of 100 basis points would have increased interest expense related to variable-rate debt by approximately $3.5 million for the year ended December 31, 2023[455]. - As of December 31, 2023, total debt amounted to $1,130.6 million, a decrease from $1,272.2 million in 2022, representing a reduction of approximately 11.1%[584]. - The Senior Secured Term Loan has an effective interest rate of 11.3% as of December 31, 2023, with interest expense recognized at $40.0 million for the year[590][589]. - The Company recognized interest expense of $19.5 million for the 2026 Senior Notes for the year ended December 31, 2023[598]. - The Company recognized interest expense of $29.1 million for both the years ended December 31, 2023 and 2022, with an effective interest rate of 10.5%[615]. Financial Performance - Total revenues for 2023 were $2,663,550, a decrease of 9.5% from $2,945,303 in 2022[495]. - Advertising and marketing services revenue decreased to $1,387,114 in 2023, down 7.3% from $1,496,137 in 2022[495]. - Circulation revenue fell to $927,821, a decline of 14.5% compared to $1,084,637 in 2022[495]. - Operating income for 2023 was $86,271, a significant recovery from an operating loss of $33,599 in 2022[495]. - Net loss attributable to Gannett was $27,791 in 2023, an improvement from a net loss of $78,002 in 2022[495]. - Gannett reported a net loss of $27,894,000 for the year ended December 31, 2023, a significant improvement from a net loss of $78,255,000 in 2022[496]. - Cash provided by operating activities increased to $94,574,000 in 2023, compared to $40,776,000 in 2022, reflecting a 132% increase[496]. Assets and Liabilities - Total assets decreased to $2,181,247 in 2023, down from $2,393,555 in 2022, reflecting a reduction of 8.8%[494]. - Total liabilities decreased to $1,863,934 in 2023, down from $2,098,182 in 2022, a reduction of 11.2%[494]. - Total equity increased to $317,313 in 2023, compared to $295,373 in 2022, reflecting a growth of 7.4%[494]. - The total property, plant, and equipment, net as of December 31, 2023, was $239,087,000, down from $305,994,000 in 2022[513]. - Accounts payable decreased from $189.1 million in 2022 to $142.2 million in 2023, a reduction of 24.7%[544]. - The Company reported total accounts payable and accrued liabilities of $293.4 million as of December 31, 2023, down from $351.8 million in 2022, reflecting a decrease of 16.6%[544]. Cash and Cash Equivalents - Cash and cash equivalents increased to $100,180 in 2023, up from $94,255 in 2022, a growth of 6.5%[494]. - The company reported an increase in cash, cash equivalents, and restricted cash to $110,612,000 at the end of 2023, up from $104,804,000 at the end of 2022[496]. - Total cash, cash equivalents, and restricted cash as of December 31, 2023, amounted to $110,612,000, an increase from $104,804,000 in 2022[507]. Revenue Streams - Digital advertising and marketing services generated $810.57 million in 2023, compared to $825.26 million in 2022, indicating a decrease of about 1.8%[557]. - Print advertising revenue decreased to $576.55 million in 2023 from $670.88 million in 2022, reflecting a decline of approximately 14.0%[557]. - Digital-only subscriptions increased to $155.62 million in 2023, up from $132.62 million in 2022, marking a growth of about 17.3%[557]. - The company recognized $1,130.85 million in revenue in 2023 from cash receipts, net of refunds, compared to $1,212.78 million in 2022, a decline of about 6.8%[560]. Audit and Compliance - The independent auditor expressed an unqualified opinion on the company's financial statements for the year ended December 31, 2023[472]. - The company maintained effective internal control over financial reporting as of December 31, 2023, based on the 2013 Internal Control—Integrated Framework[466]. - There were no critical audit matters identified during the audit of the financial statements[484]. - The company has been audited by Grant Thornton LLP since 2023, ensuring compliance with PCAOB standards[485]. Pension and Retirement Plans - The projected benefit obligation for pension benefits increased to $1.658 billion as of December 31, 2023, from $1.642 billion in 2022[622]. - The fair value of pension plan assets was $1.784 billion as of December 31, 2023, compared to $1.721 billion in 2022[622]. - The combined net pension and postretirement expense recognized was $8.0 million for the year ended December 31, 2023, down from $57.1 million in 2022[624]. - The Company contributed $1.4 million to pension plans and $4.5 million to postretirement plans in 2023, with future contributions estimated at $13.0 million for 2024[630][631]. - The Company’s pension plans have implemented special amortization provisions under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010[635]. Restructuring and Impairment - Severance-related expenses totaled $18.5 million in 2023, significantly lower than $57.6 million in 2022[581]. - Other restructuring-related costs for 2023 amounted to $5.9 million, compared to $30.4 million in 2022[582]. - The company performed its annual goodwill impairment assessment in Q4 2023, determining that the fair value of all reporting units exceeded their carrying values[574]. Tax Obligations - The provision for income taxes for 2023 was $21,729,000, compared to $1,349,000 in 2022, indicating a substantial increase in tax obligations[649]. - The total current provision for income taxes included $10,215,000 in 2023, contrasting with a negative provision of $(1,200,000) in 2022[649].