Net loss (USD, thousands)

Depreciation and amortization (USD, thousands)

Share-based compensation expense (USD, thousands)

Non-cash interest expense (USD, thousands)

Gain on sale or disposal of assets, net (USD, thousands)

(Gain) loss on early extinguishment of debt (USD, thousands)

Asset impairments (USD, thousands)

Change in other assets and liabilities, net (USD, thousands)

Cash provided by operating activities (USD, thousands)

Purchase of property, plant and equipment (USD, thousands)

Proceeds from sale of real estate and other assets (USD, thousands)

Change in other investing activities (USD, thousands)

Cash provided by investing activities (USD, thousands)

Payments of deferred financing costs (USD, thousands)

Repayments of long-term debt (USD, thousands)

Changes in other financing activities (USD, thousands)

Cash used for financing activities (USD, thousands)

Effect of currency exchange rate change on cash (USD, thousands)

Increase (decrease) in cash, cash equivalents and restricted cash (USD, thousands)

Pension and other postretirement benefit obligations (USD, thousands)

Treasury stock (USD, thousands)

Cash, cash equivalents and restricted cash at beginning of period (USD, thousands)

Cash, cash equivalents and restricted cash at end of period (USD, thousands)

1b8a2e91ba60224863a3baa546ec4142cd2a22c481f76365db212ce17cbdf79c

The sharp decline in cash and cash equivalents in Q1 2023 was primarily driven by significant financing outflows, especially **debt repayments of $36,178 thousand** and **treasury stock purchases of $2,138 thousand**, which resulted in a net cash outflow of **$38,640 thousand**. These outflows outweighed the positive contributions from operating and investing activities, leading to the overall decrease.  **[0001579684-23-000021_gciq12023ex991earningsrele.htm:5]** **[0001579684-23-000023_gci-20230331.htm:2]** **[0001579684-23-000023_gci-20230331.htm:4]** 

Why did Cash and cash equivalents drop so sharply in Q1 2023?

The documents do not provide any specific details on what caused Other current liabilities to fall drastically in Q4 2022. In fact, the reported balance of **$51,090,000** as of December 31, 2022, is very similar to **$51,218,000** as of December 31, 2021, which does not indicate a significant change in the liabilities.  **[0001579684-23-000014_gci-20221231.htm:117]** **[0001579684-23-000011_gciq42022ex991earningsrele.htm:6]** 

What caused Other current liabilities to fall drastically in Q4 2022?

Gannett’s significant decline in long-term debt by Q3 2023 was driven by focused **debt repayment** efforts and improvements in its **capital structure**. The company repaid **$65.3 million** of debt during Q3 2023, which included repurchasing approximately **$33.5 million** of its 2026 Senior Notes at a discount and repaying **$31.8 million** of its New Senior Secured Term Loan. Additionally, the sale of **8 real estate and other assets** generated **$51.5 million**, further supporting the debt reduction efforts. Combined with these strategic moves, these actions contributed to lowering its **First Lien Net Leverage** significantly, showcasing a robust deleveraging strategy.  **[0001579684-23-000040_gciq32023ex991earningsrele.htm:2]** **[GCI_3363665_8]** 

What factors contributed to the significant decline in Long-term debt by Q3 2023?

The **Total Assets** dropped notably in Q3 2023 because the value declined from **$2,393,555 thousand** in Q4 2022 to **$2,249,377 thousand** in Q3 2023—a reduction of **$144,178 thousand**.  **[0001579684-23-000042_gci-20230930.htm:2]**  This decrease was primarily due to marked reductions in several asset categories: **accounts receivable** fell by **$32,383 thousand**, **inventories** decreased by **$15,309 thousand**, **intangible assets** declined by **$67,618 thousand**, **property, plant, and equipment** dropped by **$59,723 thousand**, and **other current assets** were reduced by **$15,572 thousand**.  **[0001579684-23-000040_gciq32023ex991earningsrele.htm:6]** **[0001579684-23-000042_gci-20230930.htm:2]**  Although there was a smaller increase in **cash and cash equivalents** of **$14,985 thousand**, it was not enough to offset the declines in the other key areas.  **[0001579684-23-000040_gciq32023ex991earningsrele.htm:6]** **[0001579684-23-000042_gci-20230930.htm:2]** 

Why did Total assets drop notably in Q3 2023?

The dramatic reduction in deferred tax liabilities in Q4 2022 was driven by several factors. **Deferred tax liabilities related to fixed assets decreased** significantly, along with reductions in the liabilities associated with **right-of-use assets** and **convertible debt**. Additionally, there was a complete elimination of deferred tax liabilities for **pension and other postretirement benefit obligations**, and the liabilities for **definite and indefinite lived intangible assets** were also substantially lower. These combined changes resulted in the overall dramatic decrease in deferred tax liabilities during the period.  **[0001579684-23-000014_gci-20221231.htm:160]** 

What drove the dramatic reduction in Deferred tax liabilities in Q4 2022?

decfeaa6e2c616d691f101f683a4856175e3c74ca9cee811c5da1ea4cb4c60f0

In Q4 2022, the turnaround in net income was driven primarily by a significant **gain on early extinguishment of debt** that swung from a loss of **$22,712 thousand** in Q4 2021 to a gain of **$2,663 thousand** in Q4 2022—a positive swing of **$25,375 thousand**.  **[0001579684-23-000011_gciq42022ex991earningsrele.htm:14]**  Additionally, **other operating expenses** were drastically reduced to **$227 thousand** from **$9,598 thousand** in the prior year, and there were improvements in **asset impairments** (down to **$46 thousand** from **$1,056 thousand**) as well as a shift from a loss to a gain in the **sale or disposal of assets** (from a loss of **$8,002 thousand** to a gain of **$2,729 thousand**).  **[0001579684-23-000011_gciq42022ex991earningsrele.htm:14]**  Although **integration and reorganization costs** increased, these negative impacts were more than offset by the positive factors, collectively contributing to the net income turnaround.  **[0001579684-23-000011_gciq42022ex991earningsrele.htm:14]** 

What drove the turnaround in net income in Q4 2022?

The positive EPS in Q4 2022 was driven by several factors. **First**, there was a **net income improvement**—Gannett reported a net income of **$32.8 million** in Q4 2022 compared to a net loss of **$(22.4) million** in Q4 2021. **Second**, there was a **significant reduction in non-operating expenses**, notably a gain on early extinguishment of debt of **$2.7 million** in contrast to a loss of **$22.7 million** in the prior period. **Third**, the company achieved **lower operating expenses**, reducing total operating expenses from **$801.95 million** in Q4 2021 to **$715.92 million** in Q4 2022.  **[0001579684-23-000011_gciq42022ex991earningsrele.htm:7]** 

What factors contributed to the positive EPS in Q4 2022?

The documents indicate that asset impairments in Q1 2023 increased by **$5,000 thousand** compared to the prior year's quarter, but they do not provide any specific reasons or additional details to explain this spike.  **[0001579684-23-000021_gciq12023ex991earningsrele.htm:6]** **[0001579684-23-000023_gci-20230331.htm:3]** **[0001579684-23-000023_gci-20230331.htm:38]** 

Why did asset impairments spike so high in Q1 2023?

The significant change in asset sale results in Q3 2023 was driven by the sales of domestic production facilities as part of a broader strategy to monetize non-core assets. In that period, **Gannett Co., Inc.** recorded a **net gain of $23.3 million**, markedly higher than the **$7.2 million** recognized in Q3 2022, which underscores this strategic asset disposition.  **[0001579684-23-000042_gci-20230930.htm:33]** **[0001579684-23-000042_gci-20230930.htm:48]** 

What caused the large negative gain on asset sales in Q3 2023?

The negative **Integration and Reorganization Costs** in **Q3 2023** occurred because **severance costs declined drastically**—falling from **$15.7 million** in Q3 2022 to **$1.5 million** in Q3 2023—and because of a **reversal of withdrawal liabilities** related to multiemployer pension plans by **$4.3 million**, which significantly offset other restructuring-related expenses. Additionally, **costs associated with systems and operations consolidation** were lower compared to Q3 2022, all contributing to a net negative figure in Q3 2023.  **[0001579684-23-000042_gci-20230930.htm:34]** **[0001579684-23-000040_gciq32023ex991earningsrele.htm:7]** **[0001579684-23-000042_gci-20230930.htm:11]** 

Why did integration and reorganization costs turn negative in Q3 2023?

4690610ab035c45a712e0f847731cc3c3006011c3199664b048eb14ef6a686e8

Total Operating Revenues (USD, thousands)

Operating Costs (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

Depreciation and Amortization (USD, thousands)

Integration and Reorganization Costs (USD, thousands)

Asset Impairments (USD, thousands)

Gain on Sale or Disposal of Assets, Net (USD, thousands)

Other Operating Expenses (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Income (Loss) (USD, thousands)

Interest Expense (USD, thousands)

Gain (Loss) on Early Extinguishment of Debt (USD, thousands)

Non-Operating Pension Income (USD, thousands)

Other Non-Operating Expense (Income), Net (USD, thousands)

Non-Operating Expenses (USD, thousands)

Income (Loss) Before Income Taxes (USD, thousands)

Provision (Benefit) for Income Taxes (USD, thousands)

Net Loss (Income) Attributable to Gannett (USD, thousands)

Loss (Income) per Share Attributable to Gannett - Basic (USD)

Loss (Income) per Share Attributable to Gannett - Diluted (USD)

be3766d601a988ba85e7959378e0ce63c1a02528526ae568037490292d945122

70b4eeee4546a4f3df03192a57eac9eb30699206a2b6184567c00112e2d0d6d8

c3dd7bf3c0bbb7ae42ba3b9204427049673c0e4f1882afb7897cb7625f4677b2

Digital-only ARPU for Domestic Gannett Media (USD)

Digital-only ARPU for Newsquest (USD)

Digital-only ARPU for total Gannett (USD)

Core platform ARPU for Digital Marketing Solutions (USD)

Core platform average customer count for Digital Marketing Solutions (thousands)

Number of digital-only paid subscriptions for Domestic Gannett Media (thousands)

Number of digital-only paid subscriptions for Newsquest (thousands)

Number of digital-only paid subscriptions for total Gannett (thousands)

1fae4aeab72f45dfd9c6a1b6a6a9fcbc03fa08bdb1578eb9ef140fac9d040b2b

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

e8bab48e97a81a8d0d2c7c0f4fb9feadff7b7c83831271cb46a751437e183c1a

Domestic Gannett Media

- Newsquest

Foreign Revenues

Northeast

Midwest

Southeast

Other/Unspecified Regions

Total Revenue

bf436cc5dcf4c6633b0869b56bc8e047c3dcfbdfe74c961629dabd757bc88c4c

ef7e477c803c9e43cc7add700bfb44a9899557310d66d66ac725ee1687d33910

d95468f5a10e7ab0a9ceebddd810c086ebde3f854c3ca9fc8ad592bbacd2d500

Gannett Co. (GCI)

Financials