2008 Financial Summary
Operating revenues, in millions04
$7105
05
$7435
06
$7848
07
$7439
08
$6768
Income from continuing operations before asset impairmentand other charges, in millions04
$1268
05
$1186
06
$1138
07
$1026
(1)
08
$747
(1)(1)
Income per share (diluted) from continuing operations beforeasset impairment and other charges04
$4.74
05
$4.82
06
$4.81
07
$4.39
(1)
08
$3.26
(1)(1)
In thousands, except per share amounts
2008 2007 Change
Operating revenues . . . . . . . . . . . . . . .$6,767,650$7,439,460(9.0%)Operating income (loss) . . . . . . . . . .$(6,761,655)$1,650,896***Income (loss) from continuingoperations . . . . . . . . . . . . . . . . . . . . . .$(6,647,565)$975,577***Income (loss) per share fromcontinuing operations – diluted . . . .$(29.11)$4.17***Income from continuing operations before asset impairment and other charges(1) . . . . . . . . . . . . . . . . . . . . . .$747,368$1,026,408(27.2%)Income per share from continuingoperations before asset impairmentand other charges– diluted (1) . . . . . .$3.26$4.39(25.7%)Working capital . . . . . . . . . . . . . . . . .$92,803$381,092(75.6%)Long-term debt . . . . . . . . . . . . . . . . .$3,816,942$4,098,338(6.9%)Total assets . . . . . . . . . . . . . . . . . . . . .$7,796,814$15,887,727(50.9%)Capital expenditures(2) . . . . . . . . . .$164,542$170,880(3.7%)Shareholders’ equity . . . . . . . . . . . . . .$1,055,882$9,017,159(88.3%)Dividends per share . . . . . . . . . . . . . .$1.60$1.4212.7%Weighted average commonshares outstanding – diluted . . . . . . . .228,345233,740(2.3%)(1)
Results for 2008 exclude pre-tax asset impairment and other charges of $8.35 billion ($7.39 billion after tax or $32.38 per share). Results for 2007 exclude pre-tax non-cash intangible asset impairment charges of $72.0 million ($50.8million after tax or $.22 per share). These charges are more fully discussed inthe Management’s Discussion and Analysis of Financial Condition and Resultsof Operations and the Consolidated Financial Statement sections of this report.(2)Excluding capitalized interest and discontinued operations.
COMPANY PROFILE:
Gannett Co., Inc. is a leading international news and information company. In the United States, the companypublishes 85 daily newspapers, including USA TODAY, and nearly 850 non-daily publications. Along with each of its daily newspapers,the company operates Internet sites offering news and advertising that is customized for the market served and integrated with itspublishing operations. USA TODAY.com is one of the most popular news sites on the Web. The company is the largest newspaperpublisher in the U.S.Newspaper publishing operations in the United Kingdom, operating as Newsquest, include 17 paid-for daily newspapers, more than200 weekly newspapers, magazines and trade publications in the U.K., locally integrated Web sites and classified business Web sites withnational reach. Newsquest is the second largest regional newspaper publisher in the U.K.In broadcasting, the company operates 23 television stations in the U.S. with a market reach of more than 20 million households.Each of these stations also operates locally oriented Internet sites offering news, entertainment and advertising content, in text andvideo format. Through its Captivate subsidiary, the broadcasting group delivers news, information and advertising to a highly desirableaudience demographic through its video screens located in elevators of office towers and select hotel lobbies across North America.Gannett’s total Online U.S. Internet Audience in January 2009 was 27.1 million unique visitors, reaching about 16.1% of the Internetaudience, as measured by Nielsen//NetRatings.Complementing its core publishing and broadcasting businesses, the company made several important advances in its digital strat-egy through key business acquisitions. In September 2008, the company increased its ownership in CareerBuilder LLC (CareerBuilder) to50.8% from 40.8%, obtaining a controlling interest, and in June 2008, the company increased its ownership in ShopLocal LLC (ShopLocal)to 100% from 42.5%. The results of these businesses are now fully consolidated.Concurrently, a new “Digital” business segment is being reported, which includes CareerBuilder and ShopLocal results from the dateof full consolidation, as well as PointRoll, Planet Discover, Schedule Star and Ripple6. Ripple6, acquired in November 2008, is a leadingprovider of technology platforms for social media services for publishers and other users. Also enhancing our digital strategy are ourinvestments and partnerships in such companies as Classified Ventures, for auto and real estate ads;Metromix, a platform for local enter-tainment Web sites; Topix.net, a news content aggregator; 4INFO, a leading mobile media and advertising company; and more.Gannett was founded by Frank E. Gannett and associates in 1906 and incorporated in 1923. The company went public in 1967.It reincorporated in Delaware in 1972. Its more than 225 million outstanding shares of common stock are held by approximately8,500 shareholders of record in all 50 states and several foreign countries.The company has approximately 41,500 full-time and part-time employees including 2,000 for CareerBuilder. Its headquarters are in McLean, Va., near Washington, D.C.
2008 GANNETT ANNUAL REPORT
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