Gannett reported second quarter earnings of $1.20 per share, a 6% increase over the prior year. Newspaper advertising revenues rose 3% domestically and Newsquest revenues were up 3% in pounds in the UK. Television revenues increased 1% despite lower political spending. Cash costs rose over 6% including acquisitions, but on a pro forma basis excluding acquisitions costs rose around 3% reflecting commercial printing growth and currency impacts. July advertising trends were mixed with television pacings slightly below prior year when adjusting for large political spending last year. Near-term outlook remained cautious due to economic uncertainty.
- Gannett reported earnings of $1.03 per share for Q3 2003, a 4% increase over the previous year and a new record. Revenue was also up 4% for the quarter.
- Newspaper advertising revenue increased 6% overall and 3% on a pro forma basis excluding recent acquisitions. Local advertising was up 1% helped by strong performance from Newsquest properties.
- Classified revenues were up 4% overall. Employment classifieds, while down 5% overall, showed signs of improvement with a smaller decline each month of the quarter. Real estate and automotive classifieds grew 10% and 2% respectively.
- Gannett reported second quarter earnings of $1.30 per share, at the high end of guidance and a new record. Revenues increased nearly 10% driven by strong newspaper revenue growth and political spending.
- Local advertising rose almost 6% led by a 23.3% increase in employment classifieds. National advertising at USA Today was up 15.5%. Non-daily publications and online revenues continued double-digit growth.
- Gannett authorized an additional $1 billion for share repurchases, believing the stock is very attractive at current price levels. Management expects to opportunistically execute on the $1.7 billion authorization.
- Gannett reported earnings of $1 per share for the first quarter of 2004, above the forecast of 99 cents. Revenue increased 11.4% year-over-year for the quarter.
- Advertising revenues rose across newspaper, television, and online segments. National and classified advertising saw particularly strong growth.
- Costs increased due to factors such as healthcare costs, commissions on higher sales, and the mix of recent acquisitions. Operating margins may be slightly down for newspapers in 2004 compared to 2003.
- The outlook for the second quarter is positive with pacings in the high-single digits, though volatility remains. Gannett expects continued growth over 2003 assuming no major external factors.
- Gannett reported first quarter earnings of 93 cents per share, up from 91 cents in the first quarter of 2002.
- Newspaper advertising revenues rose 4% despite weakness in March due to geopolitical uncertainty and the war. Non-daily revenues grew 14%.
- Broadcast revenues declined due to tough comparisons from Olympics coverage in 2002 and war impacts in March 2003.
- Gannett acquired the publishing assets of Scottish Media Group and several weekly newspapers in the UK. It also formed a newspaper partnership in Texas and New Mexico.
- While visibility remains limited, pacings have improved since late March though continue to be volatile. Gannett expects continued economic growth this year barring external factors.
Gannett reported record fourth quarter and full year 2003 results, with EPS of $1.31 for the quarter and $4.46 for the year. Newspaper advertising revenues grew 10% for the quarter, boosted by acquisitions. Pro forma local advertising grew 4% for the quarter. Non-daily products and online revenues increased strongly. Newsquest in the UK delivered excellent results. First quarter 2004 television pacings are up low to mid single digits over prior year. Gannett remains optimistic about 2004 results with the addition of the Olympics and political advertising.
This document provides the transcript from Gannett Co.'s first quarter 2005 earnings conference call on April 14, 2005. The call discusses Gannett's financial results for the first quarter, including a 5% increase in earnings per share. Advertising revenues were up for newspapers and USA Today, while broadcasting revenues declined due to lack of political advertising. Auto advertising remained soft across all platforms. While March newspaper advertising was weaker than expected, overall results were solid.
This document provides a summary of Gannett Co., Inc.'s fourth quarter and full year 2004 conference call with investors. In the call, Gracia Martore, CFO, discussed key financial results including EPS of $1.47 for Q4 and $4.92 for the full year. She noted solid performances across advertising categories in newspapers and record political advertising for broadcasting. Doug McCorkindale, CEO, stated that most advertising categories grew except for automotive. He discussed continued growth in online revenues and non-daily publications. In the question and answer period, details were provided about TV station revenues, directories, and the Hometown acquisition review by the Justice Department.
Doug McCorkindale presented Gannett's financial results and outlook at the annual Media and Entertainment Analysts of New York meeting. He reported that February advertising revenues increased 6% overall, with local up 7%, classified up 6%, and national up 2%. However, broadcasting revenues declined 4% due to tough comparisons from the prior year's Super Bowl and political advertising. McCorkindale expressed optimism that Gannett can achieve competitive top-line growth despite difficult comparisons. Gary Watson and Craig Moon then provided more details on the successes of Gannett's newspaper and USA TODAY divisions.
- Gannett reported earnings of $1.03 per share for Q3 2003, a 4% increase over the previous year and a new record. Revenue was also up 4% for the quarter.
- Newspaper advertising revenue increased 6% overall and 3% on a pro forma basis excluding recent acquisitions. Local advertising was up 1% helped by strong performance from Newsquest properties.
- Classified revenues were up 4% overall. Employment classifieds, while down 5% overall, showed signs of improvement with a smaller decline each month of the quarter. Real estate and automotive classifieds grew 10% and 2% respectively.
- Gannett reported second quarter earnings of $1.30 per share, at the high end of guidance and a new record. Revenues increased nearly 10% driven by strong newspaper revenue growth and political spending.
- Local advertising rose almost 6% led by a 23.3% increase in employment classifieds. National advertising at USA Today was up 15.5%. Non-daily publications and online revenues continued double-digit growth.
- Gannett authorized an additional $1 billion for share repurchases, believing the stock is very attractive at current price levels. Management expects to opportunistically execute on the $1.7 billion authorization.
- Gannett reported earnings of $1 per share for the first quarter of 2004, above the forecast of 99 cents. Revenue increased 11.4% year-over-year for the quarter.
- Advertising revenues rose across newspaper, television, and online segments. National and classified advertising saw particularly strong growth.
- Costs increased due to factors such as healthcare costs, commissions on higher sales, and the mix of recent acquisitions. Operating margins may be slightly down for newspapers in 2004 compared to 2003.
- The outlook for the second quarter is positive with pacings in the high-single digits, though volatility remains. Gannett expects continued growth over 2003 assuming no major external factors.
- Gannett reported first quarter earnings of 93 cents per share, up from 91 cents in the first quarter of 2002.
- Newspaper advertising revenues rose 4% despite weakness in March due to geopolitical uncertainty and the war. Non-daily revenues grew 14%.
- Broadcast revenues declined due to tough comparisons from Olympics coverage in 2002 and war impacts in March 2003.
- Gannett acquired the publishing assets of Scottish Media Group and several weekly newspapers in the UK. It also formed a newspaper partnership in Texas and New Mexico.
- While visibility remains limited, pacings have improved since late March though continue to be volatile. Gannett expects continued economic growth this year barring external factors.
Gannett reported record fourth quarter and full year 2003 results, with EPS of $1.31 for the quarter and $4.46 for the year. Newspaper advertising revenues grew 10% for the quarter, boosted by acquisitions. Pro forma local advertising grew 4% for the quarter. Non-daily products and online revenues increased strongly. Newsquest in the UK delivered excellent results. First quarter 2004 television pacings are up low to mid single digits over prior year. Gannett remains optimistic about 2004 results with the addition of the Olympics and political advertising.
This document provides the transcript from Gannett Co.'s first quarter 2005 earnings conference call on April 14, 2005. The call discusses Gannett's financial results for the first quarter, including a 5% increase in earnings per share. Advertising revenues were up for newspapers and USA Today, while broadcasting revenues declined due to lack of political advertising. Auto advertising remained soft across all platforms. While March newspaper advertising was weaker than expected, overall results were solid.
This document provides a summary of Gannett Co., Inc.'s fourth quarter and full year 2004 conference call with investors. In the call, Gracia Martore, CFO, discussed key financial results including EPS of $1.47 for Q4 and $4.92 for the full year. She noted solid performances across advertising categories in newspapers and record political advertising for broadcasting. Doug McCorkindale, CEO, stated that most advertising categories grew except for automotive. He discussed continued growth in online revenues and non-daily publications. In the question and answer period, details were provided about TV station revenues, directories, and the Hometown acquisition review by the Justice Department.
Doug McCorkindale presented Gannett's financial results and outlook at the annual Media and Entertainment Analysts of New York meeting. He reported that February advertising revenues increased 6% overall, with local up 7%, classified up 6%, and national up 2%. However, broadcasting revenues declined 4% due to tough comparisons from the prior year's Super Bowl and political advertising. McCorkindale expressed optimism that Gannett can achieve competitive top-line growth despite difficult comparisons. Gary Watson and Craig Moon then provided more details on the successes of Gannett's newspaper and USA TODAY divisions.
Gannett Co., Inc. held a conference call to discuss its financial results for the fourth quarter and full year of 2006. Craig Dubow, Chairman, President and CEO, provided an overview of Gannett's strategic initiatives and progress implementing their two-pronged strategy of augmenting core businesses and developing an international digital business. He discussed expanding their Information Center initiative across properties, audience-based advertising and sales training programs, and progress with new sites like IndyMoms.com. Gracia Martore, CFO, then discussed the financial results in more detail, including revenue growth, earnings, operating cash flow, and strength in digital revenues.
Canadian Real GDP Report and U.S.–Canada Trade Talks
Canadian real GDP advanced by 2.9% (q/q annualized) in 2018Q2 after increasing at a softer pace the previous
three quarters (see chart below).
The retail market report summarizes 2015 trends in the Phoenix metro area. It notes that 65,700 jobs were added in 2015, home starts increased 70% year-over-year, and these economic gains are boosting consumer confidence. Retail vacancy rates declined to 9.3% while net absorption was 1.77 million square feet. Average rental rates increased to $14/sqft, up from $13.62/sqft in 2014. The report concludes that with continued job and housing growth, the retail sector is poised for growth in 2016.
Trump100 days- Implications for the Property Markets Guy Masse
PRESIDENT TRUMP'S ADMINISTRATION & ITS IMPLICATIONS FOR THE PROPERTY MARKETS
Measuring the success of a new Administration by its first 100 days is a tradition, and President Trump reaches his first key milestone with campaign promises to overhaul Washington and jump-start the economy. This special report provides a perspective on:
How key economic indicators (inflation, job growth) and commercial real estate are performing so far
The status of key policy proposals, including trade and defense
What to watch for beyond the first 100 days
2015 2Q North American Office Market ReportCoy Davidson
The U.S. office market saw improvements in Q2 2015, with vacancy rates declining and absorption improving. However, the Canadian office market weakened, with rising vacancy rates driven by falling oil prices. Overall North American vacancy fell slightly to 12.7%, with U.S. vacancy down to 13.0% and Canadian vacancy up to 9.1%. Absorption was positive in the U.S. at 23.1 million square feet but negative in Canada at -0.5 million square feet. The outlook remains positive for the U.S. office market but negative for Canada due to economic challenges from low oil prices.
Olivier Desbarres: UK economy post referendum – for richer, but mostly for po...Olivier Desbarres
We may well never know the true extent of the impact of the EU referendum outcome on the British economy, markets and ultimately standards of living. This may not be the most satisfying conclusion, but this uncertainty is one which policy-makers will have to grapple with.
As to the bigger question of whether the UK is better off today or will be better off in years to come when one takes into account not only the impact on the economy but also broader, less tangible issues such as sovereignty, the answer is and will likely remain even more subjective.
In any case, available data paint a patchy picture of the UK economy post-referendum. Construction and services have been harder hit than manufacturing. Retail sales were strong in July thanks in part to a robust labour market and plentiful lending. While this defies the collapse in consumer confidence temporary factors may also have been at play.
The residential property market at a national level has been softer but resilient post referendum. Mortgage lending remains depressed but government policies are for now more likely to blame. The commercial property market has been harder hit.
Sterling’s 10% collapse since the referendum, following a 10% depreciation between November and June, is seemingly supporting economic growth and demand for UK assets even if history suggests that it is no panacea. Its inflationary impact has so far been very modest but the risk is a squeeze on profit margins and real wages.
At the same time sterling’s collapse has tangibly eroded the UK’s net wealth, at least when expressed in foreign-currency terms – a fact largely ignored by policy-makers and the media.
I would expect the BoE to continue favouring monetary and credit policies which explicitly help spur lending, spending and investment and, implicitly at least, help cap sterling. While this may not translate into another policy rate cut or round of QE near-term, the BoE is likely to keep this option firmly on the table if the UK economy fails to return to trend in the next six months.
- The Total Asset Partners portfolio returned 7.53% gross and 6.34% net for 2016. Returns were supported by equities offsetting losses in municipal bonds.
- For the fourth quarter, returns were 0.83% gross and 0.26% net. The portfolio has outperformed benchmarks like the S&P 500 and Barclays Aggregate index on a year-to-date basis with lower volatility.
- The document discusses economic and market outlooks, noting expectations for modest US growth around 2-2.5% in 2017, potential for higher inflation and interest rates, and risks from a strong US dollar.
This report summarizes the prospects for the UK housing market in winter 2015. It predicts that house prices will rise 4.5% in 2015 and 4.4% in 2016, supported by an improving economy. However, sustained low interest rates could fuel faster growth of nearly 7% in 2016. Regional disparities are growing, with prices weakest in the North East and Scotland. The supply of homes remains constrained, despite strong demand and real earnings growth supporting buyer affordability.
The Beige Book summarizes economic conditions in the 12 Federal Reserve Districts based on qualitative information from District sources. This report found that:
- Economic activity increased in most Districts since the previous report, but remained below pre-pandemic levels. Retail sales and consumer spending improved as restrictions eased, while other sectors like manufacturing, energy, and commercial real estate were weaker.
- Employment increased in many Districts as businesses reopened, but payrolls remained well below year-ago levels and job turnover was still high. Firms reported difficulties hiring back former employees.
- Prices were generally flat, with some increases in select goods like food and medical supplies offset by price decreases in other sectors due to
The San Francisco housing market saw record high median home and condo prices in April. Home sales more than doubled from March, while condo sales rose slightly. The sales to price ratio remained very high, indicating a seller's market with buyers paying well over the asking price. Inventory remained extremely low, at just over three weeks of supply. The report expects prices to continue rising due to high demand and low supply in the area.
The document is a newsletter from Flatfield discussing various topics related to the electronics industry and broader economy. It provides updates on copper clad laminate capacity expansion plans, Apple warning of economic deceleration especially in China, and Flatfield winning an innovation award for their customer portal. It also summarizes commodity price changes in December and January and discusses ongoing fab capacity constraints and component shortages.
The Real Estate Report May/June - Prices Hit All-Time HighsAMSI, San Francisco
- The median home sale price in San Francisco reached $1,000,000 for the first time ever in April, while the median condo price was $855,000, also an all-time high.
- The sales to list price ratio was 108.2% for homes and 105.2% for condos, both at their highest levels since 2005, indicating a very competitive market for buyers.
- Inventory is extremely low, with only 506 total homes, condos, and lofts for sale in San Francisco as of early April, representing a three week supply versus a normal six month supply.
This document provides licensing information for Weichert Financial Services and Mortgage Access Corp. It lists the various states and jurisdictions where they are licensed to conduct mortgage lending and brokerage activities. It also provides contact information and notes that Mortgage Access Corp arranges loans through third party providers and is an equal housing lender.
This document provides an economic outlook and forecasts for 2017 from BMO Financial Group. Some key points:
- Global GDP growth is expected to modestly increase to 3.1% in 2017 from 2.8% in 2016, still below the long-term trend of 3.6%.
- The US economy is forecast to grow 2.4% in 2017, up from 1.6% in 2016, supported by potential fiscal stimulus and tax cuts under Trump.
- The Bank of Canada is expected to remain on hold through at least the first half of 2017 due to domestic and US economic uncertainties.
- Canadian GDP growth is projected to rise to 2.0% in 2017 from around 1.
The Fed kept interest rates unchanged in September due to concerns about slowing global growth and volatility in financial markets. This left investors uncertain about the strength of the US economy and the timing of future rate hikes. Global equities had their worst quarter since 2011 due to fears about China's economy and declining commodity prices. Locally, South Africa's GDP contracted more than expected and the outlook was revised lower. The rand depreciated sharply while domestic equities fell, with resources shares hit hardest by declining commodity prices.
I want to share with you the latest edition of the Texas Family Office Association (“TFOA”) monthly economic update. The attached report includes a wealth of data and exhibits on the state of the USA economy and selected States as well as a 10-Year expected return forecast for all asset classes and this month’s economic release calendar for your ease of reference. I hope you’ll find the information useful.
The document is a proxy statement from CarMax, Inc. notifying shareholders about its 2006 Annual Meeting. It provides details about the meeting such as the date, time, location, and items to be voted on including electing directors, ratifying an accounting firm, and approving amendments to an employee stock plan. It also includes questions and answers about voting procedures and proxies.
This document summarizes Ameren's Q1 2008 earnings call. It provides guidance for 2008 core earnings per share of $2.80-$3.20, excluding certain one-time items. It also outlines Ameren's regulatory proceedings and earnings expectations in Illinois and Missouri, with Illinois electric rate redesign estimated to have no annual impact on earnings per share despite quarterly fluctuations. Key dates are provided for regulatory proceedings in both states throughout 2008.
CarMax is the largest retailer of used vehicles in the US. In fiscal year 2005, CarMax operated 58 used car superstores across 27 markets. CarMax retailed 253,168 used vehicles in fiscal 2005, representing 92% of total vehicles retailed. Key accomplishments in 2005 included opening 9 new stores, rolling out a new subprime auto finance program, and being named one of Fortune's "100 Best Companies to Work For". Going forward, CarMax plans to continue growing its store base by 15-20% annually through adding new stores in existing and new markets.
- Gannett expects political advertising revenue to be robust this season due to unused funds from candidates who had not been selected yet now being released rapidly.
- Gannett has already refinanced $500 million in upcoming debt maturities and expects the upcoming conversion of convertible notes to be put back to the company, which will be addressed through a variety of financing sources including public debt markets.
- Gannett expects its overall debt rate to be around 4% by the end of the second quarter as it refinances maturing debt.
Gannett Co., Inc. held a conference call to discuss its financial results for the fourth quarter and full year of 2006. Craig Dubow, Chairman, President and CEO, provided an overview of Gannett's strategic initiatives and progress implementing their two-pronged strategy of augmenting core businesses and developing an international digital business. He discussed expanding their Information Center initiative across properties, audience-based advertising and sales training programs, and progress with new sites like IndyMoms.com. Gracia Martore, CFO, then discussed the financial results in more detail, including revenue growth, earnings, operating cash flow, and strength in digital revenues.
Canadian Real GDP Report and U.S.–Canada Trade Talks
Canadian real GDP advanced by 2.9% (q/q annualized) in 2018Q2 after increasing at a softer pace the previous
three quarters (see chart below).
The retail market report summarizes 2015 trends in the Phoenix metro area. It notes that 65,700 jobs were added in 2015, home starts increased 70% year-over-year, and these economic gains are boosting consumer confidence. Retail vacancy rates declined to 9.3% while net absorption was 1.77 million square feet. Average rental rates increased to $14/sqft, up from $13.62/sqft in 2014. The report concludes that with continued job and housing growth, the retail sector is poised for growth in 2016.
Trump100 days- Implications for the Property Markets Guy Masse
PRESIDENT TRUMP'S ADMINISTRATION & ITS IMPLICATIONS FOR THE PROPERTY MARKETS
Measuring the success of a new Administration by its first 100 days is a tradition, and President Trump reaches his first key milestone with campaign promises to overhaul Washington and jump-start the economy. This special report provides a perspective on:
How key economic indicators (inflation, job growth) and commercial real estate are performing so far
The status of key policy proposals, including trade and defense
What to watch for beyond the first 100 days
2015 2Q North American Office Market ReportCoy Davidson
The U.S. office market saw improvements in Q2 2015, with vacancy rates declining and absorption improving. However, the Canadian office market weakened, with rising vacancy rates driven by falling oil prices. Overall North American vacancy fell slightly to 12.7%, with U.S. vacancy down to 13.0% and Canadian vacancy up to 9.1%. Absorption was positive in the U.S. at 23.1 million square feet but negative in Canada at -0.5 million square feet. The outlook remains positive for the U.S. office market but negative for Canada due to economic challenges from low oil prices.
Olivier Desbarres: UK economy post referendum – for richer, but mostly for po...Olivier Desbarres
We may well never know the true extent of the impact of the EU referendum outcome on the British economy, markets and ultimately standards of living. This may not be the most satisfying conclusion, but this uncertainty is one which policy-makers will have to grapple with.
As to the bigger question of whether the UK is better off today or will be better off in years to come when one takes into account not only the impact on the economy but also broader, less tangible issues such as sovereignty, the answer is and will likely remain even more subjective.
In any case, available data paint a patchy picture of the UK economy post-referendum. Construction and services have been harder hit than manufacturing. Retail sales were strong in July thanks in part to a robust labour market and plentiful lending. While this defies the collapse in consumer confidence temporary factors may also have been at play.
The residential property market at a national level has been softer but resilient post referendum. Mortgage lending remains depressed but government policies are for now more likely to blame. The commercial property market has been harder hit.
Sterling’s 10% collapse since the referendum, following a 10% depreciation between November and June, is seemingly supporting economic growth and demand for UK assets even if history suggests that it is no panacea. Its inflationary impact has so far been very modest but the risk is a squeeze on profit margins and real wages.
At the same time sterling’s collapse has tangibly eroded the UK’s net wealth, at least when expressed in foreign-currency terms – a fact largely ignored by policy-makers and the media.
I would expect the BoE to continue favouring monetary and credit policies which explicitly help spur lending, spending and investment and, implicitly at least, help cap sterling. While this may not translate into another policy rate cut or round of QE near-term, the BoE is likely to keep this option firmly on the table if the UK economy fails to return to trend in the next six months.
- The Total Asset Partners portfolio returned 7.53% gross and 6.34% net for 2016. Returns were supported by equities offsetting losses in municipal bonds.
- For the fourth quarter, returns were 0.83% gross and 0.26% net. The portfolio has outperformed benchmarks like the S&P 500 and Barclays Aggregate index on a year-to-date basis with lower volatility.
- The document discusses economic and market outlooks, noting expectations for modest US growth around 2-2.5% in 2017, potential for higher inflation and interest rates, and risks from a strong US dollar.
This report summarizes the prospects for the UK housing market in winter 2015. It predicts that house prices will rise 4.5% in 2015 and 4.4% in 2016, supported by an improving economy. However, sustained low interest rates could fuel faster growth of nearly 7% in 2016. Regional disparities are growing, with prices weakest in the North East and Scotland. The supply of homes remains constrained, despite strong demand and real earnings growth supporting buyer affordability.
The Beige Book summarizes economic conditions in the 12 Federal Reserve Districts based on qualitative information from District sources. This report found that:
- Economic activity increased in most Districts since the previous report, but remained below pre-pandemic levels. Retail sales and consumer spending improved as restrictions eased, while other sectors like manufacturing, energy, and commercial real estate were weaker.
- Employment increased in many Districts as businesses reopened, but payrolls remained well below year-ago levels and job turnover was still high. Firms reported difficulties hiring back former employees.
- Prices were generally flat, with some increases in select goods like food and medical supplies offset by price decreases in other sectors due to
The San Francisco housing market saw record high median home and condo prices in April. Home sales more than doubled from March, while condo sales rose slightly. The sales to price ratio remained very high, indicating a seller's market with buyers paying well over the asking price. Inventory remained extremely low, at just over three weeks of supply. The report expects prices to continue rising due to high demand and low supply in the area.
The document is a newsletter from Flatfield discussing various topics related to the electronics industry and broader economy. It provides updates on copper clad laminate capacity expansion plans, Apple warning of economic deceleration especially in China, and Flatfield winning an innovation award for their customer portal. It also summarizes commodity price changes in December and January and discusses ongoing fab capacity constraints and component shortages.
The Real Estate Report May/June - Prices Hit All-Time HighsAMSI, San Francisco
- The median home sale price in San Francisco reached $1,000,000 for the first time ever in April, while the median condo price was $855,000, also an all-time high.
- The sales to list price ratio was 108.2% for homes and 105.2% for condos, both at their highest levels since 2005, indicating a very competitive market for buyers.
- Inventory is extremely low, with only 506 total homes, condos, and lofts for sale in San Francisco as of early April, representing a three week supply versus a normal six month supply.
This document provides licensing information for Weichert Financial Services and Mortgage Access Corp. It lists the various states and jurisdictions where they are licensed to conduct mortgage lending and brokerage activities. It also provides contact information and notes that Mortgage Access Corp arranges loans through third party providers and is an equal housing lender.
This document provides an economic outlook and forecasts for 2017 from BMO Financial Group. Some key points:
- Global GDP growth is expected to modestly increase to 3.1% in 2017 from 2.8% in 2016, still below the long-term trend of 3.6%.
- The US economy is forecast to grow 2.4% in 2017, up from 1.6% in 2016, supported by potential fiscal stimulus and tax cuts under Trump.
- The Bank of Canada is expected to remain on hold through at least the first half of 2017 due to domestic and US economic uncertainties.
- Canadian GDP growth is projected to rise to 2.0% in 2017 from around 1.
The Fed kept interest rates unchanged in September due to concerns about slowing global growth and volatility in financial markets. This left investors uncertain about the strength of the US economy and the timing of future rate hikes. Global equities had their worst quarter since 2011 due to fears about China's economy and declining commodity prices. Locally, South Africa's GDP contracted more than expected and the outlook was revised lower. The rand depreciated sharply while domestic equities fell, with resources shares hit hardest by declining commodity prices.
I want to share with you the latest edition of the Texas Family Office Association (“TFOA”) monthly economic update. The attached report includes a wealth of data and exhibits on the state of the USA economy and selected States as well as a 10-Year expected return forecast for all asset classes and this month’s economic release calendar for your ease of reference. I hope you’ll find the information useful.
The document is a proxy statement from CarMax, Inc. notifying shareholders about its 2006 Annual Meeting. It provides details about the meeting such as the date, time, location, and items to be voted on including electing directors, ratifying an accounting firm, and approving amendments to an employee stock plan. It also includes questions and answers about voting procedures and proxies.
This document summarizes Ameren's Q1 2008 earnings call. It provides guidance for 2008 core earnings per share of $2.80-$3.20, excluding certain one-time items. It also outlines Ameren's regulatory proceedings and earnings expectations in Illinois and Missouri, with Illinois electric rate redesign estimated to have no annual impact on earnings per share despite quarterly fluctuations. Key dates are provided for regulatory proceedings in both states throughout 2008.
CarMax is the largest retailer of used vehicles in the US. In fiscal year 2005, CarMax operated 58 used car superstores across 27 markets. CarMax retailed 253,168 used vehicles in fiscal 2005, representing 92% of total vehicles retailed. Key accomplishments in 2005 included opening 9 new stores, rolling out a new subprime auto finance program, and being named one of Fortune's "100 Best Companies to Work For". Going forward, CarMax plans to continue growing its store base by 15-20% annually through adding new stores in existing and new markets.
- Gannett expects political advertising revenue to be robust this season due to unused funds from candidates who had not been selected yet now being released rapidly.
- Gannett has already refinanced $500 million in upcoming debt maturities and expects the upcoming conversion of convertible notes to be put back to the company, which will be addressed through a variety of financing sources including public debt markets.
- Gannett expects its overall debt rate to be around 4% by the end of the second quarter as it refinances maturing debt.
CarMax, Inc. is the leading used car retailer in the US, operating 40 used car superstores as of 2003. In fiscal year 2003, CarMax sold 190,100 used vehicles, accounting for 89% of its total 212,500 vehicle sales. While CarMax experienced strong sales and earnings growth for most of fiscal 2003, earnings were impacted by higher costs associated with becoming an independent company from Circuit City in October 2002 and weather-related sales declines in the fourth quarter. CarMax plans to continue expanding its used car superstore footprint and growing its used vehicle market share to further drive comparable store sales and earnings growth over the coming years.
CarMax is the largest retailer of used vehicles in the US. As of the end of fiscal year 2008, CarMax operated 89 used car superstores across 41 markets, representing over 40% of the US population. CarMax aims to grow its store base by approximately 15% annually through opening new stores in existing and new markets. CarMax focuses on used vehicles which allows it to grow organically without franchise laws or manufacturer restrictions. CarMax stores carry between 300-400 vehicles on average and sell over 420 cars per month, over 8 times more than the average franchised dealer. More than 60% of in-store customers visit CarMax.com before visiting a store, making the website integral to CarMax's success.
community health systems annual reports2007 finance30
Community Health Systems, Inc. is the largest operator of general acute care hospitals in non-urban and mid-size markets in the US, owning or operating 115 hospitals across 28 states. In 2007, the company acquired Triad Hospitals, Inc., substantially increasing its scale and market reach. Key highlights from 2007 include net operating revenues of $7.1 billion and net income of $30.3 million. The Triad acquisition established CHS as the largest publicly traded hospital management company in the US and complemented its focus on non-urban markets by adding mid-size markets. Physician recruitment remains a key focus as it drives admissions and revenues while expanding specialty services.
This document provides the transcript from Gannett Co.'s second quarter 2005 earnings conference call on July 13, 2005. Gracia Martore, Gannett's SVP and CFO, discusses the company's financial results including earnings per share of $1.37, a 5.4% increase year-over-year. She also covers newsprint costs, expenses, the balance sheet, capital expenditures, and share repurchases. Doug McCorkindale, Gannett's Chairman and CEO, then comments on the company's second quarter performance, challenges in the UK market, softness in automotive advertising, and growth strategies around online products and non-dailies. The call concludes with a question
- Gannett reported first quarter earnings of $0.99 per share, consistent with prior guidance but down from $1.03 per share in the first quarter of 2005.
- Revenue growth at community newspapers was offset by softness in the UK market. Broadcasting saw record revenues due to the Winter Olympics.
- Several one-time factors impacted expenses, including expensing of stock options and changes in newspaper partnerships. Excluding these items, costs increased only 0.6% overall and less than 1% for newspapers.
This document provides a summary of Gannett Co.'s third quarter 2004 conference call with analysts. [1] Gannett reported earnings of $1.18 per share, matching analyst estimates. [2] Newsprint costs increased 15% due to a 12.4% price increase and 2.4% usage increase. [3] Overall revenue growth was solid, though some regions and categories faced challenges due to hurricanes and difficult year-over-year comparisons.
The document summarizes Gannett Co.'s second quarter 2006 earnings conference call. Craig Dubow, Chairman, President and CEO, discussed Gannett's strategic focus on local content and building its digital business. He noted revenue growth in community newspapers and broadcasting. Gracia Martore, CFO, provided financial details, noting factors impacting reported results and growth in advertising revenues. Overall, the document recapped Gannett's financial performance and strategic initiatives discussed on the earnings call.
This document provides the transcript from Gannett Co., Inc.'s third quarter 2005 conference call and webcast on October 11, 2005.
Gracia Martore, Gannett's CFO, discusses the significant impacts of two transactions on the company's financial reporting for the quarter. She explains the accounting treatment of the asset exchange with Knight Ridder and the reorganization of the Detroit Newspaper Agency. Martore also provides pro forma financial results to allow for better year-over-year comparisons.
Craig Dubow, Gannett's President and CEO, discusses the company's third quarter performance. He notes challenges from tough comparisons and weak economies impacting results. Dubow highlights strength in U
Gannett Co., Inc. held a first quarter 2008 earnings conference call to discuss their financial results with analysts. Craig Dubow, Chairman, President and CEO, and Gracia Martore, Executive Vice President and CFO, presented on the company's transformation efforts and performance in the challenging economic environment. Key points included a 10% decline in newspaper advertising revenue, continued weakness in real estate and employment classifieds, cost cutting measures resulting in a 7% expense decline, and a focus on growing digital revenues.
Gannett held a conference call to discuss its first quarter 2007 earnings. Craig Dubow, Chairman and CEO, provided an overview of Gannett's strategic initiatives and quarterly results. He noted challenges from a soft real estate market and winter weather. However, total revenues were down less than 1%.
Gracia Martore, CFO, then provided more details on the financial results. She discussed weaknesses in real estate and employment advertising, particularly in the South and West, due to the housing slowdown. Expenses were well controlled. Overall, Gannett earned $0.90 per share, meeting guidance.
- Gannett reported its fourth quarter and full year 2007 earnings. Revenue was impacted by soft advertising demand late in the quarter and a lack of political advertising compared to 2006. Expenses were lowered through restructuring efforts.
- Digital revenues continued to grow, reaching over $460 million for the year. Traffic and unique visitors increased across Gannett's digital properties.
- Gannett will benefit from anticipated political advertising in 2008 and revenue from the Beijing Olympics, but results will not be evenly spread across quarters. The company remains focused on its digital transformation and content expansion.
Gannett held a third quarter earnings conference call and webcast on October 17, 2007. During the call, Craig Dubow, Chairman and CEO, reported that Gannett earned $1.01 per share from continuing operations for the third quarter. Gracia Martore, CFO, provided additional details on the quarterly results, noting challenges from a tough advertising environment and the housing slowdown impacting certain markets. While expenses were down, revenues declined in newspaper publishing and broadcasting segments due to lower advertising. The call included a question from an analyst about whether Gannett had any inclination to split off its TV group, as other media companies had recently done. Craig Dubow responded that given the relative sizes of G
Gannett Co., Inc. held a conference call to discuss its fourth quarter and full year 2005 earnings. Gracia Martore, the CFO, noted that fourth quarter earnings were at the high end of guidance. Full year earnings per share were up slightly compared to 2004. Martore discussed factors impacting results such as the consolidation of Detroit Newspapers and currency exchange rates. Craig Dubow, President and CEO, provided details on segment results, noting growth in classified and real estate advertising, while auto remained soft. Online revenues increased nearly 60% for the quarter. The company is optimistic about opportunities in 2006.
This document contains the transcript from Gannett Co., Inc.'s third quarter 2006 earnings conference call. In the call:
- Craig Dubow, Chairman, CEO and President discusses Gannett's strategic initiatives to become more customer-centric, nimble and innovative such as expanding their digital offerings and making acquisitions.
- Gracia Martore, Executive VP and CFO, provides details on the quarterly financial results, noting challenges from a soft advertising market but growth in digital revenues and from political advertising. Expenses were up primarily due to stock compensation costs.
- The call concludes with Martore giving an update on newsprint costs and Gannett's balance sheet.
- The document is the transcript from 3M's Q1 2006 earnings conference call.
- 3M had strong sales growth of 8.3% in Q1 2006, with all six business segments growing. Operating income grew 18.8%.
- Geographic growth was strong, with Asia Pacific growing 12.0% and Europe growing 7.9% in local currency.
Gannett held a conference call to discuss its second quarter 2008 earnings results. Gracia Martore, the CFO, introduced Craig Dubow, the CEO, to provide an overview of Gannett's strategic initiatives and financial performance. Dubow discussed Gannett's plans to grow its digital business while enhancing its core newspaper and television operations. He outlined several recent investments and partnerships that will allow Gannett to better serve advertisers across its digital properties. However, Dubow noted the results were impacted by the challenging economy in both the US and UK. Preliminary earnings per share were $1.02 but will be reduced by impairment charges. More details on the financials would be provided later in the call.
Gannett Co., Inc. held a conference call to discuss their fourth quarter and full year 2008 results. Craig Dubow, Chairman, President and CEO, provided an overview of Gannett's efforts to manage costs and innovate during the economic downturn. Some highlights included transforming their operations in Detroit to a digital-focused model, developing a content management system to share content across properties, and acquiring a social media company. Gracia Martore, EVP and CFO, discussed the financial results in more detail, noting declines in advertising revenue across segments due to economic conditions. She also outlined a planned goodwill impairment charge of $5.1-5.9 billion related to declines in business values.
- The Home Depot reported third quarter earnings for fiscal year 2008, with sales of $17.8 billion, down 6.2% from the previous year, and same-store sales down 8.3%. Earnings per share were $0.45.
- Challenging housing and home improvement markets continued to pressure results. Previously strong regions like the Northwest saw double-digit negative comps.
- While sales were weak across most departments, building materials had positive comps led by roofing and insulation. Initiatives to improve merchandising and focus on value are showing early signs of success through improved transactions, market share gains, and gross margin expansion despite volatile costs.
- Tightening credit availability also
- The Home Depot reported third quarter earnings for fiscal year 2008, with sales of $17.8 billion, down 6.2% from the previous year, and same-store sales down 8.3%. Earnings per share were $0.45.
- Challenging housing and home improvement markets continued to pressure results. Previously strong regions like the Northwest saw double-digit negative comps.
- While sales were weak across most departments, building materials had positive comps led by roofing and insulation. Initiatives to improve merchandising and focus on value are showing early signs of success through improved transactions, market share gains, and gross margin expansion despite volatile costs.
- Tightening credit availability also
- Ball Corporation reported second quarter earnings that were higher than the previous year's record earnings, despite some challenges. Earnings per share increased in both the quarter and first half of 2008 compared to 2007.
- Beverage can volumes remained strong in Europe and China but were lower in North America compared to the previous year. However, earnings from aerospace, food and household, and Brazil offset some of the lower beverage can earnings.
- Management expects full-year free cash flow of $300 million and net debt to be less than $2.3 billion by year-end, indicating strong second half cash flow. The company also remains on track to purchase $300 million in stock for the full year.
In the second quarter of 2008, Ball Corporation saw improved financial results compared to the previous year. Earnings per share increased in both the quarter and first half of the year. Lower interest expenses and share count contributed to higher earnings. Beverage can volumes remained strong in Europe and China but were down in North America. Lower beverage can earnings were offset by higher results in aerospace, food and household, and Brazil. The company remains on track to achieve its goals for the full year, including $300 million in free cash flow and $300 million in stock buybacks. Operations performance was generally positive across business segments.
Gannett held their third quarter 2008 earnings conference call to discuss financial results. Revenues were impacted by a steep decline in advertising demand, especially in real estate, retail, and employment, due to the weak economy and housing downturn. Publishing revenues fell 17.6% due to declines across all categories. Broadcasting provided a bright spot with revenue increases from the Olympics and political advertising. Gannett's digital strategy focuses on growing properties like CareerBuilder and ShopLocal, and developing niche websites. While the economy poses challenges, management is confident core revenues will rebound and digital growth will continue when economic conditions improve.
The document is a transcript of Avis Budget Group's second quarter 2008 earnings conference call. In the call, Ron Nelson, the Chairman and CEO of Avis Budget Group, discusses the company's financial results and the challenges it is facing in the current economic environment. He notes that while the company has made progress on its strategic initiatives, it reported lower earnings than expected due to headwinds from high oil prices, a decline in commercial travel, and weaker consumer spending. Nelson provides details on how these factors impacted demand and pricing in the company's car rental business in the second quarter. He also discusses the company's outlook and steps it is taking to reduce costs and mitigate further impacts in the third quarter.
Smurfit-Stone reported a net loss of $19 million for Q1 2005, an improvement from a $66 million loss in Q1 2004. Net sales increased 8% to $2.1 billion. The company continued to face cost pressures from higher energy, fiber, and employee benefit costs which narrowed margins. However, demand was improving and costs were expected to moderate for the rest of the year, leading the company to expect a return to profitability in Q2 2005.
Smurfit-Stone Container Corporation reported second quarter 2005 net income of $1 million, an improvement from a $10 million net loss in the second quarter of 2004. Sales increased to $2.2 billion from $2 billion in the prior year period. For the first half of 2005, the company reported a net loss of $18 million, an improvement from a $76 million net loss in the first half of 2004, with sales of $4.2 billion compared to $4 billion in the prior year. The company expects third quarter results to be negatively impacted by unfavorable pricing trends but anticipates increased packaging demand in the seasonally strong period.
Smurfit-Stone Container Corporation reported a net loss of $229 million or $0.90 per share for Q3 2005, primarily due to a $293 million pretax restructuring charge related to mill closures in Canada and a paper machine closure. Net sales were $2.1 billion, down from $2.2 billion in Q3 2004. For the first nine months of 2005, the net loss was $247 million or $0.97 per share, compared to a net loss of $48 million or $0.19 per share for the same period in 2004. The company expects costs to increase in Q4 due to higher energy and freight expenses, while average corrugated prices are expected to
- Smurfit-Stone Container Corporation reported a net loss of $92 million for Q4 2005 and a net loss of $339 million for the full year 2005.
- Market conditions were unfavorable in the first half of 2005 with declining containerboard and corrugated prices but began to improve in Q4 2005. However, higher energy and fiber costs negatively impacted results.
- The company expects better comparisons going forward as market conditions improve but not meaningful sequential earnings growth in Q1 2006 due to seasonal factors and cost pressures.
- Smurfit-Stone Container Corporation reported a net loss of $64 million for Q1 2006 compared to a net loss of $19 million in Q1 2005.
- Net sales were $2.1 billion for Q1 2006, comparable to Q1 2005. However, higher costs such as energy and freight, as well as lower containerboard and corrugated prices, negatively impacted year-over-year results.
- The company expects results to improve in Q2 2006 but not reach breakeven, and anticipates returning to profitability in Q3 2006 as prices have rebounded and benefits from strategic initiatives continue.
Smurfit-Stone Container Corporation reported financial results for the second quarter of 2006. The company reported a net loss of $44 million compared to net income of $1 million in the second quarter of 2005. Sales were flat at $1.76 billion. For the first half of 2006 the company reported a net loss of $108 million compared to a net loss of $18 million in the first half of 2005, with sales of $3.5 billion, consistent with the previous year. The company's containerboard and corrugated containers segment saw improved operating profits compared to the previous quarter and previous year.
1) Smurfit-Stone Container Corporation reported a net income of $22 million or $0.09 per diluted share for Q4 2006, compared to a net loss of $0.36 per diluted share in Q4 2005.
2) For full year 2006, Smurfit-Stone reported a net loss of $71 million or $0.28 per diluted share, an improvement from a net loss of $339 million or $1.33 per diluted share in 2005.
3) The company exceeded its cost reduction target for 2006 from its strategic initiatives program, achieving $243 million in savings, and expects further meaningful earnings growth in 2007.
1) Smurfit-Stone Container Corporation reported a net loss of $55 million for the first quarter of 2007 compared to a net loss of $0.25 per share in the first quarter of 2006.
2) The company announced plans to close two containerboard mills with 200,000 tons of annual capacity and restart a previously idled paper machine with 170,000 tons of annual capacity to realign its mill system.
3) While costs increased due to higher wood and recycled fiber prices, the company expects improved second quarter results and a return to profitability due to moderating costs and stronger demand.
Smurfit-Stone Container Corporation reported financial results for the second quarter of 2007, with the following highlights:
1) Operating profits were up 59% from the previous quarter and 16% from the second quarter of 2006, driven by higher average prices across major product lines.
2) Sales increased 6% year-over-year to $1.87 billion for the second quarter.
3) The company expects higher mill production and continued price improvements to drive further financial gains in the third quarter.
Smurfit-Stone Container Corporation reported improved financial results in the third quarter of 2007 compared to the previous quarter:
- Adjusted net income nearly doubled from the second quarter, reaching $28 million.
- Strategic initiatives led to $18 million in quarterly benefits from cost reductions.
- Debt was reduced by $328 million through the sale of the Brewton, Alabama mill.
While earnings are expected to decrease in the fourth quarter due to seasonal factors, management expects ongoing benefits from strategic cost cutting initiatives and capital investments to drive continued margin improvements.
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Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
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gannett 2Qtranscript03final
1. GANNETT CO., INC. SECOND QUARTER
CONFERENCE CALL AND WEB CAST
JULY 15, 2003
PRESENTATION
Operator
Good morning, and welcome, ladies and gentlemen, to the Gannett second quarter 2003 earnings
conference call. At this time, I would like to inform you that this conference is being recorded and that all
participants are in a listen-only mode. At the request of the company, we will open the conference up for
questions and answers after the presentation. I will now turn the conference over to Gracia Martore,
Senior Vice President and Chief Financial Officer. Please go ahead.
Gracia Martore - Gannett - Senior Vice President and Chief Financial Officer
Thank you very much, and good morning. Welcome to our call and Webcast to review our second
quarter results. Hopefully, you have all had a chance to review the press releases we put out this morning
both on our earnings, as well as our June lineage. Those press releases can also be found at
www.gannett.com. With me today is Douglas McCorkindale, Chairman, President, and CEO of Gannett.
We'll keep our prepared remarks brief today, since we saw many of you a few weeks back at the Mid-
Year Media Review. As you saw from the release this morning, Gannett earned $1.20 per diluted share
this quarter, or a 6% increase over the $1.13 we earned last year in the second quarter.
I would like to detail a couple of other areas before I turn it over to Doug.
On the newsprint front, reported newsprint expense rose 10%, made up of a 5% increase in both
consumption as well as price. However, the reported newsprint numbers include consumption for
Scottish Media Group publishing, as well as a 100% of the Texas-New Mexico Newspapers Partnership,
which, as you know, we consolidate in our numbers.
On a pro forma basis, or assuming that all the properties that we owned at the end of this quarter we also
owned for all of last year's second quarter, newsprint expense would have been up a little less than 7%
with usage up about a little less than 3%. Usage was up primarily reflecting very robust commercial
printing growth. In fact, if you take out the gains from commercial printing, our usage was up less than
1% in the quarter. On the usage price side, the increase reflects the fact that usage prices were falling in
the second quarter of 2002, as well as the strength of the pound. For example, in the UK, where prices fell
8% in the quarter in pounds, when they were translated into dollars, they actually were up about 2%
because of the strength of the currency.
As you know, we began to see higher newsprint prices in June as the $50-per-ton March 1 increase was
amended to $35 and June 1 by both Abitibi and Bowater. Other producers chose a lower number at other
effective dates, and a spot market redeveloped in June.
Several newsprint producers have announced a $50-per-ton price increase for August 1. Historically,
August is not a particularly good month to try and raise prices due to the seasonal low consumption in
the summer. Again, we're looking at an environment where demand is not rebounding to the extent the
pundits thought it might, pushing the need for dramatic reductions in supply to try to support higher
2. prices. We'll obviously see where this all takes us, but needless to say, this proposed increase is quite
premature.
Turning quickly to the balance sheet, total debt at quarter end stood at $4.4 billion and cash and
marketable securities were $132 million. Our all-in cost of debt is currently approximately 2.95%.
With respect to shares outstanding, basic shares at the end of the quarter were $269.4 million. They
averaged 268.8 million for the quarter and 268.5 million year-to-date.
Finally, before I turn the call over to Doug, our conference call and Webcast today may include forward-
looking statements and our actual results may differ. Factors that might cause them to differ are outlined
in detail in our SEC filings. This presentation also includes certain non-GAAP financial measures, and we
have provided a reconciliation of those measures to the most directly comparable GAAP measures, both
attached to our earnings release, as well as on the investor relations portion of our Web site. And with all
of that, I will turn it over to Doug.
Douglas H. McCorkindale - Gannett - Chairman, President and CEO
Thanks, Gracia, good morning all. Since we met with most of you about three weeks ago, not a lot has
changed either in our outlook or, frankly, in the economy. We continue to expect advertising and the
economy to grow this year barring further external factors, but that growth is going to be uneven and the
economy remains tentative.
As you saw from our press release, net income rose 7% reflecting a solid performance by all of our
divisions, despite the effects of the war in April and the sluggish economy that prevailed throughout the
quarter. Operating revenues rose 6%, including the results of SMG and 100% of the Texas-New Mexico
partnership that Gracia mentioned.
Looking at our newspaper segment and assuming we owned the same newspapers this year and last for
both quarters, total advertising revenues rose 4%, which I think is probably one of the strongest revenue
performances in our industry. On the local front, pro forma local advertising in our newspapers rose 5%
in the quarter due to a good performance by our Newsquest properties, strong preprint growth and the
benefit of growth in our non-daily publications. In the U.S., the financial, health, telecommunications, and
home improvement categories were positive while department stores, consumer electronics and furniture
lagged last year's results.
Classified revenues in our newspaper segment were up 4% in the quarter. In employment, revenues were
down 6% as the upturn we were seeing late last year and into early this year fizzled with the war and the
jobless recovery to date. The results in the UK are stronger than what we are seeing here in the states. In
the U.S., those regions with the heaviest reliance on manufacturing, mostly the East and the Midwest,
have been the hardest hit. The South and the West, which have a greater alliance on construction and the
service industries, have fared much better. Also, in a switch from the pattern we had been seeing,
employment revenues in our larger markets declined less in the last two months than in our smaller
markets. Automotive was up 5% and real estate continues to roll along, up 12% for the quarter. On the
national front, advertising was up 4% for the quarter. USA TODAY’s ad results were about flat for the
quarter.
Strong gains in auto, technology, entertainment, financial/credit cards and telecom helped offset the
weakness in the travel category, which was off 27% for the quarter. However, I think it's interesting to
note that travel did improve during the quarter. June's travel was down just 6% versus 50-plus percent
for the month of April.
One area where our newspapers have continued to show strong revenue growth is in the non-daily
products and online. The non-daily category, which includes more than 400 weekly shoppers, magazines,
3. and specialty publications, is the key element of our revenue growth strategies. For our domestic
newspapers, non-daily revenues were up 21% for the quarter, the majority of which has been organic
growth. In the past 12 months, we have added over 220 new publications, weekly sections, and ancillary
advertising products. We expect this growth to continue as we identify more successes that can be rolled
out in other markets.
Turning to the UK specifically, Newsquest delivered strong results again this quarter despite a lackluster
economy in the UK. Pro forma revenues for Newsquest for the quarter – in pounds – were up 3%. Costs
were well controlled and, as a result, Newsquest operating profits, again, in pounds were up about 10%.
In television, we achieved an almost 1% increase in revenues as we overcame the impact of the war and
lower political spending in the quarter. From a category perspective, retail and telecom were positive in
the quarter while auto and corporates trailed last year's results.
Looking ahead, our latest pacings for the third quarter in television are slightly positive, just slightly,
with July and August slightly behind last year and September positive. As you may recall, we're going up
against about $20 million of net political advertising in last year's third quarter, which will impact
pacings as the quarter progresses. That's where we stand right at this moment, but we'll keep keep you
updated in our monthly report.
While we are in this uncertain economic environment, we have been very focused on keeping costs
tightly controlled as you might expect from Gannett. Television costs are virtually flat and corporate cash
costs are up just slightly. In newspapers, on a pro forma basis excluding newsprint, expenses were up 3%,
in part, reflecting higher expenses for the lower-margin commercial printing, the ramp-up of our new
non-daily products, which I just mentioned, and strong currency in the UK, which Gracia mentioned in
talking about newsprint. This number also includes higher pension, employee benefit and insurance
costs.
On the Internet side of the business, our revenues are up 40% year-to-date. Our CareerBuilder investment
is performing a little bit better than expected. CareerBuilder’s unique visitors in June were up 48% from
December of 2002. And just a few days ago, an online recruitment market share scorecard showed that in
the top 20 markets, just for the month of June, CareerBuilder achieved the highest online recruitment
market share of the four major online players. In that same study, Gannett along with one other
newspaper company, achieved the highest overall share of the online recruitment market of the 14
newspaper groups measured. We had a share of just under 53%. All very positive news.
Finally, as we mentioned at the Mid-Year Media Review, because of the uncertain and uneven economic
times that we are in we have been budgeting on a 6 month basis. We won't have final detailed budgets for
the last half of 2003 until later this month. When we complete that process we will update you on our
assumptions if there are any changes. Gracia are we turning to the questions?
Gracia Martore
Yes, we will be happy to take questions now.
QUESTION AND ANSWER
4. Operator
Thank you. The question-and-answer session will begin at this time. If you're using a speaker phone,
please pick up the handset before pressing any numbers. Should you have a question, please press star
one on your pushbutton telephone. If you would like to withdraw your question, please press star 2.
Your question will be taken in the order that it's received. Please stand by for your first question.
The first question comes from Douglas Arthur with Morgan Stanley. Please state your question.
Douglas Arthur - Morgan Stanley - Analyst
Gracia, at the Mid-Year Media Review you said that foreign currency gains or favorable translation could
be 1 to 2 cents in the second quarter. Do you have a more exact figure? And as a follow-up, what percent
of revenues is UK, at this point, in the newspaper sector? Thanks.
Gracia Martore
Doug, with regard to the foreign currency impact from an operating perspective, the pickup from
currency was right in the middle of that range between 1 and 2 cents, which is pretty similar to the range
that we were seeing on a negative basis a couple of years ago. And with regard to Newsquest, they're
about in the low to mid-teens as a percentage of total revenue for the company.
Operator
The next question comes from Lauren Fine with Merrill Lynch. Please state your question.
Lauren Fine - Merrill Lynch
Thank you, just a couple of quick ones. I'm wondering if you could comment on where Newsquest
margins are at the current time? And what percent of newspaper division revenues are now coming from
the non-daily and other types of revenues that you mentioned? And then I'm wondering if you could
give us a sense of whether you're seeing an improvement in July newspaper trends to date and,
specifically, if you can comment more on retail?
Douglas H. McCorkindale
That’s a lot of good questions, Lauren. I don't think we told you what Newsquest margins are, but they
do reasonably well to say the least. They're right in the range with the Gannett middle-sized newspapers.
As you know, the larger papers are not quite as profitable. There is still some upside potential in the UK,
especially with that Scottish acquisition, which has margins that are dramatically less than the typical
Newsquest margin. But that chart I showed at the Mid-Year meeting which showed our margins,
Newsquest is right in that range. Do you know the exact non-daily percentage?
Gracia Martore
5. At this point, it's running about 7% to 8% of ad revenues in the U.S. for the non-daily products.
Douglas H. McCorkindale
That's in the U.S., Lauren. As you know, in the UK most of the revenue comes from non-daily products.
It's a very big piece of the market over there, and that's actually where we make a good deal of our
money. As for July results, we're actually going to have a meeting next week here and have all the
Gannett managers in. We'll get a little better feel, but so far, in calling around in preparation for this call,
we haven't heard anything that would change what we have just said in our prepared statement. Things
are moving along a little bit better, but no great positive upticks. As you heard on the television side,
they're actually pacing a little bit below last year, but they're going up against those big political numbers
from the third quarter of last year. On the retail side, we're not hearing anything more positive or more
negative. Some are doing a little bit better than others, and some are struggling. Smaller and medium size
retailers seem to be doing better than the larger ones. But July, as you know, is kind of a slow month. So, I
am not sure what that trend is telling us either way.
Gracia Martore
In department stores, Lauren, we're being impacted by, as you know, Dillards announcing that they
were going to be cutting back on advertising in the second half of the year. We're being impacted by
those cutbacks in varying degrees and various markets that we have. We also have a small regional
retailer that impacts some of our Northeast properties – New Jersey, New York and some of those folks –
that has cut back on its advertising and other department stores. Whether that trend will hold up and
they can go into the fourth quarter with that level of cut, obviously remains to be seen.
Lauren Fine
Clarification on the TV pacing? When you're quoting us pacing, that is basically versus -- that's adjusted
for political or not?
Douglas H. McCorkindale
No. Not adjusted for political.
Lauren Fine - Merrill Lynch
Got it. Okay, that makes sense.
Douglas H. McCorkindale
If we took out political, obviously, the number would be better. But we had what we had last year, a
great positive, and we have to deal with what we have this year.
Lauren Fine - Merrill Lynch
6. No, that's great. I just want to clarify. Is there a percent? Can you give us a percent of what the domestic
newspaper ad revenue growth was in the second quarter? I mean you indicated Newsquest was better. I
am just trying to get a sense of how you look domestically to compare you to your peers.
Gracia Martore
Newspaper advertising in the U.S. newspaper division -- our total revenues were up about 3% and
advertising was up about 3%.
Operator
The next question comes from Steven Barlow with Prudential Securities. Please state your question.
Steven Barlow - Prudential Securities
Thank you. I guess I want to clarify what Lauren was asking. Can you give us a number on pacings on
TV, ex political and how you're looking? Next. Cash costs were up a little over 6%. You have some
acquisitions with SMG in there, as well as Tex-Mex?
Gracia Martore
Right.
Steven Barlow - Prudential Securities
Is there a way to forecast for the rest of the year whether that 6% rate would be what we should be
looking for?
Gracia Martore - Gannett - Senior Vice President and Chief Financial Officer
With regard to political, I don't have those exact numbers calculated with political out, but just to refresh
everyone's memory, political in the third quarter of last year contributed a little over $20 million of net
revenues and political ramped-up each month in the quarter, so the impact would be greater, for instance
in, September than it was in July.
Douglas H. McCorkindale
Which is an interesting observation, Steve, because as I said a few moments earlier, we're showing
negative pacings for July and August, but positive pacings for September. So we're going up against the
bigger comparison in September.
Gracia Martore
And, Steve, as you rightly point out, the over 6% increase in operating expenses in the newspaper side
includes some acquisitions. So, on a pro forma basis, expenses in the newspaper segment would have
7. been up a little over 3% in the second quarter and then if you pro forma that ex newsprint, they would
have been up a little less than 3%. The other thing you have to understand in those expense numbers, as
well, is you have UK expenses, which are being translated at a higher exchange rate, and so that clearly
impacts those expense numbers. Our expense number ex newsprint pro forma, excluding the currency,
would have actually been up much more modestly than that, reflecting, as Doug mentioned, healthcare
costs, pension, also some of the revenue growth that we're seeing in preprints and non-daily publications
and commercial printing. Those are areas that, right at the moment, would have lower margins than our
normal advertising revenue, so the expenses would be a little bit greater in those areas.
Steven Barlow - Prudential Securities
Thank you. The last question, you mentioned there was a spot market now for newsprint. What would
the spot market price be?
Douglas H. McCorkindale
Lower than the producers would like.
Steven Barlow - Prudential Securities
That wasn't what I was looking for but okay.
Douglas H. McCorkindale
I know. We’re not going to tell you that.
Gracia Martore
A favorable number compared to the pre increase number.
Operator
The next question comes from Christa Sober with Thomas Weisel Partners. Please state your question.
Christa Sober - Thomas Weisel Partners
Hi, first on the other income line, could you explain why it was a little bit better than we thought? I think
it is probably CareerBuilder, given the comments that you made. And could you expand on
CareerBuilder? If you could give us a sense as to what the year-over-year growth was, both with and
without your contributions, so we get a sense as to how you’re growing against your other peers there.
And then a second question relates to preprint. It looks like we're starting to slow down, perhaps. Maybe
I'm wrong, and especially as we go against some tougher comps in the back half of the year, could you
give us your outlook for preprint. Thanks.
Gracia Martore
8. Let me start with the other income and the components there, which we tried to highlight in the press
release. As you point out, our share of the CareerBuilder losses or gains would be in that net non-
operating number. The new components there would be the minority interest expense that we have in the
Texas-New Mexico Newspapers Partnership. The offset would be some investments that we carried over
that I have mentioned on previous calls. As you know, the market did quite well, thank goodness in the
second quarter, so we had positive mark to market gains there, and then we had a little bit of currency
there as well. When you put all those pieces together you ended up with the net non-operating income
number. And, Doug, do you want to chat about the CareerBuilder outlook?
Douglas H. McCorkindale
Well, as I was indicating earlier, it's quite positive. The survey that just came out put them obviously in
the number one position for June. If you're looking to get to the economics, though, we don't discuss the
economics of CareerBuilder. They issue their own releases on whatever they want to come up with, but
it's obviously going better than we had hoped. It's going better against the competition, and all the
numbers are quite positive.
Christa Sober - Thomas Weisel Partners
And two quick follow-ups, if I may. Could you tell us what your domestic help wanted revenue, what
that was down? And also, you may have said it, but I didn't catch it, what your non-newsprint cash
expenses were up? Thanks.
Gracia Martore
Pro forma newspaper, ex newsprint expense, were up a little less than 3%. I think I also went on to
mention that because of the currency, Newsquest expenses were being translated at a higher rate and,
therefore, that's less than 3% growth.
Douglas H. McCorkindale
Help wanted was down 4% on the year-to-date basis and 6% in the quarter.
Gracia Martore
My recollection is that just domestic was down around 15%.
Douglas H. McCorkindale
15%. Yes. 15% in the second quarter and 11% on a year-to-date basis.
Gracia Martore
Not counting online, of course.
9. Operator
The next question comes from Peter Appert with Goldman Sachs. Please state your question.
Peter Appert - Goldman Sachs
Hi, good morning, the newspaper margin was flat year-to-year in the second quarter. I'm wondering,
you know, as we cycle through these newsprint price increases and see more pressure in the second half,
would it be more realistic to assume that the newspaper segment operating margin should be down in
the 2nd half on a year-to-year basis?
Douglas H. McCorkindale
Can you tell us whether revenue is going up, Peter? If revenue improves, the margins will move in the
right direction or stay in the right direction. Obviously if the revenue picture continues to move sideways
and we get some increases in newsprint expense, we're going to have some margin issues. Another part
of that margin issue is benefit costs, and the pension costs, which are -- we don't have as much
negotiating room there as we do on the newsprint side, but I think if you see the revenue begin to pick
up, you won't have any problems with the margin.
Gracia Martore
The other thing is, Peter, as we have mentioned, we have ramped up a lot of new non-daily products.
Clearly in the first couple of quarters of the ramp-up of those products, you know, you're moving them
potentially from a small loss to a positive number in true Gannett fashion. Or maybe they start out
profitable, but you're moving up their margin, and I know that Gary Watson is looking to move those
products along. So there are a lot of factors that are bouncing around there. It’s probably too premature to
say what the impact is, as Doug said, if we get some good revenue growth.
Douglas H. McCorkindale
We got 21% revenue growth on the non-daily products in the quarter. They're not a huge amount of the
revenue picture, but they're very, very positive. We can make some pretty good money in that area, Peter
(Appert). But as a follow-on, to your response with regard to the uncertainty on revenues, as I look at the
progression through the second quarter, the revenue numbers on a year-to-year basis actually got better
each month. Actually, I’m somewhat surprised you're so cautious on the tone of business here for the
second half. Well, again, a lot of that is new products --
Gracia Martore
Helped by currency.
Douglas H. McCorkindale
Helped by currency, as Gracia mentioned earlier. We honestly are not seeing any change in the economic
outlook from what we saw when we just chatted with you all a couple of weeks ago. It's positive, but
there is just a very slight increase in the overall economic picture. There's no part of the U.S. economy
10. where we're seeing any dramatic pickup, and if you're in the manufacturing sector as I mentioned earlier,
you're struggling even more.
Operator
The next question comes from James Marsh of S.G. Cowen. Please state your question.
James Marsh - S.G. Cowen
Hi guys, two quick questions. First on the national side for advertising newspapers, it looked like
volume was showing some major signs of picking up for the quarter up 9%, in June, up 15%. But
revenues were really lagging behind there, I think 4%, 2% respectfully. I just wonder if you could shed a
little light on that. Secondly, a question for Doug. Relating to the like kind tax rules, I want to get a sense
for whether you thought those would still enable a tax-free exchange for a TV station to TV station in
light of dereg.
Douglas H. McCorkindale
Let me discuss the tax item first, Jim. The bottom line is it's complicated. Would they be permitted? Yes.
But our friends at the IRS are not making it easy to do like kind exchanges and they're looking at a lot
more minutia – at least from my point of view, minutia – in analyzing these transactions. So yes, it's
possible, but it has to be done very carefully. So, I think you're going to need sophisticated advice, such as
we have. We have some experience in that area, but I don't think anybody should jump to the conclusion
that it's easy.
Gracia Martore
With regard to national, James, there are several pieces. The volume number that we include in the rev
and stat report is U.S. volume on national. In fact, our U.S. national newspaper -- national revenue
number in our newspapers is comparable to that volume increase, but where we're seeing some
differences, for instance, in Newsquest, where national is trailing last year’s results. As you know, we
don't include their volume statistics. Their lineage. We only have them in the revenue side, so that's a
piece of it as well. And then, as you know, USA TODAY results are indicated in the press release.
James Marsh - S.G. Cowen
Great, one quick follow-up on circulation. You didn't talk about it at all, and I thought it might be
tracking up, at least on an actual basis with SMG in there? But it looked like it was flatish. Anything
going on in particular there?
Gracia Martore
Well, remember, we pro forma circulation in the rev and stat reports, so we assume that SMG is in both
quarters. There is one phenomenon that you probably saw on the rev and stat report, which was that
evening circulation was, down about 5% for June. We went back and took a look at that. It’s primarily in
Detroit where, if memory serves me correctly, the Red Wings won the Stanley cup last June. So they had a
big pickup in single-copy sales and we're comparing against that number. The vagueries of sports.
11. Operator
The next question comes from Mandana Hormozi with Lazard Freres & Co. LLC. Please state your
question.
Mandana Hormozi - Lazard Freres & Co.
Good morning, I was wondering, on the television pacing side, if you could differentiate between local
and national.
Gracia Martore
Local is clearly stronger and is positive, whereas national is negative. Which in part reflects some of the
political that we're starting to cycle against, which would have been more on the national side.
Operator
The next question comes from Kevin Gruneich with Bear Stearns. Please state your question.
Kevin Gruneich - Bear Stearns
Thanks, two-parter. You talked at the Mid-Year Media Review and also today about small market help
wanted being softer than large market, and outside of the comps being somewhat easier than in the large
markets, what does that small market weakness tell you?
Douglas H. McCorkindale
What it tells me, Kevin, is that the sideward movement of the economy is going to the smaller markets
that were a little immune from it for a year and a half or more. Whereas, as you know, most of the
employment negative numbers were in the larger markets. The larger the market, the more you got hurt.
Actually some of our small and medium-sized markets were not actually down. They were showing flat
or up slightly employment numbers. And, as the economy has continued to move sideways now for
about three years from our point of view, you remember we started talking about this negative trend in
August of 2000. It's beginning to creep down to the smaller markets. Maybe most of the water is out of
the larger markets and they just reached the bottom, so they have nowhere to go but up. It hasn't gotten
down to all the small markets yet. Bottom line is it's not a very positive sign for the overall economic
outlook. It means that things are just moving sideways and actually hurting some folks that thought they
were going to escape.
Kevin Gruneich - Bear Stearns
Could you also just discuss maybe the pluses and negatives of the top five or six categories for USA
TODAY?
Douglas H. McCorkindale
12. As I mentioned, the big category is travel and that was down 26%, 27% for the quarter but less negative
in June, being down 6%. We are beginning to see a less negative and maybe even a slightly positive
improvement in the travel picture. The automobile category for the quarter was up about 15%. Tech was
up about 40%, entertainment was up 15% and the financial/credit card area was up about 22%. So as I
mentioned earlier, those four categories were doing nicely, but they have been offset by the travel
numbers.
Operator
The next question comes from Brian Shipman with UBS Warburg. Please state your question.
Brian Shipman - UBS Warburg
Quick question. Following up on Kevin’s request with USA TODAY. It was a little bit choppy month-to-
month during the quarter. It was up 11% in May, and down 1% in June. Is there some seasonality within
the quarter, maybe, that affected those results? And what are you looking for going forward with USA
TODAY. Thanks.
Douglas H. McCorkindale
Gracia may be able to come up with the answer for month-to-month. What we are seeing at USA
TODAY is a slightly better pickup starting in June. We haven't seen their budget yet for the second half of
the year, but it's generally more positive than it has been for the last couple of months. We're hoping that
the pickup in the national picture is reflected in USA TODAY's result. We’ll grow nicely there, relatively
speaking. Again, we're not seeing any great growth anywhere. But as travel gets a little less negative and
you get those strong categories I just mentioned in response to Kevin's question, that should begin to
bring some very positive revenue to USA TODAY for the rest of the year. That's really early. Look, we're
just getting into it. So I hope I'm not being too optimistic. I think I'm more optimistic about USA
TODAY's national picture than some of the other parts of the economy.
Gracia Martore
And Brian, on the monthly variability, I think in part it reflects the numbers from 2002. For instance, in
May of last year, advertising revenues were down 18% at USA TODAY and obviously that would have
been a better comparison than in June. In June of last year they were only down 5%. Then, you have
travel coming back but clearly being a little bit variable. So I think it's those two factors.
Brian Shipman - UBS Warburg
Okay. Thanks. And also, a clarification, in the month of June. TV down 4% with national down 14%?
Does that national category include the political ad dollars? What was it? Roughly $5 million, political ad
dollars in June?
Gracia Martore
For the quarter it was over $6 million, but we had a good chunk in June. And, yes, the political dollars
would have been more in the national category.
13. Operator
The next question comes from Kevin Sullivan with Lehman Brothers. Please state your question.
Kevin Sullivan - Lehman Brothers
All right, great, good morning. A quick question on auto advertising on the TV side. You noted it was
down in the quarter. Can you just give us some color on how to trend it throughout the quarter and what
your outlook is for the back half of the year?
Douglas H. McCorkindale
That's actually one of the questions we’re going to be doing a little bit more homework on next week,
Kevin. We're getting some mixed messages on the automobile front. The television side, where it's a very
big piece of the revenue picture has begun to see some slow down in automotive. Most of that is local
dealers but some of it's national. On the other hand, USA TODAY is seeing positive results on the
automobile side. Now most of that is national, coming from the manufacturers. The newspaper division,
ex USA TODAY, is getting mixed results market-by-market. Maybe they're in the middle. So we're
getting some mixed messages out of our friends in Detroit and overseas. We’re trying to analyze that and
figure out just what is going to be happening in the automobile category.
Gracia Martore
To drill a little bit on the quarter, it appears on the automotive side in TV that the decline was led by
foreign because, in total, the domestics were up slightly. Although there was variability there. One
manufacturer up, one manufacturer down, so to speak. But on the foreign side, we saw a decline, and
you know, some of that might be related to specific campaigns that they were doing last year or launches
that they were doing last year that didn't repeat in the quarter. My sense is that at the moment we're
thinking that auto should be a little bit better in the second half in TV, but obviously that remains to be
seen.
Douglas H. McCorkindale
Especially since they have so many new models coming out. I remember at one point, a month or so ago,
we had a count of 25 or 26 new ones coming out. That should be a positive sign, but the message is mixed
right now.
Operator
The next question comes from Fred Serby with J.P. Morgan. Please state your question.
Fred Serby - J.P.Morgan
Hi, it's Fred Serby. One question, two parts to it. On the telemarketing side, with the do-not-call list. I
wondered, how much telemarketing do you do to boost circulation and what you will do? How do you
14. think the do-not-call list, when it's implemented post-October, will reflect that behavior on your part,
your search strategy? The second part would be what do you think, I mean, just looking at it right now,
how much money, potentially or some rough estimate could flow with you guys? Is there some cutback
on telemarketing from that $100 billion chunk if some of that moves to other media.
Douglas H. McCorkindale
Well, you hit on both the positives and the negatives. It's not good news from the telephone rooms,
obviously, where we do solicit subscriptions for our newspapers. We're going to have to use other
methods to attract customers. One of them is our Internet site. We're selling a large number of
subscriptions on a growing basis from folks who click on to the local Internet site or the USA TODAY
site, and they decide to have a subscription to the newspaper from there. That is a positive that we have.
Then, as you said on the other side, some folks that are in that business are going to have to find other
messages to reach their customers, and we're hoping they'll use our television stations and our
newspapers. Newspapers, in particular, should be useful for getting that message out. It’s a little early to
tell, but there are positives there. Obviously, it's going to make us work harder in the circulation side.
Fred Serby - J.P.Morgan
Just out of curiosity, how much do you spend on telemarketing per year?
Douglas H. McCorkindale
That's in each of the local budgets and we don't gather that all together.
Gracia Martore
We have been reading about folks who use the telemarketing side in a much more significant way than
we do, needing to seek alternatives and part of that is television or newspapers. So, it will be interesting
to see what the positive impact is. But there is clearly no way for us to begin to quantify that at this point.
Fred Serby - J.P.Morgan
You think it's TV and newspapers even more than E-mail marketing and direct --
Douglas H. McCorkindale
I think it's all of the above. But obviously if you have a newspaper that does a good job in the
marketplace, it's a way for an advertiser to attract eyeballs. On the television side, as you know, most of
our television stations are number one and number two in their markets, so they have very good
coverage. You get into the Denver market or the St. Louis market – our television stations have wonderful
coverage. If they can't reach them by phone, that is an alternative. We'll obviously have sales staffs out
there pushing that, and hopefully it will be a positive to us. I think it's a little early to tell, though, how
difficult it's going to be for us on the circulation side and how much revenue we'll get. Together with
others. I assume all other alternatives sources of advertising will be looking for more revenue from the
telemarketing world.
15. Operator
The next question comes from Mark Hughes with Sun Trust Robinson Humphrey. Please state your
uestion.
Mark Hughes - Sun Trust Robinson Humphrey
Thank you very much. You described how CareerBuilder is doing better than hoped. Can you talk to
what extent the volume is taking share from other on-line competitors or borrowing from print classified?
Douglas H. McCorkindale
We think it's coming from other online folks and we're obviously supporting it on the print side. But,
that report I mentioned that just came out, indicated that CareerBuilder – again, it's only for the month of
June – but it was the number one site on the employment area. Although the employment advertising on-
line is growing nicely on all of our sites, locally as well as on CareerBuilder, to have CareerBuilder do that
well, I think they must have taken a little bit from someone else. We don't have the details on that to be
able to give you enough background, but I'm sure CareerBuilder will be coming out with information as
soon as they have had a chance to analyze it.
Gracia Martore
In the CareerBuilder presentation that they did at the Mid-Year Media Review, they put a slide up that
shows that, from October to May, they had gained about 36% in traffic whereas Monster, for instance,
had declined about 22%. And the feeling from them as well as others is that in fact CareerBuilder has
taken a couple of points of share at least from Monster. Our feeling is that the share increase that
CareerBuilder is seeing, is at the expense of other online folks rather than at the expense of the newspaper
side.
Mark Hughs - Sun Trust Robinson Humphrey
Right. One other question. You mentioned that retail was up in TV, department store down in
newspapers. I understand those are different categories, but any relationship there as the spending
shifted between the media? You had, over time, suggested more advertising coming from smaller
customers. Is that also an issue of maybe a shift in media or is it just overall spending patterns? Thanks.
Douglas H. McCorkindale
I think it's just a matter of minor degrees. As I indicated in the automobile category, the television folks
are seeing a little bit more softness than we are in print. Whereas on the retail side, they're seeing a little
bit more positive than we are on the print side. So we have the wonderful ability in this company to look
at both of these pieces and see where the trends are. We have meetings on it on a regular basis to discuss
the big picture trends, but the order of magnitude is not great enough yet to be able to tell you it's going
one way or another. The small or medium-sized advertisers – to go to the latter part of your question –
they have been more positive than the large ones for sometime.
And we have been emphasizing that, as I think others in the industry have. We can deliver their message.
It's not one location making a decision that changes from television to direct mail to print and back and
16. forth trying to reach the retailing customers. The small- and medium-sized advertisers tend to be more
consistent, getting their message out and they’re getting results. That's been a positive trend for a number
of years, both in good times and in bad times.
Gracia Martore
The only other add-on, Mark, would be related to the couple of department stores I mentioned earlier
that have announced plans to cut back. What we're not hearing from them is that they're shifting that
money to TV. What we're hearing is that they're keeping it in their own coffers. Now, obviously on the
preprint side, we're seeing more traction. But we're not seeing Dillard's going from local, from ROP to
preprint. We're just seeing them keeping that money. We have seen some shifts in categories like
consumer electronics and a few others where some of that money has moved from ROP into preprint. But
not a transition to TV at this point.
Operator
The next question comes from Jim Goss with Barrington Research Associates. Please state your question.
Jim Goss - Barrington Research Associates
A couple of questions. One, not to beat a dead horse with the travel category at USA TODAY: Do you
recall what it represented at its peak and how much a rebound opportunity that might be? Separately,
UK, I think, is now collectively bigger than USA TODAY? And I'm just wondering, as we have turned
increasing attention to that, are the greatest opportunities, the improvement in the margins with SMG?
Or are there any key categories we ought to be keeping an eye on there, that you think are particularly
relevant that we ought to be looking at? And thirdly, any comments you might have on the FCC rules
and the Senate Commerce Committee issue and any impact that has in the timing and amount of deal
flow.
Douglas H. McCorkindale
A lot of good questions, Jim. I don't know how big travel was at USA TODAY at its peak. But, it was 20%
of the revenue picture. So, yes, if it comes back, it will be a very, very positive factor for USA TODAY.
Especially since, as I mentioned earlier, a number of the other categories are moving very nicely. So, there
is a lot of money moving around on the travel side, and if it begins to move, you're going to see some
very positive results at USA TODAY because all the other pieces are in place and doing very, very nicely.
You are right in your observation about the UK being larger than USA TODAY. I think it passed USA
TODAY awhile back, especially as we have been making these acquisitions. And there are a number of
opportunities in the UK. We're large and under the UK equivalent of the antitrust rules, you can only get
so big. There are a number of opportunities over there, and our team in the UK is a very good
management group. The Scottish properties will show some definite upside, both on the expense control
side but also on the revenue side. A little bit like our Multimedia acquisition of a number of years ago.
When we went in there, we thought they had done a very good job, but we found a good opportunity in
classified, for example. We’re finding some opportunities in Scotland on the revenue side. We’re in
discussion on a few other transactions over there that will give us some room. That's what you need to
look for. What you don't need to look at is the national economy in the UK. What the national papers are
doing. That's what gets most of the attention. But as you know, we're all regional, and we live in a slightly
different world. Therefore, our numbers have been better than what you have been reading about the UK
economy.
17. As to the FCC, I don't know. I mean -- we have only been talking about this for -- I don't know, for 30
years? Twenty-nine years, at least. I thought it was pretty well set, and I thought the FCC did a fine job in
explaining their position on the rule changes. Everybody didn't get everything they wanted, but now it's
become an object of some attention on the hill and I just don't know which way it's going to go at this
point.
Operator
The next question comes from William Drewry with Credit Suisse First Boston. Please state your
question.
William Drewry - Credit Suisse First Boston
Thanks. A couple of quick ones. Any update on the full-year impact from the SMG acquisition? Number
two: Core labor expense year to date, Gracia ex benefit? And then three: Doug, on the TV pacing positive
territory for Q3. You know, Craig Dubow said back in December that he thought negative TV revenue in
the second half and you run tight on the cost side and try to keep cash flow to a low single digit negative
type of number. Is that guidance still good or is that in flux, given that revenue might turn out to be
positive for Q3.
Douglas H. McCorkindale
Craig is working real hard, but I think it would be very, very hard for him to overcome last year's total of
a $100 million dollars. It’s only up very slightly, Bill, for the third quarter. He's done very well in bringing
in new business – he and his team – but it's just big, big comparisons. Especially when we get to the
fourth quarter. So I think if he does as well as he said he was going to do, and maybe does a little bit
better with some help from us by beating up on him, and he understands the big picture, you know,
that's as good as we're going to expect from television this year. Unless the economy really picks up and
he starts getting significant automobile business and a bunch of other things. But we can't plan on that
sort of an approach to the, economy.
Gracia Martore
With regard to labor, just pure labor, Bill, payroll costs are probably up in that 3% to 4% range, impacted
a little bit again by the currency. Newsquest is doing a very good job on the payroll side, but clearly
because of the exchange rate, that is a higher number. So that would push it closer to 4%, whereas, I think
if you took the currency out, you know, you would have a little bit better number.
Douglas H. McCorkindale
SMG. Yes, it will be positive, Bill. That's why we do acquisitions.
Gracia Martore
18. But I would suggest, Bill, that's already factored into the earnings estimates out there.
William Drewry - Credit Suisse First Boston
Understood. Thanks a lot.
Operator
The next question comes from Marie [ Indiscernible ] Please state your question.
Marie - Pain Anderson
Hi, with the tax plan changes, has it impacted your thinking about expectations for dividend growth?
Douglas H. McCorkindale
No, it hasn't impacted our thinking. We have enough money to increase the dividend if there is a real
reason to do that, but with all the acquisition possibilities on the horizon, we're sort of keeping our
powder dry. But if there is demand for dividend improvement with a couple of billion dollars of cash to
begin the year, we can move it around as is necessary.
Gracia Martore
As a further corollary for companies like Gannett who have been extremely good redeployers of the cash
flow they generate, I think that our ability to improve shareholder value by redeploying that into
acquisitions – good acquisitions as Doug says – probably is ultimately better for our shareholders than
just increasing the dividend because of the tax law change. But that being said, we're constantly looking
at that.
Operator
The next question comes from William Bird with Solomon Smith Barney. Please state your question.
William Bird - Solomon Smith Barney
Could you talk a little about the acquisition climate overall coming off the FCC rule change? Are you
seeing an up tick in interest in M&A possibilities. And secondly, I was curious what your preliminary
thoughts are for next year on Olympic and political advertising. Thanks.
Douglas H. McCorkindale
We'll go to the second one first: I haven't the slightest idea. We are hearing that a ton of money is being
generated on the political front and under the new rules, it will have to be spread out a little bit, which
will be good from an inventory-control point of view on the television side. Where that's going to come
in, I don't know, but we are hearing there is a lot of money. Now, keep in mind for 2002, we had more
19. political advertising than we did during a presidential election year, so that would suggest the next time
around, you know, being a presidential election year, the numbers should even be more positive. We're
optimistic about it, but we don't really know what the numbers are going to be yet. On the acquisition
front, I think it's a slight pickup. As I said more than once publicly, I don't think the rule changes are
going to result in a lot of folks doing transactions. If they don't make economic sense and – cross
ownership makes sense under certain conditions and certain prices and duopoly makes even more sense
because the economics are easier to analyze. We are having a series of discussions with folks that are all
friends of ours. It's about whether two and two can equal five, and should some pieces be moved around,
but there is nothing current going on that would result in the transaction coming about in the near future.
Gracia Martore
I know that you have a number of calls to listen to today. So we probably have time for one more
question.
Operator
The final question comes from John Kornreich with Sandler Capital. Please state your question.
John Kornreich - Sandler Capital
Lucky me. Doug, there have been a lot of questions about the very near-term and short-term and next
month and how are pacings in July and so on. I want to step back and take a longer-term view and get
your reaction to a thesis. Now, we on Wall Street look at the numbers that are coming out from media
companies and we see up 2%, up 3%, and I'm 3 ½%, even 4%, and we're looking for better numbers ahead
and so on. Maybe we shouldn't expect better numbers. Maybe in a world in which the inflation rate is 1%
or 2% and real GNP is 1% or 2% going forward, and nominal GNP is 3% and 4%. Why should we expect
the newspaper advertising to be anything more than 3% or 4% in the long-term?
Douglas H. McCorkindale
Well, John, I understand what you're saying. What we're hearing from the advertisers on the print and
broadcasting side is that they do have money to spend on advertising, but they're very reluctant to write
the check until they get a better feel for the economy. Now, if the economy moves sideways, at some
point they're either going to have to make some decisions to spend money on advertising to improve
their market share or they're going to have to put the money to use someplace else. We're just hearing a
reluctance to make a decision because of the uncertainty and the present outlook. Not that they don't
have the money. In fact, we have had a few of them sign up on contracts that sound like they're going to
spend some money in the second half. But, they're being very open and direct with us, saying they would
like some positives from the economy. So, you know, the employment picture will lag as it traditionally
lags. As you know, you followed us forever. If that employment picture starts picking up, I think a lot of
the other pieces will fall in place. I'm not hearing if people are just going to cut their ad budgets and sit on
it. We're hearing more positive news. That's why we're more positive and with everything in place, if that
ad picture does pick up, you're going to see a good deal of that revenue come to the bottom line at the
Gannett company.
John Kornreich – Sandler Capital
20. My own view for what it's worth, is that media companies where cost control is a culture and not a
reaction is where you ought to be and obviously Gannett has shown over the last few decades that cost
control is a culture.
Douglas H. McCorkindale
I thought you just took that out of our public relations statement.
John Kornreich – Sandler Capital
No. [ Laughter ]
Gracia Martore
On that happy note: If anyone has any further questions, I'm available to take them at 703-854-6918. Have
a great day and happy listening.
Douglas H. McCorkindale
Thanks, all.
Operator
Analysts with additional questions should contact Gracia Martore at 703-854-6918 or by E-mail at
gmartore@gannett.com. Members of the media with questions should call Tara Connell at 703-854-6049 or
by E-mail at tjconnel@gannett.com. Ladies and gentlemen, if you wish to access the replay for this call,
you may do so by dialing 1-800-428-6051 or 973-709-2089 with an ID number of 297869. This concludes
our conference for today. Thank you all for participating and have a nice day. All parties may now
disconnect.
Certain statements in this transcript may be forward looking in nature or “forward looking statements”
as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements
contained in this transcript are subject to a number of risks, trends and uncertainties that could cause
actual performance to differ materially from these forward looking statements. A number of those risks,
trends and uncertainties are discussed in the company’s SEC reports, including the company’s annual
report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this
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