Benzinga -
- Gannett Co Inc (NYSE: GCI) reported a first-quarter FY23 sales decline of 10.6% year-on-year to $668.92 million, missing the consensus of $681.30 million.
- The media and marketing solutions company reported an adjusted EPS of $0.04, beating the consensus of $(0.06) loss.
- Declines in digital media year-over-year on a same-store basis and overall weakness across major segments weighed on Q1 results.
- Advertising and marketing services revenues decreased 9.1% to $340.85 million; Circulation revenues declined 16.4% to $241.29 million.
- Adjusted EBITDA totaled $62.9 million (-2% Y/Y) with a margin of 9.4%.
- As of March 31, 2023, the company had cash and cash equivalents of $83.1 million.
- In Q1, the company made measurable progress in debt reduction, having repaid $37 million. The total principal amount of debt outstanding as of March 31, 2023, was $1.23 billion.
- "We believe our trends are improving, our digital growth businesses remain strong, our first lien net leverage declined and is on track to achieve our year-end target of less than 2x, and we continue to optimize our capital structure," said Chief Executive Officer Michael Reed.
- Outlook: Gannett reiterated its FY23 sales guidance of $2.75 billion-$2.80 billion versus the consensus of $2.77 billion.
- The company raised its 2023 outlook for net income (loss) to be $(15) million-$15 million (prior view $(20) million-$10 million).
- Price Action: GCI shares are trading lower by 14.3% at $1.6950 on the last check Thursday.