Market Overview

Gannett Reports Second Quarter Results

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Solid Growth in Digital Advertising & Marketing Services Revenues

ReachLocal Delivers Significant Margin Improvement

Raises Adjusted EBITDA Outlook

Gannett Co., Inc. (NYSE:GCI) ("Gannett" or "company" or "we" or "our")
today reported second quarter 2018 financial results for the period
ended June 30, 2018 (1).

"We are excited by the continued momentum in our digital business driven
by strong growth in our marketing services and national media
businesses," said Robert J. Dickey, president and chief executive
officer. "On July 2nd, we successfully closed the
WordStream acquisition, which adds more software-as-a-service solutions
to our digital marketing services product portfolio and will further
propel our digital transformation that is already well underway."

"The strong margin improvement at our ReachLocal segment and the
continued focus on driving efficiencies within our publishing and
corporate operations reflect strong execution on our objectives," said
Ali Engel, senior vice president and chief financial officer. "Adjusted
EBITDA grew year-over-year and we delivered better than expected margin
expansion in the quarter. We are increasing our Adjusted EBITDA guidance
range for the year as a result of our stronger first-half performance,
combined with the integration of WordStream."

Second Quarter 2018 Consolidated Results (2)

  • Operating revenues were $730.8 million, compared to $774.5 million in
    the second quarter of 2017.
  • Favorable changes in foreign currency exchange rates benefited
    revenues by $4.7 million.
  • Same store operating revenues declined 7.5% year-over-year, consistent
    with the first quarter decline of 7.2%.
  • Total digital revenues increased 8% to $260.9 million, or
    approximately 36% of total revenue.
  • GAAP net income was $16 million, including $22.8 million of after-tax
    restructuring, asset impairment charges and other costs.
  • Adjusted EBITDA (3) totaled $85.6 million, compared to
    $83.7 million in the second quarter of 2017, up 2.3% year-over-year
    reflecting strong earnings growth at ReachLocal and continued
    operating efficiencies across our publishing and corporate operations.
    Adjusted EBITDA margins expanded in the quarter to 11.7% from 10.8% in
    the year ago quarter.

Second Quarter 2018 Publishing Segment

  • Publishing segment operating revenues were $644.6 million, compared to
    $692.2 million in the second quarter of 2017. On a same store basis,
    segment revenues declined 8.9%.
  • Same store print advertising revenues for the quarter declined 19.1%
    year-over-year reflecting a negative impact from the timing of Easter,
    which instead benefited the first quarter. First half same store print
    advertising revenues fell 18.1% year-over-year, consistent with trends
    seen in the last six months of 2017.
  • Digital advertising & marketing services revenues increased 8.5% to
    $107.9 million, compared to the prior year quarter. On a same store
    basis, digital advertising & marketing services revenues increased
    6.4%, consistent with the first quarter trend.
    • Digital marketing services revenues of $20.0 million rose 72.0%,
      on a same store basis, driven by higher client counts and higher
      average revenue per client.
    • Digital media revenues of $68.5 million rose 4.9%, on a same store
      basis, due to strong growth in national revenues.
    • Digital classified revenues of $19.3 million fell 21.6%, on a same
      store basis, reflecting weakness across all categories.
  • Same store circulation revenues fell 5.0% from the prior year quarter,
    consistent with the first quarter trend, reflecting the continued
    benefit from our full-access subscriber pricing initiatives, offset by
    expected revenue declines in single copy.
  • Digital-only subscriber volumes grew 46% year-over-year and now total
    approximately 413,000.
  • Publishing segment Adjusted EBITDA was $94.4 million compared to
    $104.1 million in the prior year quarter.

Second Quarter 2018 ReachLocal Segment

  • ReachLocal revenues were $100.4 million, up 16.9% year-over-year.
    • The increase was attributable to the migration of Gannett clients
      onto the ReachLocal platform and organic growth across
      ReachLocal's core business.
  • Adjusted EBITDA was $10.3 million, or a 10.2% margin, up materially
    from only $1.2 million in the second quarter of 2017.
    • Improved profitability in the quarter was driven by continued
      solid growth in average revenue per client due to more successful
      cross-selling and the migration of Gannett clients onto the
      ReachLocal platform. Additionally, in the second quarter, we sold
      our business in Germany, which had been slightly unprofitable a
      year ago.

Second Quarter 2018 Cash Flow

  • Net cash flow from operating activities was approximately $15.4
    million, compared to $98.3 million in the prior year quarter. The
    decrease in net cash flow from operating activities primarily relates
    to the timing of pension contributions of $25 million in the second
    quarter of 2018, as compared to the third quarter of 2017, and a tax
    refund of $16 million received in the second quarter of 2017.
  • Capital expenditures were approximately $14 million, primarily for
    product development, technology investments, and maintenance projects.
  • The company paid dividends of $18.1 million; there were no share
    repurchases.
  • As of the end of the second quarter, the company had a cash balance of
    $209.7 million and $170 million drawn on its revolver plus $166.8
    million in convertible notes, or net debt of $127.1 million. The
    company's revolver balance at the end of second quarter reflects the
    funding needed to complete the purchase of WordStream in early July.

Outlook

For 2018, the company is providing the following outlook:

  • Consolidated revenues of $2.95-3.00 billion, compared to $2.93-3.03
    billion previously, including a $27 million contribution from
    WordStream.
  • Consolidated Adjusted EBITDA outlook of $337-345 million, raised from
    prior guidance of $330-340 million, reflecting a $7 million
    contribution from WordStream.
  • Capital expenditures of $65-75 million.
  • Depreciation and amortization of $140-150 million, excluding
    accelerated depreciation related to facility consolidations and
    including an estimated $6 million for depreciation and intangibles
    amortization related to WordStream.
  • The non-operating cost associated with our pension plans, recorded in
    other non-operating items, is currently estimated to be a credit of
    $5-7 million as compared to an expense of $21 million in 2017.
  • A non-GAAP effective tax rate of 25-26% (3).
 
1 Both the second quarter of 2018 and second quarter of 2017 consisted
of 91 calendar days.
 
2 Beginning in the second quarter of 2018, we have realigned the
presentation of web presence and software-as-a-service revenues from
other revenues to advertising and marketing services revenues on the
Condensed consolidated statements of income (loss). As a result of
this updated presentation, for the three and six months ended June
30, 2018, advertising and marketing services revenues increased and
other revenues decreased $13.1 million and $23.9 million,
respectively. Additionally, advertising and marketing services
revenues increased and other revenues decreased $8.9 million and
$15.9 million for the three and six months ended June 25, 2017,
respectively. Operating revenues, net income, retained earnings, and
earnings per share remained unchanged.
 
3 The company defines adjusted EBITDA as earnings before income taxes,
interest expense, equity income, other non-operating items,
restructuring costs, acquisition-related expenses, asset impairment
charges, depreciation, amortization and other items. We define the
non-GAAP effective tax rate as the tax rate excluding any
non-recurring one-item tax adjustments. Because of the variability
of these and other items as well as the impact of future events on
these items, management is unable to reconcile without unreasonable
effort the company's forecasted range of adjusted EBITDA and
non-GAAP tax rate for the full year to a comparable GAAP range.
 

Conference Call Information

The company will hold a conference call at 10:00 a.m. ET today to
discuss its second quarter results. The call can be accessed via a live
webcast through the company's investor site, http://investors.gannett.com/,
or listen-only conference lines. U.S. callers should dial 855-462-1958
and international callers should dial 503-343-6635 at least 10 minutes
prior to the scheduled start of the call. The confirmation code for the
conference call is 1179067. A conference call replay will be available
through September 7, 2018. U.S. callers should dial 855-859-2056 and
international callers should dial 404-537-3406.

Forward Looking Statements

This press release contains certain forward-looking statements regarding
business strategies, market potential, future financial performance and
other matters. Forward-looking statements include all statements that
are not historical facts. The words "believe," "expect," "estimate,"
"could," "should," "intend," "may," "plan," "seek," "anticipate,"
"project" and similar expressions, among others, generally identify
forward-looking statements, which speak only as of the date the
statements were made and are not guarantees of future performance.
Where, in any forward-looking statement, an expectation or belief as to
future results or events is expressed, such expectation or belief is
based on the current plans and expectations of our management and
expressed in good faith and believed to have a reasonable basis, but
there can be no assurance that the expectation or belief will result or
be achieved or accomplished. Whether or not any such forward-looking
statements are in fact achieved will depend on future events, some of
which are beyond our control. The matters discussed in these
forward-looking statements are subject to a number of risks, trends,
uncertainties and other factors that could cause actual results to
differ materially from those projected, anticipated or implied in the
forward-looking statements. These factors include, among other things:

  • our ability to achieve our strategic transformation;
  • an accelerated decline in general print readership and/or advertiser
    patterns as a result of competitive alternative media or other factors;
  • an inability to adapt to technological changes or grow our digital
    businesses;
  • risks associated with the operation of an increasingly digital
    business, such as rapid technological changes, frequent new product
    introductions, declines in web traffic levels, technical failures and
    proliferation of ad blocking technologies;
  • macroeconomic trends and conditions;
  • competitive pressures in the markets in which we operate;
  • increases in newsprint costs over the levels anticipated or declines
    in newsprint supply;
  • potential disruption or interruption of our IT systems due to
    accidents, extraordinary weather events, civil unrest, political
    events, terrorism or cyber security attacks;
  • variability in the exchange rate relative to the U.S. dollar of
    currencies in foreign jurisdictions in which we operate;
  • risks and uncertainties related to strategic acquisitions or
    investments, including distraction of management attention, incurrence
    of additional debt, integration challenges, and failure to realize
    expected benefits or synergies or to operate businesses effectively
    following acquisitions;
  • risks and uncertainties associated with our ReachLocal segment,
    including its significant reliance on Google for media purchases, its
    international operations and its ability to develop and gain market
    acceptance for new products or services;
  • our ability to protect our intellectual property or defend
    successfully against infringement claims;
  • our ability to attract and retain employees;
  • labor relations, including, but not limited to, labor disputes which
    may cause business interruptions, revenue declines or increased labor
    costs;
  • risks associated with our underfunded pension plans;
  • adverse outcomes in litigation or proceedings with governmental
    authorities or administrative agencies, or changes in the regulatory
    environment, any of which could encumber or impede our efforts to
    improve operating results or the value of assets;
  • volatility in financial and credit markets which could affect the
    value of retirement plan assets and our ability to raise funds through
    debt or equity issuances and otherwise affect our ability to access
    the credit and capital markets at the times and in the amounts needed
    and on acceptable terms;
  • risks to our liquidity related to the redemption, conversion and
    similar features of our convertible notes; and
  • other uncertainties relating to general economic, political, business,
    industry, regulatory and market conditions.

A further description of these and other important risks, trends,
uncertainties and other factors is provided in the company's filings
with the U.S. Securities and Exchange Commission, including the
company's annual report on Form 10-K for fiscal year 2017. Any
forward-looking statements should be evaluated in light of these
important risk factors. The company is not responsible for updating or
revising any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

This press release also contains a discussion of certain non-GAAP
financial measures that the company presents to allow investors and
analysts to measure, analyze and compare its financial condition and
results of operations in a meaningful and consistent manner. A
reconciliation of these non-GAAP financial measures to the most directly
comparable GAAP measures can be found in the tables accompanying this
press release.

About Gannett

Gannett Co., Inc. (NYSE:GCI) is an innovative, digitally focused
media and marketing solutions company committed to strengthening
communities across our network. With an unmatched local-to-national
reach, Gannett touches the lives of more than 125 million people monthly
with our Pulitzer-Prize winning content, consumer experiences and
benefits, and advertiser products and services. Gannett brands include
USA TODAY NETWORK with the iconic USA TODAY and more than 100 local
media brands, digital marketing services companies ReachLocal and
SweetIQ, and U.K. media company Newsquest. To connect with us, visit www.gannett.com.

   
CONSOLIDATED STATEMENTS OF INCOME (LOSS)

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands (except per share amounts)

     
Table No. 1
 
Three months ended Six months ended
June 30, 2018 June 25, 2017 June 30, 2018 June 25, 2017
 
Operating revenues:
Advertising and marketing services $ 420,163 $ 454,107 $ 830,475 $ 896,588
Circulation 263,806 273,676 530,392 556,962
Other 46,799   46,724   92,852   94,414  
Total operating revenues 730,768   774,507   1,453,719   1,547,964  
 
Operating expenses:
Cost of sales and operating expenses 452,053 480,926 909,037 980,644
Selling, general and administrative expenses 199,143 206,681 412,142 416,241
Depreciation and amortization 38,378 51,850 78,630 98,667
Restructuring costs 12,611 9,827 21,910 22,378
Asset impairment charges 10,483   14,719   14,239   18,497  
Total operating expenses 712,668   764,003   1,435,958   1,536,427  
Operating income 18,100   10,504   17,761   11,537  
 
Non-operating expenses:
Interest expense (5,935 ) (3,454 ) (10,413 ) (7,709 )
Other non-operating items, net 4,042   (5,301 ) 8,353   (9,188 )
Total non-operating expenses (1,893 ) (8,755 ) (2,060 ) (16,897 )
 
Income (loss) before income taxes 16,207 1,749 15,701 (5,360 )
Provision (benefit) for income taxes (99 ) 2,236   (228 ) (2,794 )
Net income (loss) $ 16,306   $ (487 ) $ 15,929   $ (2,566 )
 
Earnings (loss) per share - basic $ 0.14 $ (0.00 ) $ 0.14 $ (0.02 )
Earnings (loss) per share - diluted $ 0.14 $ (0.00 ) $ 0.14 $ (0.02 )
 
Weighted average number of common shares outstanding:
Basic 112,946 113,652 112,852 113,574
Diluted 116,219 113,652 116,035 113,574
 
 
SEGMENT INFORMATION

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands

         
Table No. 2
 
Three months ended Six months ended
June 30, 2018 June 25, 2017 June 30, 2018 June 25, 2017
 
Operating revenues:
Publishing $ 644,551 $ 692,180 $ 1,283,211 $ 1,387,104
ReachLocal 100,435 85,926 196,923 163,491
Corporate and Other 1,809 1,041 3,785 2,009
Intersegment eliminations (16,027 ) (4,640 ) (30,200 ) (4,640 )
Total $ 730,768   $ 774,507   $ 1,453,719   $ 1,547,964  
 
Adjusted EBITDA:
Publishing $ 94,358 $ 104,120 $ 172,116 $ 195,784
ReachLocal 10,271 1,217 16,480 4,363
Corporate and Other (19,030 ) (21,683 ) (47,929 ) (46,812 )
Total $ 85,599   $ 83,654   $ 140,667   $ 153,335  
 
Depreciation and amortization:
Publishing $ 24,157 $ 37,638 $ 50,446 $ 71,063
ReachLocal 8,896 8,783 17,409 16,658
Corporate and Other 5,325   5,429   10,775   10,946  
Total $ 38,378   $ 51,850   $ 78,630   $ 98,667  
 
Capital expenditures:
Publishing $ 6,321 $ 7,731 $ 10,430 $ 17,227
ReachLocal 4,234 4,214 7,742 7,900
Corporate and Other 3,419   2,846   9,350   4,704  
Total $ 13,974   $ 14,791   $ 27,522   $ 29,831  
 
 
SAME STORE REVENUE DETAIL

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands

       
Table No. 3
 
Three months ended
June 30, 2018 June 25, 2017 % Change
 
Reported revenues $ 730,768 $ 774,507 (5.6 %)
Acquired revenues (10,487 ) ***
Currency impact (4,165 ) ***  
Same store revenues $ 716,116   $ 774,507 (7.5 %)
 
Reported advertising and marketing services revenues $ 420,163 $ 454,107 (7.5 %)
Acquired revenues (6,768 ) ***
Currency impact (2,600 ) ***  
Same store advertising and marketing services revenues $ 410,795   $ 454,107 (9.5 %)
 
Reported circulation revenues $ 263,806 $ 273,676 (3.6 %)
Acquired revenues (2,579 ) ***
Currency impact (1,208 ) ***  
Same store circulation revenues $ 260,019   $ 273,676 (5.0 %)
 
 
PUBLISHING REVENUE DETAIL

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands

       
Table No. 4
 
Three months ended
June 30, 2018 June 25, 2017 % Change
 
Publishing revenues detail
Print advertising:
Local $ 103,354 $ 124,708 (17.1 %)
Classified 74,905 86,338 (13.2 %)
National 49,636 62,377 (20.4 %)
Total print advertising 227,895 273,423 (16.7 %)
Digital advertising and marketing services:
Digital media 68,513 64,068 6.9 %
Digital classified 19,300 23,687 (18.5 %)
Digital marketing services 20,047 11,643 72.2 %
Total digital advertising and marketing services 107,860 99,398 8.5 %
Total advertising and marketing services 335,755 372,821 (9.9 %)
 
Circulation 263,806 273,676 (3.6 %)
 
Other 44,990 45,683 (1.5 %)
     
Total Publishing revenues $ 644,551 $ 692,180 (6.9 %)
 

USE OF NON-GAAP INFORMATION

The company uses non-GAAP financial performance and liquidity measures
to supplement the financial information presented on a GAAP basis. These
non-GAAP financial measures, which may not be comparable to similarly
titled measures reported by other companies, should not be considered in
isolation from or as a substitute for the related GAAP measures and
should be read together with financial information presented on a GAAP
basis.

The company defines its non-GAAP measures as follows:

  • Adjusted EBITDA is a non-GAAP financial performance measure
    that the company believes offers a useful view of the overall
    operation of our business. The company defines adjusted EBITDA as net
    income before (1) income taxes, (2) interest expense, (3) equity
    income, (4) other non-operating items, (5) restructuring costs, (6)
    acquisition-related expenses (including certain integration expenses),
    (7) asset impairment charges, (8) other items (including certain
    business transformation costs, litigation expenses, multi-employer
    pension withdrawals, and gains or losses on certain investments), (9)
    depreciation, and (10) amortization. The most directly comparable GAAP
    financial measure is net income.
  • Adjusted net income is a non-GAAP financial performance measure
    that the company uses for calculating adjusted earnings per share
    ("EPS"). Adjusted net income is defined as net income before the
    adjustments we apply in calculating adjusted EPS, as described below.
    We believe presenting adjusted net income is useful to enable
    investors to understand how we calculate adjusted EPS, which provides
    a useful view of the overall operation of the company's business. The
    most directly comparable GAAP financial measure is net income.
  • Adjusted diluted EPS is a non-GAAP financial performance
    measure that the company believes offers a useful view of the overall
    operation of our business. The company defines adjusted EPS as EPS
    before tax-effected (1) restructuring costs, (2) asset impairment
    charges, (3) acquisition-related expenses (including certain
    integration expenses), (4) non-operating (gains) losses, and (5) other
    items (including certain business transformation expenses, litigation
    expenses, multi-employer pension withdrawals and gains or losses on
    certain investments). The tax impact on these non-GAAP tax deductible
    adjustments is based on the estimated statutory tax rates for the
    United Kingdom of 19.0% and the United States of 25.5%. In addition,
    tax is adjusted for impacts associated with new tax rates in the U.S.
    Tax Cuts and Jobs Act. The most directly comparable GAAP financial
    measure is diluted EPS.
  • Free cash flow is a non-GAAP liquidity measure that adjusts our
    reported GAAP results for items that we believe are critical to the
    ongoing success of our business. The company defines free cash flow as
    cash flow from operating activities as reported on the statement of
    cash flows less capital expenditures, which results in a figure
    representing free cash flow available for use in operations,
    additional investments, debt obligations, and returns to shareholders.
    The most directly comparable GAAP financial measure is net cash from
    operating activities.

The company uses non-GAAP financial measures for purposes of evaluating
its performance and liquidity. Therefore, the company believes that each
of the non-GAAP measures presented provides useful information to
investors by allowing them to view our businesses through the eyes of
our management and Board of Directors, facilitating comparison of
results across historical periods, and providing a focus on the
underlying ongoing operating performance of our business. Many of our
peer group companies present similar non-GAAP measures to better
facilitate industry comparisons.

 
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands

         
Table No. 5
 
Three months ended June 30, 2018
Corporate and Consolidated
Publishing ReachLocal Other Total
 
Net income (GAAP basis) $ 16,306
Benefit for income taxes (99 )
Interest expense 5,935
Other non-operating items, net (4,042 )
Operating income (loss) (GAAP basis) $ 48,998 $ (1,696 ) $ (29,202 ) $ 18,100
Depreciation and amortization 24,157 8,896 5,325 38,378
Restructuring costs 9,447 2,966 198 12,611
Asset impairment charges 10,483 10,483
Acquisition-related items 105 2,917 3,022
Other items 1,273     1,732   3,005  
Adjusted EBITDA (non-GAAP basis) $ 94,358   $ 10,271   $ (19,030 ) $ 85,599  
 
 
 
Three months ended June 25, 2017
Corporate and Consolidated
Publishing ReachLocal Other Total
 
Net loss (GAAP basis) $ (487 )
Provision for income taxes 2,236
Interest expense 3,454
Other non-operating items, net 5,301  
Operating income (loss) (GAAP basis) $ 52,206 $ (7,889 ) $ (33,813 ) $ 10,504
Depreciation and amortization 37,638 8,783 5,429 51,850
Restructuring costs 6,752 323 2,752 9,827
Asset impairment charges 14,719 14,719
Acquisition-related items 244 1,326 1,570
Other items (7,439 )   2,623   (4,816 )
Adjusted EBITDA (non-GAAP basis) $ 104,120   $ 1,217   $ (21,683 ) $ 83,654  
 
         

NON-GAAP FINANCIAL INFORMATION

ADJUSTED EBITDA

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands

 
Table No. 5 (continued)
 
Six months ended June 30, 2018
Corporate and Consolidated
Publishing ReachLocal Other Total
 
Net income (GAAP basis) $ 15,929
Benefit for income taxes (228 )
Interest expense 10,413
Other non-operating items, net (8,353 )
Operating income (loss) (GAAP basis) $ 88,163 $ (4,622 ) $ (65,780 ) $ 17,761
Depreciation and amortization 50,446 17,409 10,775 78,630
Restructuring costs 17,724 3,505 681 21,910
Asset impairment charges 14,239 14,239
Acquisition-related items 121 3,825 3,946
Other items 1,544   67   2,570   4,181  
Adjusted EBITDA (non-GAAP basis) $ 172,116   $ 16,480   $ (47,929 ) $ 140,667  
 
 
 
Six months ended June 25, 2017
Corporate and Consolidated
Publishing ReachLocal Other Total
 
Net loss (GAAP basis) $ (2,566 )
Benefit for income taxes (2,794 )
Interest expense 7,709
Other non-operating items, net 9,188  
Operating income (loss) (GAAP basis) $ 95,725 $ (12,661 ) $ (71,527 ) $ 11,537
Depreciation and amortization 71,063 16,658 10,946 98,667
Restructuring costs 17,873 323 4,182 22,378
Asset impairment charges 18,497 18,497
Acquisition-related items (89 ) 43 2,639 2,593
Other items (7,285 )   6,948   (337 )
Adjusted EBITDA (non-GAAP basis) $ 195,784   $ 4,363   $ (46,812 ) $ 153,335  
 
 
NON-GAAP FINANCIAL INFORMATION
ADJUSTED DILUTED EPS

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands (except per share amounts)

         
Table No. 6
 
Three months ended Six months ended
June 30, 2018 June 25, 2017 June 30, 2018 June 25, 2017
 
Restructuring costs (including accelerated depreciation) $ 16,833 $ 23,625 $ 31,293 $ 45,957
Asset impairment charges 10,483 14,719 14,239 18,497
Acquisition-related items 3,022 1,570 3,946 2,593
(Gains) losses from non-operating activities (2,862 ) (2,728 ) 158
Other items 1,272   (4,702 ) 1,986   (3,198 )
Pretax impact 28,748 35,212 48,736 64,007
Income tax impact of above items (7,173 ) (13,394 ) (12,100 ) (24,432 )
Tax benefit $ (2,094 ) $   $ (2,094 ) $  
Impact of items affecting comparability on net income $ 19,481   $ 21,818   $ 34,542   $ 39,575  
 
Net income (loss) (GAAP basis) $ 16,306 $ (487 ) $ 15,929 $ (2,566 )
Impact of items affecting comparability on net income (loss) 19,481   21,818   34,542   39,575  
Adjusted net income (non-GAAP basis) $ 35,787   $ 21,331   $ 50,471   $ 37,009  
 
Earnings (loss) per share - diluted (GAAP basis) $ 0.14 $ (0.00 ) $ 0.14 $ (0.02 )
Impact of items affecting comparability on net income (loss) 0.17   0.18   0.29   0.34  
Adjusted earnings per share - diluted (non-GAAP basis) $ 0.31   $ 0.18   $ 0.43   $ 0.32  
 
Diluted weighted average number of common shares outstanding (GAAP
basis)
116,219 113,652 116,035 113,574
Diluted weighted average number of common shares outstanding
(non-GAAP basis)
116,219 115,918 116,035 115,595
 
 
NON-GAAP FINANCIAL INFORMATION
FREE CASH FLOW

Gannett Co., Inc. and Subsidiaries

Unaudited, in thousands

     
Table No. 7
 
Three months Six months
ended June 30, ended June 30,
2018 2018
 
Net cash flow from operating activities (GAAP basis) $ 15,377 $ 80,530
Capital expenditures (13,974 ) (27,522 )
Free cash flow (non-GAAP basis) $ 1,403   $ 53,008  
 

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