SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report: January 14, 1997
GANNETT CO., INC.
(Exact name of registrant as specified in its charter)
Delaware 1-6961 16-0442930
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
1100 Wilson Boulevard, Arlington, Virginia 22234
(Address of principal executive offices)(Zip Code)
(703) 284-6000
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
EXCHANGE OF RADIO STATIONS FOR TELEVISION STATIONS
On December 9, 1996, the Company concluded a transaction with Jacor
Communications, Inc. to acquire WTSP-TV, the CBS affiliate in Tampa, in
exchange for radio stations KIIS AM/FM, Los Angeles, KSDO-AM/KKBH-FM,
San Diego, and WDAE-AM/WUSA-FM, Tampa.
This transaction was completed under the terms of an asset exchange
agreement between the parties. For income tax purposes, the transaction
will be treated as a tax free exchange with only minimal income tax due
as a result.
In the Company's opinion (with which the Company's independent accountants,
Price Waterhouse, LLP, concur), for financial reporting purposes, the
transaction should be accounted for under Accounting Principles Board
Opinion No. 29, Accounting for Non-Monetary Transactions, under
which the exchange of similar assets (in this case, broadcast stations) is
accounted for as a non-monetary transaction for which no gain or loss is
recognized.
Because of the unique nature of the transaction, the Company sought to
obtain the concurrence of the Securities and Exchange Commission
("SEC") with respect to its proposed accounting treatment. Several
discussions involving the Company, Price Waterhouse representatives
and the SEC staff were held for this purpose prior to the closing of the
transaction.
The SEC staff, however, disagreed with the accounting treatment proposed
by the Company and Price Waterhouse, and instead concluded that the
Company should record the transaction as two simultaneous but separate
events; that is, a sale of radio stations for which a non-cash gain must
be recognized, and the acquisition of the television station to be
accounted for under the purchase method. The gain to be reported on the
exchange of radio stations is to be measured by the difference between
the estimated fair value of the assets exchanged over the Company's
carrying value or basis in the properties it exchanged. Under this
approach, the Company has estimated the fair value of the assets exchanged
to be $170,000,000, while its carrying value or basis in the radio stations
is approximately $12 million. In the fourth quarter of 1996,
therefore, for financial reporting purposes, the Company is required to
report a pre-tax, non-cash, non-operating gain of $158 million on this
transaction. The television station acquired in the exchange is to be
recorded at estimated fair value or $170,000,000.
On an after-tax basis, this accounting treatment will result in a non-cash
increase in earnings per share for the fourth quarter of 1996 of $.66.
Further, the purchase accounting required for the television station
obtained in the transaction results in the recording of $158,000,000 in
additional tangible and intangible asset value which will be charged against
broadcast earnings over periods up to 40 years.
SALE OF MULTIMEDIA ENTERTAINMENT AND RESTATEMENT OF FINANCIAL STATEMENTS
In December, 1996, the Company sold its television entertainment programming
business, Multimedia Entertainment, which had been acquired in December 1995
as part of the acquisition of Multimedia, Inc. Because of the proliferation
of talk shows which made this niche of the television syndication business
extremely competitive and because of reduced advertiser acceptance of certain
of these programs, Multimedia Entertainment's revenues and earnings continued
a long pattern of decline through the date of the sale. The "Donohue" show
had been its most successful program and it ceased airing in September of
1996. The Company therefore decided to exit the business. The selling price
for this transaction approximated the value assigned to it by the Company
upon acquisition. Therefore, no gain was recognized on the sale.
The operating results for Multimedia Entertainment during the period it was
owned by the Company will be reported as a discontinued operation in the
Company's financial statements (along with the results of the Company's
Outdoor business, which was sold in the third quarter of 1996). The
Company's previously issued financial statements for 1996 and 1995 have
been restated to reflect this classification change. Accordingly, earnings
from continuing operations previously reported for the nine months ended
September 1996 have been reduced from $2.47 per share to $2.38 per share.
For the year ended December 31, 1995, previously reported earnings per share
from continuing operations have been reduced from $3.29 to $3.28
(Multimedia Entertainment was owned for only one month in 1995). These
restated financial statements are included in this filing.
<PAGE>
SUMMARY OF INCOME FROM CONTINUING AND DISCONTINUED OPERATIONS
After giving effect to the restatement discussed above, the Company's
earnings per share data are as follows.
Earnings Per Share Nine Months Ended Year Ended
- ------------------ September December
--------- --------
1996 1995 1995
---- ---- ----
Earnings from continuing
operations $ 2.38 $ 2.22 $ 3.28
Earnings from discontinued
operations .17 .08 .13
Gain on sale of Outdoor 2.09
---- ---- ----
Net income per share $ 4.64 $ 2.30 $ 3.41
==== ==== ====
CHANGE IN BUSINESS SEGMENT REPORTING AND RESTATEMENT OF SEGMENT
INFORMATION
Prior to sale, the operating results of the Outdoor and Entertainment
businesses were reported within the Company's "Other Businesses" segment.
These two businesses were the largest within that segment and are now
reported as discontinued operations and therefore are no longer reported
with business segment information.
The "Other Businesses" segment also included the Alarm Security business,
acquired in the Multimedia, Inc. purchase, and certain other smaller
businesses, including Telematch, Gannett Direct Marketing Services and
Gannett Telemarketing. In the aggregate, these remaining businesses are
not material in relation to the Company's consolidated operating results or
financial condition (less than 1%). Accordingly, the Company has elected to
change its business segment resporting to eliminate this "Other Businesses"
segment. The Alarm Security business is now reported with the Cable business
(Cable and security segment) with which it is headquartered and managed.
The other smaller businesses mentioned above are now reported in the
Newspaper Publishing segment with which they are managed. The accompanying
Business Segment Information for 1995 and 1996 has been restated to reflect
these changes.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
See Exhibit list.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
GANNETT CO., INC.
Dated: January 14, 1997 By: /s/
-----------------------
Larry F. Miller
Senior Vice President,
Financial Planning
and Controller
<PAGE>
Exhibit Index
Exhibit
Number Title or Description Location
- ----- -------------------- ----------------
99-1 Restated unaudited statements of income for Attached
the quarters ended March 31, 1996 and
March 26, 1995; June 30, 1996 and June 25,
1995; September 29, 1996 and September 24,
1995; and December 31, 1995; for the
three quarters ended September 29, 1996 and
September 24, 1995; and for the year ended
December 31, 1995.
Restated unaudited business segment
information for the quarters ended March 31,
1996 and March 26, 1995; June 30, 1996 and
June 25, 1995; September 29, 1996 and
September 24,1995; and December 31, 1995; for
the three quarters ended September 29, 1996
and September 24, 1995; and for the year
ended December 31, 1995.
Exhibit 99-1
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
<CAPTION>
Quarter ended % Inc
March 31, 1996 March 26, 1995
<S> <C> <C> <C>
Net Operating Revenues:
Newspaper advertising $ 556,885 $ 516,742 7.8
Newspaper circulation 229,417 211,964 8.2
Broadcasting 141,688 96,983 46.1
Cable and security 56,612 0 --
Other 39,281 37,535 4.7
--------- --------- ------
Total 1,023,883 863,224 18.6
--------- --------- ------
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 590,515 501,776 17.7
Selling, general and administrative,
exclusive of depreciation 168,707 155,004 8.8
Depreciation 48,837 35,248 38.6
Amortization of intangible assets 23,515 11,201 109.9
--------- --------- ------
Total 831,574 703,229 18.3
--------- --------- ------
Operating income 192,309 159,995 20.2
--------- --------- ------
Non-operating income (expense):
Interest expense (39,528) (11,732) 236.9
Other (1,583) (529) 199.2
--------- --------- ------
Total (41,111) (12,261) 235.3
--------- --------- ------
Income before income taxes 151,198 147,734 2.3
Provision for income taxes 64,750 59,700 8.5
--------- --------- ------
Income from continuing operations 86,448 88,034 (1.8)
Discontinued operations:
Income from discontinued operations,
net of income taxes 2,902 (1,828) 258.8
Gain on sale of Outdoor business,
net of income taxes 0 0 --
--------- --------- ------
Net income $ 89,350 $ 86,206 3.6
========= ========= ======
Earnings per share:
Earnings from continuing operations $0.61 $0.63 (3.2)
Earnings from discontinued operations:
Discontinued operations, net of tax $0.03 ($0.01) 400.0
Gain on sale of Outdoor, net of tax $0.00 $0.00 --
----- ----- ------
Net income per share $0.64 $0.62 3.2
===== ===== ======
Dividends per share $0.35 $0.34 2.9
===== ===== ======
</TABLE>
Note: This statement has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Quarter ended % Inc
June 30, 1996 June 25, 1995
<S> <C> <C> <C>
Net Operating Revenues:
Newspaper advertising $ 604,980 $ 567,134 6.7
Newspaper circulation 227,260 214,045 6.2
Broadcasting 176,306 120,880 45.9
Cable and security 57,732 0 --
Other 43,016 43,294 (0.6)
--------- --------- ------
Total 1,109,294 945,353 17.3
--------- --------- ------
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 587,515 507,070 15.9
Selling, general and administrative,
exclusive of depreciation 168,590 156,880 7.5
Depreciation 49,034 34,948 40.3
Amortization of intangible assets 23,481 11,167 110.3
--------- --------- ------
Total 828,620 710,065 16.7
--------- --------- ------
Operating income 280,674 235,288 19.3
--------- --------- ------
Non-operating income (expense):
Interest expense (38,403) (10,878) 253.0
Other (657) (1,198) (45.2)
--------- --------- ------
Total (39,060) (12,076) 223.5
--------- --------- ------
Income before income taxes 241,614 223,212 8.2
Provision for income taxes 104,375 90,500 15.3
--------- --------- ------
Income from continuing operations 137,239 132,712 3.4
Discontinued operations:
Income from discontinued operations,
net of income taxes 12,777 6,711 90.4
Gain on sale of Outdoor business,
net of income taxes 0 0 --
--------- --------- ------
Net income $ 150,016 $ 139,423 7.6
========= ========= ======
Earnings per share:
Earnings from continuing operations $0.98 $0.95 3.2
Earnings from discontinued operations:
Discontinued operations, net of tax $0.09 $0.05 80.0
Gain on sale of Outdoor, net of tax $0.00 $0.00 --
----- ----- ------
Net income per share $1.07 $1.00 7.0
===== ===== ======
Dividends per share $0.35 $0.34 2.9
===== ===== ======
</TABLE>
Note: This statement has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Quarter ended % Inc
Sept. 29, 1996 Sept. 24, 1995
<S> <C> <C> <C>
Net Operating Revenues:
Newspaper advertising $ 585,814 $ 508,821 15.1
Newspaper circulation 229,197 209,445 9.4
Broadcasting 178,879 104,787 70.7
Cable and security 58,332 0 --
Other 40,481 41,810 (3.2)
--------- --------- ------
Total 1,092,703 864,863 26.3
--------- --------- ------
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 612,888 510,661 20.0
Selling, general and administrative,
exclusive of depreciation 174,533 148,996 17.1
Depreciation 48,772 34,347 42.0
Amortization of intangible assets 23,472 11,168 110.2
--------- --------- ------
Total 859,665 705,172 21.9
--------- --------- ------
Operating income 233,038 159,691 45.9
--------- --------- ------
Non-operating income (expense):
Interest expense (34,111) (9,113) 274.3
Other (3,917) 1,100 (456.1)
--------- --------- ------
Total (38,028) (8,013) 374.6
--------- --------- ------
Income before income taxes 195,010 151,678 28.6
Provision for income taxes 83,800 61,400 36.5
--------- --------- ------
Income from continuing operations 111,210 90,278 23.2
Discontinued operations:
Income from discontinued operations,
net of income taxes 8,861 5,823 52.2
Gain on sale of Outdoor business,
net of income taxes 294,580 0 --
--------- --------- ------
Net income $ 414,651 $ 96,101 331.5
========= ========= ======
Earnings per share:
Earnings from continuing operations $0.79 $0.64 23.4
Earnings from discontinued operations:
Discontinued operations, net of tax $0.06 $0.05 20.0
Gain on sale of Outdoor, net of tax $2.09 $0.00 --
----- ----- ------
Net income per share $2.94 $0.69 326.1
===== ===== ======
Dividends per share $0.36 $0.35 2.9
===== ===== ======
</TABLE>
Note: This statement has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Quarter Ended
December 31, 1995
<S> <C>
Net Operating Revenues:
Newspaper advertising $ 626,553
Newspaper circulation 233,719
Broadcasting 143,537
Cable and security 17,831
Other 48,787
---------
Total 1,070,427
---------
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 590,236
Selling, general and administrative,
exclusive of depreciation 158,245
Depreciation 39,196
Amortization of intangible assets 15,792
---------
Total 803,469
---------
Operating income 266,958
---------
Non-operating income (expense):
Interest expense (20,452)
Other 4,381
---------
Total (16,071)
---------
Income before income taxes 250,887
Provision for income taxes 102,500
---------
Income from continuing operations 148,387
Discontinued operations:
Income from discontinued operations,
net of income taxes 7,145
Gain on sale of Outdoor business,
net of income taxes 0
---------
Net income $ 155,532
=========
Earnings per share:
Earnings from continuing operations $1.06
Earnings from discontinued operations:
Discontinued operations, net of tax $0.05
Gain on sale of Outdoor, net of tax $0.00
-----
Net income per share $1.11
=====
Dividends per share $0.35
=====
</TABLE>
Note: This statement has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Three Quarters Ended % Inc
Sept. 29, 1996 Sept. 24, 1995
<S> <C> <C> <C>
Net Operating Revenues:
Newspaper advertising $ 1,747,679 $ 1,592,697 9.7
Newspaper circulation 685,874 635,454 7.9
Broadcasting 496,873 322,650 54.0
Cable and security 172,676 0 --
Other 122,778 122,639 0.1
--------- --------- ------
Total 3,225,880 2,673,440 20.7
--------- --------- ------
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 1,790,918 1,519,507 17.9
Selling, general and administrative,
exclusive of depreciation 511,830 460,880 11.1
Depreciation 146,643 104,543 40.3
Amortization of intangible assets 70,468 33,536 110.1
--------- --------- ------
Total 2,519,859 2,118,466 18.9
--------- --------- ------
Operating income 706,021 554,974 27.2
--------- --------- ------
Non-operating income (expense):
Interest expense (112,042) (31,723) 253.2
Other (6,157) (627) 882.0
--------- --------- ------
Total (118,199) (32,350) 265.4
--------- --------- ------
Income before income taxes 587,822 522,624 12.5
Provision for income taxes 252,925 211,600 19.5
--------- --------- ------
Income from continuing operations 334,897 311,024 7.7
Discontinued operations:
Income from discontinued operations,
net of income taxes 24,540 10,706 129.2
Gain on sale of Outdoor business,
net of income taxes 294,580 0 --
--------- --------- ------
Net income $ 654,017 $ 321,730 103.3
========= ========= ======
Earnings per share:
Earnings from continuing operations $2.38 $2.22 7.2
Earnings from discontinued operations:
Discontinued operations, net of tax $0.17 $0.08 112.5
Gain on sale of Outdoor, net of tax $2.09 $0.00 --
----- ----- ------
Net income per share $4.64 $2.30 101.7
===== ===== ======
Dividends per share $1.06 $1.03 2.9
===== ===== ======
</TABLE>
Note: This statement has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation.
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Year Ended
December 31, 1995
<S> <C>
Net Operating Revenues:
Newspaper advertising $ 2,219,250
Newspaper circulation 869,173
Broadcasting 466,187
Cable and security 17,831
Other 171,426
---------
Total 3,743,867
---------
Operating Expenses:
Cost of sales and operating expenses,
exclusive of depreciation 2,109,743
Selling, general and administrative,
exclusive of depreciation 619,125
Depreciation 143,739
Amortization of intangible assets 49,328
---------
Total 2,921,935
---------
Operating income 821,932
---------
Non-operating income (expense):
Interest expense (52,175)
Other 3,754
---------
Total (48,421)
---------
Income before income taxes 773,511
Provision for income taxes 314,100
---------
Income from continuing operations 459,411
Discontinued operations:
Income from discontinued operations,
net of income taxes 17,851
Gain on sale of Outdoor business,
net of income taxes 0
---------
Net income $ 477,262
=========
Earnings per share:
Earnings from continuing operations $3.28
Earnings from discontinued operations:
net of tax $0.13
-----
Net income per share $3.41
=====
Dividends per share $1.38
=====
</TABLE>
Note: This statement has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation.
<PAGE>
<TABLE>
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
<CAPTION>
Quarter ended %Inc
March 31, 1996 March 26, 1995
<S> <C> <C> <C>
Operating Revenues:
Newspaper publishing $ 825,583 $ 766,241 7.7
Broadcasting 141,688 96,983 46.1
Cable and security 56,612 0 --
--------- --------- ------
Total $ 1,023,883 $ 863,224 18.6
========= ========= ======
Operating Income:
(net of depreciation and amortization)
Newspaper publishing $ 146,971 $ 150,741 (2.5)
Broadcasting 50,039 26,240 90.7
Cable and security 11,717 0 --
Corporate (16,418) (16,986) 3.3
--------- --------- ------
Total $ 192,309 $ 159,995 20.2
========= ========= ======
Depreciation and Amortization:
Newspaper publishing $ 40,716 $ 36,724 10.9
Broadcasting 13,119 7,064 85.7
Cable and security 15,961 0 --
Corporate 2,556 2,661 (3.9)
--------- --------- ------
Total $ 72,352 $ 46,449 55.8
========= ========= ======
Operating Cash Flow:
Newspaper publishing $ 187,687 $ 187,465 0.1
Broadcasting 63,158 33,304 89.6
Cable and security 27,678 0 --
Corporate (13,862) (14,325) 3.2
--------- --------- ------
Total $ 264,661 $ 206,444 28.2
========= ========= ======
</TABLE>
Note: This information has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation and to reflect the
elimination of the previously reported "Other businesses" segment. The Alarm
Security business previously reported therein is now reflected with the Cable
business (Cable and security segment); all other businesses included therein
are now reflected with the Newspaper publishing segment.
<PAGE>
<TABLE>
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
<CAPTION>
Quarter ended %Inc
June 30, 1996 June 25, 1995
<S> <C> <C> <C>
Operating Revenues:
Newspaper publishing $ 875,256 $ 824,473 6.2
Broadcasting 176,306 120,880 45.9
Cable and security 57,732 0 --
--------- --------- ------
Total $ 1,109,294 $ 945,353 17.3
========= ========= ======
Operating Income:
(net of depreciation and amortization)
Newspaper publishing $ 203,079 $ 205,350 (1.1)
Broadcasting 82,109 47,366 73.4
Cable and security 12,072 0 --
Corporate (16,586) (17,428) 4.8
--------- --------- ------
Total $ 280,674 $ 235,288 19.3
========= ========= ======
Depreciation and Amortization:
Newspaper publishing $ 40,743 $ 36,692 11.0
Broadcasting 12,899 7,006 84.1
Cable and security 16,317 0 --
Corporate 2,556 2,417 5.8
--------- --------- ------
Total $ 72,515 $ 46,115 57.2
========= ========= ======
Operating Cash Flow:
Newspaper publishing $ 243,822 $ 242,042 0.7
Broadcasting 95,008 54,372 74.7
Cable and security 28,389 0 --
Corporate (14,030) (15,011) 6.5
--------- --------- ------
Total $ 353,189 $ 281,403 25.5
========= ========= ======
</TABLE>
Note: This information has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation and to reflect the
elimination of the previously reported "Other businesses" segment. The Alarm
Security business previously reported therein is now reflected with the Cable
business (Cable and security segment); all other businesses included therein
are now reflected with the Newspaper publishing segment.
<PAGE>
<TABLE>
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
<CAPTION>
Quarter ended %Inc
Sept. 29, 1996 Sept. 24, 1995
<S> <C> <C> <C>
Operating Revenues:
Newspaper publishing $ 855,492 $ 760,076 12.6
Broadcasting 178,879 104,787 70.7
Cable and security 58,332 0 --
--------- --------- ------
Total $ 1,092,703 $ 864,863 26.3
========= ========= ======
Operating Income:
(net of depreciation and amortization)
Newspaper publishing $ 159,783 $ 136,344 17.2
Broadcasting 76,116 38,513 97.6
Cable and security 11,546 0 --
Corporate (14,407) (15,166) 5.0
--------- --------- ------
Total $ 233,038 $ 159,691 45.9
========= ========= ======
Depreciation and Amortization:
Newspaper publishing $ 40,282 $ 36,169 11.4
Broadcasting 12,886 6,991 84.3
Cable and security 16,609 0 --
Corporate 2,467 2,355 4.8
--------- --------- ------
Total $ 72,244 $ 45,515 58.7
========= ========= ======
Operating Cash Flow:
Newspaper publishing $ 200,065 $ 172,513 16.0
Broadcasting 89,002 45,504 95.6
Cable and security 28,155 0 --
Corporate (11,940) (12,811) 6.8
--------- --------- ------
Total $ 305,282 $ 205,206 48.8
========= ========= ======
</TABLE>
Note: This information has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation and to reflect the
elimination of the previously reported "Other businesses" segment. The Alarm
Security business previously reported therein is now reflected with the Cable
business (Cable and security segment); all other businesses included therein
are now reflected with the Newspaper publishing segment.
<PAGE>
<TABLE>
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
<CAPTION>
Quarter ended
December 31, 1995
<S> <C>
Operating Revenues:
Newspaper publishing $ 909,059
Broadcasting 143,537
Cable and security 17,831
---------
Total $ 1,070,427
=========
Operating Income:
(net of depreciation and amortization)
Newspaper publishing $ 209,134
Broadcasting 70,746
Cable and security 4,801
Corporate (17,723)
---------
Total $ 266,958
=========
Depreciation and Amortization:
Newspaper publishing $ 39,347
Broadcasting 9,046
Cable and security 4,407
Corporate 2,188
---------
Total $ 54,988
=========
Operating Cash Flow:
Newspaper publishing $ 248,481
Broadcasting 79,792
Cable and security 9,208
Corporate (15,535)
---------
Total $ 321,946
=========
</TABLE>
Note: This information has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation and to reflect the
elimination of the previously reported "Other businesses" segment. The Alarm
Security business previously reported therein is now reflected with the Cable
business (Cable and security segment); all other businesses included therein
are now reflected with the Newspaper publishing segment.
<PAGE>
<TABLE>
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
<CAPTION>
Three Quarters Ended %Inc
Sept. 29, 1996 Sept. 24, 1995
<S> <C> <C> <C>
Operating Revenues:
Newspaper publishing $ 2,556,331 $ 2,350,790 8.7
Broadcasting 496,873 322,650 54.0
Cable and security 172,676 0 --
--------- --------- ------
Total $ 3,225,880 $ 2,673,440 20.7
========= ========= ======
Operating Income:
(net of depreciation and amortization)
Newspaper publishing $ 509,833 $ 492,435 3.5
Broadcasting 208,264 112,119 85.8
Cable and security 35,335 0 --
Corporate (47,411) (49,580) 4.4
--------- --------- ------
Total $ 706,021 $ 554,974 27.2
========= ========= ======
Depreciation and Amortization:
Newspaper publishing $ 121,741 $ 109,585 11.1
Broadcasting 38,904 21,061 84.7
Cable and security 48,887 0 --
Corporate 7,579 7,433 2.0
--------- --------- ------
Total $ 217,111 $ 138,079 57.2
========= ========= ======
Operating Cash Flow:
Newspaper publishing $ 631,574 $ 602,020 4.9
Broadcasting 247,168 133,180 85.6
Cable and security 84,222 0 --
Corporate (39,832) (42,147) 5.5
--------- --------- ------
Total $ 923,132 $ 693,053 33.2
========= ========= ======
</TABLE>
Note: This information has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation and to reflect the
elimination of the previously reported "Other businesses" segment. The Alarm
Security business previously reported therein is now reflected with the Cable
business (Cable and security segment); all other businesses included therein
are now reflected with the Newspaper publishing segment.
<PAGE>
<TABLE>
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
<CAPTION>
Year Ended
December 31, 1995
<S> <C>
Operating Revenues:
Newspaper publishing $ 3,259,849
Broadcasting 466,187
Cable and security 17,831
---------
Total $ 3,743,867
=========
Operating Income:
(net of depreciation and amortization)
Newspaper publishing $ 701,569
Broadcasting 182,865
Cable and security 4,801
Corporate (67,303)
---------
Total $ 821,932
=========
Depreciation and Amortization:
Newspaper publishing $ 148,932
Broadcasting 30,107
Cable and security 4,407
Corporate 9,621
---------
Total $ 193,067
=========
Operating Cash Flow:
Newspaper publishing $ 850,501
Broadcasting 212,972
Cable and security 9,208
Corporate (57,682)
---------
Total $ 1,014,999
=========
</TABLE>
Note: This information has been restated to reflect Multimedia Entertainment
(sold in December, 1996) as a discontinued operation and to reflect the
elimination of the previously reported "Other businesses" segment. The Alarm
Security business previously reported therein is now reflected with the Cable
business (Cable and security segment); all other businesses included therein
are now reflected with the Newspaper publishing segment.
