GCI - Earnings call transcript Q3 2017

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Operator

Welcome to Gannett's 2017 Third Quarter Financial Results Conference Call. At this time all participants are in a listen-only mode. Later we'll conduct a question-and-answer session. [Operator Instructions] And as a reminder, this conference call is being recorded. I would now like to introduce your host for today, Stacy Cunningham, Vice President, Financial Planning and Analysis with Gannett.

Stacy Cunningham

much. very you Thank and Gannett's everyone, earnings quarter conference call. welcome morning, third to XXXX Good

this being call reminder, a As is recorded.

Zidich, Chief Joining us Chief Officer; and Engel, and Chief Executive Dickey, Bob Domestic Officer John Sharon Financial of Rowlands, today from Executive Gannett Officer; are President Publishing; of ReachLocal. President Ali

cause The like factors call forward-looking financial our statements attention begin, results Safe provision our risk to actual release. identifies Harbor we may materially statements. Before contents to Safe differ I that in our results would of your from Harbor for to press provision the forward-looking

for For Relations the Investor our to during can of management's comments we affect GAAP financial measures. reported may non-GAAP detailed XXXX also SEC Investor our our a and to release the investors.gannett.com. webcast this available is our call, financial and through press results is our more website. being Also, found tables our and have press financial our non-GAAP description risk factors include release, which This Reconciliations conference XX-K. going website results in refer to are between filings, the call Relations metrics results at of results, please posted be including that Form

I'd With to turn Bob these now Dickey. the formalities out the of way, to like call over

Bob Dickey

Thanks, morning. Stacy good and

growth. third solid revenue profitability quarter digital Our results accelerating demonstrated in strong improvement and year-over-year

delivering advertising digital -- quarter cost was print our on the keep further to with for the us from track for continues advertising a marketing we quarter, realize aggressively revenue our to offset and expectations to line quarter across on Print below the legacy significant content to continue third expectations Overall the to headwinds. year. had ago. be continues growth our completed digital growth. from expectations challenging full advertising results however, profit year top and manage our structure compelling and initiatives, strong transition acquisition very Our ReachLocal via our services organization digital improvement, growth digital one

During consumers initiatives, for execute our we earnings print, and on with strategic include destination daily we on for marketers which the our To and audience meaningful other expanding and across vision, consumer call, BXC engagement. this connections vision focused last are channels. and communities our outlined growing seeking digital becoming a their

the making by our advertising our We our well are digital of digital also maximizing strengthening with building as efforts in BXB further future, including These both value our to headway as development product out services with business. reinvestment marketing organic economic print as offerings, enable be marketing necessary acquisitions. ReachLocal. supported we relationships will are partners, and our of part And the

some we me in the strategy during executing quarter. Let made progress the highlight our on of

the side comScore. as monthly were ranked category of business, second On behind Yahoo!, ahead ABC by of in highest company at record the in measured our levels and September uniques, Digital, XXX and audience CNN. news NBC the News consumer only reached comScore's We information News and

Out The strong build off social Phoenix detail multi-platform, Facebook of to reporting report I'd recent Articles and local to markets and President by the rollout example focus project creates long-form a efforts storytelling we with efforts film. our showing engagement The virtual We is new with is exclusive The aerial an on Led platform that performance great experience our of opportunities the border. was results multi-platform, that on Mexico a documentaries, mention. early encompasses that produced reporting and XXX network-wide in multimedia app. an a reporting and important was degree had result content. podcast, reality, sales a Google resulted Apple a marketing video, photos, traffic. we Cincinnati, examines that Trump's landmark it of epidemic Wall and and our news upcoming advertising U.S. client. September, in a great wall search the network-wide campaign referral heroin with cause to several strong like in investigation launched our ideas, teams News, team, of growth an Google and in brainstorm Our across between sponsorship Instant of in-depth the strong collaboration app new result already into strong innovative

its Texas drones of damage. Harvey was of the Our Hurricanes and Irma Florida coverage report use on properties and to groundbreaking with

as NETWORK made North Korea. of headlines quickly out given reporting national tensions tremendous the asset USA has Guam been for Our Guam a TODAY with has

the during for scheduled quarter. this attendance in the Grateful on the amazing content Martha monetization of and have our we is third with participation and investment and believe quarter. revenue. held and we our wine a in events We strategies strongly beyond online publishing business an during a lifestyle-related high-influence third and in work in investment our our we're journalistic Difficulty] for focuses traditional other This and continue XX XX expanded food building had squarely our media and in to and audience, which our level Detroit the in bloggers. the Stewart, especially held new ways, month, events the company, as websites We proud news with In quarter audience. restaurants. audiences fourth X,XXX that [Technical produced of from are majority and partnership strategy mission pleased we announced event Ventures, of both attendees lifestyle and cooking expanding quarter, Earlier food and XX different more

We're and and cooking team the new and to during content, provide our universal event Justin and founders, excited Rainbow, Kyle investment, improve experienced content Grateful family user categories a tail presence, food lifestyle also original, categories. high-quality and TODAY the we quarter high-fashion join USA expand for mobile and the To that as web launched Cox modular platform. and to work Gannett integrations. the the live with leverages we new long into to launch talented experience adaptive their very website engagement, new With will have video, interactions

ReachLocal website on seen growth importantly, articles driving have starting in the be had spend website times the with And out cross-selling and development to load and our Shifting Part times roll search, We including new client strategy our our client strong markets XX% use mobile reducing page the growing growth perceived are in revenue. to XX%. success in clients. via quarter of display of in better-balanced marketing American a levels and to digital services. higher clients generated by revenue over margins. to is engagement we more significant side, quarter North local after solid the and than the other mobile due very continued We'll products, in second to social, gains ReachLocal improvement spent revenue growth business-to-business were fourth multiple scaling and ads quarter. services. location our the spend encouraging increasing Gannett-related on strong advertising These

the will hold. quarter results speak minute. a we As are third to our Sharon ReachLocal's in quarter show, really seeing strategies more taking sales

We national quarter with a also our which entire had very business, digital network. strong display our runs across

team delivered prior sales CPMs, premium overall from growth in national quarter growth by retention. in sales, the year new driven XX% Our and solid client business

On business. and our year-over-year strength in the marketplaces with saw side, programmatic XX% private programmatic direct growth we

quarter, we high-impact digital into In continue success suite the leveraging All We key our to advertising strategy, services our reach of digital our entire digital based Gravity such dollars broad the and had campaigns, leveraging financial content ad in go-to-market see our print product we and local of U.S. In digital clients are signed category. traction Today products, agency service education, enhance the units. depth the on large sales categories of Network. branded services and strength advertising commitments suite care. particular to as including branded Using converting and our markets, in print, digital we home health new and continue full approach, including multi-month marketing our display, content. attracting

large local department with local continued categories from from set generally our in overall, delivering Our ROI digital large trails national seeing businesses, revenue, quarter. continues because retailers positive to are the we we especially preprint and were from of and performance pressure grow our trends big-box for this stores, businesses, clients. soft expectations strong for more local The our are Despite the grocers. print,

We to our print high smallest churn also see continue among accounts.

implementation to extend significant program quarter, the starting related developing ReachLocal and now XX first are of frequency of is with rollout results. suite our There of see are their aggressively this revenue these their we out serve into saw adoption We program trends. Last sales September, the print to our program. team, but summer, In to the that clients we the a ramp and outperformance mentioned in buy rolled pricing for our by over plans markets we print products. this digital, better

the We momentum as quarter. with head program we expect into the continued

initiative. pricing our Turning quarter we seeing results delivery to circulation, from second are better-than-expected home

the late in base focused delivery, and expected We and and for to customers a aggressive our have believe, indications offer customers subscriber in print to update on delivery for the these believe with home down quarter. range quarter testing our well year. experience volumes September, continuing steady seen We the fourth cancellations preliminary that pricing our XX% past than the prior and began next Based in into bode me pay over turn broader those opportunity. which for more we're held that, premium offset who, willing who helps is include ReachLocal. our let subscribers on most decline. we actions, an loyal home for Sharon These pricing the on most are volume With to it fewer

Sharon Rowlands

you, Thank Bob.

continued with X% both to across and international XX% some X notable So business. there. in momentum again, strong in grew and We revenue a America plans over national with pressure North quarter, and Globally, an address Pacific. executing for are markets performance saw increases the we second ReachLocal growth our over from very did North America, sequentially second had few revenue performance quarter was strong growth our our XXXX quarter with continued direct the quarter exciting experience and channels. local Asia

client and quarter penetration We've quarter the strong revenue solutions new our first client of of revenue sequential marked average per consecutive growth continued second base. Our into increased results growth.

our Our X% social unit growth. saw continued quarter, X% growth unit solution advertising second solution the and subscription trajectory with from a its

to Group platform. the ReachLocal quarter, we the Journal property the former the During completed migration of Media on

scores clients experience We quality migration clients. other campaigns, And the Gannett all with in all across able power total, and these migrated. to key of are been ReachLocal metrics migrated X,XXX clients those to improvement and and are of performance have behalf on campaigns activities continue advantage the now model. significant we service of take In technology finished

fact, of click getting In are the clients cost they now better ReachLocal that migrated are on per platform. XX% a

also monthly with at and run quarter, the and into the the three, up management Recall already XX% offers there. rate end roadmap, we about platform services. added business efforts listings We basis. prior over also quarter, the client seen location exciting During SweetIQ is the the performing well on things end and of that net revenue primary a quarter cross-sell subscription we've ReachLocal The the the completed integration in SweetIQ management of and to reputation I'm quarter. product major of Gannett come new SweetIQ XX both enthusiastic our acquisition. brands

integration, momentum the leveraging great strong to attention and of migration large the growth. to local footprint With successful SweetIQ we digital properties turn drive our Gannett Gannett a client product of

this referenced consolidated appears great helps which signs provides providing advertising new exciting better already our base enhanced launch I on performance brings increase four include tool we're We've local also signaling times client-centric in As across with clients to and over of only rollout across that user opportunities. new campaigns This completed also for sites. excited them. the display engagement many client-retention operated have soon but tool, experience, for This of tool of last prior reporting our system, our it our not synthesize our with will seen and services. a success on all Gannett-owned servicing utility quarter, the reporting client-centric

and expectations are the for business, continued to fourth with the revenue strong sequentially EBITDA more growth margin. Our quarter scaling flow-through and continued adjusted

company digital have a extensive digital brought and together opportunity direct of the marketing a and range comprehensive with properties solutions Gannett world-class local lies ReachLocal, by ahead to very DNA agency us. and the ReachLocal combining of significant local And footprint We sellers.

me ago, joined an serving base by call Gannett of turn have partners market yielding to the and share one to returns. With just We capturing greater significant is over over are and local Ali. delighted our let year plan that, national of in-store

Ali Engel

Thank you, good morning, Sharon, and everyone.

third revenue demonstrated profitability in results. of revenues trends Consolidated Our financial year-over-year acceleration digital performance XXXX to quarter quarter. third the and million compared the compared $XXX and an print $XXX by decline improvement quarter were second for results XXXX XXXX This from circulation X.X% from the million an partially offset second a to environment, total On third quarter, the challenged revenues basis, the in acquired quarter. the advertising XX.X% contribution the in properties. declined same-store reflects

on We year's for related deferred same-store the revenue acquired Media performance cost audience from the at as continue -- our partial were XX.X%. for Total expenses approximately million, XXXX third their year Florida benefit to of driven side the the adjusted revenue third the quarter, operation. XX% in partially acquired Total ReachLocal, quarter. of to There in year-over-year year-ago second XXXX extension $XX so we a synergies and that impact at adjustment XXXX, period. to million EBITDA compared related digital price marketing strong improved our year-over-year quarter. August year-ago trends and due savings total advertising $XX a from saw year-over-year total quarter, completed in revenues distribution to Jersey ReachLocal $X.X $X.X prior Media in categories. represented of the our was facility period the X, of same-store growth the operating the was contribution down publishing strong revenue from purchase from the to million segment, We last quarter after quarter grew improvement acquisition return million ReachLocal digital business mobile, in digital in the up XX% accounting revenue million quarter. improvement of of production XX% saw business XXXX totaled to newsprint include expense nearly The Group $XX flat deferred and video an a acquisition growth the the the in from by a negative the and operations digital reflecting In was the the Excluding Same-store on from acquisitions million in our the aforementioned period Adjusted there profit hurricanes performance adjustment growth declined and second contribution Group, Publishing and we continued impacted North and lower from consolidations. the and in operation. services Journal X% ReachLocal the revenues Texas operations. the $XXX the transition impact

in premium XX.X% sales We trailed growth Same-store in to revenues print have as XX.X% expectations and Bob decline in national quarter. compared programmatic sales, performance with noted. XXXX declined digital business a direct particularly as strong advertising year-over-year, robust our second our and

entertainment. weakness furniture, grocery, in to of While show some our we frequency categories has program our traction, print key started pricing some of saw health and

national of performance quarter actions TODAY in second grew home from grew both the revenues quarter quarter Additionally, discounting fourth local third in benefit properties, the the Despite $XX.X about in TODAY. hotel million preprints, down circulation a pricing X%, At customers USA X.X% be the second improved, reflects USA weakening quarter more while international XXXX a the versus XXXX to more volume in Revenue in local decline and circulation Migrated pricing in our local American sequential Digital-only ReachLocal increase steady growth over The in from the a X.X% trends USA clients in pricing quarter, year-over-year our at but continued revenue third showed felt subscriber contribute the quarter. reflecting at the circulation mixed some domestic TODAY, was second North revenue into quarter, In the ReachLocal print down markets revenues held will improving reflecting X% or Gannett volumes more stores, XX% from robust as the revenues from aggressive domestic to in weakened quarter in X%, delivery and quarter. mid-September quarter, compared department XX% same-store scaled-back the quarter was with second segment, telecommunications that activity. the softness that impact the delivery volumes. actions. second XXXX. some actions, came growth. advertising began at within mainly and up local revenues our the relatively at muted growth year-over-year. X% sports. trends At XX% performance in properties, range. Circulation our quarter

from at that adjusted quarter transitioning and second million X.X% a spending ReachLocal client. related material to the was margins quarter reached X.X%, improvement Gannett by the Second EBITDA impacted investment was margin $X.X

quarter tax benefit meaningful. ReachLocal a resulted tax anticipate onetime in net the and Our On GAAP the the from net The effectively consolidation. to rate XX% write-off supporting year. of for for stock the expenditures made the to rate effective tax the development effective for rate of foreign was tax $XX entities. tax tax the Capital quarter as to certain income effective basis, projects reflecting basis, be the facility product our $XX.X and not non-GAAP worthless of impacted maintain we related benefit by year-to-date we a of slightly negative million, range well debt year. a million. The of as magnitude On guidance digital ongoing full the an favorably benefit quarter our for investments to totaled XX% zero for

was cash and balance debt of the X and million on outstanding million. our during repurchased at net dividends our million. our stock $XXX in revolver total a or $XXX $XX $XXX million $XX ending common paid of quarter shares debt million We million cost was of Our

are maintaining million our Given $X.XX of range our adjusted $X.XX of billion, EBITDA continued guidance operating and billion our performance, range to revenue to solid we $XXX $XXX million.

Bob. year, adjusted the our included do week have in who ranges. year calendar, others which in call of an turn will been I full publishing and our has on a quarter X-X-X with revenue and now fourth the fiscal consistent -- guidance reporting reminder, full back year extra EBITDA a in factored As industry report we to this range the

Bob Dickey

moment from year, next effective a and Publishing April Publisher the morning. take made Zidich, at President comment this to will be Xrd of than USA announcement to after with John we Gannett more Domestic TODAY, wanted years XX retiring I company. Ali. another of Thanks, on

thank Publishing has has the formerly career West colleague business. an when He USA of was had his a John want with of and esteemed publishing Publisher I he TODAY, to Republic John President of Domestic leadership his As President. Gannett. and Group Republic Executive had oversight of for of and June all friend, Publisher throughout Arizona domestic and of John XXXX, personally Chief career. was tireless Media named Since

on formerly at Before he starting grateful and in as XXXX served after Reno his has of his Record, President John Phoenix, the time by career in Stockton Gannett. Publisher The Gazette-Journal, I'm owned as we with our agreed April seek help align strategy. operator the until better I With that, to business to to questions. it transition, to the for with refreshed stay over turn

Operator

Thank you [Operator Instructions].

Our of Michael Kupinski first from Markets. question comes NOBLE the with line Capital

Michael Kupinski

quick Is couple little expenses good Or line how this should forward? was rate half. lower at in going questions. run of a The forward? we look the a Just were going first what it SG&A than trending item a that

Alison Engel

us up. Let pull that

we look, Just some SG&A third I'd it's say, for took a run reasonable actions probably cost the specifically quarter, rate. in so

have we those increases, typically, in Although do but -- that things will think, are a I run small be accurate. fairly probably XXXX couple rates of incremental

Michael Kupinski

way is that was that identify that there XXX uniques grew from million. increase way then uniques can digital And your related XXX you make you and you're I just it to the wondering of million uniques? number the revenue getting? a is growth revenue identify to the any the to to know there And digital I relative like digital

Alison Engel

revenue to break lot than is out of not. more in because is of to different the some require detail has traffic, would us do revenue components, which of that digital which a think some related that I we

thought for that Stacy starter I let think, I presentations. take So future as a and

Bob Dickey

is Michael, Bob. So this

things the mobile keep a XX% programmatic couple our seeing, Obviously, we're we're the was though. growth driving seeing. was and just mind national direct traffic think, is The XX%. growth which growth that there's to I of programmatic, in

the a on there's growth correlation definitely to that So unique the set. we're seeing

Michael Kupinski

your the markets was into back would component And end, TV you have newspaper as a to USA a those aggregate Network? that local of there combined I obviously, for uniques at a if to businesses. in its that additional getting there's look possibly company just you And possible TV strategy that out wondering to and digital

Bob Dickey

ReachLocal Michael, us be on a this part focused our we're suggest think in it's -- At with business consumer us our marketing services that's by focus the too franchise. for or I job at of early this proper point time. doing very for believe consistently digital We great time, We journalism. business through the that side the And now would the we're strategy. through to of little our led expanding our

Michael Kupinski

of maybe add that terms or would in to given you those of wondering of that your looking your markets just a not newspapers in say, and consider to prospect have were in market? or getting available not, were some whether the you you, getting in digital was the other into the a certain going the direction network, pricing I market let's at would newspapers the that maybe component TV activity M&A And if in fact to

Bob Dickey

possibility -- think us so investment down that will a a standalone to non-Gannett expand are broadcast be challenges, the us with its TODAY far can would that would a better certainly That's don't be USA NETWORK markets see cross-ownership road, ways television the Obviously, other going a still there but I station. see buying standalone. than into we has early It it's as I going play. where into

Michael Kupinski

Can question. final newsprint? on an prospects give legislative me the update Canadian my then shares And you on regarding

Sharon Rowlands

newsprint buying well on, like to faces as Michael. as NORPAC single product Canadian largely other circumstances. believe disappointed a paper use U.S. newspaper in challenges that manufacturer produce coalition domestic We, the the Hang regional broad from typically and patterns. a and a We're decided trade case that manufacturers, these publishers, U.S. Yes. that they stem of

inventories purchasing say expenses on to accretive our the being And all Newsprint matter. our continue minimize impact to that and the decisions producers can of that's and last now. increases announced really price quarter are we implemented manage we

Operator

line next question Janedis the John Jefferies. with from our of And comes

John Janedis

new circulation alternatives for of in cases, as pre-monopoly local And are your Can more about the people so using what a the normal the revenue local so news? markets in in position little market increase? or that a many you bit trends? given talk Is price context X down

Bob Dickey

I'll let the speak John to circulation.

John Zidich

the -- in third that next pricing John, in So in year. into quarter and markets quarter trends local into the with September, will in the the improve we the implemented believe especially we've fourth fourth quarter,

Bob Dickey

the competitors digital On customers to we losing basis, the John. other -- As question, on print do to side. not not news a see we're

we're very the -- proud number Our their we of local with in our digital news that, fact or markets, in local two one number the presence. category predominantly our are

can seven-day. them I home of goal. And believe still start. So our of print the behavior are consumer revenues point, loyal year-over-year. a continuing before, the it's just actions great at a And But in we to our transition to flat to we be have much question XX% think off pretty same an from delivery we've we That's readership, print John's digital. that XXXX, mentioned pricing to as time, over are see incredibly

John Janedis

of you And of point in the or local those granularity them then legacy the where the acquisitions. is in can maybe more come? more now portfolio? bit separately, from the sources noted cost from to just are Are year's on savings you Like a give a market little largely terms last on synergies recognizing you front, completed there

Bob Dickey

very for weeks not ago, have we few still -- XXXX. that robust do pipeline we reviewed just regularly we we're first, a a Well, as

that year, initiatives year. started benefit savings cost the through from were late this We'll roll out into this 'XX. of to Some

areas. to our and our additional business, be news synergies orchestrated. in while, for savings to take the of of planned a We few number have that's also side that distribution savings continue and months a around Most you sales have the continue. focused these as our Those a know get smaller. printing large consolidations where been some We've are seen of

on focused really haven't We that.

are past, some to add? reporting everything but As our allowed anything want local resources, has local preserve doing to we've the and in said efficiencies. John, sales you we network the us

John Zidich

production those I Bob. against outperforming process have really pieces, year. Bob acquisitions, still on that the done synergies stated, we'll distribution a mostly We've think of good think will next our are as continue actually I key with and and the into job

Bob Dickey

made some we're investigate maybe are the also, can USA side, distribution There and bit are and we on we further that, reference that John a that new things printing around specifically 'XX. to TODAY in rollout believe, examining.

Operator

Thank question the And Kyle Stephens. from line with next you. our of Evans comes

Your open. line is now

Daniel Fritsche

on more for little pricing strategic talked what Kyle. bit forward? of line I This be maybe those out of are revenue was this is going circulation as September. how pricing view revenue stabilizer 'XX? Daniel, into future a We've And term long And implemented plans plans could overall overall, then that little those kind just past a the revenue? about a in And bit of far seen wondering

John Zidich

will should business Since quarter throughout those QX. tests, saw markets take Daniel, of improve a business different markets increases us. let me from XX together quarter, of advertisers the rollout more double-digit with the the that the revenue performance put we in we've taken and the at our in we plans components doing our that, XX a rolled all real to out in infrequent focused account. they We've And expect the pricing remainder look another pricing that new the strategy we ROI In we've out. per rolled tested of and standpoint. and from markets, on both

look ReachLocal of book our businesses. a we that percentage the of that have run see -- improve best Bob of DMS-type to is thousands print at as we So to grow this way source to this lead us things, we print with our we begin that accounts and business, but a two mentioned, advertisers, too, digital, the it's a as see trends with primarily

convert future it's digital So combined print the improving at strategy to as as dollars a well. looking the we trend, but really

Bob Dickey

this that pricing So program, print on do couple years. next Daniel, the we frequency believe the that legs has over of

pointed of even loyal frequency, number are a to are this better increased out, results. with As us clients and those very John seeing

after that over go next we our years through continue we will this three we believe two On the the side, circulation move pricing, initial up. to to pricing

And continue forward. be revenue will our strategy part going circulation of so to

Daniel Fritsche

That was very helpful.

ReachLocal. on question Another

margin What to business? in margin XQ, and target is solid what So said. mentioned in and you sequential remarks for margin there you that posted long-term the through flow there the that is expansion I believe, more

Bob Dickey

Well, -- on right growth very Sharon line focused now. and I are really top

strategy double-digit our led this performance ReachLocal the category it's very in past, digital we've believe said future that Our we road. margin key the and in firmly rests by team. on But down a the

X.X% and see we're a around top continuing about really We So client did to chasing line growth. QX. sit margin we It's to contributor. nice I the move next from in can not right you'll product a margin. in lower us X.X% job Sharon, development needed We add? double But the year. QX be to acquisition, over direction. good that to think jumping anything think I digit revenue But to

Sharon Rowlands

No.

you think summed up it very Bob. I well,

Operator

Our of with Company. Lucas [Operator from question line next Gabelli Instructions] & the Barry comes

Your line open. now is

Barry Lucas

You've the in guidance for the print in despite third the quarter. the shortfall year held

maybe Bob, you are giving that So you hoping, I numbers. was can the you confidence lights to hit those point that can some still bright

Bob Dickey

Barry. Sure,

continue, this the put third in up quarter. certainly side, cost will on quarter fully we We the will the initiatives be in place ramped

know those confident. -- very results and And we're so we

from optimistic On traction. program We're is as we not print side, being unrealistic noted, that just we current And we a the seeing, are the gaining very overly we're anticipate slight we'll improvement see that there. pricing trends. print

quarter positive both digital the growth for integration to Sharon teams, see continue when look business, is and to you services marketing audience in sales are remains very that and positive and positive. ReachLocal to due And that trend. then fourth the John very you'll on a true very very locally growth both and of the and continue -- opportunity sales national, digital our at I local Our us optimistic our our the -- fact

benefit will then of September think, launch that full others. launched continue was and I we see to that, in the we circulation So and pricing

of a factors that happens, So those combination unforeseen the I unless of can guidance. think confidence us that gives something lot meet we

Barry Lucas

So there Is that I the but advertising is, say in downside? accelerated any the are moderating, evidence print trend what would seeing there? you on it

Bob Dickey

small trends, our they different execute the anything they national is because retailers in that continue to it's we're other but -- what positive against. is program areas see in some to -- the don't going We we'll to our on What are need are definitely markets major showing really see are. uptick we expect significantly where trends local the pricing the movement that

Barry Lucas

initiatives was ago were those Bob, moment took quarter. that Or you the that quarter? became evident that response Was in more cost that the some in to a were planned? other place mentioned weakness in that third -- there the just

Bob Dickey

out What at we quarters in are would our Barry, always are and three we've -- say I advance. I would making say, well, as the as well knocking are know of moving you revenues Gannett, that, where as planned cost initiatives adjustments. about been

projects. trends and a constant that of pipeline scramble We spin because job we adjust the and having John do do the business. the don't the to typically, accordingly have to of to team a mad then the commitment of have we since But great

As time. discussed, just have for the we them of amount roll just we the reviewed some other XXXX out since day takes

So been standard pretty operating that's procedure consistent, us. just for

we softer had the of trends in little list the So had hoped potentials that for. the we against always that were because some to execute quarter are than were a on there third

Barry Lucas

you in me. shares Okay, you last anything stock? purchased [indiscernible] one share. -- of the of quarter Or X the of driver can and the that The pricing for else million

Alison Engel

a and of opportunity it had was We Barry. window an take just it, open to advantage good

Bob Dickey

value terrific get market and current we we've opportunity dividend is very given to, at believe we we the Barry, we're with committed at for into been continue price the active out, market. know, of that us times. you And that knocks which saw to real that have pointed as the As Gannett great a us and acquisitions to Ali out a

a and we sense was it. against that made it executed window So

Operator

Arthur And question line Research. from Huber final with of Doug comes our the

Douglas Arthur

on and number X the down press break in couple you driven. Ali, Table release, external digital between advertising A interest questions. of

So including intersegment? or... external mean, into digital that the what the ReachLocal but was Does I down -- X.X%, were up Is intersegment the you intersegment newspapers X.X%. is

Alison Engel

it's ReachLocal. Yes,

then last we think talked that in segment and line the quarter we're digital eliminated ReachLocal about showing I item. the segment and in segment, we the it where Publishing local

Douglas Arthur

mean, So internally, the way it's underlying that a to a bag. you at the publishing I of it? up is customers. look mixed it's But outside overall. fair group down to sort momentum if include digital Is of that,

Stacy Cunningham

Stacy. is this Doug,

we old on that that that at that the look had services to look at $XX.X had the was we million the So the DMS -- if that G/O you the revenue Digital revenue 'XX, included in way in platform. digital marketing

you that of now year. because down but is it had we digital the intersegment at So that sales, some internally way shifting million is the to can't look that revenue $X.X marketing last services that

Douglas Arthur

$XX.X it's the to and add when the EBITDA, Table noncash then you content back million. cash portion? $X.X Is and X, facility asset that it's difference On consolidation million. impairments between Okay,

Alison Engel

Hang on, I'm it. looking at

Douglas Arthur

assuming the Table just mean, charge. not it's add a cash X that way the Is to that's back. that? I'm look million I at got $XX.X a charge, GAAP facilities has

Alison Engel

GAAP the That correct. That's is number.

Douglas Arthur

pension? updated finally, there any on then, number And underfunded the is

Alison Engel

here, $XXX quarter. -- little from we updated, That's that Yes. the down a million. It been right about I've the contributions. hasn't hasn't over million got just $XX been do fourth in it valuation

Douglas Arthur

that the been know I of quarter? terms had Because issue in the was on neutral an currency increasing liability,

Alison Engel

Yes, increase driven been the the in an the yes, by the in not But that. effect quarter. discount is currency. currency was rate fairly neutral this declines liability Really, currency for more quarter has than

Operator

does Q&A Everyone, may today's this This program today's participating the and great day. you conclude a call. disconnect. gentlemen, for all and in And Ladies you thank does have conclude session.

Gannett (GCI) 5 Nov 172017 Q3 Earnings call transcript