Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Gannett Fourth Quarter Earnings Call. [Operator Instructions].

It is now my pleasure to introduce your host, Matthew Esposito. Thank you, Mr. Esposito, you may begin.

Matthew Esposito

you. Thank and fourth joining quarter everyone, to call you Gannett's discuss XXXX thank morning, our for today Good results. Officer. Doug Presenting Mike on Chief and Reed, be Financial Horne, Chairman and today's Chief Executive call will Officer;

the During this call, will discuss quarter. results Gannett's financial we for

If press website, will release. we the find in addition Gannett earnings posted an supplement to to you that navigate you have our earlier

it provides this be referencing today you quarter's additional will call it on We as on with detail performance. the

let you that please is me recorded. call begin, being we Before remind this

statement addition, this differ to required of obligation Gannett's statements may expectations. well update In current forward-looking any the the risk cautionary call We or actual cause from factors supplement or may made this events to the forward-looking respect certain encourage Except call. materially those to and events today. the the with discussed as those in that regarding undertake upon during including based These you correct no earnings be results and to statements law, made are and we statements made SEC. as are results forward-looking future involve described publicly read during be statements risks to statements, in by with filings uncertainties deemed and as

will adjusted margin and EBITDA information In during income free EBITDA, adjusted to the be Gannett. financial we discussing non-GAAP revenues, adjusted addition, flow, call, including cash same-store attributable net

measures our reconciliations the find can most non-GAAP supplement. of the earnings GAAP comparable You in to U.S. measures

of be The Gannett copyrighted audio to any or of you written and are on a offer consent. without that prior sell this reproduced offer nothing call material may Lastly, purchase solicitation an I to Gannett. cast would not rebroadcasted webcast to constitutes or duplicated, interest in and remind like an

would like call over I the to CEO. Mike Reed, Chairman Gannett's turn and With to that,

Michael Reed

Thanks call. for time morning, taking on our this Good join to Thanks, us the Matt. everyone. morning

adjusted hear we quarter, you'll increased call Adjusted optimism, XXXX up XXXX XX% expect details third lot EBITDA today. approximately well. fourth entering of sets cash growth in a with that later, XX% for We'll XXXX We through EBITDA us and throughout year-over-year. in believe growth the but of flow and the are we quarter over as significant the the walk substantially in free to

the improving in seeing revenue announced immediate opportunities QX first early another revenue few digital less least new EBITDA. at million at paid lien in trends XXXX, very of We've XXXX, We're partnerships debt also expect we high-margin growth. expect debt $XXX repay in will net are our a consistent are and And to showing drive significant and And end of debt be businesses we our deals. that XXXX. down exciting that Xx than we've

tough local businesses excited Of it could relevant was providing helping structure. convert year keep well our lower a to we course, turn focused XXXX, find, with year, to about was great as the carrying cost these on taking what of page We made control, that but and momentum our actions business. as unique to the happy volatility we are Despite course, XXXX. challenges, high we XXXX a of inflation. unanticipated are the the we're into on and customers and content necessary we significantly readers, strides

result, quarter. third grew a over EBITDA As quarter the fourth million $XX nearly adjusted

our saw subscription highs solutions new metrics Digital-only several marketing XX% business. grew nearly we digital in across revenue key year-over-year and

point the revenue to focused we inflection will the on the in areas still We our create growth are investments long-term and sustainable and from reach XXXX support growth business of there. believe needed

continued We debt. repay also to

of so million we the we've in acquisition already that Gannett lowering debt in our of over also capital. another paid of debt mentioned, we of debt XXXX, of while back of November I X/X in cost Since As million far and $XX repaid significantly XXXX. $XXX have XXXX, repaid

revenue $X.X digital full approximately generated year, operating billion X.X% revenues that of XX% the and basis. a we sources, total from year-over-year and on came in same-store For that grew

have such slowdown speaks and while proud digital witnessed our business. revenue in revenues to revenue have ecosystem, We digital-only -- importance advertising actually digital many are revenue marketing solutions in our declines. in This marketplace digital particularly continued the despite the our really subscription and of to revenue recurring pure-play and peers diversification the grown the digital many digital very our of streams, as of

XXXX, we grow created base second improve will adjusted which more revenue positioned We as into least of translate well flow cost in half a annual EBITDA well savings trends. lower free to and $XXX of the XXXX, believe we XXXX. to Turning our as variable at we and million expect are cash in

Our should to by flow. items pension a tied cash reorganization decrease $XX such year-over-year and provide are as obligations uplift million to costs and over to our cash expected free substantial

to streams. well valuable represent continue perform Our recurring digital to businesses and are expected revenue

better incremental revenue through with organizations, content, and our verticals. are we to creating believe are we streams sports our are addition, In partnerships monetize we positioned we local optimizing top-tier and

for All in expect things XXXX. growth building of are these blocks the for growth we

will may pressures the of 'XX tougher not mean have macro revenue the the prior of remember, did that you to begin until second we much the As quarter, will first year. for experienced XXXX comparisons which quarter

favorable how this built up anticipated flow-through our program the growth flow of management expect the set XXXX XXXX XX% detail million. and I of to guidance benefit in of the our believe go comparisons year, on foundation more on adjusted our year-over-year year and to EBITDA Doug we year. result full about businesses $XXX XX% to with of we quarter the growth from more and is expected this is expected later However, cash year for combined cost second full starting will growth which to in into digital call success in approaching the mentioned 'XX nearly free us we

our of structure. the execution, momentum build and fourth We on quarter are improved capital performance excited to

to We spend have I'd it for a strategy, few outlining minutes and you. clear a vision like and

combined digital-only second our believe the driving subscriptions our progress We of paid of quarter grown in tremendous we year. number growth the base total $X.XX full-access XXXX, across Digital-only made have since our in on print of marks our overall quarter. subscriptions priorities revenue XXXX, The consumer to our XXXX. of of print last overall basis. a grew key inflection growth we digital And a the subscriptions. consumer have on outnumbered in subscriptions the point meaningful be business, half And by back a end million paid during and component this fourth strategic total will and

for subscribers, new subscribers quarter digital year added and paid the added net we In full QX, of approximately traditionally digital-only new our XX,XXX we lowest XXX,XXX new for net XXXX. subscribers

and which subscriber registered growth total the XX% During with of we continued and the newsletter represents We Both acquisition quarter fourth of be engagement XX%, cost million important registered X.X million channels continue ended low newsletter grow well. for as to us respectively, to meaningful X.X acquisition. subscribers year-over-year. quarter, subscribers, users with our and users and customer

growing growing priorities, increasing remains top profitability While more digital-only approach subscriptions a one of and balanced adopted we subscribers. our between have

to our acquisition we continue subscriptions in will more targeted We strategy. but will be growth, pursue

rate and XXXX, offer During strategies several with structures. we experimented

on term acquisition As which the tests, a the profitable on well in subscription all in long-term the expected we result, our engaged, near intend to offers both various highly are of are subscribers. we of and which performed focus term. to and the well perform learnings learning more efforts Based long acquiring

XXXX, During the improvement. retention half our focusing consumer of first be on efforts we will and acquisition

product well and time paid modulating We that, still strategy our back while XXXX. as significant begin enhancements effect. spend marketing we our this subscriptions while take see acquisition during will our Having and expect -- during digital-only revenue to to in to lower be expect growth said also

over an our a amount advertising its At prioritized USA TODAY subscriber first we We the incredible volume start learned from monetization. have of launch, subscription product. of year as growth

be monetize our strategy The balanced, to a Given not our we we digital balanced strategic will we lead advertising, able will partnerships. through visitors, will monetization new our approach which ecosystem into TODAY be believe subscriber and overall purely versus have learnings, through also and growth. these larger to more improved profitability USA bring to but only audience refined

in but increase we USA result, acquisition a profitability. overall As subscription TODAY, expect at lower and revenue an

end to to already drive subscribers. have of only account most local in opportunity significant over local of represent current our as the are today subscribers we of growth digital and of subscription XX% continue these expected since of approximately our XXXX. our for markets local audience the communities And still Local we have X% we believe

United believe USA potential platform. top USA With back clear, in States. balance journalism, to across and TODAY concise, approach to digital has a the for the USA monetization news to plan content destination the the TODAY to we incredible minute, TODAY's the be we Turning

to organic subscription-based Given value on TODAY half its people unique serve ecosystem, to of extensions our help over more platform into XXX USA guide U.S., large use the average and for month create million bundles, local and each a product for our games in offerings. delivering digital extensively proposition we sports the as our create audience, will visitors

the our we XXXX, increasing ARPU budget core impressive our adjusted EBITDA million efforts, year-over-year. all and We Customer of of and double-digit addition marketing to platform digital grew of in fourth success $XXX.X In achieved margins. quarter X.X% revenues drove the QX. in to subscription results solutions maintain digital continue again business year-over-year, count, retention,

and recurring retention on the our revenue contracts, structured budget of customer of with continues be evergreen to rates DMS majority The XX%. monthly in segment

our makes expand freemium businesses We customers, interact to including appointments over which have channel how XX/X. help booking recently online with through simple continue appointments SMBs our DMS offerings scheduling and accept launched tools, they enables to control to our product their greater

and have thanks in channel other launched we registered in freemium to these growth our we the significant number of seen initiatives. XXXX, users, Since

XXXX registered of and from 'XX less we are users. registered QX and QX. more number than XX,XXX to tripled many we as that channel the XXXX, you As We're we in with ended than ending had launched X,XXX aware, users

that can you trajectory So in in the our freemium see -- growth channel.

freemium and gen an with businesses channel as channels. outside Our lever is growth and business are have our and platform products engaged with growth traditional us are future for our registered important that lead our these customer our

for do these continue forward, a sale buy capabilities in expect lower a connection cost and and We capabilities online the budgets of solution expand deliver will with 'XX. XXXX marketing to Moving marketing service. lower-tier do-it-yourself we to quality expect in and that freemium products throughout

results business segment's in reflect Our history. financial DMS profitable most an as year for the important it XXXX represented year-to-date the our

demonstrate So across solutions results our with results data-driven customers. believe attributions and budgets country, our efficient we analytics tangible tightened the yielded for advertising despite these being that in-depth

proud dedication indispensable an platform, businesses partner in XXXX our potential, of the are We their thousands to digital we to believe helping unlock SMBs. marketing LOCALiQ local makes and progress made our of

and platform team this Barton, incredibly grateful Kris LOCALiQ for the leaders. his driving an to extremely of developing talented I'm President leadership of

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executive begun XX replacement, an well including and leadership and with our in beyond. remain Officer strategic We We leadership to execute XXXX well Chris' Customer have in search years experienced the our confident business. and Marketing remain of in Solutions Revenue and Chief team on combined talented place, have over a for his Chief our ability we Officer positioned plans but team, in experience

our transform which the on shared evolve commitment We've evolution month, journey of brand showcase LOCALiQ the the businesses to highlighting campaign, incredible through brand the earlier Last advanced beginning their to help advertising of On our businesses promise how and unifies identity the proprietary that find we LOCALiQ's the of pages goals, year, platform marketing. the highlights their launched LOCALiQ's and data solutions from benefited digital customers And features the we our and can technology, you to an this brand the a of LOCALiQ about been to reach power helping with uses potential how that they along platform. its businesses marketing LOCALiQ website, and help new brand customers. more businesses first solutions digital new LOCALiQ with positioning using more and who information their each marketing specific clearly benefits full work rebuilt website, to product seize digital expertise help platform.

affiliate audience this the content in of through been and new laser-focused piece increasing platform. new partnerships have opportunity USA monetization brand a strength also of organizations the And growth that streams. partnerships. overall subscriptions, The content TODAY key We our of a strategy to across is bring and and creates work audience top-tier revenue with both unique on

X the will our provide monetize and of services of financial Gambling.com these us allowing our in million platforms. consumer allow about readers, sports additional content organic partnerships are marketplace large have with We excited new uniques. also very and to XXXX we us immediately recently Both launched while Forbes XXX audience to to

partners additional such revenue immediately be and to expected partnerships affiliate intend These accretive flow. content audience provide as affiliate great to our -- these are cash total free and our partnerships We to more our to in platform additional and can leverage the create on you'll where revenue, out growth we hear these the roll audience in quarters come. to in future and to

to will not we only Finally, as engaged. commitment also and local better are believe serve operations XXX by connected helping local into renewing Gannett operating local leaning our we is local we audiences, will performance. our community connections, and drive our our our communities. further We over informed, but we enter better stay our readers to XXXX, and and advertisers communities, by serves commitment connections build

in We our confident entered and marketing belief have XXXX plans our solutions for We with we digital subscription poised digital-only place. are in revenue that significant growth. revenue great are believe

creating our improving flow may flow anticipated sustainable in navigate growth positioned any well a data free a our more core evolution business and balance EBITDA growth a sheet, us and cash subscription-led powered are we and on that combined for customer-first by going believe base anticipated focus headwinds to persist near-term our strong continue content. streams, and revenue adjusted to we cash forward, variable positions and lower well with cost digital free growth. With Our

XXXX XXXX going I'm turn year over additional the quarter color to our to to full around provide detail Doug call fourth Doug? and and now guidance.

Douglas Horne

everybody. Thank and Mike, you, good morning,

sequential adjusted EBITDA a As to Mike significant drove QX, mentioned moment QX. our ago, from improvement in we

over adjusted see a during quarter As And to the our by improved points sequentially. margin importantly, XXX expect in robust continued result management of basis cost we EBITDA XXXX. program, we our improvement fourth

the from U.S. pound, decrease the For a as quarter of the million prior digital year-over-year given compared as negatively QX, XX.X% on of revenues slightly quarter the to the basis strength period. the our to of in result dollar Also, of basis. advertising U.K. points prior reported revenue to compared by third is and total translation operating a $X.X as or and revenues. pressures the decline year impacted This currency were million, relative XX.X% XXX $XXX.X decline same-store revenue a a print our down X% the in year about same-store

XX% the Adjusted EBITDA totaled approximately estimate Adjusted a impacted $XX.X by quarter, as period. was million in prior margin continue compared inflationary year EBITDA fourth to fourth the decrease year-over-year. to by of which impacted compared QX be the negatively quarter. year pressures, the we to million prior we XX.X% in $XX In XX.X% quarter,

us we namely have costs cost pressures, is we peak worst of and the the However, seen behind stabilize, largest newsprint and and distribution in that believe inflation. terms

at pricing stable to the to XXXX. We XXXX expect relatively costs in and year-end newsprint labor remain

that Factoring XXXX by impacted distribution, on fuel results in newsprint, negatively the $XXX our pressures QX full-year inflationary million. impact, and utilities approximately we estimate

and QX have we margin reflects a The in XXXX. we cost impacts that stabilize, expect largely EBITDA to QX management costs response in our stronger QX QX structure substantial EBITDA revenue revenue over initiatives. million, a sequential seasonally more seasonality. these our increased both and $XX.X well had cycle adjusted and we operate our more efficiently. impact early of actions on to in expenses, We year-over-year the EBITDA As momentum adjust were to these and an the will create flexible seen representing trends. effectively which adjusted in basis, increases and of the steps, cost our to from adjusted the the expenses growth took improvement strong On non-payroll able QX, beyond traditional Through we headcount both significant

As our million base. the to our at and initiatives, million least we benefits a in to in million result our $XXX during anticipate structure of The variable, of more revenue quarter, efficient recognized cost program a in quarter support management XXXX. drive cost cost savings management third focus $XX fourth the was in $XX

more create other the for third-party services self-service relying are third finance functions, BXB technology and on AI We efficiencies. across for teams, parties and to accounting our substantially organization variable

Our do. what unique of foundation journalism the we quality and is content

AI machine made our to various AI-enabled However, These focus what data such tasks deeper recent tools efficiencies us engines routine to watch sets to selecting we on allow allows recommendation engagement. journalists on to simplify where as that differentiates quality have things cropping simple events. to inform investments us, and such content readers drives sporting and or learning in that content personalize as images gathering quickly,

the with attributable Gannett income line, of fourth to quarter adjusted million net net we On in to XX.X bottom ended Gannett. attributable and the $XX.X a income

represents the the impact depreciation year-over-year Our net debt. prior driven in amortization and costs early lower and by of a income absence $XX.X of the million the increase from year extinguishment

revenues year-over-year points Total million, quarter, basis the fourth for digital down total sequentially QX our XX% from on In in accounted a revenues total were QX. same-store up revenues. XXX basis by of but X.X% $XXX.X digital approximately

total continue digital digital the fell was basis prior decline market, advertising, which where see in on influenced a advertising reflects revenues in to year-over-year. compared lower softer by digital year. The decrease as to a rates monetization Our revenue we XX.X% same-store

continue to digital-only our marketing in provide for solutions future businesses expected circulation performance The digital the and is to growth. foundation

$XX.X prior grew X% same-store digital-only the while XX.X% a million Our approximately circulation revenue grew compared year-over-year. year on basis, of to ARPU

to as leverage our customer churn. subscriber insights into and our and improve head retention optimize XXXX, and we the we to minimize data growth As our continue interactions expect we improve funnel,

well our lessen We more reliance revenue acquire drive further result these introductory expect and on of a retain consumers. as offers and improvements to as as engaged growth

we did print a stable on in the QX, was performance in and QX advertising fourth late employment. quarter. revenue some from softness including year-over-year deterioration see basis This includes revenue in into classifieds, obituaries fairly While

that verticals early size. to begun stages, number of have order and pleased these across the self-service implement self-service in orders has the are We the and both order average functionality increased

print are revenue focused highly volume. improving and on circulation We also

quarter-over-quarter, late While rolled basis points our aggressive a that XXXX. volume cycle improved are XXX trend of price we more some from approximately out trends to we actions the revenue beginning in perspective,

of new to maximize additional to focus our power believe is subscriber for customers. we base print lifetime stabilize our but pricing and some continue that We value have subscribers, our the

rolled subscribers, been out For we've retention. which new all-in-one subscriber to has improve model, shown an pricing

number unstaffed continue routes, in delivery reduce peaked continued second we delivery We have of locations. will XXXX of to of take certain which the mail the in and quarter advantage to

by approximately positive national In effective ARPU the our the clients over reached $XXX.X versus that a double-digit fourth of the monthly fourth X%, for $X,XXX year on quarter a more and higher results period. X.X% the million, business, $XX.X a representing X.X% and within revenue in new for Digital Average a believe segment Marketing million, while focused trends of which a strong of XX.X% of clients and count product margin grew high the basis. increased reached per reflect Solutions an we impact drives of prior Adjusted increase portfolio, was total record and EBITDA in high customer year-over-year margins quarter. month, These same-store the segment. ARPU

multi-location quarter-over-quarter that the seasonality a customers to inherent still was of due small in results, in are QX QX our there slight XX,XXX customers from decline XX,XXX customers of terms in to In business.

addressable over with segment. increase traditionally of is fourth reduce and a third our products of effect along quarter. quarter will DMS features continued the revenue seasonality and the grew execution stronger development additional our in and the market on both what We the ARPU believe However,

contributions, use $XX.X fourth payment $X.X to At shift the $XX.X all into to which decrease deferral of no in debt cash $XX.X million. and severance. the of free a for XXXX anticipated we flow year net balance balance included fourth In cash pension million main million, payment FICA million, full materially $XX.X deferred and of billion. the million related translating the now integration, the of million, final FICA of $X.X behind our to FICA deferred reorganization end cash the these cash cash the $XX our had had We flow $X.XX was payment included quarter, million funding with approximately of sheet. our in quarter, items anticipate a We which Let's of slight usage of and pension final in plan us. of

$X.X quarter total the We fourth billion ended debt. with of approximately

and first X.XXx first our and already million Our the XXXX, debt in we've repaid was debt leverage by lien full of we for net $XX.X $XXX.X year of million. lien XXXX, total reduced

amortization sales we real minimum real $XXX in quarterly other through as and scheduled million. our We as estate and asset estate completed to well XXXX $XX.X further XXXX real expect $XX.X QX, payments sales. million other million, estate of repay other XX and to asset asset a sales In our bringing total totaling

For asset the to project completed those million full real in of XXXX, USDXX including sales, million other we estate year USDXX and January. in

contribute We a million, million with maintain paydown approximately pipeline free should flow USDXX our USDXX to sizable continue estate debt improvement, expected strategy. to to sales which aggressive our real cash of combined

to ahead in management mid-QX from of decline begin XXXX, media of to cost ramp looking cycle put benefit the the and So digital the we place. program immediately we

adjusted which QX XX%. from expected as line year-over-year to will for million about a which well XX% year, to million XXXX we of a to translates as more previous the what of comparison $X of in experienced range a we be as contributed As year-over-year XXXX, in QX USDXXX growth result, nonrecurring the with in we difficult prior certain the EBITDA trends million result expect in EBITDA USDXXX in year. benefited of adjusted items

XXXX. of net in attributable million. XXXX net ramping of range is a from cost to income and expected QX to and expected most EBITDA XXXX. growth net to to While each of cycling of QX on a QX decline significant the in growth a the year-over-year in income remaining to due basis, of million Gannett more be significant loss adjusted of revenue This the will we year-over-year is quarters initiatives anticipate $XX declines $XX

of USDX.XX to year total For between billion, same-store USDX.X the X% XXXX, billion to decline a year-over-year. expect representing revenues X% we full

year, to the improving return to cycle For the In low is half to the expected half first similar end on a digital mid-QX. to of advertising the the declines XXXX, second as revenue same-store expected single-digit perform we slightly revenue of XXXX, declines basis. is of

be digital-only focus which is quality as ramp to higher compared to in expected moderated subscriptions, at more the Net subscription in ARPU, we expect result and adds slightly is in of of in the lower rates expected expected year. X to first volume growth as circulation growing be is back back spend, on below to With to profitability, will volume product expected revenue the Digital-only profitability XXXX, scale volume versus reflect retention are grow digital-only balance acquisition we increased an to and growth. accelerate XXXX. half revenue the marketing and as quarters but such, efficiencies

in lien XXXX. leverage With USDXXX of anticipate we adjusted of Xx expected million debt paydown below end first fall USDXXX at of $XXX net to XXXX to EBITDA million million, and the expected

result improving cash in the net XX%. Finally, approximately of of improvement range the expect million of flow provided operating to obligations, cash USDXXX expected is to be cash USDXXX to be significantly year, for to million rate lower activities the as income million range by free cash a and the Free million we USDXXX performance of a XX% to representing substantial conversion in and flow. USDXX in

strategic and balance on be position. a progress entering our XXXX and We to liquidity have sheet made to pillars considerable with are strong pleased

to businesses challenging environment, compounding our to even and growth the a that shown EBITDA us our strategically in cash have flow. digital our positively moderate allows We impact cost structure ability adjusted in and free revenue

meaningful operational as about plans We we shareholders serve. both excited that as as opportunity well communities for for well to as the create XXXX our our financial the are and value

I will Operator? will some now thoughts. closing for hand back to operator for it then go Mike back questions, we to the and

Operator

[Operator Instructions].

comes Our Citi. question with Bazinet from first Jason

Jason Bazinet

about questions, back 'XX. year sort by of this of I about sort one had just to 'XX X revenue then and one growth getting

of buy into also. maybe a recession. mobile year there's going thinking are maybe the like weak it about But of now a and 'XX, like sides your that some some feels recession areas been the 'XX, a businesses, advertising sort have for for So been were markets now, in

And things macro to sort is so I of of on Eddie just know macro would improvement color is materially? year? just sort getting but of any you this sort steady assuming the comps, macro, better. just doesn't Is But the what deteriorate talked about guys and that for that just sort of love it the

And then on the Or to and about will think commercial print ads to mode? getting be being longer you advertising back print growth digital should improvement and we CERC back get most the in and that one and of is important think across and DMS growth, other? balanced sort term, there area you to particular

Michael Reed

Yes.

a recession moving direction. your indicate here question, is trends into are would or on quarter that that So in that the country first we seeing not moving in our business in the first

In QX. X relative to trends first fact, in improving the here our months are

-- looked So year. we're we've full the out for

revenue don't slightly local of especially to continue kind Our all us on on landing. up we we categories. what And And a based in revenue our how done teams with engage bottoms across all hard us, side, channels, worst-case improving our quarter. are with we of our our and on the the customers see based interacting businesses have across first just of today, see trends see local some there

what with to a So we what not cost We have occurred telling We'd today, our our are really that anticipate if We structure. today. us. is don't the we're customers hard don't markets our a landing. good built soft forecast about But feel on that. numbers see in that our pivot certainly in economy, seeing

no potentially worst-case And but so a we landing as scenario, see a soft at recession all.

to the important most -- regard obviously. is question, And second our digital with growth, to the your

in we XX%. Doug solutions fourth all towards is XX% and marketing our all the total our are that's our the inflection digital But grow That it's The whether of business, to to also of across business in move some As spectrum, business, the XXXX. or important will subscription slowing said, obviously, of growth partnership print but new that important continue quarter of that we digital degree the our not to as business rate the in reaching to. and point advertising and an them working decline continue component those revenue on opportunities, only. digital stabilizing churn stabilizing, expect also

We've XX our declines over but print. actually those on those and -- months the on something fronts, first undertaken actions on numbers. of in we're focused lot certainly, of seeing quarter last It's the we've results a been both lowering to on

encouraged by we're So that.

soft this our So combination right print Jason, confidence point landing combined performance in half strong year inflection improving to now, us leads reached digital recession based what no to XXXX. on being and back growth, of have we trend our of in we see, is a with what

Jason Bazinet

that the you if to the And of revenues digital, get XX% inflection, is mix, that's you your sort are if right of right Okay. like hit --

Michael Reed

Yes, that's about the rate [indiscernible].

Operator

Instructions]. [Operator

with Lee question from Office. next comes Our Family Omega Cooperman

Leon Cooperman

Just buying invested your And a and -- did at to your have undervalued. observations the backed few in go have questions. X the is was this amount but own X nothing ago, account. would company, up substantial Ever I for I -- felt you you of consistently when view stock since by I stock years which down, least significantly say

the in cost. to fair of we it's of a understand the been reducing recession say think that, said COVID company. it's couldn't have and say too think to the I Having you impact fair slow I

back off selling our our at valuation think substantially of should our Now one, your for levels some public to market you'll value okay, a consider we buy So went like now X.X hidden above the that. stock on equity debt few ideas when X.X, X. below when of and position properties accelerate announced trophy I cheap you questions, economy think before valuation and equity? surface in repayment was and to the get my that And It's deteriorated I'd authorization X.XX, original I the a secondly, to whatever. think thoughts to we down do and be about

So thoughts X on those your questions.

Michael Reed

Yes.

are entertain Obviously, trophy answer markets, bids yes. question, or of first products is, Lee, market on any that the any So off would value. selling properties. our our at fair above of We

can it's yes, things year in markets. for We're that. But overall, get that the opportunity this in be the in depends plans But do lumpy. do with have opportunity the our on I the we that. do those do It yes, is -- to answer will So an hard the But is past, Lee, Those count X it type that's we'll or we'll certainty. we'll so would and do on not when if something so. that's done vanity say, answer -- it's particular we future. to that yes, to hopeful in buyers anything we've is

we'd love equity, position continue As that parts buying as now, capital We debt. in be back growth investing use right to business, stock buyback of beyond growth is to Lee, reduce far best a our in program. the our feel of cheap continued to the business

as the worried about debt our widen all, get we're still nobody when other from net But lien capital a mentioned, go that love leverage think to some as next is Doug a worried which closer debt lower under opportunities the not net when for year. standpoint, people we much -- at are. first as then leverage. X.XX, that I about allocation to And As I is we debt, materially into X.X so think to us see better position X, lien X. I'd then into closer first we

Operator

There turn comments. Reed Mike to are like to the over go Please would at floor this no I for back questions ahead. further closing time.

Michael Reed

Yes.

Okay.

a the As from you could we're hear optimism. entering great call, of deal with XXXX

today into you Let think we today I'll we're XXXX. here. our cost a of customers. $XXX by first are improving Inflation structure, Revenue XXXX. Further, our reduced right we have X peaked saying XXXX. a you million right by me as place could enter we optimism. over from we with players of we team in have as and heard the in that at Gannett, there what give see things the hearing during the here some us I strong have We're seeing structure organizational that moderation to heard encouraged start months and seems couple highlight just trends and very by with the

EBITDA free of million nearly cash see below end Xx XX% leverage growth We to XXXX. see XXXX. by XX% in $XXX first lien the XXXX. see flow We in net We of growth

our point businesses of growth inflection that a Our sustainable see remain XXXX. We continuing see growth standpoint. for digital from continue robust And growth to we the XXXX. in end towards long-term hitting

support feel be updating to of journey. about, continue year. place we we all on to for forward to this navigate Thank each optimistic in to XXXX. opportunities your this plans a the you So good of we our calls about look and have as on you We Thanks you. lot progress our quarterly for our earnings

Operator

teleconference. today's concludes This

You lines and participation. you your for this time may your disconnect thank at

Gannett (GCI) 23 Feb 232022 Q4 Earnings call transcript