PROVIDENCE – Gannett Co. on Thursday reported a loss of $80.6 million in the first quarter of 2020, or 61 cents per diluted share.
One year prior, the company lost $9.1 million, or 15 cents per diluted share.
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Gannett Co. owns and operates several papers in Rhode Island and Massachusetts, including The Providence Journal, The Taunton Gazette, The Newport Daily News, The Cape Cod Times, The Herald News (in Fall River), The Worcester Telegram and The Standard-Times (in New Bedford).
The company said that due to the COVID-19 pandemic, it engaged in a series of cost- saving measures that included a reduction in its staff, furloughs, pay reductions, suspension of dividends and cancellation of nonessential travel and spending.
Local papers the company owns were not spared the furloughs or the reductions in force, with employees reporting both participating in a week of furlough per month, as well as the papers letting staffers go.
Gannett said that 95% of its nonproduction and delivery employees were working remotely, to protect workers’ health.
“The pandemic has undoubtedly created some challenges,” said Gannett chairman and CEO Michael Reed. “Nevertheless, we remain committed to our operational and integration plans and we are highly confident that we will emerge from this crisis as an even stronger company.”
Company revenue was $948.6 million, an increase from $387.6 million. The company, formerly known as New Media Investment Group Inc., completed its acquisition of Gannett in November 2019 for a reported $1.4 billion.
Same-store revenue declined 10% year over year, the company said.
The company also said that it incurred $57.9 million in interest expense in the quarter. Quarterly acquisition costs were $6 million. Provision for income taxes in the first quarter were $9 million, compared with a $2 million benefit one year prior.
“We are pleased to announce solid first quarter financial results,” said Reed, “Revenue and EBITDA performance were strong, despite the disruption experienced over the last two weeks of March from the COVID-19 pandemic. The impact on our business from the pandemic came fast and is significant. However, we continue to execute on our operating and integration plans from the Acquisition of Legacy Gannett last year. The realization of synergies remains on track and debt pay down remains ahead of schedule.”
Chris Bergenheim is PBN web editor. You may reach him at Bergenheim@PBN.com.
