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Gannett (GCI)

Participants
Matthew Esposito IR
Mike Reed Chairman and CEO
Doug Horne CFO
Doug Arthur Huber Research
Lee Cooperman Omega Family
Call transcript
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Operator

Greetings and welcome to Gannett Co., Inc. 1Q Earnings Conference Call. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn the conference over to your host Matthew Esposito with Investor Relations. Thank you, and over to you, sir.

Matthew Esposito

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

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

this website, be the have earning on performance. it call referencing quarter's addition it navigate in find earlier our provides an will additional as Gannett today you that you you detail If press supplement to to we posted release. on with We'll the

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

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

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

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

purchase Mike audio The written solicitation I'd of be and constitutes are that our Reed, Gannett any on Gannett to or CEO. With and to call or the may like that, of offer consent. to an to reproduced you call without remind duplicated, Lastly, offer Gannett. cast sell webcast over turn material interest Chairman copyrighted not in rebroadcasted like to prior nothing I would and an this

Mike Reed

quarter first joining us call. Thanks our this Thanks, morning on morning, for everyone. Matt. Good

The first environment. expected despite quarter better challenging than we the was slightly macro

consistent earnings with as at experienced quarter call. the in is quarters Our of with outlined performance net with subscribers only last was which digital digital and digital subscribers, foundation in quarter-over-quarter growth grew last base XX% XX%, strong guidance line Gannett our million added digital-only now core in the revenue subscriber our EBITDA has line -- in well we core year-over-year solutions with of range marketing we've XX%, client growth providing and we XXX,XXX with growth X.XX subscribers. as as our subscribers XX% outlined our four experienced CAGR In the margins. increase the quarter. - for adjusted believe exceeded and we In our future seen and our new Year-over-year consecutive plan digital long in lockstep business as double-digit Gannett respectively,

As experienced revenue, our a in QX platform saw revenue core I XX%. expected, we the strong DMS seasonality growth but usual our year-over-year to a as in mentioned QX still

future experience and evolved print content with to access this network, including evolving NETWORK Saturday readers engaging entire quarter, to embraces TODAY. digital caters the the TODAY full first USA delivering further additions we of across newspapers to March portfolio our in subscribers at from Looking which in e-editions XXX our transitioned an Saturday providing year, print Saturday Through with USA the our the our of business, shift launched online. in our

call. Digital excited initiative later with We are in the share are seeing to great our traction progress Saturday our and

digital subscription to the cost made are led we decreased year-over-year our lines, expected successful to and earnings we critical which The outlined last EBITDA equaling has as a a a and the and but have operating our revenues. digital over were growth. transformation quarter, growing continuing on third only third pillars, success in call. and term - investments of with digitally the also key and Evidence X.X% our pressure inflationary a focused total of million first revenue company and our our adjusted which company, we decrease our initiatives in not some Lastly, long have is that reflects growing revenues, cashflow this $XXX sustainable in

I As strategic our each update me let each our do an quarter, give five of strategy. of on you pillars

growth. our consecutive first Regarding quarter over the first accumulated we've our of five on digital digital digital visitors. digital subscriber only and to million and our monthly our XXX comScore continue pillar, capitalize as by USA least subscribers. only XX measured digital quarters million from subscription come average of our of million with from base, growth, NETWORK, those accelerating X.XX subscriber we large properties. visitors strategic organic XX% We unique UK come at audience intend To million growing accelerating XXX ended TODAY

million are basis. currently subscribers with X we not our are who we are come on reach, massive yet not there front who friction our the our In down ecosystem, have focus will subscribers, of the funnel, we offering. as who demonstrating subscription newsletter alone, X registered the a of users million and users. our in our Given into the registered have showcasing U.S. consumers interacting proposition users power million in content as yet our digital be value breaking XX on of regular the Right well

users on of those is portion build highly relationships, of pool goal this activate Our those users, and into a subscribers. engaged to convert

rates registered of users. anonymous the first continued number grow, from significantly has of past see quarter and the year than the Over then our from subscription this users do typically we year, to registered we users into higher conversion

in product XX% growth led we've and and newsletter QX. in subscribers make in continue to to content Additionally, year-over-year improvements an the made outstanding investments

only email other channel only and conversion Newsletters leading second channels are acquisition premium behind content. our for subscriptions, digital

journalists, user save registered and are users. the continues articles, topics roadmap Features organization features personalization such focus and experience reality ability to of product product key subscriber access being both to exclusive registered augmented on Our for the and with the and follow priorities. part as

Our continue subscriber our paid this ad features shown in base implemented, only already a in tested which seen has X% features capabilities to new XXXX. including personalized test eruptive story and we we've fronts markets lift starts to new load, such that reduced and up in has lesson as subscriber the hear a we

we more expect experience adding an improving with only digital through forward, connection content and Moving scaling the and creating local national at the growth subscriber product experience, from with premium and our additional users emotional and engagement. user also products will our personalized a improving level come checkout both along new

segments with QX on enhance focus our our will of additional us key ways to further engagement. within communities part audience addition, the for consumer efforts to In interact

while online expanding second digital remain and our our buy compelling do-it-yourself target marketing to pillar, a combined offerings customer to business levels growth through running product also Turning with at through to strategic committed base a experience, offerings we our of experience. solutions expanded and profitability, premium current high

Our on to current been million mid lesser traditionally to to target large XX,XXX companies audience annually. extent up premium has XXX,XXX spend SMBs annually that mid-sized and and focused between the a and spend $X

the on as from online for that million portfolio. opportunity However, businesses significant the we are spend build broader and do-it-yourself today years beginning marketing. future million U.S. the target to XX,XXX freemium, less we businesses X.X buy X.X annually million growth in U.S. than product believe XX we to We out expand there's -- our

in but we are to from this self-sales are entry, our registered to users the starting we qualified this early generate attract Regarding stages leads initiative. effort, in and premium

this effort We time. expect to over scale

signs we promising. and launch, seen steady early registration already are However, have growth since

much offerings, service products, the revenue trend of and do-it-yourself is series marketing businesses, designed total will this is of through are end completely smaller transitioning addressable of our U.S. current with the we We It additional XX% IQ in DMS quarter, but the lower channels happened premium Sequentially clear began deliver initiative our represent a step small in. buy will will which expect line provisioning surprising be with some a current the no level channel, entry in upsell engage SMBs our first in products, the business These tier who products, and from marketing to Complementing will entry quarters to witnessed our which and around have platform we users registered declines customers products into market, price sales industries create do-it-yourself than expand paid have that they steps approximately not launch At traffic do-it-yourself streamlined, to products of online to past two the requiring a our of enabled lower and be we this and seasonality to provides opportunities. solution simpler, drive over do-it-yourself multiple local from new service. offerings, cater products. and our the as the points and our for budgets. SMB, purchase quality premium

revenue when quarter digit DMS we than double compared importantly, However, prior in the growth year. our have core to same seen the business

have to customers Over and We business seasonal seen to a in way during pare winter such we traditionally our as the shifts reduce Home months. that business multi-location back time, grow spending overall offseason, the Education, expect the Services mix impacts.

core first future generation allow XX% core earlier, revenue XX% and marketing XXXX. revenue. and the our base us amount and mentioned quarter, business Similar healthy QX driver sales that to digital in lead respectively. and accelerate in the quarter is to the I we client we to doing enhance note revenue, work core count second conversion. expand XXXX, growth in are core It This tremendous important growth As is customer expect and to our an growth also sequential our exciting and profitability see for of of and of a solution year-over-year will to experienced

print in of pillar, our Digital markets. Now optimizing launched strategic March looking third this Saturday business. In year, our initiative we traditional our XXX at

mitigation our great helped has has business our benefited experienced to XX strong has a with costs. of launched. churn the ability to improve a which to well an was and flow increase and has tail and which is with reduce to want up the important repayment small will rising free efficiently move still secular approximately the initiative costs eliminated as as our source to first digital traditional bottom quarter, subscribers. as we seeing which on with further subscriber to subscription-based headwinds usage, to up in was impact since which are the believe were customers, stepped also the further And in home enhance stress as and ad-driven, Utilizing delivery manage Digital been overall expectations. to our and from from We newsprint, Saturday flow, And of more print products primarily us tied delivery trends minimal we is that long e-edition cash on move our cash and that the our And it print company. fuel a possible, line our to It improve remains Gannett we sheet opportunities. newspaper tail inflation track volumes Saturday print the in growth traction while XX% invest our our have efforts gives balance reduce business digital through this We debt the why it. have

Turning in to pillar, strategic our investment growth businesses. fourth prioritizing

races Our quarter and of XX which attendees TODAY One the first XX% aggregate quarter to business, the a events our XX to experienced the run of year-over-year largest XX,XXX in eight prior XX,XXX contributor races. NETWORK return endurance growth 'XX, USA branded Hot compared revenue same is of across attendees. is the and Chocolate events Events in was series, hosted XXX,XXX and year. by growth which of strong with the different quarter, the cities an events Ventures, the Gannett attendees in in example to driven Throughout in-person in-person quarter,

which the Another example Columbus was in Show, XX,XXX nearly attendees. QX attended event XXXX is the & largest with Garden Home

experienced and a seen exhibitor participation. have we our that vendors live While supply negatively events, staffing issues return to impacted chain

to the pandemic, growth continuing half the the and the world in-person on at seasonally the levels participation second our increasing year. work back months quarter following see growth events we to and the continued head warmer returns As normal of to we into in over expect as are

partnerships interact expanding held Love was Topgolf Tour which partnered and with PGA captain for early Legends Ryder ahead with attendees to Client the Party, with Golfweek Tito's Golf former LAB to event, the and VIP Davis and personality able Vodka team the April. sponsors Masters Looking such Augusta, Georgia Knost. sports, as Colt our winter and QX celebrity of Ventures and in in and including major III, player Cup guests golf were at

operating our pillars Now rounding our out is inclusive culture. building and on key diverse

report. very The as first and we our annual for quarter inaugural was ESG exciting inclusion our report second published Gannett

how of storytelling journey report, inclusion moving two of in how our we communities at report, to made we needle year is inclusion and meaningful our through how we intentionally we learning. how In the building we invest second of our annual progress. commitment you will more culture employees, our improves one and and impactful another our Looking our belonging, see are education a how and connect, empower journalism succeed our in and have

As started. workforce. identity employees. we a representation Further, and levels first are inclusion, getting provide increased workforce our to gathered a equity intersectional from diversity our continuing across but of result, just data the while among enhance evolved, visibility our breakdown year full we've inclusion commitment all we on has this was to our of Year-over-year, Gannett's to

have working its of inaugural a and our detailing quarter our important transparency the to are our making XXXX sustainability. on an dive step institutions the We and planet we how to now in inequalities, listening, are ESG report going key and communities, pillars, I'm guidance. reduced expect Gannett's which social to and financial goals. you and We on about our people, this alignment responsibility providing The XXXX. keep across keep towards progress going and of Doug sustainable of we by over the more Meanwhile, learning, we them against first company ESG increased to the strong as into each development turn details XXXX corporate an action our progress keep for our the and category. published reflects selected goals with and end achieve efforts are initial and report peace, company's growing of climate update year, goals. update performance our keep defined of things justice deeper Each priorities, to share plan to for UN

to do full there really CAGR longer-term are free inflection hit Doug? note expectation reiterating important revenue is our that XXXX. Further, our a so, As XX% change cash XXXX flow and it's in point to to guidance. we year at of I no our growth

Doug Horne

Thank you, Mike, good everyone. morning, and

of declines to year-over-year. operating our For On total and were revenues decrease a operating the X.X% QX, basis, total as decreased revenues same-store same-store operating million, with a guidance in X.X% QX quarter. Both revenue revenues were $XXX.X prior our expectations. year compared line

pillars pandemic, expected quarter, If EBITDA highlights XXXX. total and an basis growth. to of print with last break inflationary ongoing declines Adjusted the expenses our we've for think gives revenues, million strategic you approximately The our point materials us with the well of in marketing, down point and more, million our forma in growth of investments revenue on $XX in solutions down EBITDA about of that same-store labor. included results strategic revenue ahead of the journey Adjusted digital prior or QX revenue above look digital was to QX step along EBITDA in points growth The from X.X% the recorded over pro decline revenues adjusted million our And content, $XXX.X our marketing approximately were in our same-store approximately $XX.X represented our XXXX, which back XXX and $XX of adjusted pillars year-over-year. is million basis bit X/X $XX in of year-over-year. digital pressures foundation declines increased inflection as million and were to pressures were totaled million X.X%, as revenue secular in across a made raw in margin data. X.X% the The significant as couple guidance million. the but coupled to associated over our EBITDA QX prior $XX.X XX.X% $XXX.X represents in the increasing revenues print with inflection quarter. in $XX that down X%. investments year-over-year year progress a we stabilization past range related years, the and Expenses digital reflect advertising, To in two years year-over-year, million, confidence XX.X%

with in associated costs rising $XX year incremental to that postage fuel, estimate compared and quarter. of the expense delivery as million we addition, In an newsprint, resulted prior

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

the net in benefited favorably million of of to XX% Our result quarter. as year a $X.X prior loss compares year-over-year lower interest We part expense.

from Publishing year primarily changes a classified, X.X%, compared same-store first inventory the now on teams. as digital has calculation. increased respectively. was million, our trends. which and basis, our in marketing by revenue advertising services The revenue to more quarter as X.X% digital flat available digital digital client same-store core local was as marketing basis. focus services The segments. tightening of prior to revenue over and offsetting Publishing X.X% of growth of to result was premium elimination driven the in XX.X% segment advertising-based same-store the a our our improved revenue revenues quarter. with Digital the the the sell-through million approximately X% referenced XX segment print basis, increased in the revenue relatively as services of year $XXX.X and rates content in on stabilization digital continued of with products marketing XX% advertising the year-over-year Moving in media a sales a which subscribers prior only affiliate revenue to contributed of saw excluded prior a X.X% $XX.X been year the year, print count well first down We and million in monetization. reflecting increased advertising Print quarter decrease prior compared a our and that The $X.X Mike Digital decreased earlier on same-store

in pricing additions, of basis, in premium lower same-store circulation. QX back Moving prior on due overall XX.X% which the compared was to Revenues of scaled XXXX. part decreased a year now to to

a digital-only subscriptions. XX.X% our same-store declines declines, prior under sequentially. year-over-year XX.X% remains pressure revenues approximately ARPU Digital-only experienced to secular year. X.X% print circulation, from circulation the on growth year-over-year, grew but which million While year-over-year compared to basis, declined XX% Digital-only X.XX grew subscribers of

in subscribers mentioned plans. segment throughout earnings of XX.X% quarter. we increase XXXX previous volume will off we've representing first Publishing to higher introductory of as a expect EBITDA $XX.X million, in totaled digital-only the stabilize the ARPU will begin As calls, Adjusted for their pricing and that the roll margin

the newsprint as experiencing earlier, contract in mentioned compared the we we all categories, million equates reflects As which $XX to impact top cost XX% marketing as prior quarter pressures of approximately well are growth of EBITDA higher first adjusted year, content number QX made support of labor were including as which a the to up and key key negative to pillars. in the our margin on to postage, in in investments prices

quarter revenue basis. For the digital of segment, first marketing was solutions an a year-over-year in the million, increase on X.X% same-store total $XXX.X

which to QX were of compared due education and each home As the XXXX, QX from revenue year. most impacted QX the seasonality of categories, slightly declined to services during and

quarter digital proprietary and which as core represents XX.X% growth product year-over-year. that Looking portfolio X,XXX EBITDA margins. accounts digital over strong customers $XX.X year-over-year, focused customers marketing segment marketing publishing QX to fourth was our reflects increased XX,XXX quarter for first more of XXXX. for million, totaled at prior well customers, representing sales an business a grew in from solutions core services customer XXXX marketing those segment which the channel. X.X% versus of of from the in in the QX XX% steady increase the XX% platform, both prior year the revenue customers as XX,XXX to increase. are the consecutive the double-digit ARPU margin the a Average and in count Adjusted utilize there Comparing of XX% quarter, which solutions increased digital of the our revenue, year

expense $XX.X of consolidated $X interest which year. Gannett The million, includes our depreciation tax prior Our loss impacted million primarily from net $XX by the deductibility the to expense. is attributable million was and was amortization. quarter approximately for In was on the of company's limits down XX% QX, effective QX interest and rate

now Let's to the turn balance sheet.

Xx down our adjusted loan, SOFR an base share XXXX January, million of of debt leverage million first cash We accounts compared from approximately in as the or to $XX million to expectations Subsequently, quarter under senior collections the senior net $XX.X paying any digital debt lien term incremental below in our during in million, outlook. receivable without similar interest our cash of agreement senior was above transitioned resulting in connection borrowing transformation we of due $XXX.X us expenditures completed A of QX, timing net reflecting from senior X.XXx, ended April. debt in million give total XXXX infrastructure. favorable the totaled operating privately $X.X lien was of related our payment remain more under in the and Free additional our XXXX. secured also an obtained premiums. quarter paydown be $X.XX negotiated approximately million million an of million debt $XX.X billion. Capital was reducing plan, technology reflecting lien term term in the These sales. asset net first to loan. approximately our of premium LIBOR secured investments existing committed March as benefited In notes proactive and without $XX.X repurchased leverage products, requirements. total with million $XX.X for paying from repurchase our we we excess balance repurchase exchanges ability to $XX flow $XX.X notes our at $XX.X rate our and a to initial and Our end in to of billion first fees regulatory We this of was year, cash we with million to additional $X.XX of QX,

at debt million. currently lien First $XXX.X stands

result quarter. share announced repurchase QX, stock in window during not common trading any of we the short repurchase first the did program a the As under

our priority, debt share repayment about be we opportunistic first remains using our repurchase program will forward. Although moving

totaling sales estate and $X.X totaling five small million. $XX.X completed QX, asset XX During dispositions real million we had

to asset sales our million in and million. from million to million to asset increased $XX We target have $XX of close sales XXXX $XX expect approximately $XX QX

quarter, Further, the some performed around Newsquest our grow news during Lastly, subscriptions and brands imATHLETE. its in footprint acquisition digital digital-only minority great includes on the Britain's opportunity our as services. strategic space with newspapers. business events local events. as us see will commitment several Both as increased these small of and well with in events improvements the capitalize additions best well own Motive. marketing Archant The the Archant two in is the we and acquisition aligns tuck-in we in-person registration to interest a of portfolio to in the acquisitions, fit of further our with of our imATHLETE allow and performance we continue known U.K. to

to now Turning guidance.

$XXX of quarter between XXXX, on second million, a million $XXX revenues expect which reflects single-digit the declines we basis. and low same-store For total

in of $XX attributable net approximately income breakeven. million surpass to subscribers. adjusted Further, million $XX million range to the X.XX We to Gannett to anticipate expect be digital-only EBITDA and we subscribers

senior which in the cash free our given impact. the of in slightly interest payment the notes, as negative of timing seasonal XXXX expect cash to year well each QX quarter occurs be some capital as on working flow We and QX

cash year-over-year. and $XXX to to $XXX reiterate expected nearly However, which of we anticipate year full free is million, million double flow

EBITDA and revenues, in full digital-only same-store subscribers. flow year, reiterating we the and with attributable guidance total to cash earnings operating loss Gannett, described our net flow, free activities, by provided ending today's at to adjusted Looking net income cash release as prior respect are

reflecting to the our billion, impact raised $X.X to recent acquisitions. $X.X revenue of have We the range billion

the I of information also posted strategic shareholder an reconciliations value our the turn create we very well over long-term accomplished pleased years. opportunity the I and give am optimistic during will can remain demonstrate everyone earnings supplement so very and team our questions. at provides back quarterly GAAP we capital objectives. our comparable guidance measures. to now with about on to our last structure operator includes our forward-looking for continue as website regarding most Gannett's it measures to additional the to of I what non-GAAP success has opportunity two as Overall, QX improve investors.gannett.com Our as U.S.

Operator

first line go of with a have Please Huber Arthur We Instructions] the [Operator from question ahead. Research. Doug

DougArthur

me? Can you hear

MikeReed

we you, hear Doug. can Yes,

DougArthur

Yes.

call. on but questions, quick it Two to exceeded looked sub digital number hop got not expectation in initial Okay. another Mike, by and huge like I amounts, your the modestly. QX, unfortunately,

I So guess then feel then side, newsprint about worse or by continue goal fuel, et about should at the question the cost that QX least the just plus in And this you subs? on half. better through inflation second the Doug, year-end we'll and see for million one is, that, pressure do cetera, X will digital assume the

So my questions. initial those two are

Doug Horne

inflation the with start point. I'll

year-over-year price sit the we're look you I any of that driving throughout market the terms increase. into are think here especially when been the expecting that's of newsprint, year, performance, of commodity right in now, at that like terms and of we don't as we're baked see today, immediate dynamics we in relief many pressures expecting those to outlook and continue our what

that for the that's we're year. for, planning So something remainder of the

QX this it's I some see in an we Although important to of of year. think started -- last

to start will impact cycle year-over-year the so in And QX.

variance So as won't significant. be the

Mike Reed

quarter question, digital X.XX us this morning. to on year-end targets. feel And first and expecting end surpass we the outperformance about the subs your Doug, first the given that of by much million which in Obviously, to announced does yes, better make QX, our

So yes. is the answer

Operator

of Please question We next go from Lee ahead. Family. have Cooperman with Omega the line

Lee Cooperman

double check numbers. couple to wanted just a of I

you'd billion? repurchase the like $XXX $XXX Can repurchase to now said something the you then this $XXX if you million gave year? would spend And You at that plus of stock the spend will asset net $XXX maybe billion. sales on cash or you million stayed minus I result secondly, that, whatever debt $X.XX think in $XXX that to million, net about year-end at million, closer flow stock assume million free this price, most debt the of was $X

Doug Horne

QX, of the the million, for $XXX.X right first million balance first lien in mean, sheet. was had the debt cash principal now, remaining on So on terms I of question, $XXX.X and we

sale asset well million to projecting flow cash of as the million are the target. increase $XXX We as $XXX free we

or share So either through -- for could portion and of to repayment of be all debt used that go repurchases. will that some

of... outside So

Lee Cooperman

go spend should sales, stock net minus I assume whatever question, My will on plus amount cash of debt you repurchase? the free the down flow by asset

Doug Horne

Yes.

Mike Reed

Yes.

Lee Cooperman

Right.

in Okay. And had then the your relative you Do expectations. seems window, think spend I underpriced question to was a you'll is the short that you follows very on surprised, guess, stock but million, I levels? as use would you which be approximate -- -- all, think assuming you stock stays you reduction plan XX% $XXX at it count. Do the share these represent to the

Doug Horne

macroeconomic just that right broader maintain for I given of is our appropriate facing we think the think it's now from I everybody environment liquidity level an perspective, Gannett. important that

appropriately having some debt does liquidity debt we're our flexibility our investing I we're is where fair on I believe first on also opportunistic remain in our very But We're sure And we is earlier, repayment. much see trading priority. mentioned absolutely pillars. repayment focused will below value. strategic we as its in implied important. focused think share opportunities we kind price our be making of Also where

Mike Reed

just Mike. it's to that share not is I make want repurchase plan sure everyone comment promotional. is Doug's this Lee, understands to would the And add that optics, I not

when where the we the want not mispriced to to significantly share is we're do year. We when this commit shares of dollar that do see hard intend to this to do are be assure to what not in take fair amount we not repurchasing to see the opportunities going I see the -- promotional. exact We to It's value. price we'll it's opportunities. opportunistic advantage we everybody But prepared of optics,

Operator

the from of We [indiscernible] ahead. Please go have with next question Citi. line

Unidentified Analyst

margins on the a trends economy one touch then helpful. a How as on quite be QX in then segment, that the for have you And I bit would are a that could live events bit? second given if the looking opened And has well.

Doug Horne

of events, we endurance of fashion. specifically, not terms at And a which in obstacle see So would return probably at perspective, margin the board, separate strong are say continuing to margins. more we a are I I live we and But saw multiples that out see which events we back which levels overall normal. Those lot events don't races, involve of to margins between really course mean, kind seeing in across a contact say return participants. From pre-pandemic. is I great. upticks our what kind those run slower a of break consider would of margins kind are the necessarily. But we're we

margin our overall Xx is. to two So what

Unidentified Analyst

second helpful. post material, Got are is my running? you on how then the runoff subs seeing on And kind retention subs digital looking? you're question, of of it. what promotion guess, the That's that I the

Mike Reed

introductory pricing We we Over up -- perspective, more rate different XX% the and pricing, different cohort... to from subs XX% are full to that how in a through testing terms offers we're in are the like stepping offers range time, period depending step-up constantly of tracking digital perform. upon retention

Operator

with ahead. the Partners]. Lewin of have We question Capital [Greg next go Lewin Please from line

Unidentified Analyst

Just a quick please. perspective for me,

So cash million free of your flow. $XXX goals of midpoint

million, the $XX Your asset projection additional of midpoint million. just of sales, $XXX

focused on. which share what is for If dealing cash $X is below Your of free count like holders, -- XXX,XXX. something was with I'm per equity still it of we're XXX,XXX, flow share

justification kind sense So we're money is financial almost for using insane metric. stock? some dealing to have sub versus the the in buying multiple a describe with you you Xx, Would any back by which X% please me debt of that's on

Mike Reed

Greg, a years two company lot three last media the rationale of to of that rationale the a through believe, traditional -- of to Yes, additional overhang turns -- this carrying part there we the and creates experience of on is equity. over there big XX leverage the is a Part the XX

we as free total that which move significantly payments, save for flow continue our allocation as a million actually increasing to creates available and shift higher next billion are debt multiple interest cash bringing flow. million And year capital $X.X below Greg, Doug the that are material Xx, But that plan paying in then next debt. do and we're debt leverage by repay to a the reduced to gross is that strategy is year. we which our from $XXX to of we that overhang free years, perspective. a so there's over point. we indicated Also, down debt can net gross trade burden couple to And to we cash reason EBITDA from to all of us relieves take start the close that going at points allows $XX think few We gets a

to near-term be going shareholder only value is debt repaying great believe not we So creation. for but long-term

Unidentified Analyst

you don't I'm future about belabor financial you other improvement want that as a you just to shareholders in for care they by and getting to talking buying in excessively? you point, I when when to in shareholders about extraordinarily? want Why metric, the it, out. the shares why can multiple -- such prices but just current boondoggle going shareholders can overhang Mike, just are for benefit do it a In have equity I any bring an at which, today, by are So retire

Mike Reed

the you -- boondoggle. of to in -- mindful We year? what year? We is a I we're buy if recession a agree company's position, the capital have in in once recession we're the -- gone. look, first quarter that necessarily next And if shares, of that a right? What later be there's liquidity think We don't we can't this back

We down we X. can't mindful. have to so run be And liquidity to

So we as smart capital that, said on allocation. to are we be be we going as can Having be have opportunistic. to

So We running but create company term price the has is And be the company. of the organic Middle the it's for all of shareholders. the manage top back company shares, we long not the and buying the to or term, the market be business like share an proposition. not to investment of in are in for organic the tomorrow. priorities most nothing won't the we continue to growth, side creating upside one which it's can't

years share now. manage X price to for X months have the from and it We

is our allocated believe being we right right capital So way the now.

Unidentified Analyst

you're the not not company. investing the traditional be, a and do to were any and one just issue newspaper way make and comment, I you further with it running future Okay. just are business your leave in have then I'll you

to You don't be. intend

even largest, profitable businesses, Your not business. the in newspaper most

those investing the you're I'm love the way up running business. points the to only -- love you're I so I way never And bringing in the business.

of You're things. those not skimping on any

everything driving an but right You're of and I running using appreciative very the great my just about you're free way have contention, you're capital, the the business argument direction. you're doing else, capital. your Not capital, think business the capital. free I'm in I only job. That's necessary how

So appreciate it. Thank you.

Mike Reed

Greg. Thanks,

Operator

reached have session. Ladies and the gentlemen, of the end we question-and-answer

the to call like CEO, remarks. back to I'd closing turn Over to Reed, Now for Mike you, sir.

Mike Reed

All right. Thanks, the running us of first strategic close all, in ground plan teammates to everyone. at consistent by and here execution hit allowing I'd our to against our the Gannett XXXX. today for for thanking, like

our we've progress transforming the with and about that made excited incredibly are We operating consistent business.

fundamentally a that is If you or flow. at time positioned business is of year it we we ago a where cash free where to the look and were back significant and are place, be believe we business different growing today, a acquisition in at the generates this

believe moving created blocks have ourselves We building solid to future momentum have positioned we this for growth nicely capitalize and forward. on

you Our targets. long-standing you our updating look delivering by our financial Thank joining next empowering and us for solutions continue commitment achieve best-in-class is us communities forward enable Talk all for thrive and We impactful, to marketing today. soon. on progress earnings to to to to content expected grow trusted long-term to on customers you call. our our to

Operator

this gentlemen, Thank today's conference. you. Ladies and concludes

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