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Gannett reports jump in earnings

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McLean-based Gannett Co. Inc. reported net income rose 33 percent in the third-quarter while revenue increased 3 percent.

Earnings per diluted share, on a GAAP (generally accepted accounting principles) basis were 56 cents for the third quarter of 2012 compared with 41 cents same quarter last year.

Excluding special items in 2012 and 2011, third quarter earnings per diluted share were 56 cents this year compared with 44 cents for the third quarter of 2011.

“Our results this quarter demonstrate that the growth strategy we announced in February is gaining traction,” Gracia Martore, the company’s president and chief executive officer, said in a statement.

Results for the third quarter of 2012 include $14.7 million of special charges affecting operating income in addition to $10 million of strategic investments.

Results for the third quarter of 2011 included special charges affecting operating income related to workforce restructuring which totaled $8.7 million.

Net income attributable to Gannett totaled $133.1 million in the third quarter of 2012. Net income attributable to Gannett on a non-GAAP basis was $130.9 million, an increase of 23.3 percent from 2011.

Reported operating income was $217.2 million in the third quarter of 2012. Non-GAAP operating income totaled $231.9 million, 12.1 percent higher than the third quarter last year. Operating cash flow in the quarter (a non-GAAP term defined as operating income plus special items, depreciation and amortization) was $280.4 million compared to $255.8 million in the third quarter a year ago.

Total operating revenues for the company in the third quarter were 3.4 percent higher than the prior year and totaled $1.31 billion. Broadcasting revenues were substantially higher in the quarter increasing 36 percent driven by significantly higher ad demand associated with the Olympics and political spending. Digital segment revenues were up 4.7 percent due primarily to revenue growth at CareerBuilder. Publishing segment revenues were 3.0 percent lower reflecting softer advertising demand partially offset by a 5.6 percent increase in circulation revenue due to the positive impact of the all access content subscription model.


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