Gannett Q2 Profit Rises; Names Paul Bascobert President And CEO

(RTTNews) - Gannett Co., Inc. (GCI) reported that its net income for the second-quarter rose to $26.73 million or $0.23 per share from $16.31 million or $0.14 per share in the same quarter last year.

The latest-quarter results included $6.5 million of after-tax restructuring, asset impairment charges, and other costs, offset by $32.8 million of gains on property sales.

Adjusted earnings per share were $0.21 compared to $0.31 in the previous year.

Operating revenues for the quarter declined to $660.3 million, from $730.8 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share and revenues of $686.65 million for the quarter. Analysts' estimates typically exclude special items.

Gannett still expects revenues of $2.74 billion - $2.81 billion for 2019. Analysts expect revenue of $2.7 billion for 2019.

Meanwhile, New Media Investment Group Inc. (NEWM) agreed to acquire Gannett for a combination of cash and stock.

As per the terms of deal, shareholders of Gannett will receive $6.25 in cash and 0.5427 of a New Media share for each Gannett share they hold, representing total consideration of $12.06 per Gannett common share based on New Media's closing stock price as of August 2, 2019, and a premium of about 18% to the five-day volume-weighted average price of Gannett shares as of that date.

Gannett shareholders will hold about 49.5% of the combined company and New Media shareholders will hold about 50.5%, after the close of the deal.

The Merger is expected to close by the end of 2019.

Gannett Co. also said that it appointed Paul Bascobert as President and Chief Executive Officer and a member of the Board of Directors, effective immediately.

Bascobert most recently served as President of XO Group, where he was instrumental to the company's transformation from a media business to a two-sided marketplace model. Previously, he served as President of Local Businesses at Yodle.

Michael Reed, Chairman and Chief Executive Officer of New Media, will be Chairman and Chief Executive Officer of the combined company and Bascobert will serve as Chief Executive Officer of the operating subsidiary.