2013 Annual Report 2013 Annual Report 2013
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2013 ANNUAL REPORT 2013 ANNUAL REPORT 2013 ANNUAL REPORT 2013 GANNETT CO., INC. 7950 JONES BRANCH DR., MCLEAN, VA 22107 • WWW.GANNETT.COM GANNETT CO., INC. ANNUAL REPORT TABLE OF CONTENTS SHAREHOLDER SERVICES 2013 Financial Summary ..................... 1 GANNETT STOCK THIS REPORT WAS WRITTEN Letter to Shareholders ........................ 2 Gannett Co., Inc. shares are traded on the New York Stock Exchange with the symbol GCI. AND PRODUCED BY EMPLOYEES OF GANNETT. Board of Directors ............................... 7 The company’s transfer agent and registrar is Wells Fargo Bank, N.A. General inquiries and requests for enrollment materials for the programs described below should be directed to Company and Divisional Officers ........ 8 Vice President and Controller Wells Fargo Shareowner Services, P.O. Box 64854, St. Paul, MN 55164-0854 or by telephone at Photo Credits .................................... 88 Teresa S. Gendron 1-800-778-3299 or at www.wellsfargo.com/contactshareownerservices. Assistant Controller Form 10-K DIVIDEND REINVESTMENT PLAN Cam McClelland The Dividend Reinvestment Plan (DRP) provides Gannett shareholders the opportunity to purchase additional shares of the company’s common stock free of brokerage fees or service Corporate Consolidations Team charges through automatic reinvestment of dividends and optional cash payments. Cash John Dalton payments may range from a minimum of $10 to a maximum of $5,000 per month. Dimeterice Ferguson Gannett is an inter- of the U.S. population in markets with provide critical news and information Ben Fernando national media and nearly 35 million households. from neighborhoods, the nation and the AUTOMATIC CASH INVESTMENT SERVICE FOR THE DRP Varun Kanwar This service provides a convenient, no-cost method of having money automatically Suzanne Kuo COMPANY marketing solutions Following the acquisition of Belo globe. withdrawn from your checking or savings account each month and invested in Gannett stock Lorraine Licayan PROFILE company and one Corp. in December 2013, Gannett became Gannett’s deeply rooted understand- of the largest, most the largest independent TV station group ing of its communities and its local through your DRP account. Mark Ramsey geographically of major network affiliates in the top 25 market relationships, many of which Aisha Simpson diverse local media U.S. markets, with a strong, diversified have spanned decades, provide access DIRECT DEPOSIT SERVICE Eva Wrublesky companies in the U.S. portfolio. Each TV station also has a to content on more than 500 local mobile Gannett shareholders may have their quarterly dividends electronically credited to their Through its powerful network of broad- robust digital presence, including mobile, and tablet products and leading appli- checking or savings accounts on the payment date at no additional cost. Director/Corporate cast, digital, mobile and print products, to reach consumers wherever they are. cations for iPad, iPhone, Kindle and Communications the company informs and engages more Overall, Gannett reaches more than Android. Through key acquisitions and ANNUAL MEETING Laura Dalton than 110 million people every month. 65 million unique visitors monthly or partnerships, Gannett continues to BINDING The annual meeting of shareholders will be held at 10 a.m. (E.T.), Thursday, May 1, 2014, The company’s portfolio of trusted about 29 percent of the U.S. Internet accelerate its digital strategy. at Gannett headquarters. Creative Director/Designer brands offers marketers unmatched audience via digital platforms, including Gannett also helps businesses grow Michael Abernethy local-to-national reach and customiz- CareerBuilder.com, USATODAY.com, by providing marketing solutions that CORPORATE GOVERNANCE able, innovative marketing solutions USA TODAY Sports Digital Properties reach and engage their customers We have posted on our web site (www.gannett.com) our principles of corporate governance, Printing across any platform. As a digital media and digital platforms affiliated with its across the company’s diverse platforms. ethics policy and the charters for the audit, transformation, nominating and public Action Printing, Fond du Lac, WI leader, the company provides access to local media organizations across the G/O Digital, Gannett’s digital marketing responsibility and executive compensation committees of our board of directors, and we outstanding content on many different country. USA TODAY is one of the most services organization, is a full-service intend to post updates to these corporate governance materials promptly if any changes platforms and digital marketing services popular news sites and the USA TODAY media and marketing solutions company (including through any amendments or waivers of the ethics policy) are made. This site also PHOTO CREDITS: to businesses that help them use digital app is a top news app with more than with a suite of best-in-class digital prod- provides access to our annual report on Form 10-K, quarterly reports on Form 10-Q and technology more effectively. 19 million downloads to date across iPad, ucts. G/O Digital offers a one-stop shop of Page 7: Directors’ photos by current reports on Form 8-K as filed with the SEC. Our chief executive officer and our chief Gannett’s iconic national brands, iPhone, Android, Windows and Kindle localized marketing solutions to national Stacey Wolf and Gretchen Ortega, financial officer have delivered, and we have filed with our 2013 Form 10-K, all certifications such as USA TODAY and CareerBuilder, Fire. USA TODAY mobile traffic contin- and small to medium-sized businesses. Gannett. Magner by Todd Plitt. required by the rules of the SEC. Complete copies of our corporate governance materials and as well as its unique local brands serving ues to grow as monthly visitors are now G/O Digital comprises Gannett’s full suite our Form 10-K may be obtained by writing our Secretary at our corporate headquarters. 112 communities, set the company apart approximately 24 million. of digital marketing services, including Photo credits for the Cover can In accordance with the rules of the New York Stock Exchange, our chief executive officer, and provide a strong brand advantage. The company operates 82 U.S. daily marketing leaders Shoplocal, Key Ring, be found on Page 88 of the 10-K. has certified, without qualification, that such officer is not aware of any violation by Gannett Gannett’s properties cover a wide range publications, including USA TODAY, Deal Chicken and BLiNQ - and puts them of the NYSE’s corporate governance listing standards. of geographies, demographics and and 443 non-daily local publications in to work in an integrated, complementary content areas, which combine to form a 30 states and Guam. USA TODAY ranks way to transform local marketing and uniquely powerful and comprehensive No. 1 in the industry in total daily circula- connect advertisers with local consumers. FOR MORE INFORMATION portfolio of offerings for consumers and tion, according to the Alliance for In addition, Gannett subsidiary News and information about Gannett is available on our web site. Quarterly earnings infor- Printed on recycled paper. commercial clients alike. Audited Media. Newsquest is one of the United Kingdom’s mation will be available around the middle of April, July and October 2014. Shareholders Gannett owns or services through Affiliated digital products of the leading regional community news provid- who wish to contact the company directly about their Gannett stock should call Shareholder This report was printed using shared service agreements or other company’s U.S. publications, including ers with 17 daily paid-for titles, more than Services at Gannett headquarters, 703-854-6960. soy-based inks. The entire report similar agreements 43 television stations. USA TODAY, reach more than 39 million 200 weekly print products, magazines contains 10% total recovered Excluding owner-operators, Gannett is unique visitors monthly. The print prod- and trade publications, and a network of Gannett Headquarters fiber/all post-consumer waste. the No. 1 NBC affiliate group; No. 1 CBS ucts reach more than 10 million readers web sites. More than 15 million unique 7950 Jones Branch Drive affiliate group; and the No. 4 ABC every weekday and more than 12 million users access Newsquest’s network of McLean, VA 22107 affiliate group. These stations cover 30% readers every Sunday. Together they news web sites each month. 703-854-6000 FINANCIAL SUMMARY Operating revenues, in millions In thousands, except per share amounts 11 $5240 2013 2012 Change Operating revenues .......................... $ 5,161,362 $ 5,353,197 (4%) 12 $5353 13 $5161 Operating income ........................... $ 739,243 $ 789,755 (6%) Net income attributable to Net income attributable to Gannett Co., Inc. before asset Gannett Co., Inc. .............................. $ 388,680 $ 424,280 (8%) impairment and other special items, in millions Net income per share – diluted ...... $ 1.66 $ 1.79 (7%) Net income attributable to 11 $518 (1) Gannett Co., Inc. before asset 12 $551 (1) impairment and other special 13 $473 (1) items (1) ........................................... $ 473,445 $ 551,061 (14%) Net income per diluted share Net income per diluted share before asset impairment and other before asset impairment and special items other charges (1) .............................. $ 2.02 $ 2.33 (13%) 11 $2.13 (1) Free cash flow (2) ............................. $ 470,491 $ 697,994 (33%) 12 $2.33 (1) 13 $2.02 (1) Working