Posted on 04/12/2006 8:19:19 AM PDT by Grampa Dave
AP Gannett's Profit Falls 11.5 Percent in 1Q Wednesday April 12, 10:25 am ET Newspaper Publisher Gannett's Profit Drops 11.5 Percent in 1Q; Shares Fall 27 Cents
NEW YORK (AP) -- Gannett Co., the largest newspaper publisher in the country, reported Wednesday an 11.5 percent decline in profit for its first quarter as the company began expensing stock options and recording costs from its new newspaper partnership in Detroit. Gannett earned $235.3 million, or 99 cents per share, in the thirteen weeks ending March 26, down from $265.7 million, or $1.05 per share, in the same period a year ago, which included 2 cents per share profit from discontinued operations.
The results were in line with the forecasts of analysts polled by Thomson Financial, and include a non-cash expense of 3 cents per share in the latest quarter from stock option expenses, which the company began recording in the first quarter as required by accounting rules.
Revenues rose 6.5 percent to $1.88 billion from $1.77 billion in the same period a year ago.
The increase was mainly due to the consolidation of the Detroit Free Press, which it acquired from Knight Ridder Inc. in August of last year and then combined into a partnership with The Detroit News, which MediaNews Group Inc. bought from Gannett.
Excluding the Detroit transaction other newspaper deals, Gannett's revenues would have edged down 0.5 percent in the quarter from the same period a year ago.
Gannett shares fell 27 cents to $58.55 in morning trading on the New York Stock Exchange. That is near the lower end of its 52-week range of $58.07 to $80.02.
Sounds like Gannett has borrowed a few words from Enron and Arthur Andersen to explain their first quarter loss.
Die, democrat party propagandists, die!
A little bit of Enronning and Arthur Andersening of the GCI's stock holders in this article:
"Revenues rose 6.5 percent to $1.88 billion from $1.77 billion in the same period a year ago."
"The increase was mainly due to the consolidation of the Detroit Free Press, which it acquired from Knight Ridder Inc. in August of last year and then combined into a partnership with The Detroit News, which MediaNews Group Inc. bought from Gannett."
"Excluding the Detroit transaction other newspaper deals, Gannett's revenues would have edged down 0.5 percent in the quarter from the same period a year ago."
Nothing like adding the acquistion to this quarter's revenues an an attempt to show an increase in revenue.
Slowly but surely the MSM and the stocks of the major fishwraps are dying the death of a thousand cuts.
All I can say is: HAHAHA!
Oh, one other thing. A few years ago they started charging a fee for obituaries and wedding announcements.
Golly, I hope SOX wasn't violated------heheh.
"Oh, one other thing. A few years ago they started charging a fee for obituaries and wedding announcements."
A lot of newspapers began that a couple of years ago.
"I have been waiting for this. As you may now, my city has one paper, and it is a Gannett one. We only take the Sunday paper because we want the ads. They called us and told us we would be getting the Thursday paper (grocery ads) free. I bet the grocery stores started pressing for lower ad rates becaue of the much lower weekday circulation."
"All I can say is: HAHAHA!"
Our son and DIL take zero newspapers. We would provide them with ads from Michaels, Old Navy and other stores where our DIL shops. Starting about 4 weeks ago, on Wednesday in their mail, they get ads from the two grocery stores where they shop, the local Michaels, Home Depot, Old Navy, a local scrapbook store and two restaurants where the whole family goes out for dinner or lunch a couple of times each month.
Last Wednesday, we baby sat and my wife brought in their mail. She saw all of the ads and scanned them. The ads were basically the ones our DIL asked us to keep for her.
It obvious that the local merchants/stores realize that our Son and DIL are not by themselves re no newspapers, and they have created special mailing lists for them and similiar customers. When our DIL returned to her home, we mentioned this to her. Later on her culdesac, everyone who didn't subscribe to the local fishwraps or the SF Gayronical, got the mailed ads. Two of her neighbors are cancelling their fishwrap subscriptions and will ask the local stores to include them in their weekly mailing of ads and coupons which they weren't on yet.
The papers don't print most of those ads. They merely distribute them. I have often thought a good business could be made by undercutting the papers in what they charge for distribution. Heck, I would pay 50 cents/week just for the ads, myself. Then I wouldn't have to listen to my husband read me stories that I read on FR three days before!
For weekly grocery specials (Kroger, Super One, etc.) you can have them emailed to you weekly. I've been having that done for a year now...
"The papers don't print most of those ads. They merely distribute them. I have often thought a good business could be made by undercutting the papers in what they charge for distribution. Heck, I would pay 50 cents/week just for the ads, myself. Then I wouldn't have to listen to my husband read me stories that I read on FR three days before!"
The gal who delivers our local newspaper told us years ago that none of those ads are printed locally. She hates them. She has a very large route and her mileage goes down on ad delivery day. She and many of the other delivery people are asking for an extra mileage allowance on ad days. She was told by the local publisher/editor, without the ads, the newspaper would have to go to 3 times a week and the Sunday newspaper. The moment the cost of delivering these ads exceeds bulk mailing, the local paper would lose that income.
Ooops, I forgot to comment on this part of your reply:
"Heck, I would pay 50 cents/week just for the ads, myself. Then I wouldn't have to listen to my husband read me stories that I read on FR three days before!'
I basically scan the front page, sports page, and read the comics of our local fish wrap. My wife learned long ago not to try and read national or international news from it to me. She knows that we have it here days before it gets on our local rag.
"For weekly grocery specials (Kroger, Super One, etc.) you can have them emailed to you weekly. I've been having that done for a year now..."
The neighbors of our DIL who took the Gay Ronicle and the two local newspapers for the ads found out what you posted. So far every merchant they have talked to will either email ads to them or put them on a weekly mailing program.
Our city paper is a Gannett rag also. One day I went to the gas station there was a young lady trying to give away some papers. I say trying because she wasn't able to give away even one in the time it took me to fill my tank and pay for it. She looked close to tears, but I said "No thanks, I don't have any fish to wrap" and walked past her. I also finally got them to stop leaving papers on my step by threatening to call the police about their littering.
The past two days, they've thrown The (Shrevport) Times in my driveway. I used to subscribe, many years ago. I guess they've not gotten the message....
Not to mention that we get a lot of news the MSM wouldn't print at gunpoint.
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