MCLEAN, Va.--(BUSINESS WIRE)--Gannett Co., Inc. (NYSE: GCI) today reported its preliminary financial results for the fourth quarter ended December 31, 2020.

Selected, Preliminary Financial Results

“We are pleased to share that the fourth quarter ended with strong Revenue and Adjusted EBITDA performance,” said Michael Reed, Chairman & Chief Executive Officer. “Revenue improvement was primarily driven by a continued rebound in our advertising trends, both print and digital. We also continued to see strong digital-only circulation pro forma revenue performance with an increase of approximately 46% year-over-year. The revenue improvement as well as continued expense management, led to stronger Adjusted EBITDA, and positions us for continued performance improvement in 2021.”

“We reduced $654 million of our 11.5% term loan during the fourth quarter and an additional $30 million subsequent to year end, which brings our total term loan reduction to $684 million. These actions have allowed us to reduce debt outstanding to $1.545 billion, as of today, which is ahead of the originally outlined levels that we shared in connection with the acquisition of Gannett Media Corp. in 2019. The reduction of the term loan through debt paydown and refinancing of approximately $500 million into convertible notes has reduced our annual interest expense by $48 million. As we head into 2021, we firmly believe that we will be in a position to refinance the remaining term loan, which will further improve our balance sheet.”

The unaudited preliminary financial results and the non-GAAP reconciliation tables represent the most current information available to the Company and are based on calculations or figures prepared internally, which have not been reviewed or audited by the Company's independent registered public accounting firm. The Company’s actual results may differ materially from these unaudited preliminary financial results and non-GAAP reconciliations due to the completion of its financial closing procedures and reviews.

Balance Sheet & Liquidity

• As of December 31, 2020, the Company had cash and cash equivalents of approximately $171 million.
• During the fourth quarter of 2020, the Company reduced approximately $654 million in principal under its term loan.
  • Total debt outstanding at the end of the fourth quarter of 2020 was approximately $1.575 billion. This is comprised of:
    • $1.075 billion 11.5% term loan;
    • $497.1 million 6% senior secured convertible notes; and
    • $3.3 million of legacy Gannett 4.75% senior secured convertible notes.
  • Net debt outstanding as of December 31, 2020 was approximately $1.404 billion.
• Subsequent to December 31, 2020, an additional approximately $30 million of the term loan was repaid from cash on hand, reducing the outstanding term loan balance to $1.045 billion.

About Gannett

Gannett Co., Inc. (NYSE: GCI) is an innovative, digitally focused media and marketing solutions company committed to the communities in our network and helping them build relationships with their local businesses. With an unmatched reach at the national and local level, Gannett touches the lives of millions with our Pulitzer-Prize winning content, consumer experiences and benefits, and advertiser products and services. Its portfolio includes the USA TODAY, local media organizations in 46 states in the U.S. and Guam, and Newsquest, a wholly owned subsidiary with over 140 local media brands operating in the United Kingdom. Gannett also owns the digital marketing services companies ReachLocal, Inc., UpCurve, Inc., and WordStream, Inc. and runs the largest media-owned events business in the U.S., USA TODAY NETWORK Ventures, formerly GateHouse Live. To connect with us, visit www.gannett.com.