MCLEAN, Va. - Gannett Co., Inc. (NYSE: GCI), a diversified media company, announced plans to repurchase approximately $13 million of its 6.00% first lien notes due in 2026 for about $12 million, which is below par value. The transaction is set to be finalized on Wednesday.
The company secured a waiver from certain lenders related to its five-year senior secured term loan facility, allowing it to offset the amortization payment for the fiscal quarter ending March 31, 2024, by the amount used to repurchase the 2026 Senior Notes.
Gannett's Chairman and Chief Executive Officer, Michael Reed, stated that the company is continuing its strategy of buying back senior notes below par value, following similar actions in November and September of 2023. Reed emphasized the company's commitment to debt reduction as a primary focus of its capital allocation strategy. Gannett anticipates repaying at least $110 million in debt in 2024 through asset sales and improved free cash flow.
Gannett's extensive portfolio includes the USA TODAY NETWORK, Newsquest in the United Kingdom, and digital marketing solutions brand LocaliQ. The company also operates USA TODAY NETWORK Ventures, which organizes events and promotions.
The information in this article is based on a press release statement from Gannett Co., Inc.
InvestingPro Insights
In light of Gannett Co., Inc.'s (NYSE: GCI) recent announcement on debt reduction efforts, a closer look at the company's financial health through real-time data from InvestingPro offers valuable context for investors. Gannett's market capitalization stands at a modest $312.3 million, reflecting a market's assessment of the company's value. Despite the company's focus on reducing its debt, the negative P/E ratio of -11.16, adjusted to -8.41 for the last twelve months as of Q4 2023, indicates that investors are cautious, as the company is not currently generating net earnings.
The company's revenue for the last twelve months as of Q4 2023 was $2.66 billion, showing a decline of -9.57% in revenue growth. This contraction could be a concern for investors looking for growth, but it's worth noting that Gannett still maintains a gross profit margin of 36.47%, which suggests that the company has a relatively healthy ability to control its cost of goods sold and sustain profitability at the gross level.
For those considering adding Gannett to their portfolio, InvestingPro Tips suggest scrutinizing the company's revenue growth trends and gross profit margins to gauge its operational efficiency and market competitiveness. Additionally, with the next earnings date scheduled for May 2, 2024, investors should stay tuned for any updates that might impact the company's financial trajectory. To access a comprehensive list of InvestingPro Tips that can further inform investment decisions, consider subscribing to InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full potential of real-time data and expert analysis, with dozens of additional tips available.
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