Earnings were good but most of it was due to a recovery.
Anecdotal reports in the media and from competitors indicates the refinancing volume has picked up materially due to the very low mortgage rates. I am trying to buy more at $28 but getting no execution. I may have to raise my bid. I am bullish for the near future because of the refinancing picture and the low rates.
operating revenues: $1,365,143,000 operating income: $272,609,000 income before income taxes: $234,988,000 income from continuing operations: $185,588,000 income from continuing operations attributable to Gannett: $175,165,000
26 weeks ending 06/27/2010: net cash flow from operating activities: $441,419,000
The dividend has been cut to 4 cents per share per quarter, but I have hope that it will get back to 40 cents if I am patient/stubborn.
If you peek at the balance sheet, here is a consoling quotation:
"The Company’s interest expense for the second quarter was $42 million and $86 million year-to-date, down 4% and 8% respectively. Total average outstanding debt for the second quarter was $2.8 billion in 2010 and $4.0 billion in 2009. For the year-to-date periods of 2010 and 2009, total average outstanding debt was $2.9 billion and $3.9 billion, respectively. The weighted average interest rate for total outstanding debt was 5.67% for the second quarter of 2010 compared to 4.13% last year and 5.53% year-to-date compared to 4.41% last year. Debt was reduced by $171 million during the quarter and $432 million year-to-date."
I wish you luck with Gannett, but it is not for me. I have taken the pledge to avoid companies that have a large amount of intangible assets. I admit that they can work out but I do not know how to judge them. As warren Buffett might say they are out of my circle of competence.