This compares to $818.9 million in the fourth quarter of 2014, a decrease of $79.6 million or 9.7%.
This decline is partially due to approximately $16.8 million related to the reporting of sales of certain third party (principally Cars.com and CareerBuilder) digital advertising products on a net basis.
This is also due to $8.8 million from the reclassification of certain customer credits, $9.1 million of prior year revenues related to exited businesses as well as $4.4 million of unfavorable foreign currency exchange rate changes.
Excluding these items, revenues declined $40.5 million, or 4.9%, primarily attributable to ongoing advertiser demand shifts and the impact of the unfavorable affiliate agreement change with CareerBuilder and its impact on classified employment revenues.
These declines were partially offset by positive revenue trends in Gannett's digital products, particularly national digital advertising and mobile growth, as well as revenues from businesses acquired late in the second quarter.
Adjusted EBITDA for the fourth quarter was $126.3 million compared to $154.3 million, in the fourth quarter of 2014, a decrease of $28.0 million or 18.1%.
The decline in fourth quarter adjusted EBITDA was due to a $6.0 million reduced EBITDA contribution primarily resulting from changes to the CareerBuilder affiliate agreement in August 2015, $6.5 million of incremental pension costs, $0.9 million in unfavorable foreign exchange rate changes and declines in print advertising revenues.
This was partially offset by cost reductions and efficiency gains in operating expenses as well as increases in digital revenues and operating results from businesses acquired during the second quarter of 2015.
The effective income tax rate for the fourth quarter was 39.5%.
This was impacted by the UK tax authorities announcing a reduction in the statutory tax rates for future years resulting in the company immediately recognizing a reduction in the value of certain UK deferred tax assets of approximately $3.8 million, or approximately $0.02 per diluted share.
The effective income tax rate without the impact of the reduction in the UK statutory rate was 28.1%.
Earnings per share for the fourth quarter, on a fully diluted basis, were $0.17 and include $66.7 million of pre-tax severance, acquisition-related and other items.
Before the impact of these charges and adjusted for taxes, adjusted earnings per share on a fully diluted basis would be $0.53.
Net cash flow from operating activities was $78.2 million in the quarter. Capital expenditures in the fourth quarter were $23.0 million, primarily for technology investments and real estate efficiency projects.
Additionally the company generated $13.4 million in cash from the sale of certain real estate and other long-lived assets.
The resulting cash balance at the end of the fourth quarter was $196.7 million, an increase of $53.9 million compared to the cash balance at the end of the third quarter 2015.
At the end of the fourth quarter of 2015, the underfunded pension liability was $612.4 million, compared to $770.0 million as of December 28, 2014, a reduction of $157.6 million or 20.5%.
The significant reduction in this liability is a result of year to date contributions of $128.1 million, mostly made during the period pre-spin. The remaining reduction was primarily due to actuarial changes, including a slight increase in the discount rate. ■