Lee Enterprises Reports April Same Property Revenue Growth of 3.6%; 7.4% at New Papers
DAVENPORT, Iowa--(BUSINESS WIRE)--May 20, 2003--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property publishing revenue(2) increased 3.6 percent in April compared with a year ago.
Excluding the effects of acquisitions and divestitures, total advertising revenue increased 2.4 percent. Retail advertising revenue increased 6.1 percent. Classified advertising revenue decreased 3.3 percent, with employment down 8.8 percent, automotive down 3.0 percent, real estate up 3.9 percent, other newspaper classified categories down 2.4 percent, and classified in alternative publications down 3.7 percent. National advertising revenue, a small category for Lee, decreased 0.3 percent. Circulation revenue declined 0.5 percent. Online revenue increased 30.6 percent.
Including the results of acquisitions and divestitures, total publishing revenue increased 8.2 percent on a reported basis.
At the 15 newspapers Lee acquired in their entirety in April 2002, revenue increased 7.4 percent(3). Publishing revenue of the former Howard newspapers increased 18.1 percent on a reported basis, due in part to the inclusion of Sioux City Newspapers (SCN) in revenue in the current year. Lee's purchase of Howard Publications in April 2002 included 15 daily newspapers and a 50 percent interest in SCN. Lee acquired the remaining 50 percent interest of SCN in July 2002.
"April marked our first anniversary with the former Howard newspapers, and we continue to be delighted with the results," said Mary Junck, chairman and chief executive officer. "As we said at the time, the basis for the acquisition was revenue growth, and the people at our new newspapers have proved that right. The strategies that have worked so well in the rest of Lee have yielded especially fine results at these new newspapers. We're emphasizing both revenue and unit growth in advertising, circulation and online."
She added: "We're particularly pleased with our continued success in building our circulation base. In the latest Audit Bureau of Circulations Fas-Fax report, our paid circulation climbed for the fourth six-month period in a row. For September-March, daily circulation grew 1.1 percent at Lee's older newspapers and 0.1 percent at our new ones, for combined growth of 0.7 percent. Sunday circulation dipped 0.1 percent at Lee's older newspapers but grew 0.9 percent at our new ones, for combined growth of 0.3 percent. With our circulation-building programs well in place at our new newspapers, we look for the growth to continue."
Lee Enterprises is based in Davenport, Iowa. Lee owns 38 daily newspapers and a joint interest in six others, along with associated online services. Lee also owns more than 175 weekly newspapers, shoppers and classified and specialty publications. Its stock is traded on the New York Stock Exchange under the symbol LEE. More information about Lee Enterprises is available at www.lee.net.
The monthly and year-to-date statistical information follows.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
April 2003
(Unaudited)
PUBLISHING REVENUE
April Year To Date
(Thousands) ----------------------- --------------------------
2003 2002 % 2003 2002 %
-------- -------- ----- --------- --------- ------
(1)(2) (1)(2) (2) (2)
Advertising:
Retail............$13,604 $12,821 6.1 % $96,561 $93,309 3.5 %
National.......... 785 787 (0.3) 5,721 5,942 (3.7)
Classified:
Daily
newspapers:
Employment.... 1,764 1,935 (8.8) 11,686 12,122 (3.6)
Automotive.... 1,722 1,775 (3.0) 12,022 11,944 0.7
Real estate... 1,426 1,372 3.9 9,610 8,876 8.3
All other..... 1,240 1,271 (2.4) 8,001 8,091 (1.1)
Alternative
publications.. 1,595 1,656 (3.7) 11,598 11,289 2.7
-------- -------- --------- ---------
Total classified 7,747 8,009 (3.3) 52,917 52,322 1.1
-------- -------- --------- ---------
Total
advertising.... 22,136 21,617 2.4 155,199 151,573 2.4
Circulation......... 6,533 6,565 (0.5) 46,923 47,016 (0.2)
Online.............. 772 591 30.6 4,943 3,628 36.2
Other............... 5,053 4,528 11.6 33,624 31,804 5.7
-------- -------- --------- ---------
Total, Same
property....... 34,494 33,301 3.6 240,689 234,021 2.8
Acquired/divested
properties:
Acquisitions...... 20,141 17,049 18.1 139,826 17,049
Divestitures...... -- 141 NM -- 3,289 NM
-------- -------- --------- ---------
Total
acquired/divested
properties......... 20,141 17,190 17.2 139,826 20,338 NM
-------- -------- --------- ---------
Total publishing
revenue.........$54,635 $50,491 8.2 % $380,515 $254,359 49.6 %
======== ======== ========= =========
DAILY NEWSPAPER ADVERTISING VOLUME
April Year To Date
--------------------- ----------------------
(Thousands of Inches) 2003 2002 % 2003 2002 %
------- ------- ----- -------- ------ ------
(1)(2) (1)(2) (2) (2)
Retail.................. 476 467 1.9 % 3,533 3,512 0.6 %
National................ 25 27 (7.4) 170 199 (14.6)
Classified.............. 481 480 0.2 3,193 3,165 0.9
------- ------- -------- ------
Total, Same property 982 974 0.8 % 6,896 6,876 0.3 %
======= ======= ======== ======
Notes to Revenue and Statistical Summary:
(1) The month and year to date had one more Wednesday and one fewer
Monday than the prior period.
(2) Beginning in March 2003, same property revenue excludes revenue of
Madison Newspapers, Inc. (MNI), in order to comply with newly
issued SEC regulations related to disclosure of non-GAAP financial
measures. Lee owns 50% of the capital stock of MNI, which for
financial reporting purposes is reported using the equity method
of accounting.
(3) Same property revenue related to newspapers acquired from Howard
Publications excludes revenue of Sioux City Newspapers (SCN). Lee
owned 50% of the capital stock of SCN during the period from April
through June 2002, which was accounted for using the equity method
of accounting. Year to date same property revenue information is
not meaningful due to the consummation of the acquisition at a
date during the fiscal year. The following table reconciles Howard
acquisition revenue on a same property basis to revenue as
reported.
April
------------------------------
(Thousands) 2003 2002 %
Howard acquisition revenue........... $18,305 $17,049 7.4%
SCN.................................. 1,836 -- NM
---------- ---------
Total publishing revenue............. $20,141 $17,049 18.1%
========== =========
(4) The Company's fiscal year ends on September 30.
(5) The Company disclaims responsibility for updating information
beyond release date.
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. This release contains information that may be deemed forward-looking and that is based largely on the Company's current expectations and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties are changes in advertising demand, newsprint prices, interest rates, labor costs, legislative and regulatory rulings and other results of operations or financial conditions, difficulties in integration of acquired businesses or maintaining employee and customer relationships and increased capital and other costs. The words "may," "will," "would," "could," "believes," "expects," "anticipates," "intends," "plans," "projects," "considers" and similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this release. The Company does not publicly undertake to update or revise its forward-looking statements.
CONTACT: Lee Enterprises, Incorporated, Davenport Dan Hayes, 563/383-2100
dan.hayes@lee.net www.lee.net
SOURCE: Lee Enterprises, Incorporated