Lee Enterprises Reports February Revenue and Outlook
Total advertising revenue increased 2.1 percent. Retail advertising revenue increased 4.7 percent. Classified advertising revenue increased 0.2 percent, with employment down 3.9 percent, automotive up 1.3 percent, real estate up 7.2 percent, other newspaper classified categories down 3.8 percent, and classified in alternative publications up 1.4 percent. National advertising revenue, a small category for Lee, decreased 15.6 percent.
Circulation revenue increased 0.3 percent. Online revenue increased 38.2 percent.
Including the results of acquisitions and divestitures, and excluding 50-percent-owned entities operated by Lee but reported under generally accepted accounting principles using the equity method, total publishing revenue increased 60.5 percent.
Mary Junck, chairman and chief executive officer, said: "Retail remained strong in February but employment revenue declined, after being up in January. Looking forward, ad revenue in March will slow as a result of war-related concerns and cancellations. In recent days some advertisers have pulled back on promotions. With the high level of uncertainty, it's not yet possible to predict the overall impact on the March quarter."
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
February 2003
(Unaudited)
Publishing Revenue -- Operating Basis (1)
February Year To Date
(Thousands) ----------------------- -------------------------
2003 2002 % 2003 2002 %
------- ------- ------ -------- -------- ------
(2) (2)(3) (2) (2)(3)
Advertising:
Retail...........$14,989 $14,318 4.7 % $ 86,090 $ 82,781 4.0 %
National......... 883 1,046 (15.6) 5,109 5,214 (2.0)
Classified:
Daily Newspapers:
Employment... 2,165 2,253 (3.9) 11,458 11,859 (3.4)
Automotive... 2,040 2,014 1.3 11,049 10,823 2.1
Real Estate.. 1,641 1,531 7.2 8,918 8,238 8.3
All Other.... 1,460 1,518 (3.8) 7,647 7,775 (1.6)
Alternative
publications. 1,799 1,774 1.4 8,357 7,866 6.2
------- ------- -------- --------
Total
Classified.... 9,105 9,090 0.2 47,429 46,561 1.9
------- ------- -------- --------
Total
Advertising... 24,977 24,454 2.1 138,628 134,556 3.0
Circulation........ 7,861 7,840 0.3 42,155 41,811 0.8
Online............. 793 574 38.2 3,809 2,682 42.0
Other.............. 5,822 5,229 11.3 29,493 28,287 4.3
------- ------- -------- --------
Total -- Same
Property
Operating
Basis......... 39,453 38,097 3.6 214,085 207,336 3.3
MNI Revenue........ (7,810) (7,554) 3.4 (43,778) (41,801) 4.7
Acquired/Divested
Properties and
Other.......... 18,031 404 NM 98,908 3,014 NM
------- ------- -------- --------
Total
Publishing
Revenue.......$49,674 $30,947 60.5 % $269,215 $168,549 59.7 %
======= ======= ======== ========
Daily Newspaper Advertising -- Operating Basis (1)
February Year To Date
----------------------- -------------------------
(Thousands of Inches) 2003 2002 % 2003 2002 %
------- -------- ------ ------- -------- --------
(2) (2)(3) (2) (2)(3)
Retail.............. 488 485 0.6 % 2,997 2,977 0.7 %
National............ 28 32 (12.5) 139 157 (11.5)
Classified.......... 478 470 1.7 2,575 2,534 1.6
------- -------- ------- --------
Total, Same
Property
Operating Basis. 994 987 0.7 % 5,711 5,668 0.8 %
====== ======== ======= ========
Notes to Revenue and Statistical Summary:
(1) Operating basis includes 100% of the revenue and statistical
information of Madison Newspapers, Inc. (MNI), which for financial
reporting purposes is reported using the equity method of
accounting. Lee owns 50% of the stock of MNI.
(2) The year to date had one more Friday and one fewer Monday than the
prior period.
(3) Certain amounts as previously reported have been reclassified to
conform with the current period presentation. The prior year
presentation of equity in net income of associated companies has
been revised to exclude those amounts from revenue.
(4) The Company's fiscal year ends on September 30.
(5) The Company disclaims responsibility for updating information
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