Lee Enterprises Reports January Revenue Statistics
Total advertising revenue increased 5.2 percent. Retail advertising revenue increased 5.1 percent. Classified revenue increased 4.9 percent, with employment advertising up 2.1 percent, automotive advertising up 2.4 percent, real estate advertising up 10.2 percent, other newspaper classified categories down 3.3 percent, and classified in alternative publications up 15.4 percent. National advertising revenue, a small category for Lee, increased 9.2 percent.
Circulation revenue increased 1.8 percent. Online revenue increased 44.2 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 62.0 percent.
Mary Junck, chairman and chief executive officer of Lee, said: "Although we've had a solid start to our year, and although January revenue looks strong in comparison with a year ago, several considerations keep our optimism in check. As our smallest month of the year, January is most susceptible to fluctuations, and our revenue benefited from several substantial one-time advertiser promotions. With reports from the field and all factors considered, we see January's results as a continuation of the last few months."
Looking ahead, she said: "Of course, the prospect of war also clouds the outlook for continued recovery in the advertising environment. Meanwhile, we continue to face expense challenges, especially in compensation, as we cycle against one-time savings a year ago and deal with sharply higher expense for health care and increasing incentive compensation related to rising revenue."
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
January 2003
(Unaudited)
Publishing Revenue -- Operating Basis (1)
January Year To Date
(Thousands) ------------------------- ---------------------------
2003 2002 % 2003 2002 %
-------- -------- ------- --------- --------- -------
(2) (2)(3) (2) (2)(3)
Advertising:
Retail........ $13,890 $13,217 5.1 % $71,101 $68,463 3.9 %
National...... 1,099 1,006 9.2 4,226 4,168 1.4
Classified:
Daily
Newspapers:
Employment 2,401 2,352 2.1 9,293 9,606 (3.3)
Automotive 2,016 1,968 2.4 9,009 8,809 2.3
Real
Estate... 1,746 1,585 10.2 7,277 6,707 8.5
All Other. 1,386 1,433 (3.3) 6,187 6,257 (1.1)
Alternative
pub-
lications.. 1,587 1,375 15.4 6,558 6,092 7.6
-------- -------- --------- ---------
Total
Classified. 9,136 8,713 4.9 38,324 37,471 2.3
-------- -------- --------- ---------
Total
Advertising 24,125 22,936 5.2 113,651 110,102 3.2
Circulation..... 8,435 8,288 1.8 34,294 33,971 1.0
Online.......... 750 520 44.2 3,016 2,108 43.1
Other........... 5,779 5,540 4.3 23,671 23,058 2.7
-------- -------- --------- ---------
Total --
Same
Property
Operating
Basis...... 39,089 37,284 4.8 174,632 169,239 3.2
MNI Revenue..... (7,930) (7,517) 5.5 (35,968) (34,247) 5.0
Acquired/
Divested
Properties and
Other.......... 17,838 475 NM 80,877 2,610 NM
-------- -------- --------- ---------
Total
Publishing
Revenue.... $48,997 $30,242 62.0 % $219,541 $137,602 59.5 %
======== ======== ========= =========
Daily Newspaper Advertising -- Operating Basis (1)
January Year To Date
------------------------- ---------------------------
(Thousands of 2003 2002 % 2003 2002 %
inches) -------- -------- ------- --------- --------- -------
(2) (2)(3) (2) (2)(3)
Retail.......... 507 469 8.1 % 2,509 2,492 0.7 %
National........ 26 29 (10.3) 111 125 (11.2)
Classified...... 478 467 2.4 2,097 2,064 1.6
-------- -------- --------- ---------
Total, Same
Property
Operating
Basis...... 1,011 965 4.8 % 4,717 4,681 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 month had one more Friday and one fewer Tuesday than the prior
period. 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 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
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, Davenport
Dan Hayes, 563/383-2100
dan.hayes@lee.net