Lee Enterprises Reports January Revenue Statistics
DAVENPORT, Iowa--(BUSINESS WIRE)--Feb. 20, 2007--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property(1) advertising revenue in January decreased 3.8 percent compared with a five-Sunday month a year ago. Online advertising, which is not as significantly affected by calendar cycles, increased 44.7 percent.
The five Sundays in January 2006 versus four in 2007 distorts year-over-year comparisons, as Sundays normally generate substantially more print advertising revenue than any other day of the week. The comparison affects Lee newspapers owned before the Pulitzer acquisition, normally accounting for about 60 percent of revenue. The former Pulitzer newspapers use period accounting and are not affected by day exchanges.
Mary Junck, Lee chairman and chief executive officer, said: "The calendar differences make year-over-year comparisons difficult, especially in one of our smallest revenue months of the year. It's clear, though, that ad sales slipped a bit in January, and we look forward to resuming the stronger pace we've shown over the last few months. Meanwhile, we have begun aggressively rolling out our new Yahoo HotJobs employment platform, and in the last few weeks 17 of our markets have begun upselling ads on the new national network. Also in the last few weeks, we have launched an advanced training program called Lee Online University. By mid-March, we will have graduated more than 350 editors, sales executives, publishers and managers to help us make our online sites even more compelling and continue to drive rapid growth in online advertising revenue."
On a same property basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue in January decreased 4.5 percent compared with a year ago. Classified advertising revenue decreased 6.2 percent, with employment down 10.5 percent, automotive down 9.9 percent, real estate down 8.1 percent, other newspaper classified categories down 6.6 percent, and classified in non-daily publications, which are not affected by Sunday exchanges, up 12.2 percent. National advertising revenue decreased 11.8 percent. Niche publication advertising revenue decreased 5.1 percent. Circulation revenue decreased 4.0 percent, also reflecting one fewer Sunday recorded in 2007 by a majority of Lee newspapers.
In St. Louis, advertising revenue decreased 2.5 percent. At the other former Pulitzer newspapers, advertising revenue declined 5.4 percent.
Including the effect of acquisitions and divestitures, advertising revenue decreased 3.8 percent, and total operating revenue decreased 3.2 percent.
At Lee's 50 percent subsidiary in Madison, Wis., which is reported using the equity method of accounting and is not included in same property revenue, advertising revenue in January decreased 7.7 percent, also reflecting the loss of a Sunday this year.
In Lee's 50 percent partnership in Tucson, Ariz., which uses period accounting, advertising revenue decreased 3.4 percent. Tucson is not included in Lee same property revenue.
Lee Enterprises is a premier provider of local news, information and advertising in primarily midsize markets, with 51 daily newspapers and a joint interest in five others, rapidly growing online sites and more than 300 weekly newspapers and specialty publications in 23 states. Lee's newspapers have circulation of 1.6 million daily and 1.9 million Sunday, reaching more than four million readers daily. Lee's online sites attract more than three million users, and Lee's weekly publications are distributed to more than 4.5 million households. Lee's 55 newspaper markets include St. Louis, Mo.; Lincoln, Neb.; Madison, Wis.; Davenport, Iowa; Billings, Mont.; Bloomington, Ill.; Tucson, Ariz.; and Napa, Calif. Lee is based in Davenport, Iowa, and its stock is traded on the New York Stock Exchange under the symbol LEE. For more information about Lee Enterprises, please visit www.lee.net.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
January Year to Date
----------------------------------------------------------------------
(Thousands) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Advertising
revenue:
Retail........... $32,979 $34,516 (4.5)% $165,586 $165,862 (0.2)%
National......... 4,866 5,516 (11.8) 22,768 23,175 (1.8)
Classified:
Daily
newspapers:
Employment..... 7,169 8,006 (10.5) 26,462 28,134 (5.9)
Automotive..... 4,496 4,990 (9.9) 18,534 19,202 (3.5)
Real estate.... 4,642 5,052 (8.1) 19,530 20,439 (4.4)
All other...... 2,826 3,027 (6.6) 12,287 12,167 1.0
Other
publications... 3,851 3,433 12.2 15,254 13,912 9.6
----------------------------------------------------------------------
Total classified
revenue.......... 22,984 24,508 (6.2) 92,067 93,854 (1.9)
Online........... 3,763 2,600 44.7 14,676 9,734 50.8
Niche
publications.... 1,746 1,839 (5.1) 5,345 5,253 1.8
----------------------------------------------------------------------
Total advertising
revenue.......... 66,338 68,979 (3.8) 300,442 297,878 0.9
Circulation....... 17,776 18,514 (4.0) 70,030 70,101 (0.1)
Commercial
printing......... 1,200 1,236 (2.9) 5,410 5,476 (1.2)
Online services
and other........ 2,332 2,151 8.4 11,178 9,590 16.6
----------------------------------------------------------------------
Total same
property revenue. 87,646 90,880 (3.6) 387,060 383,045 1.0
Acquisitions &
divestitures..... 368 34 NM 1,445 114 NM
----------------------------------------------------------------------
Total operating
revenue.......... $88,014 $90,914 (3.2)% $388,505 $383,159 1.4 %
======================================================================
SAME PROPERTY REVENUE BY REGION
January Year to Date
----------------------------------------------------------------------
(Thousands) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Midwest................ 54,732 57,162 (4.3)% 240,285 239,653 0.3 %
Mountain West.......... 14,717 14,906 (1.3) 67,261 64,686 4.0
West................... 11,500 12,122 (5.1) 50,992 50,714 0.5
East/other............. 6,697 6,690 0.1 28,522 27,992 1.9
----------------------------------------------------------------------
Total, same property... 87,646 90,880 (3.6)% 387,060 383,045 1.0 %
======================================================================
DAILY NEWSPAPER ADVERTISING VOLUME
January Year to Date
----------------------------------------------------------------------
(Thousands) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail.................... 994 981 1.3 % 4,727 4,735 (0.2)%
National.................. 60 74 (18.9) 262 303 (13.5)
Classified................ 1,245 1,316 (5.4) 5,204 5,250 (0.9)
Total, same property...... 2,299 2,371 (3.0)% 10,193 10,288 (0.9)%
======================================================================
NOTES:
(1) Same property comparisons exclude acquisitions and divestitures made in the current and prior year. Same property revenue also excludes Lee's 50% ownership in Madison and Tucson, which are reported using the equity method of accounting.
(2) January had one more Wednesday and one fewer Sunday than the prior period. The year to date had one more Wednesday and one fewer Saturday. The former Pulitzer properties use period accounting and are not affected by day exchanges.
(3) Certain amounts as previously reported have been reclassified to conform with the current period presentation. The prior period has been restated for comparative purposes, and the reclassifications have no impact on earnings.
(4) The Company's fiscal year ends Sept. 30.
(5) The Company disclaims responsibility for updating information beyond the 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, energy costs, 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
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE: Lee Enterprises, Incorporated