Lee Enterprises Reports July-August Ad Revenue Up 5.4%
DAVENPORT, Iowa--(BUSINESS WIRE)--Sept. 15, 2005--DAVENPORT, Iowa (Sept. 15, 2005) -- Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property advertising revenue in July and August increased 5.4 percent over a year ago.
Because of Sunday exchanges between periods, a combination of July and August provides the most meaningful year-over-year comparisons, as Sundays generate substantially more revenue than any other day of the week. July had five Sundays in 2005 and four in 2004, while August had four Sundays in 2005 and five in 2004. Combined, July and August had nine Sundays in both years.
For the two months combined, on a same property(3) basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue increased 4.6 percent. Classified advertising revenue increased 4.3 percent, with employment up 19.3 percent, automotive down 5.7 percent, real estate up 11.0 percent, other newspaper classified categories down 8.7 percent, and classified in non-daily publications down 2.2 percent. National advertising revenue, a small category for Lee, increased 10.5 percent. Niche publication revenue decreased 0.5 percent, and online advertising revenue increased 38.6 percent. Circulation revenue decreased 1.1 percent.
Total same property operating revenue increased 3.8 percent. Including the effect of acquisitions and divestitures, total advertising revenue increased 76.9 percent, and total operating revenue increased 69.4 percent, due primarily to the acquisition of Pulitzer Inc. in June 2005.
PULITZER RESULTS
Pulitzer results are reported in statistical periods, which eliminate the effect of Sunday exchanges. For the statistical reporting period ended Aug. 28, 2005, on a same property basis, comparing the current year period to last year, which is before Lee's ownership, Pulitzer advertising revenue increased 1.3 percent, with total revenue up 0.7 percent. In St. Louis, advertising revenue decreased 0.3 percent, and total revenue was down 0.5 percent. In Pulitzer's other newspapers, on a same property basis, advertising revenue increased 5.0 percent, and total revenue rose 3.5 percent.
In the 50 percent partnership in Tucson, which is accounted for using the equity method and is not included in the Pulitzer revenue described above, advertising revenue for the August statistical reporting period increased 8.7 percent, and total revenue climbed 6.6 percent. The following tables combine July and August operating revenue and volume to eliminate the effect of the Sunday exchanges and facilitate comparison.
July-August Combined
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(Thousands) 2005 2004 %
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Advertising revenue:
Retail................................... $47,429 $45,338 4.6 %
National................................. 2,885 2,610 10.5
Classified:
Daily newspapers:
Employment........................... 10,095 8,462 19.3
Automotive........................... 6,760 7,170 (5.7)
Real estate.......................... 7,037 6,342 11.0
All other............................ 4,197 4,598 (8.7)
Other publications..................... 5,834 5,966 (2.2)
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Total classified revenue................. 33,923 32,538 4.3
Niche publications....................... 1,541 1,548 (0.5)
Online................................... 2,850 2,056 38.6
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Total advertising revenue.................. 88,628 84,090 5.4
Circulation................................ 21,535 21,779 (1.1)
Commercial printing........................ 2,889 3,117 (7.3)
Online services and other.................. 3,919 3,733 5.0
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Total same property
operating revenue......................... 116,971 112,719 3.8
Acquisitions &
divestitures.............................. 77,590 2,120 NM
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Total operating revenue.................... $194,561 $114,839 69.4 %
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DAILY NEWSPAPER ADVERTISING VOLUME
July-August Combined
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(Thousands of Inches) 2005 2004 %
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Retail..................................... 1,676 1,680 (0.2)%
National................................... 83 83 -
Classified................................. 2,123 2,013 5.5
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Total, same property....................... 3,882 3,776 2.8 %
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With the acquisition of Pulitzer, Lee owns 52 daily newspapers and a joint interest in six others. Lee also operates associated online services and more than 300 weekly newspapers, shoppers and classified and specialty publications. Lee is based in Davenport, Iowa, and 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.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
August Year to Date
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(Thousands) 2005 2004 % 2005 2004 %
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Advertising
revenue:
Retail.......... $24,180 $24,172 - % $270,407 $260,960 3.6 %
National........ 1,429 1,433 (0.3) 18,437 16,345 12.8
Classified:
Daily
newspapers:
Employment.... 5,068 4,580 10.7 46,982 40,382 16.3
Automotive.... 3,219 3,528 (8.8) 35,960 37,307 (3.6)
Real estate... 3,424 3,344 2.4 34,591 31,072 11.3
All other..... 2,137 2,471 (13.5) 21,922 22,792 (3.8)
Other
publications.. 2,885 2,973 (3.0) 30,187 29,894 1.0
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Total classified
revenue........ 16,733 16,896 (1.0) 169,642 161,447 5.1
Niche
publications... 668 644 3.7 9,946 9,743 2.1
Online.......... 1,502 1,077 39.5 13,423 10,023 33.9
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Total advertising
revenue......... 44,512 44,222 0.7 481,855 458,518 5.1
Circulation...... 10,497 11,230 (6.5) 116,736 119,235 (2.1)
Commercial
printing........ 1,615 1,704 (5.2) 18,296 18,031 1.5
Online services
and other....... 1,846 1,889 (2.3) 23,604 21,670 8.9
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Total same
property
operating
revenue......... 58,470 59,045 (1.0) 640,491 617,454 3.7
Acquisitions &
divestitures.... 35,868 1,141 NM 124,704 6,679 NM
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Total operating
revenue......... $94,338 $60,186 56.7 % $765,195 $624,133 22.6 %
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DAILY NEWSPAPER ADVERTISING VOLUME
August Year to Date
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(Thousands of
Inches) 2005 2004 % 2005 2004 %
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Retail........... 845 862 (2.0)% 9,588 9,789 (2.1)%
National......... 39 41 (4.9) 518 495 4.6
Classified....... 1,048 1,015 3.3 10,680 9,965 7.2
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Total, same
property........ 1,932 1,918 0.7 % 20,786 20,249 2.7 %
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NOTES:
(1) July and August combined had one more Wednesday and one fewer
Thursday than the prior period. The month had one more Wednesday
and one fewer Sunday than the prior period. The year to date had
one fewer Thursday than the prior period.
(2) 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.
(3) Same property comparisons exclude acquisitions and divestitures
made in the current and prior year. Same property revenue also
excludes revenue of Madison Newspapers, Inc. (MNI), in which Lee
owns a 50% share, and Lee's 50% newspaper partnership in TNI
Partners in Tucson. Both are reported using the equity method of
accounting. Same property comparisons also exclude corporate
office costs.
(4) The Company's fiscal year ends on September 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, 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
SOURCE: Lee Enterprises, Incorporated