Lee Enterprises Reports May Revenue and June Earnings Outlook
DAVENPORT, Iowa--(BUSINESS WIRE)--June 23, 2003--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property publishing revenue(2) decreased 1.0 percent in May compared with an exceptionally strong performance a year ago. Year to date, same property publishing revenue was up 2.3 percent.
Excluding the effects of acquisitions and divestitures, total advertising revenue was down 3.5 percent for the month and up 1.6 percent year to date. Retail advertising revenue was down 3.7 percent for the month and up 2.5 percent year to date. Classified advertising revenue was down 3.4 percent for the month and up 0.5 percent year to date. For the month, employment classified advertising was down 17.2 percent, automotive up 7.2 percent, real estate up 9.0 percent, other newspaper classified categories down 1.2 percent, and classified in alternative publications down 8.9 percent. National advertising revenue, a small category for Lee, was down 1.7 percent for the month and down 3.5 percent year to date. Circulation revenue was down 0.7 percent for the month and down 0.3 percent year to date. Online revenue was up 26.4 percent for the month and up 34.7 percent year to date.
Including the results of acquisitions and divestitures, total publishing revenue increased 3.7 percent on a reported basis.
At the 15 newspapers Lee acquired in their entirety in April 2002, revenue in May increased 3.2 percent(3). Publishing revenue of the former Howard newspapers increased 14.0 percent on a reported basis, due 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.
Mary Junck, chairman and chief executive officer, said, "Both May and June a year ago were standouts, with retail growth in the high single digits. This year, ad sales softened in many of our markets after a very good April, and while June is tracking positively over the prior year the advertising environment remains in flux."
She said Lee expects earnings for the June quarter to be in the range of 45-47 cents per diluted common share. For the six months ended March 2003, earnings per diluted common share have risen 23.5 percent.
Lee Enterprises is based in Davenport, Iowa, and is the premier publisher of daily newspapers in midsize markets. Lee owns 38 daily newspapers and a joint interest in six others, along with associated online services. Lee also publishes more than 175 weekly newspapers, shoppers and classified and specialty publications. Lee 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
May 2003
(Unaudited)
PUBLISHING REVENUE
May Year To Date
(Thousands) ------------------------- ---------------------------
2003 2002 % 2003 2002 %
-------- -------- ------- --------- --------- -------
(1)(2) (1)(2) (2) (2)
Advertising:
Retail.........$14,428 $14,985 (3.7)% $110,989 $108,294 2.5 %
National....... 811 825 (1.7) 6,532 6,767 (3.5)
Classified:
Daily
newspapers:
Employment... 1,695 2,047 (17.2) 13,381 14,169 (5.6)
Automotive... 1,962 1,831 7.2 13,984 13,775 1.5
Real estate.. 1,495 1,372 9.0 11,105 10,248 8.4
All other.... 1,469 1,487 (1.2) 9,470 9,578 (1.1)
Alternative
publications. 1,815 1,993 (8.9) 13,413 13,282 1.0
-------- -------- --------- ---------
Total
classified... 8,436 8,730 (3.4) 61,353 61,052 0.5
-------- -------- --------- ---------
Total
advertising.. 23,675 24,540 (3.5) 178,874 176,113 1.6
Circulation..... 6,671 6,717 (0.7) 53,594 53,733 (0.3)
Online.......... 828 655 26.4 5,771 4,283 34.7
Other........... 5,481 5,119 7.1 39,105 36,923 5.9
-------- -------- --------- ---------
Total, Same
property..... 36,655 37,031 (1.0) 277,344 271,052 2.3
Acquired/
divested
properties:
Acquisitions... 21,178 18,576 14.0 161,004 35,625 NM
Divestitures... -- 172 NM -- 3,461 NM
-------- -------- --------- ---------
Total acquired/
divested
properties..... 21,178 18,748 13.0 161,004 39,086 NM
-------- -------- --------- ---------
Total
publishing
revenue......$57,833 $55,779 3.7 % $438,348 $310,138 41.3 %
======== ======== ========= =========
DAILY NEWSPAPER ADVERTISING VOLUME
May Year To Date
------------------------- ---------------------------
(Thousands of
Inches) 2003 2002 % 2003 2002 %
-------- -------- ------- --------- --------- -------
(1)(2) (1)(2) (2) (2)
Retail.......... 521 552 (5.6)% 4,054 4,064 (0.2)%
National........ 29 35 (17.1) 199 234 (15.0)
Classified...... 525 510 2.9 3,718 3,675 1.2
-------- -------- --------- ---------
Total, Same
property..... 1,075 1,097 (2.0)% 7,971 7,973 (0.0)%
======== ======== ========= =========
Notes to Revenue and Statistical Summary:
(1) The month had one more Saturday and one fewer Wednesday than the
prior period. The year to date had one more Saturday 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.
May
-----------------------------
(Thousands) 2003 2002 %
Howard acquisition revenue.............$19,170 $18,576 3.2%
SCN.................................... 2,008 -- NM
-------- -------
Total publishing revenue...............$21,178 $18,576 14.0%
======== =======
(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
SOURCE: Lee Enterprises, Incorporated