Lee Enterprises Reports May Revenue and Q3 Outlook
DAVENPORT, Iowa, Jun 18, 2002 (BUSINESS WIRE) -- Lee Enterprises, Incorporated (NYSE:LEE), reported today that same-property publishing revenue increased 3.5 percent in May, with advertising revenue up 4.7 percent.
Retail revenue led all categories, increasing 8.9 percent over a year ago. Classified revenue decreased 1.4 percent, with employment advertising down 13.4 percent, which offset gains of 6.3 percent in real estate advertising, 1.2 percent in automotive, and 6.6 percent for alternative publications. National advertising revenue increased 2.1 percent. Circulation revenue increased 1.1 percent. Online revenue grew 31.0 percent.
Overall revenue, including results of acquisitions and divestitures, rose 49.8 percent. The purchase of Howard Publications in April accounts for substantially all of the May revenue related to acquisitions.
"May was an excellent month for us, our best since December 2000," said Mary Junck, chairman and chief executive officer. "We think our many revenue actions are paying off. The improvement also may indicate a recovery in the economic environment, but it's too soon to tell. We continue to have a wait-and-see attitude about a rebound."
She said also that Lee has favorably resolved one element of a federal tax claim related to the deductibility of losses on the 1997 sale of NAPP Systems, Inc., which Internal Revenue Service regulations had previously disallowed. Due to the uncertainty of a favorable resolution at the time of sale, the amount claimed was reserved in the financial statements. Approximately $10 million, or 22 cents per share, of the amount reserved will now be reversed and recorded in results from continuing operations for the three months ending June 30, 2002, as a reduction of income tax expense. Additional elements of the claim remain open and, if resolved favorably, would result in additional reduction of tax expense in future periods.
As a result, she said, earnings are expected to be significantly higher than the First Call consensus estimate of 42 cents per share for the quarter.
Lee Enterprises is based in Davenport, Iowa. It owns 38 daily newspapers and a joint interest in seven others. Lee also owns more than 175 weekly newspapers, shoppers and classified and specialty publications, along with associated online services. 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 May and year-to-date statistical information follows.
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 business 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.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
May 2002
(Unaudited)
Publishing Revenue -- Operating Basis (1)
May Year To Date
(Thousands) ------------------------ ---------------------------
2002 2001 % 2002 2001 %
-------- -------- ------ --------- --------- -------
(2) (2)(3) (2) (2)(3)
Advertising
Retail ..........$18,940 $17,398 8.9 % $137,131 $137,965 (0.6)%
National ........ 1,027 1,006 2.1 8,263 8,871 (6.9)
Classified:
Daily
Newspapers:
Employment ... 2,793 3,227 (13.4) 20,246 27,766 (27.1)
Automotive ... 2,416 2,388 1.2 17,919 17,859 0.3
Real Estate .. 1,864 1,753 6.3 13,778 13,510 2.0
All Other .... 1,991 1,989 0.1 13,267 12,474 6.4
Alternative
publications . 2,100 1,970 6.6 13,894 13,817 0.6
-------- -------- --------- ---------
Total Classified 11,164 11,327 (1.4) 79,104 85,426 (7.4)
-------- -------- --------- ---------
Total
Advertising ... 31,131 29,731 4.7 224,498 232,262 (3.3)
Circulation ...... 8,466 8,378 1.1 67,986 68,463 (0.7)
Online ........... 735 561 31.0 4,738 3,917 21.0
Other ............ 6,718 6,804 (1.3) 49,053 51,987 (5.6)
-------- -------- --------- ---------
Total, Same
Property
Operating
Basis ....... 47,050 45,474 3.5 346,275 356,629 (2.9)
-------- -------- --------- ---------
Equity Basis
Adjustment ...... (8,182) (8,108) NM (63,378) (67,462) NM
Acquired/Divested
Properties and
Other ........... 18,754 1,105 NM 38,457 7,895 NM
-------- -------- --------- ---------
$57,622 $38,471 49.8 $321,354 $297,062 8.2
======== ======== ========= =========
Daily Newspaper Advertising -- Operating Basis (1)
May Year To Date
------------------------ ---------------------------
(Thousands of
Inches) 2002 2001 % 2002 2001 %
-------- -------- ------ --------- ------- ------
(2) (2)(3) (2) (2)(3)
Retail............ 667 624 6.9 % 4,847 5,022 (3.5)%
National.......... 40 35 14.3 261 279 (6.5)
Classified........ 599 583 2.7 4,296 4,318 (0.5)
-------- -------- --------- -------
Total, Same
Property 1,306 1,242 5.2 9,404 9,619 (2.2)
======== ======== ========= =======
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 a year ago. The year to date has one more Friday and one fewer Sunday than a year ago.
(3) Previously reported data has been restated for comparative purposes to exclude acquired/divested properties.
(4) The Company's fiscal year ends on September 30.
(5) The Company disclaims responsibility for updating information beyond release date.
CONTACT: Lee Enterprises, Incorporated Dan Hayes, 563/383-2163 dan.hayes@lee.net