Lee Enterprises Reports October-November Ad Revenue Growth of 5.2%
DAVENPORT, Iowa--(BUSINESS WIRE)--Dec. 13, 2004--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property advertising revenue in October and November increased 5.2 percent over a year ago.
Mary Junck, chairman and chief executive officer, said: "Our many successful sales programs have given us strong momentum early in our new fiscal year, and we continue to compare well with the industry. As the Newspaper Association of America reported recently, the average ad revenue growth for the September quarter was 3.8 percent, while Lee's same property(3) ad growth was 6.1 percent. In addition to revenue, we remain focused, as well, on increasing readership and circulation, emphasizing strong local news, driving our online strength and exercising careful cost controls."
Because of Sunday exchanges between periods, a combination of October and November results provides the most meaningful year-over-year comparisons, as Sundays generate substantially more revenue than any other day of the week. October had five Sundays in 2004 and four in 2003, while November had four Sundays in 2004 and five in 2003. Combined, October and November had nine Sundays in both years.
For the two months combined, on a same property basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue increased 3.1 percent over the previous year. Classified revenue increased 6.0 percent, with employment up 17.1 percent, automotive down 1.8 percent, real estate up 7.5 percent, other newspaper classified categories up 4.2 percent, and classified in non-daily publications up 2.0 percent. National advertising revenue, a small category for Lee, increased 14.4 percent. Niche publication revenue increased 13.3 percent and online advertising revenue increased 32.0 percent. Circulation revenue decreased 2.6 percent, largely because of promotional activities in several markets. Total same property operating revenue increased 3.9 percent. Including the impact of acquisitions, total advertising revenue for October and November increased 7.5 percent, and total operating revenue increased 5.7 percent.
The year to date columns in the accompanying tables reflect combined October and November results, as Lee's 2005 fiscal year began Oct. 1.
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 publishes nearly 200 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.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
Year to Date
November (October-November)
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(Thousands) 2004 2003 % 2004 2003 %
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Advertising revenue:
Retail $27,880 $28,285 (1.4)% $54,687 $53,033 3.1%
National 1,986 1,729 14.9 3,915 3,422 14.4
Classified:
Daily newspapers:
Employment 3,550 3,298 7.6 7,843 6,697 17.1
Automotive 3,110 3,375 (7.9) 6,750 6,874 (1.8)
Real estate 2,794 2,859 (2.3) 6,136 5,706 7.5
All other 1,928 1,932 (0.2) 4,186 4,019 4.2
Other publications 2,689 2,679 0.4 5,536 5,427 2.0
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Total classified
revenue 14,071 14,143 (0.5) 30,451 28,723 6.0
Niche publications 812 758 7.1 1,542 1,361 13.3
Online 1,035 804 28.7 2,139 1,621 32.0
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Total advertising
revenue 45,784 45,719 0.1 92,734 88,160 5.2
Circulation 10,381 11,304 (8.2) 21,649 22,229 (2.6)
Commercial printing 1,822 1,684 8.2 3,588 3,350 7.1
Online services and
other 2,175 1,994 9.1 4,116 3,746 9.9
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Total same property
operating revenue 60,162 60,701 (0.9) 122,087 117,485 3.9
Acquisitions &
divestitures 1,255 181 NM 2,471 365 NM
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Total operating
revenue $61,417 $60,882 0.9 % $124,558 $117,850 5.7 %
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DAILY NEWSPAPER ADVERTISING VOLUME
Year to Date
November (October-November)
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(Thousands of Inches) 2004 2003 % 2004 2003 %
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Retail 955 1,035 (7.7)% 1,926 1,995 (3.5)%
National 50 44 13.6 102 94 8.5
Classified 887 889 (0.2) 1,916 1,809 5.9
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Total, same property 1,892 1,968 (3.9)% 3,944 3,898 1.2 %
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NOTES:
(1) The month and year had one more Monday and Tuesday and one fewer
Saturday and Sunday than the prior period. The year to date had
one more Monday and Tuesday and one fewer Wednesday and 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). Lee owns 50%
of the capital stock of MNI, which for financial reporting
purposes is reported using the equity method of accounting.
(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
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE: Lee Enterprises, Incorporated