Lee Enterprises Reports Revenue Growth of 2.7% in December
DAVENPORT, Iowa--(BUSINESS WIRE)--Jan. 22, 2007--Lee Enterprises, Incorporated (NYSE: LEE), reported today that same property(1) revenue increased 2.7 percent in December compared with a year ago. Same property advertising revenue increased 2.3 percent, including online advertising revenue growth of 53.9 percent.
Day exchanges in the month affected results in varying degrees. The Lee newspapers owned before the Pulitzer acquisition, which account for about 60 percent of revenue, recorded 14 Sundays in the 2006 quarter, compared with 13 a year ago. Sundays normally generate more advertising revenue than any other day of the week. In December 2006, however, the last two Sundays preceded holidays, which tends to diminish retail and classified advertising. The former Pulitzer newspapers use period accounting and were not affected by day exchanges.
December revenue results also were influenced by an ice storm that crippled the St. Louis region, resulting in lost advertising revenue, as more than 450,000 homes and businesses lost power, some for nearly a week. The storm also affected Lee markets in southern and central Illinois.
On a same property basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue in December increased 0.3 percent over a year ago. Classified advertising revenue increased 2.1 percent, with employment up 4.2 percent, automotive down 1.1 percent, real estate down 0.3 percent, other newspaper classified categories up 2.8 percent, and classified in non-daily publications up 5.3 percent. National advertising revenue decreased 0.6 percent. Niche publication advertising revenue increased 3.8 percent. Circulation revenue increased 3.7 percent, reflecting the additional Sunday recorded by a majority of Lee newspapers.
In St. Louis, which was hardest hit by the ice storm, advertising revenue declined 3.2 percent. At the other former Pulitzer newspapers advertising revenue increased 1.7 percent.
Including the effect of acquisitions and divestitures, advertising revenue increased 2.4 percent, and total operating revenue 3.1 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 December increased 8.9 percent. Madison results include an extra Sunday in the month. In Lee's 50 percent partnership in Tucson, Ariz., advertising revenue increased 17.9 percent, as the December 2006 statistical period included an additional week. Tucson also is accounted for using the equity method and 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
December Year to Date
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(Thousands) 2006 2005 % 2006 2005 %
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Advertising
revenue:
Retail $43,382 $43,269 0.3 % $132,607 $131,346 1.0 %
National 5,820 5,856 (0.6) 17,902 17,659 1.4
Classified:
Daily
newspapers:
Employment 5,389 5,170 4.2 19,248 20,091 (4.2)
Automotive 4,083 4,128 (1.1) 14,038 14,212 (1.2)
Real estate 4,136 4,149 (0.3) 14,891 15,387 (3.2)
All other 2,866 2,788 2.8 9,502 9,177 3.5
Other
publications 3,307 3,142 5.3 11,403 10,479 8.8
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Total classified
revenue 19,781 19,377 2.1 69,082 69,346 (0.4)
Online 3,306 2,148 53.9 10,913 7,134 53.0
Niche
publications 1,216 1,171 3.8 3,599 3,414 5.4
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Total advertising
revenue 73,505 71,821 2.3 234,103 228,899 2.3
Circulation 16,880 16,275 3.7 52,254 51,587 1.3
Commercial
printing 1,298 1,377 (5.7) 4,210 4,240 (0.7)
Online services
and other 2,875 2,569 11.9 8,846 7,439 18.9
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Total same
property revenue 94,558 92,042 2.7 299,413 292,165 2.5
Acquisitions &
divestitures 339 32 NM 1,077 80 NM
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Total operating
revenue $94,897 $92,074 3.1 % $300,490 $292,245 2.8 %
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SAME PROPERTY REVENUE BY REGION
December Year to Date
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(Thousands) 2006 2005 % 2006 2005 %
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Midwest 57,313 56,594 1.3 % 185,556 182,495 1.7 %
Mountain West 17,167 16,210 5.9 52,542 49,780 5.5
West 12,425 12,117 2.5 39,491 38,590 2.3
East/other 7,653 7,121 7.5 21,824 21,300 2.5
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Total, same
property 94,558 92,042 2.7 % 299,413 292,165 2.5 %
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DAILY NEWSPAPER ADVERTISING VOLUME
December Year to Date
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(Thousands) 2006 2005 % 2006 2005 %
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Retail 1,276 1,319 (3.3)% 3,791 3,802 (0.3)%
National 63 78 (19.2) 202 229 (11.8)
Classified 1,217 1,224 (0.6) 4,013 3,967 1.2
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Total, same
property 2,556 2,621 (2.5)% 8,006 7,998 0.1 %
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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) December had one more Sunday and one fewer Thursday than the prior
period. The year to date had one more Sunday and one fewer Saturday.
The former Pulitzer properties 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