Lee Enterprises Reports Revenue Growth in January
DAVENPORT, Iowa--(BUSINESS WIRE)--Feb. 14, 2005--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property advertising revenue in January increased 9.4 percent over a year ago, a result of improved sales and an additional Sunday this year.
On a same property(3) basis, which excludes the effects of acquisitions and divestitures, retail advertising revenue increased 8.2 percent. Classified advertising revenue increased 8.4 percent, with employment up 32.3 percent, automotive down 3.9 percent, real estate up 17.7 percent, other newspaper classified categories down 12.9 percent, and classified in non-daily publications down 1.1 percent. National advertising revenue, a small category for Lee, increased 15.9 percent. Niche publication revenue increased 13.3 percent, and online advertising revenue increased 39.3 percent. Circulation revenue increased 2.7 percent, also reflecting the additional Sunday this year.
Total same property operating revenue increased 7.7 percent. Including the effect of acquisitions and divestitures, total advertising revenue increased 12.5 percent, and total operating revenue increased 9.8 percent.
The additional Sunday in January 2005 distorts a direct comparison with January 2004 because Sundays generate substantially more revenue than any other day of the week. Lee's revenue growth in January can be evaluated in a more meaningful way by considering it in combination with February results, as February has one fewer Sunday in 2005 than in 2004. Combined, January and February have nine Sundays in both 2005 and 2004. Lee's revenue statistics for February are scheduled for release March 14 and will include a table combining January and February results to eliminate the effect of the Sunday exchanges.
Tables follow.
Lee Enterprises 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 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.
On Jan. 30, Lee announced plans to acquire Pulitzer Inc. (NYSE:PTZ), which publishes 14 daily newspapers, including the St. Louis Post-Dispatch. Closing is expected in the June quarter.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
January Year to Date
----------------------------------------------------------------------
(Thousands) 2005 2004 % 2005 2004 %
----------------------------------------------------------------------
Advertising revenue:
Retail...............$20,612 $19,042 8.2 % $102,428 $ 98,373 4.1 %
National............. 1,714 1,479 15.9 7,470 6,165 21.2
Classified:
Daily newspapers:
Employment......... 4,151 3,137 32.3 14,889 12,316 20.9
Automotive......... 3,054 3,179 (3.9) 12,913 13,226 (2.4)
Real estate........ 2,975 2,527 17.7 11,735 10,524 11.5
All other.......... 1,583 1,817 (12.9) 7,561 7,539 0.3
Other publications.. 2,195 2,220 (1.1) 10,160 9,799 3.7
----------------------------------------------------------------------
Total classified
revenue............. 13,958 12,880 8.4 57,258 53,404 7.2
Niche publications... 1,303 1,150 13.3 3,733 3,244 15.1
Online............... 1,060 761 39.3 4,167 3,056 36.4
----------------------------------------------------------------------
Total advertising
revenue.............. 38,647 35,312 9.4 175,056 164,242 6.6
Circulation........... 11,065 10,776 2.7 43,175 43,756 (1.3)
Commercial printing... 1,501 1,493 0.5 6,777 6,356 6.6
Online services and
other................ 2,076 1,921 8.1 8,370 7,591 10.3
----------------------------------------------------------------------
Total same property
operating revenue.... 53,289 49,502 7.7 233,378 221,945 5.2
Acquisitions &
divestitures......... 1,253 171 NM 5,248 712 NM
----------------------------------------------------------------------
Total operating
revenue..............$54,542 $49,673 9.8 % $238,626 $222,657 7.2 %
======================================================================
DAILY NEWSPAPER ADVERTISING VOLUME
January Year to Date
----------------------------------------------------------------------
(Thousands of Inches) 2005 2004 % 2005 2004 %
----------------------------------------------------------------------
Retail................ 759 745 1.9 % 3,662 3,752 (2.4)%
National.............. 43 45 (4.4) 193 176 9.7
Classified............ 886 797 11.2 3,712 3,408 8.9
----------------------------------------------------------------------
Total, same property.. 1,688 1,587 6.4 % 7,567 7,336 3.1 %
======================================================================
NOTES:
(1) The month had one more Sunday and Monday and one fewer Thursday
and Friday than the prior period. The year to date had one more
Sunday and Monday 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. 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, Davenport
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE: Lee Enterprises, Incorporated