Lee Enterprises Reports Revenue Growth in July
DAVENPORT, Iowa--(BUSINESS WIRE)--Aug. 15, 2005--Lee Enterprises, Incorporated (NYSE:LEE), today reported same property revenue increases in July, a result of improved sales and an additional Sunday compared with a year ago.
On a same property(3) basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, total advertising revenue increased 10.7 percent and operating revenue increased 9.0 percent. Including the effect of acquisitions and divestitures, total advertising revenue increased 91.9 percent, and total operating revenue increased 83.4 percent, due primarily to the acquisition of Pulitzer Inc. in June 2005.
Same property retail advertising revenue increased 9.8 percent. Classified advertising revenue increased 9.9 percent, with employment up 29.5 percent, automotive down 2.8 percent, real estate up 20.5 percent, other newspaper classified categories down 3.1 percent, and classified in non-daily publications down 1.5 percent. National advertising revenue increased 23.7 percent. Niche publication revenue decreased 3.4 percent, a continuing influence of the loss of a large contracted publication in one market. Online advertising revenue, which is not affected by Sunday exchanges, increased 37.7 percent. Circulation revenue, which is affected by the additional Sunday this year, increased 4.6 percent.
The additional Sunday this year distorts a direct comparison with July 2004 because Sundays generate substantially more revenue than any other day of the week. Lee's revenue growth in July can be evaluated in a more meaningful way by considering it in combination with August results, as August has one fewer Sunday in 2005 than in 2004. Combined, July and August have nine Sundays in both 2005 and 2004. Lee's revenue statistics for August are scheduled to be released Sept. 15 and will include a table combining July and August results to eliminate the effect of the Sunday exchanges.
PULITZER RESULTS
Pulitzer results are reported in statistical periods, which eliminate the effect of Sunday exchanges. For the statistical reporting period ended July 31, 2005, on a same property basis, comparing the current year period to last year, which is before Lee's ownership, Pulitzer advertising revenue decreased 0.4 percent, with total revenue down 0.5 percent. In St. Louis, which was up against its most significant growth relative to the prior year, advertising revenue decreased 2.9 percent due to a soft market for both classified and national advertising, and total revenue was down 2.7 percent. In Pulitzer's other newspapers, on a same property basis, advertising revenue increased 5.4 percent, and total revenue rose 4.9 percent.
In the 50 percent partnership in Tucson, which is accounted for using the equity method and is not included in the Pulitzer revenue described above, advertising revenue for the July statistical reporting period increased 6.9 percent, and total revenue rose 5.5 percent. Strong retail and classified revenue growth offset a decline in national advertising.
Tables follow.
With the acquisition of Pulitzer, Lee owns 52 daily newspapers and a joint interest in six others. Lee also operates associated online services and more than 300 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.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
July Year to Date
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(Thousands) 2005 2004 % 2005 2004 %
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Advertising
revenue:
Retail......... $23,249 $21,166 9.8 % $246,227 $236,788 4.0 %
National....... 1,456 1,177 23.7 17,008 14,912 14.1
Classified:
Daily
newspapers:
Employment... 5,027 3,882 29.5 41,914 35,802 17.1
Automotive... 3,541 3,642 (2.8) 32,741 33,779 (3.1)
Real estate.. 3,613 2,998 20.5 31,167 27,728 12.4
All other.... 2,060 2,127 (3.1) 19,785 20,321 (2.6)
Other
publications. 2,949 2,993 (1.5) 27,302 26,921 1.4
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Total
classified
revenue....... 17,190 15,642 9.9 152,909 144,551 5.8
Niche
publications.. 873 904 (3.4) 9,278 9,099 2.0
Online......... 1,348 979 37.7 11,921 8,946 33.3
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Total
advertising
revenue........ 44,116 39,868 10.7 437,343 414,296 5.6
Circulation..... 11,038 10,549 4.6 106,239 108,005 (1.6)
Commercial
printing....... 1,274 1,413 (9.8) 16,681 16,327 2.2
Online services
and other...... 2,073 1,844 12.4 21,758 19,781 10.0
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Total same
property
operating
revenue........ 58,501 53,674 9.0 582,021 558,409 4.2
Acquisitions &
divestitures... 41,722 979 NM 88,836 5,538 NM
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Total operating
revenue........$100,223 $54,653 83.4 % $670,857 $563,947 19.0 %
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DAILY NEWSPAPER ADVERTISING VOLUME
July Year to Date
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(Thousands of
Inches) 2005 2004 % 2005 2004 %
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Retail.......... 831 818 1.6 % 8,743 8,927 (2.1)%
National........ 44 42 4.8 479 454 5.5
Classified...... 1,075 998 7.7 9,632 8,950 7.6
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Total, same
property....... 1,950 1,858 5.0 % 18,854 18,331 2.9 %
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NOTES:
(1) The month had one more Sunday and one fewer Thursday than the
prior period. The year to date had one more Sunday 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), in which Lee
owns a 50% share, and Lee's 50% newspaper partnership in TNI
Partners in Tucson. Both are 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, Inc., Davenport
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE: Lee Enterprises, Inc.