Lee Enterprises Reports Revenue Growth in October
DAVENPORT, Iowa--(BUSINESS WIRE)--Nov. 21, 2006--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property advertising revenue increased 1.0 percent in October compared with a year ago, while online advertising revenue increased 53.9 percent.
On a same property basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue decreased 0.3 percent. Classified advertising revenue decreased 1.5 percent, with employment down 5.9 percent, automotive down 1.5 percent, real estate down 3.6 percent, other newspaper classified categories up 2.8 percent, and classified in non-daily publications up 7.2 percent. National advertising revenue decreased 2.3 percent. Niche publication advertising revenue increased 8.1 percent. Circulation revenue decreased 0.2 percent.
At the former Pulitzer Inc. newspapers, which are included in same property(1) revenue for the first time in October, advertising revenue increased 2.8 percent. Advertising revenue rose 2.6 percent in St. Louis and 3.2 percent elsewhere.
"We're pleased with this good start to our new fiscal year, especially in St. Louis," said Mary Junck, chairman and chief executive officer. "While we credit part of the growth in St. Louis to excitement surrounding the World Series, it's clear that our many revenue and other actions in St. Louis are beginning to get results."
Total same property revenue increased 1.1 percent. Including the effect of acquisitions and divestitures, total advertising revenue increased 1.1 percent, and total operating revenue increased 1.4 percent.
In Lee's 50 percent partnership in Tucson, Ariz., which is accounted for using the equity method and is not included in same property revenue, advertising revenue for the October statistical reporting period decreased 2.3 percent, and total revenue decreased 2.2 percent.
In Lee's 50 percent partnership in Madison, Wis., which also is reported using the equity method of accounting and is not included in same property revenue, advertising revenue in October decreased 2.8 percent, and total revenue decreased 3.6 percent.
Revenue tables follow.
Lee Enterprises is a premier publisher 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 reach more than two million users, and Lee's weekly publications have distribution of more than 4.5 million households. Lee's 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
October
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(Thousands) 2006 2005 %
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Advertising revenue:
Retail.................................... $43,298 $43,408 (0.3)%
National.................................. 6,080 6,222 (2.3)
Classified:
Daily newspapers:
Employment............................ 8,036 8,537 (5.9)
Automotive............................ 5,453 5,536 (1.5)
Real estate........................... 6,162 6,389 (3.6)
All other............................. 3,578 3,479 2.8
Other publications...................... 4,301 4,011 7.2
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Total classified revenue.................. 27,530 27,952 (1.5)
Online.................................... 4,108 2,670 53.9
Niche publications........................ 1,091 1,009 8.1
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Total advertising revenue................... 82,107 81,261 1.0
Circulation................................. 18,777 18,807 (0.2)
Commercial printing......................... 1,449 1,445 0.3
Online services and other................... 2,521 2,206 14.3
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Total same property revenue................. 104,854 103,719 1.1
Acquisitions & divestitures................. 365 20 NM
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Total operating revenue $105,219 103,739 1.4 %
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SAME PROPERTY REVENUE BY REGION
October
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(Thousands) 2006 2005 %
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Midwest..................................... 66,508 66,224 0.4 %
Mountain West............................... 17,413 16,917 2.9
West........................................ 14,114 13,708 3.0
East/other.................................. 6,819 6,870 (0.7)
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Total, same property........................ 104,854 103,719 1.1 %
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DAILY NEWSPAPER ADVERTISING VOLUME
October
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(Thousands of Inches) 2006 2005 %
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Retail...................................... 1,247 1,254 (0.6)%
National.................................... 72 78 (7.7)
Classified.................................. 1,533 1,528 0.3
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Total, same property........................ 2,852 2,860 (0.3)%
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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) October had one more Tuesday and one fewer Saturday than the prior period.
(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 2007 fiscal year ends Sept. 30.
(5) The Company disclaims responsibility for updating information beyond the release date.
CONTACT: Lee Enterprises, Davenport Dan Hayes, 563-383-2100 dan.hayes@lee.net SOURCE: Lee Enterprises