Lee Enterprises Reports Revenue Statistics and Outlook
DAVENPORT, Iowa, Jun 18, 2007 (BUSINESS WIRE) -- Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property(1) advertising revenue in May decreased 1.7 percent compared with a year ago. Same property online advertising revenue increased 60.2 percent.
On a same property basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, combined print and online retail advertising in May decreased 2.3 percent compared with a year ago. Combined print and online classified advertising revenue decreased 0.3 percent, with employment up 7.4 percent, automotive down 7.6 percent, and real estate down 6.0 percent.
Print-only retail advertising revenue decreased 4.0 percent, and print-only classified revenue decreased 5.6 percent, with employment down 12.4 percent, automotive down 10.5 percent, real estate down 9.9 percent, other daily newspaper classified categories up 5.1 percent, and classified in non-daily publications up 10.8 percent. National advertising revenue decreased 7.4 percent. Circulation revenue decreased 4.0 percent.
Total same property operating revenue in May declined 2.0 percent compared with a year ago. Including the effect of acquisitions and divestitures, total operating revenue declined 2.2 percent.
In St. Louis, advertising revenue decreased 4.0 percent for the May statistical period. At the other former Pulitzer newspapers, advertising revenue declined 6.7 percent.
At Lee's 50 percent subsidiary in Madison, Wis., advertising revenue in May decreased 6.4 percent. In Lee's 50 percent partnership in Tucson, Ariz., advertising revenue for the May statistical period decreased 10.8 percent. Madison and Tucson are reported using the equity method of accounting and are not included in same property revenue.
Revenue in June is expected to be similar to the declines from prior year posted in April and May. As a result, the Company expects earnings from continuing operations for the three months ending June 30, 2007, to be in the range of 48 to 50 cents per diluted common share.
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 1.7 million daily and 1.9 million Sunday, reaching more than four million readers daily. Lee's online sites attract more than 11 million visits monthly, 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 stock is traded on the New York Stock Exchange under the symbol LEE. For more information about Lee, please visit www.lee.net.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
May Year to Date
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(Thousands) 2007 2006 % 2007 2006 %
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Advertising
revenue:
Retail........... $38,669 $40,291 (4.0)% $311,703 $316,887 (1.6)%
National......... 3,816 4,119 (7.4) 39,192 41,264 (5.0)
Classified:
Daily
newspapers:
Employment..... 6,805 7,765 (12.4) 54,551 59,331 (8.1)
Automotive..... 4,452 4,973 (10.5) 36,691 39,487 (7.1)
Real estate.... 4,740 5,263 (9.9) 38,764 41,500 (6.6)
All other...... 3,750 3,569 5.1 25,286 25,573 (1.1)
Other
publications... 4,208 3,797 10.8 31,540 29,482 7.0
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Total classified
revenue.......... 23,955 25,367 (5.6) 186,832 195,373 (4.4)
Online........... 5,350 3,339 60.2 34,504 22,100 56.1
Niche
publications.... 1,573 1,513 4.0 10,856 10,827 0.3
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Total advertising
revenue.......... 73,363 74,629 (1.7) 583,087 586,451 (0.6)
Circulation....... 16,063 16,725 (4.0) 136,525 137,888 (1.0)
Commercial
printing......... 1,462 1,569 (6.8) 11,182 11,456 (2.4)
Online services
and other........ 2,694 2,559 5.3 21,947 19,759 11.1
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Total same
property revenue. 93,582 95,482 (2.0) 752,741 755,554 (0.4)
Acquisitions &
divestitures..... 308 508 NM 2,634 1,469 NM
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Total operating
revenue.......... $93,890 $95,990 (2.2)% $755,375 $757,023 (0.2)%
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SELECTED COMBINED PRINT AND ONLINE ADVERTISING REVENUE
May Year to Date
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(Thousands, Same 2007 2006 % 2007 2006 %
Property)
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Retail............ $38,841 $39,764 (2.3)% $311,742 $312,163 (0.1)%
National.......... 3,816 4,119 (7.4) 39,192 41,264 (5.0)
Classified:
Employment....... $10,370 $9,656 7.4 % $75,703 $71,189 6.3 %
Automotive....... 5,941 6,432 (7.6) 48,030 50,333 (4.6)
Real estate...... 6,237 6,635 (6.0) 49,959 52,685 (5.2)
Other............ 6,586 6,509 1.2 47,605 47,990 (0.8)
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Total classified
revenue.......... $29,134 $29,232 (0.3)% $221,297 $222,197 (0.4)%
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SAME PROPERTY REVENUE BY REGION
May Year to Date
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(Thousands) 2007 2006 % 2007 2006 %
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Midwest........... $56,369 $58,260 (3.2)% $462,997 $468,828 (1.2)%
Mountain West..... 17,853 17,304 3.2 133,860 130,073 2.9
West.............. 12,366 13,262 (6.8) 98,960 101,320 (2.3)
East/other........ 6,994 6,656 5.1 56,924 55,333 2.9
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Total, same
property......... $93,582 $95,482 (2.0)% $752,741 $755,554 (0.4)%
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DAILY NEWSPAPER ADVERTISING VOLUME
May Year to Date
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(Thousands) 2007 2006 % 2007 2006 %
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Retail............ 1,139 1,209 (5.8)% 9,011 9,179 (1.8)%
National.......... 56 65 (13.8) 477 557 (14.4)
Classified........ 1,382 1,447 (4.5) 10,415 10,813 (3.7)
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Total, same
property......... 2,577 2,721 (5.3)% 19,903 20,549 (3.1)%
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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) The month had one more Thursday and one fewer Monday than the prior period. The year to date had one more Thursday and one fewer Saturday than the prior period. The former Pulitzer properties use period accounting and 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, increased capital and other costs and other risks detailed from time to time in the Company's publicly filed documents, including the Company Annual Report on Form 10-K for the year ended September 30, 2006. 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.
SOURCE:
Lee Enterprises, Incorporated
Lee Enterprises, Incorporated
Dan Hayes, 563-383-2100
dan.hayes@lee.net