Lee Enterprises Reports Revenue Statistics for April
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 April decreased 2.5 percent compared with a year ago, and combined print and online classified advertising revenue decreased 2.7 percent.
Print-only retail advertising revenue decreased 4.7 percent, and print-only classified revenue decreased 7.7 percent, with employment down 7.7 percent, automotive down 11.7 percent, real estate down 10.5 percent, other daily newspaper classified categories down 6.4 percent, and classified in non-daily publications up 0.7 percent. National advertising revenue decreased 15.7 percent. Circulation revenue decreased 3.1 percent.
Mary Junck, chairman and chief executive officer, said: "Although ad revenue remains lackluster, especially in national, auto and real estate, we have seen an uptick so far in May and expect to post somewhat better results next month. Online growth continues to be exceptionally strong, partly due to our strategic initiatives with Yahoo. Since our rollout of the HotJobs platform in February and March, we've already upsold more than 46,000 postings to the network."
Total same property operating revenue in April declined 3.1 percent compared with a year ago. Including the effect of acquisitions and divestitures, total operating revenue declined 3.2 percent.
The comparisons include an unfavorable day exchange, as April 2006 included an additional Saturday, one of the strongest advertising days of the week, while April 2007 included an additional Monday, typically the weakest. Day exchanges affect newspapers owned before the Pulitzer acquisition, which account for about 60 percent of revenue. The former Pulitzer newspapers use period accounting and are not affected by day exchanges.
In St. Louis, advertising revenue decreased 5.1 percent for the April statistical period, significantly affected by declines in national accounts, especially telecommunications. At the other former Pulitzer newspapers, advertising revenue declined 3.7 percent.
At Lee's 50 percent subsidiary in Madison, Wis., advertising revenue in April decreased 5.5 percent. In Lee's 50 percent partnership in Tucson, Ariz., advertising revenue for the April statistical period decreased 3.9 percent. Madison and Tucson are reported using the equity method of accounting and are not included in 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 1.7 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 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
April Year to Date
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(Thousands) 2007 2006 % 2007 2006 %
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Advertising
revenue:
Retail $39,154 $ 41,087 (4.7)% $273,034 $276,596 (1.3)%
National 4,523 5,366 (15.7) 35,376 37,145 (4.8)
Classified:
Daily
newspapers:
Employment 8,029 8,701 (7.7) 47,746 51,566 (7.4)
Automotive 5,057 5,728 (11.7) 32,239 34,514 (6.6)
Real estate 5,272 5,889 (10.5) 34,024 36,237 (6.1)
All other 3,475 3,712 (6.4) 21,536 22,004 (2.1)
Other
publications 4,322 4,293 0.7 27,332 25,685 6.4
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Total classified
revenue 26,155 28,323 (7.7) 162,877 170,006 (4.2)
Online 5,646 3,442 64.0 29,154 18,761 55.4
Niche
publications 1,366 1,425 (4.1) 9,283 9,314 (0.3)
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Total advertising
revenue 76,844 79,643 (3.5) 509,724 511,822 (0.4)
Circulation 18,105 18,682 (3.1) 120,462 121,163 (0.6)
Commercial
printing 1,588 1,579 0.6 9,720 9,887 (1.7)
Online services
and other 2,466 2,308 6.8 19,253 17,200 11.9
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Total same
property revenue 99,003 102,212 (3.1) 659,159 660,072 (0.1)
Acquisitions &
divestitures 332 386 NM 2,326 961 NM
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Total operating
revenue $99,335 $102,598 (3.2)% $661,485 $661,033 0.1 %
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SAME PROPERTY REVENUE BY REGION
April Year to Date
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(Thousands) 2007 2006 % 2007 2006 %
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Midwest 61,691 63,989 (3.6)% 406,628 410,568 (1.0)%
Mountain West 17,525 17,483 0.2 116,007 112,769 2.9
West 12,875 13,909 (7.4) 86,594 88,058 (1.7)
East/other 6,912 6,831 1.2 49,930 48,677 2.6
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Total, same
property 99,003 102,212 (3.1)% 659,159 660,072 (0.1)%
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DAILY NEWSPAPER ADVERTISING VOLUME
April Year to Date
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(Thousands) 2007 2006 % 2007 2006 %
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Retail 1,130 1,185 (4.6)% 7,881 7,970 (1.1)%
National 55 69 (20.3) 421 492 (14.4)
Classified 1,418 1,502 (5.6) 9,033 9,366 (3.6)
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Total, same
property 2,603 2,756 (5.6)% 17,335 17,828 (2.8)%
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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 and year to date had one more Monday 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 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.
SOURCE: Lee Enterprises, Incorporated
Lee Enterprises, Incorporated Dan Hayes, 563-383-2100 dan.hayes@lee.net