Lee Enterprises Reports Revenue Statistics for August
DAVENPORT, Iowa--(BUSINESS WIRE)--Sept. 18, 2006--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property advertising revenue increased 1.8 percent in August compared with a year ago.
On a same property(1) basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, and also excluding recently announced planned divestitures, retail advertising revenue increased 1.3 percent. Classified advertising revenue increased 0.3 percent, with employment down 1.1 percent, automotive down 6.7 percent, real estate flat, other newspaper classified categories down 0.5 percent, and classified in non-daily publications up 20.9 percent. National advertising revenue decreased 12.9 percent. Online advertising revenue increased 42.9 percent. Niche publication advertising revenue increased 7.1 percent. Circulation revenue decreased 0.5 percent.
Total same property revenue increased 1.7 percent. Including the effect of acquisitions and divestitures, total advertising revenue increased 0.4 percent, and total operating revenue increased 0.9 percent.
In Lee's 50 percent partnership in Madison, Wisconsin, which is reported using the equity method of accounting and is not included in same property revenue, advertising revenue in August increased 4.4 percent, and total revenue increased 1.1 percent.
PULITZER
Lee acquired Pulitzer Inc. in June 2005, and Pulitzer revenue is reported in statistical periods. For the statistical reporting period ended Aug. 27, 2006, Pulitzer advertising revenue decreased 2.0 percent compared with 2005, with total revenue down 1.6 percent. In St. Louis, advertising revenue decreased 2.8 percent, and total revenue decreased 2.6 percent. In the other former Pulitzer newspapers, advertising revenue decreased 0.2 percent, and total revenue increased 0.4 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 August statistical reporting period increased 2.1 percent, and total revenue increased 0.9 percent.
INDUSTRY COMPARISONS
In its quarterly survey of newspaper advertising expenditures, the Newspaper Association of America recently reported that total print and online advertising revenue increased 1.1 percent in the June quarter compared with a year ago, with growth of 33.2 percent online. Lee's comparable same property growth for the June quarter was 2.4 percent total print and online, with 46.1 percent growth online.
Mary Junck, Lee chairman and chief executive officer, commented: "While the current slowdown involving classified and some large retail stores has affected the industry at large, our results have varied widely by region, with the strongest growth generally in the western half of the country. In the Midwest, we believe our revenue results in St. Louis compare favorably with other metropolitan markets. More importantly, we also believe we've set the stage for strong performance in St. Louis with a continuing rollout of key actions, including a revitalized top management team, a restructured sales force and new sales programs."
August and year to date revenue tables follow.
Lee Enterprises is a premier publisher of local news, information and advertising in primarily midsize markets, with 52 daily newspapers and a joint interest in six 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 reach more than two million users, and Lee's weekly publications have distribution of more than 4.5 million households. Lee's newspapers include such markets as Napa, Calif.; Bloomington, Ill.; Billings, Mont.; Madison, Wis.; and St. Louis, Mo. 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
August Fiscal Year to Date
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(Thousands) 2006 2005 % 2006 2005 %
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Advertising
revenue:
Retail $23,423 $23,127 1.3 % $262,830 $260,709 0.8%
National 1,479 1,699 (12.9) 19,169 20,538 (6.7)
Classified:
Daily
newspapers:
Employment 5,055 5,111 (1.1) 50,969 47,212 8.0
Automotive 3,009 3,226 (6.7) 32,091 36,018 (10.9)
Real estate 3,437 3,438 - 35,542 35,099 1.3
All other 2,164 2,175 (0.5) 22,465 22,099 1.7
Other
publications 1,933 1,599 20.9 18,746 17,616 6.4
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Total classified
revenue 15,598 15,549 0.3 159,813 158,044 1.1
Online 1,958 1,370 42.9 17,569 12,289 43.0
Niche
publications 771 720 7.1 11,350 10,558 7.5
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Total advertising
revenue 43,229 42,465 1.8 470,731 462,138 1.9
Circulation 10,560 10,609 (0.5) 115,834 117,352 (1.3)
Commercial
printing 1,224 1,095 11.8 12,525 12,576 (0.4)
Online services
and other 1,848 1,746 5.8 22,640 22,589 0.2
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Total same
property
revenue 56,861 55,915 1.7 621,730 614,655 1.2
Acquisitions &
divestitures 34,346 34,479 (0.4) 415,179 112,125 NM
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Total operating
revenue $91,207 $90,394 0.9% $1,036,909 $726,780 42.7%
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DAILY NEWSPAPER ADVERTISING VOLUME
August Fiscal Year to Date
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(Thousands of Inches) 2006 2005 % 2006 2005 %
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Retail..................... 901 868 3.8% 9,743 9,834 (0.9)%
National................... 33 40 (17.5) 453 536 (15.5)
Classified.................1,087 1,073 1.3 10,866 10,935 (0.6)
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Total, same property.......2,021 1,981 2.0% 21,062 21,305 (1.1)%
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NOTES:
(1) Same property comparisons exclude acquisitions and divestitures
made in the current and prior year, as well as recently announced
planned divestitures of certain non-daily publishing and
commercial printing operations in the Pacific Northwest, and a
small daily newspaper in Rhinelander, Wis. Same property revenue
also excludes revenue of Madison Newspapers, Inc., in which Lee
owns a 50% share, which is reported using the equity method of
accounting.
(2) August had one more Thursday and one fewer Monday than the prior
period. The year to date had one more Thursday and one fewer
Friday.
(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 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, 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.
CONTACT:
Lee Enterprises, Incorporated, Davenport
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE:
Lee Enterprises