Lee Enterprises Reports Sept. Revenue and Favorable Tax Settlements
DAVENPORT, Iowa--(BUSINESS WIRE)--Oct. 24, 2007--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property(1) advertising revenue, which was favorably affected by calendar changes, increased 8.4 percent in September compared with a year ago.
Because of period accounting, the September statistical period at the former Pulitzer operations included an extra week in 2007 compared with a year ago. The extra week resulted in additional September 2007 same property advertising revenue of $6.5 million and additional same property total revenue of $8.2 million. Excluding the extra week, same property advertising revenue decreased 0.7 percent and same property total revenue decreased 0.2 percent.
Because of calendar month accounting, the remainder of Lee's operations, which account for about 61 percent of total revenue, recorded five Sundays in September 2007, compared with four a year ago. Sundays normally generate more print advertising revenue than any other day of the week. Online advertising revenue is not significantly affected by day exchanges.
TAX SETTLEMENTS WILL FAVORABLY AFFECT EARNINGS
The calendar changes will favorably influence Lee's earnings for its fourth 2007 fiscal quarter and year, which are scheduled to be announced before market on Nov. 8.
Those earnings also will be improved by settlements of federal and state tax audits and other matters totaling $6.88 million, or about 15 cents per diluted common share.
Mary Junck, Lee chairman and chief executive officer, said: "While we're still closing the books on fiscal 2007, we can report that, even in a less than stellar year, we've been able to lead the industry in revenue and audiences, drive strong cash flow and continue our rapid payback of debt. We expect net debt for 2007 to total $1.28 billion, a reduction of $135.7 million for the year."
PERIOD ACCOUNTING
Through fiscal 2007, the former Pulitzer operations have used period accounting, which minimizes the effect of calendar changes, while the rest of Lee's operations have used calendar accounting. Beginning in fiscal 2008, Lee will switch to period accounting for all of its operations. Period accounting uses one five-week "month" and two four-week "months" each quarter to facilitate year-over-year comparisons. Most of Lee's peer companies use period accounting. Because the change will inhibit year-over-year comparisons in fiscal 2008, Lee plans to discontinue issuing monthly revenue statistics beginning with October results. Also because of the change from calendar accounting, most Lee properties will be on a 364-day year in fiscal 2008, compared with 365 in 2007.
SEPTEMBER REVENUE STATISTICS
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 increased 9.8 percent in September compared with a year ago and increased 0.5 percent year to date.
Pro forma(4) information excluding the 53rd week at the former Pulitzer properties is included in the text below and in the tables that follow this news release.
Excluding the extra week in 2007 at the former Pulitzer properties, combined print and online retail advertising revenue increased 0.4 percent for the period and decreased 0.3 percent for the fiscal year.
Combined print and online classified advertising revenue increased 7.7 percent for the month and decreased 0.5 percent year to date, with employment up 20.6 percent for the month and up 6.8 percent year to date, automotive down 4.5 percent for the month and down 5.7 percent year to date, and real estate up 0.4 percent for the month and down 5.8 percent year to date. Excluding the extra week at the former Pulitzer properties, combined print and online classified revenue declined 0.8 percent for the period and 1.2 percent for the fiscal year. Employment was up 12.0 percent for the period and up 6.1 percent for the year. Automotive was down 12.0 percent for the period and down 6.4 percent for the year. Real estate was down 6.6 percent for the period and down 6.4 percent for the year.
National advertising revenue increased 10.0 percent for the month and declined 5.1 percent year to date. Excluding the extra week at the former Pulitzer properties, national advertising revenue decreased 5.7 percent for the period and decreased 6.2 percent for the year.
Circulation revenue increased 8.7 percent for the month and decreased 0.7 percent year to date. Excluding the extra week at the former Pulitzer properties, circulation declined 0.7 percent for the period and declined 1.4 percent for the year.
Total same property operating revenue in September increased 8.8 percent for the month and decreased 0.2 percent year to date compared with a year ago. Excluding the extra week at the former Pulitzer properties, total same property operating revenue declined 0.2 percent for the period and declined 0.9 percent for the year.
Including the effect of acquisitions and divestitures, total operating revenue increased 8.7 percent for the month and decreased 0.1 percent year to date. Excluding the extra week in 2007 at the former Pulitzer properties, the comparison with a year ago was down 0.2 percent for the period and down 0.8 percent year for the year.
ABOUT LEE
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 unique visitors monthly, and Lee's weekly publications are distributed to 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 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 FOR SEPTEMBER
As reported, Pro forma,
including 5 weeks excluding 5th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Advertising revenue:
Retail................ $40,263 $37,149 8.4% $36,944 $37,149 (0.6)%
National.............. 4,249 3,863 10.0 3,642 3,863 (5.7)
Classified:
Daily newspapers:
Employment.......... 7,272 7,243 0.4 6,802 7,243 (6.1)
Automotive.......... 4,783 5,122 (6.6) 4,334 5,122 (15.4)
Real estate......... 5,163 5,320 (3.0) 4,778 5,320 (10.2)
All other........... 3,725 3,307 12.6 3,428 3,307 3.7
Other publications... 4,373 3,981 9.8 3,927 3,981 (1.4)
----------------------------------------------------------------------
Total classified
revenue.............. 25,316 24,973 1.4 23,269 24,973 (6.8)
Online................ 5,709 3,369 69.5 5,214 3,369 54.8
Niche publications.... 1,630 1,824 (10.6) 1,595 1,824 (12.6)
----------------------------------------------------------------------
Total advertising
revenue............... 77,167 71,178 8.4 70,664 71,178 (0.7)
Circulation............ 18,189 16,737 8.7 16,622 16,737 (0.7)
Commercial printing.... 1,312 1,364 (3.8) 1,237 1,364 (9.3)
Online services and
other................. 2,591 1,959 32.3 2,533 1,959 29.3
----------------------------------------------------------------------
Total same property
revenue............... 99,259 91,238 8.8 91,056 91,238 (0.2)
Acquisitions &
divestitures.......... 339 379 NM 339 379 NM
----------------------------------------------------------------------
Total operating revenue $99,598 $91,617 8.7% $91,395 $91,617 (0.2)%
======================================================================
SELECTED COMBINED PRINT AND ONLINE ADVERTISING REVENUE
As reported, Pro forma,
including 5 weeks excluding 5th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands, Same
Property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail.................. $40,347 $36,760 9.8% $36,924 $36,760 0.4%
Classified:
Employment............ 10,946 9,079 20.6% 10,172 9,079 12.0%
Automotive............ 6,322 6,622 (4.5) 5,825 6,622 (12.0)
Real estate........... 6,936 6,906 0.4 6,453 6,906 (6.6)
Other................. 6,737 6,124 10.0 6,053 6,124 (1.2)
----------------------------------------------------------------------
Total classified
revenue.............. $30,941 $28,731 7.7% $28,503 $28,731 (0.8)%
======================================================================
REVENUE BY REGION
As reported, Pro forma,
including 5 weeks excluding 5th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands, Same
Property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Midwest.................. $61,303 $54,840 11.8% $54,716 $54,840 (0.2)%
Mountain West............ 18,092 16,957 6.7 17,662 16,957 4.2
West..................... 12,716 12,620 0.8 11,530 12,620 (8.6)
East/other............... 7,148 6,821 4.8 7,148 6,821 4.8
----------------------------------------------------------------------
Total.................... $99,259 $91,238 8.8% $91,056 $91,238 (0.2)%
======================================================================
DAILY NEWSPAPER ADVERTISING VOLUME
As reported, Pro forma,
including 5 weeks excluding 5th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands of inches,
same property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail................ 1,204 1,136 6.0% 1,105 1,136 (2.7)%
National.............. 53 57 (7.0) 47 57 (17.5)
Classified............ 1,482 1,479 0.2 1,359 1,479 (8.1)
----------------------------------------------------------------------
Total................. 2,739 2,672 2.5% 2,511 2,672 (6.0)%
======================================================================
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE FOR SEPTEMBER QUARTER
As reported, Pro forma,
including 14 weeks excluding 14th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Advertising
revenue:
Retail............ $112,579 $110,402 2.0% $109,260 $110,402 (1.0)%
National.......... 12,072 12,228 (1.3) 11,465 12,228 (6.2)
Classified:
Daily newspapers:
Employment...... 21,366 23,649 (9.7) 20,896 23,649 (11.6)
Automotive...... 14,247 16,203 (12.1) 13,798 16,203 (14.8)
Real estate..... 15,222 16,947 (10.2) 14,837 16,947 (12.5)
All other....... 10,713 10,113 5.9 10,416 10,113 3.0
Other
publications.... 12,833 12,072 6.3 12,387 12,072 2.6
----------------------------------------------------------------------
Total classified
revenue.......... 74,381 78,984 (5.8) 72,334 78,984 (8.4)
Online............ 16,616 10,401 59.8 16,121 10,401 55.0
Niche publications 4,117 4,279 (3.8) 4,082 4,279 (4.6)
----------------------------------------------------------------------
Total advertising
revenue........... 219,765 216,294 1.6 213,262 216,294 (1.4)
Circulation........ 52,052 51,570 0.9 50,485 51,570 (2.1)
Commercial printing 4,168 4,122 1.1 4,093 4,122 (0.7)
Online services and
other............. 7,198 6,487 11.0 7,140 6,487 10.1
----------------------------------------------------------------------
Total same property
revenue........... 283,183 278,473 1.7 274,980 278,473 (1.3)
Acquisitions &
divestitures...... 953 1,196 NM 953 1,196 NM
----------------------------------------------------------------------
Total operating
revenue........... $284,136 $279,669 1.6% $275,933 $279,669 (1.3)%
======================================================================
SELECTED COMBINED PRINT AND ONLINE ADVERTISING REVENUE
As reported, Pro forma,
including 14 weeks excluding 14th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands, Same
Property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail............... $112,661 $108,861 3.5% $109,238 $108,861 0.3%
Classified:
Employment.......... 32,241 29,633 8.8 31,467 29,633 6.2
Automotive.......... 18,941 20,421 (7.2) 18,444 20,421 (9.7)
Real estate......... 20,139 21,625 (6.9) 19,656 21,625 (9.1)
Other............... 19,594 19,247 1.8 18,910 19,247 (1.8)
----------------------------------------------------------------------
Total classified
revenue............. $ 90,915 $ 90,926 -% $ 88,477 $ 90,926 (2.7)%
======================================================================
REVENUE BY REGION
As reported, Pro forma,
including 14 weeks excluding 14th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands, Same
Property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Midwest.............. $173,007 $169,712 1.9% $166,420 $169,712 (1.9)%
Mountain West........ 52,500 50,293 4.4 52,070 50,293 3.5
West................. 36,946 38,858 (4.9) 35,760 38,858 (8.0)
East/other........... 20,730 19,610 5.7 20,730 19,610 5.7
----------------------------------------------------------------------
Total................ $283,183 $278,473 1.7% $274,980 $278,473 (1.3)%
======================================================================
DAILY NEWSPAPER ADVERTISING VOLUME
As reported, Pro forma,
including 14 weeks excluding 14th week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands of inches, same
property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail........................ 3,373 3,399 (0.8)% 3,274 3,399 (3.7)%
National...................... 149 162 (8.0) 143 162 (11.7)
Classified.................... 4,326 4,653 (7.0) 4,203 4,653 (9.7)
----------------------------------------------------------------------
Total......................... 7,848 8,214 (4.5)% 7,620 8,214 (7.2)%
======================================================================
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE FOR FISCAL YEAR
As reported,
including 53 weeks
in 2007 at former
Pulitzer properties
----------------------------------------------------------------------
(Thousands) 2007 2006 %
----------------------------------------------------------------------
Advertising revenue:
Retail................................ $ 459,012 $ 463,898 (1.1)%
National.............................. 54,900 57,869 (5.1)
Daily newspapers:
Employment........................ 82,358 90,508 (9.0)
Automotive........................ 55,437 60,953 (9.0)
Real estate....................... 59,078 63,801 (7.4)
All other......................... 39,616 39,218 1.0
Other publications................... 48,427 45,818 5.7
----------------------------------------------------------------------
Total classified revenue............... 284,916 300,298 (5.1)
Online................................. 56,324 35,771 57.5
Niche publications..................... 16,351 16,580 (1.4)
----------------------------------------------------------------------
Total advertising revenue............... 871,503 874,416 (0.3)
Circulation............................. 204,311 205,677 (0.7)
Commercial printing..................... 16,609 16,931 (1.9)
Online services and other............... 31,338 28,618 9.5
----------------------------------------------------------------------
Total same property revenue............. 1,123,761 1,125,642 (0.2)
Acquisitions & divestitures............. 3,900 3,006 NM
----------------------------------------------------------------------
Total operating revenue................. $1,127,661 $1,128,648 (0.1)%
======================================================================
Pro forma,
excluding 53rd week
in 2007 at former
Pulitzer properties
----------------------------------------------------------------------
(Thousands) 2007 2006 %
----------------------------------------------------------------------
Advertising revenue:
Retail................................ $ 455,693 $ 463,898 (1.8)%
National.............................. 54,293 57,869 (6.2)
Daily newspapers:
Employment........................ 81,888 90,508 (9.5)
Automotive........................ 54,988 60,953 (9.8)
Real estate....................... 58,693 63,801 (8.0)
All other......................... 39,319 39,218 0.3
Other publications................... 47,981 45,818 4.7
----------------------------------------------------------------------
Total classified revenue............... 282,869 300,298 (5.8)
Online................................. 55,829 35,771 56.1
Niche publications..................... 16,316 16,580 (1.6)
----------------------------------------------------------------------
Total advertising revenue............... 865,000 874,416 (1.1)
Circulation............................. 202,744 205,677 (1.4)
Commercial printing..................... 16,534 16,931 (2.3)
Online services and other............... 31,280 28,618 9.3
----------------------------------------------------------------------
Total same property revenue............. 1,115,558 1,125,642 (0.9)
Acquisitions & divestitures............. 3,900 3,006 NM
----------------------------------------------------------------------
Total operating revenue................. $1,119,458 $1,128,648 (0.8)%
======================================================================
SELECTED COMBINED PRINT AND ONLINE ADVERTISING REVENUE
As reported, Pro forma,
including 53 weeks excluding 53rd week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands, Same
Property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail.............. $459,259 $457,149 0.5% $455,836 $457,149 (0.3)%
Classified:
Employment........ 117,688 $110,167 6.8 116,914 $110,167 6.1
Automotive........ 73,040 77,490 (5.7) 72,543 77,490 (6.4)
Real estate....... 76,679 81,378 (5.8) 76,196 81,378 (6.4)
Other............. 73,586 73,783 (0.3) 72,902 73,783 (1.2)
Total classified
revenue............ $340,993 $342,818 (0.5)% $338,555 $342,818 (1.2)%
======================================================================
REVENUE BY REGION
As reported, Pro forma,
including 53 weeks excluding 53rd week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands,
Same
Property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Midwest..... $ 688,937 $ 694,027 (0.7)% $ 682,350 $ 694,027 (1.7)%
Mountain
West....... 202,815 197,377 2.8 202,385 197,377 2.5
West........ 147,797 153,106 (3.5) 146,611 153,106 (4.2)
East/other.. 84,212 81,132 3.8 84,212 81,132 3.8
----------------------------------------------------------------------
Total....... $1,123,761 $1,125,642 (0.2)% $1,115,558 $1,125,642 (0.9)%
======================================================================
DAILY NEWSPAPER ADVERTISING VOLUME
As reported, Pro forma,
including 53 weeks excluding 53rd week
in 2007 at former in 2007 at former
Pulitzer properties Pulitzer properties
----------------------------------------------------------------------
(Thousands of inches, same
property) 2007 2006 % 2007 2006 %
----------------------------------------------------------------------
Retail.................... 13,441 13,723 (2.1)% 13,342 13,723 (2.8)%
National.................. 678 778 (12.9) 672 778 (13.6)
Classified................ 16,125 16,925 (4.7) 16,002 16,925 (5.5)
Total..................... 30,244 31,426 (3.8)% 30,016 31,426 (4.5)%
======================================================================
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) Because of period accounting, the 2007 September statistical period and fiscal year included an additional week at the former Pulitzer properties. At the rest of Lee's enterprises, the month had one more Sunday and one fewer Friday than the prior period. The fiscal year had one more Sunday and one fewer Saturday than in 2006.
(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) Pro forma information excluding the 53rd week at the former Pulitzer properties is a non-GAAP financial measure. The pro forma information is intended to provide investors with a sense of what the revenue results would have been in each period presented without the 53rd week compared with a year ago. Revenue for the 53rd week is equal to the difference between the as-reported, GAAP amount and the pro forma amount.
(5) The Company's fiscal year ended Sept. 30.
(6) 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.
CONTACT:
Lee Enterprises
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE:
Lee Enterprises