- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 12 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 21, 2003
Commission File Number 1-6227
LEE ENTERPRISES, INCORPORATED
(Exact name of Registrant as specified in its charter)
Delaware 42-0823980
(State of Incorporation) (I.R.S. Employer Identification No.)
215 N. Main Street, Davenport, Iowa 52801
(Address of Principal Executive Offices)
(563) 383-2100
Registrant's telephone number, including area code
- --------------------------------------------------------------------------------
Item 9. Regulation FD Disclosure
See Item 12. Results of Operations and Financial Condition
Item 12. Results of Operations and Financial Condition
On May 20, 2003, Lee Enterprises, Incorporated ("the Company") reported its
revenue for the month of April 2003, and is furnishing the related release under
Item 12. The following exhibits are included herein:
EXHIBIT 99.1 Monthly Revenue Release - April 2003
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LEE ENTERPRISES, INCORPORATED
Date: May 21, 2003 /s/ Carl G. Schmidt
------------------------------------
Carl G. Schmidt
Vice President, Chief Financial Officer,
and Treasurer
EXHIBIT 99.1 Monthly Revenue Release - April 2003
LEE ENTERPRISES
215 Main St.
Davenport, IA 52801-1924
www.lee.net
NEWS RELEASE
Lee Enterprises reports April same property revenue growth of 3.6%; 7.4% at new
papers
DAVENPORT, Iowa (May 20, 2003) - Lee Enterprises, Incorporated (NYSE: LEE),
reported today that same property publishing revenue(2) increased 3.6 percent in
April compared with a year ago.
Excluding the effects of acquisitions and divestitures, total advertising
revenue increased 2.4 percent. Retail advertising revenue increased 6.1 percent.
Classified advertising revenue decreased 3.3 percent, with employment down 8.8
percent, automotive down 3.0 percent, real estate up 3.9 percent, other
newspaper classified categories down 2.4 percent, and classified in alternative
publications down 3.7 percent. National advertising revenue, a small category
for Lee, decreased 0.3 percent. Circulation revenue declined 0.5 percent. Online
revenue increased 30.6 percent.
Including the results of acquisitions and divestitures, total publishing revenue
increased 8.2 percent on a reported basis.
At the 15 newspapers Lee acquired in their entirety in April 2002, revenue
increased 7.4 percent(3). Publishing revenue of the former Howard newspapers
increased 18.1 percent on a reported basis, due in part to the inclusion of
Sioux City Newspapers (SCN) in revenue in the current year. Lee's purchase of
Howard Publications in April 2002 included 15 daily newspapers and a 50 percent
interest in SCN. Lee acquired the remaining 50 percent interest of SCN in July
2002.
"April marked our first anniversary with the former Howard newspapers, and we
continue to be delighted with the results," said Mary Junck, chairman and chief
executive officer. "As we said at the time, the basis for the acquisition was
revenue growth, and the people at our new newspapers have proved that right. The
strategies that have worked so well in the rest of Lee have yielded especially
fine results at these new newspapers. We're emphasizing both revenue and unit
growth in advertising, circulation and online."
She added: "We're particularly pleased with our continued success in building
our circulation base. In the latest Audit Bureau of Circulations Fas-Fax report,
our paid circulation climbed for the fourth six-month period in a row. For
September-March, daily circulation grew 1.1 percent at Lee's older newspapers
and 0.1 percent at our new ones, for combined growth of 0.7 percent. Sunday
circulation dipped 0.1 percent at Lee's older newspapers but grew 0.9 percent at
our new ones, for combined growth of 0.3 percent. With our circulation-building
programs well in place at our new newspapers, we look for the growth to
continue."
Lee Enterprises is based in Davenport, Iowa. Lee owns 38 daily newspapers and a
joint interest in six others, along with associated online services. Lee also
owns more than 175 weekly newspapers, shoppers and classified and specialty
publications. Its stock is traded on the New York Stock Exchange under the
symbol LEE. More information about Lee Enterprises is available at www.lee.net.
The monthly and year-to-date statistical information follows.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
April 2003
(Unaudited)
PUBLISHING REVENUE
April Year To Date
(Thousands) --------------------------- ---------------------------
2003 2002 % 2003 2002 %
--------- --------- ------- --------- --------- -------
(1)(2) (1)(2) (2) (2)
Advertising:
Retail.................. $ 13,604 $ 12,821 6.1 % $ 96,561 $ 93,309 3.5 %
National................ 785 787 (0.3) 5,721 5,942 (3.7)
Classified:
Daily newspapers:
Employment.......... 1,764 1,935 (8.8) 11,686 12,122 (3.6)
Automotive.......... 1,722 1,775 (3.0) 12,022 11,944 0.7
Real estate......... 1,426 1,372 3.9 9,610 8,876 8.3
All other........... 1,240 1,271 (2.4) 8,001 8,091 (1.1)
Alternative
publications........ 1,595 1,656 (3.7) 11,598 11,289 2.7
--------- --------- --------- ---------
Total classified...... 7,747 8,009 (3.3) 52,917 52,322 1.1
--------- --------- --------- ---------
Total advertising..... 22,136 21,617 2.4 155,199 151,573 2.4
Circulation............... 6,533 6,565 (0.5) 46,923 47,016 (0.2)
Online.................... 772 591 30.6 4,943 3,628 36.2
Other..................... 5,053 4,528 11.6 33,624 31,804 5.7
--------- --------- --------- ---------
Total, Same property.. 34,494 33,301 3.6 240,689 234,021 2.8
Acquired/divested
properties:
Acquisitions............ 20,141 17,049 18.1 139,826 17,049 NM
Divestitures............ -- 141 NM -- 3,289 NM
--------- --------- --------- ---------
Total acquired/divested
properties............... 20,141 17,190 17.2 139,826 20,338 NM
--------- --------- --------- ---------
Total publishing
revenue............... $ 54,635 $ 50,491 8.2 % $380,515 $254,359 49.6 %
========= ========= ========= =========
DAILY NEWSPAPER ADVERTISING VOLUME
April Year To Date
------------------------- -------------------------
(Thousands of Inches) 2003 2002 % 2003 2002 %
------- ------- ------ ------- ------- ------
(1)(2) (1)(2) (2) (2)
Retail.................... 476 467 1.9 % 3,533 3,512 0.6 %
National.................. 25 27 (7.4) 170 199 (14.6)
Classified................ 481 480 0.2 3,193 3,165 0.9
------- ------- ------- -------
Total, Same property.. 982 974 0.8 % 6,896 6,876 0.3 %
======= ======= ======= =======
Notes to Revenue and Statistical Summary:
(1) The month and year to date had one more Wednesday and one fewer Monday than
the prior period.
(2) Beginning in March 2003, same property revenue excludes revenue of Madison
Newspapers, Inc. (MNI), in order to comply with newly issued SEC
regulations related to disclosure of non-GAAP financial measures. Lee owns
50% of the capital stock of MNI, which for financial reporting purposes is
reported using the equity method of accounting.
2
(3) Same property revenue related to newspapers acquired from Howard
Publications excludes revenue of Sioux City Newspapers (SCN). Lee owned 50%
of the capital stock of SCN during the period from April through June 2002,
which was accounted for using the equity method of accounting. Year to date
same property revenue information is not meaningful due to the consummation
of the acquisition at a date during the fiscal year. The following table
reconciles Howard acquisition revenue on a same property basis to revenue
as reported.
April
-----------------------------
(Thousands) 2003 2002 %
Howard acquisition revenue.................. $18,305 $17,049 7.4%
SCN......................................... 1,836 -- NM
-------- -------
Total publishing revenue.................... $20,141 $17,049 18.1%
======== =======
(4) The Company's fiscal year ends on September 30.
(5) The Company disclaims responsibility for updating information beyond
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, 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: dan.hayes@lee.net, (563) 383-2100
3
