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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: June 23, 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
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Item 9. Regulation FD Disclosure
On June 23, 2003, Lee Enterprises, Incorporated (the Registrant) reported its
revenue for the month of May 2003, and is furnishing the related release under
Item 12. The following exhibit is included herein:
EXHIBIT 99.1 Monthly Revenue Release - May 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: June 23, 2003 /s/ Carl G. Schmidt
------------------------------------
Carl G. Schmidt
Vice President, Chief Financial Officer,
and Treasurer
EXHIBIT 99.1 Monthly Revenue Release - May 2003
LEE ENTERPRISES
215 Main St.
Davenport, IA 52801-1924
www.lee.net
NEWS RELEASE
Lee Enterprises reports May revenue and June earnings outlook
DAVENPORT, Iowa (June 23, 2003) - Lee Enterprises, Incorporated (NYSE: LEE),
reported today that same property publishing revenue(2) decreased 1.0 percent in
May compared with an exceptionally strong performance a year ago. Year to date,
same property publishing revenue was up 2.3 percent.
Excluding the effects of acquisitions and divestitures, total advertising
revenue was down 3.5 percent for the month and up 1.6 percent year to date.
Retail advertising revenue was down 3.7 percent for the month and up 2.5 percent
year to date. Classified advertising revenue was down 3.4 percent for the month
and up 0.5 percent year to date. For the month, employment classified
advertising was down 17.2 percent, automotive up 7.2 percent, real estate up 9.0
percent, other newspaper classified categories down 1.2 percent, and classified
in alternative publications down 8.9 percent. National advertising revenue, a
small category for Lee, was down 1.7 percent for the month and down 3.5 percent
year to date. Circulation revenue was down 0.7 percent for the month and down
0.3 percent year to date. Online revenue was up 26.4 percent for the month and
up 34.7 percent year to date.
Including the results of acquisitions and divestitures, total publishing revenue
increased 3.7 percent on a reported basis.
At the 15 newspapers Lee acquired in their entirety in April 2002, revenue in
May increased 3.2 percent(3). Publishing revenue of the former Howard newspapers
increased 14.0 percent on a reported basis, due 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.
Mary Junck, chairman and chief executive officer, said, "Both May and June a
year ago were standouts, with retail growth in the high single digits. This
year, ad sales softened in many of our markets after a very good April, and
while June is tracking positively over the prior year the advertising
environment remains in flux."
She said Lee expects earnings for the June quarter to be in the range of 45-47
cents per diluted common share. For the six months ended March 2003, earnings
per diluted common share have risen 23.5 percent.
Lee Enterprises is based in Davenport, Iowa, and is the premier publisher of
daily newspapers in midsize markets. Lee owns 38 daily newspapers and a joint
interest in six others, along with associated online services. Lee also
publishes more than 175 weekly newspapers, shoppers and classified and specialty
publications. Lee 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
May 2003
(Unaudited)
PUBLISHING REVENUE
May Year To Date
(Thousands) --------------------------- ---------------------------
2003 2002 % 2003 2002 %
--------- --------- ------- --------- --------- -------
(1)(2) (1)(2) (2) (2)
Advertising:
Retail.................. $ 14,428 $ 14,985 (3.7)% $110,989 $108,294 2.5 %
National................ 811 825 (1.7) 6,532 6,767 (3.5)
Classified:
Daily newspapers:
Employment.......... 1,695 2,047 (17.2) 13,381 14,169 (5.6)
Automotive.......... 1,962 1,831 7.2 13,984 13,775 1.5
Real estate......... 1,495 1,372 9.0 11,105 10,248 8.4
All other........... 1,469 1,487 (1.2) 9,470 9,578 (1.1)
Alternative
publications........ 1,815 1,993 (8.9) 13,413 13,282 1.0
--------- --------- --------- ---------
Total classified...... 8,436 8,730 (3.4) 61,353 61,052 0.5
--------- --------- --------- ---------
Total advertising..... 23,675 24,540 (3.5) 178,874 176,113 1.6
Circulation............... 6,671 6,717 (0.7) 53,594 53,733 (0.3)
Online.................... 828 655 26.4 5,771 4,283 34.7
Other..................... 5,481 5,119 7.1 39,105 36,923 5.9
--------- --------- --------- ---------
Total, Same property.. 36,655 37,031 (1.0) 277,344 271,052 2.3
Acquired/divested
properties:
Acquisitions............ 21,178 18,576 14.0 161,004 35,625 NM
Divestitures............ -- 172 NM -- 3,461 NM
--------- --------- --------- ---------
Total acquired/divested
properties............... 21,178 18,748 13.0 161,004 39,086 NM
--------- --------- --------- ---------
Total publishing
revenue............... $ 57,833 $ 55,779 3.7 % $438,348 $310,138 41.3 %
========= ========= ========= =========
DAILY NEWSPAPER ADVERTISING VOLUME
May Year To Date
------------------------- -------------------------
(Thousands of Inches) 2003 2002 % 2003 2002 %
------- ------- ------ ------- ------- ------
(1)(2) (1)(2) (2) (2)
Retail.................... 521 552 (5.6)% 4,054 4,064 (0.2)%
National.................. 29 35 (17.1) 199 234 (15.0)
Classified................ 525 510 2.9 3,718 3,675 1.2
------- ------- ------- -------
Total, Same property.. 1,075 1,097 (2.0)% 7,971 7,973 (0.0)%
======= ======= ======= =======
Notes to Revenue and Statistical Summary:
(1) The month had one more Saturday and one fewer Wednesday than the prior
period. The year to date had one more Saturday 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.
May
-----------------------------
(Thousands) 2003 2002 %
Howard acquisition revenue.............. $19,170 $18,576 3.2%
SCN..................................... 2,008 -- NM
-------- -------
Total publishing revenue................ $21,178 $18,576 14.0%
======== =======
(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
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