Document






UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K


CURRENT REPORT


PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):  February 3, 2017


_______________________________________________________________________
LEE ENTERPRISES, INCORPORATED
(Exact name of Registrant as specified in its charter)

_______________________________________________________________________

Commission File Number 1-6227

Delaware
(State of Incorporation)
42-0823980
(I.R.S. Employer Identification No.)


201 N. Harrison Street, Davenport, Iowa 52801
(Address of Principal Executive Offices)


(563) 383-2100
Registrant's telephone number, including area code

_____________________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 7.01.
Regulation FD Disclosure.

The supplemental financial information is furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Lee Legacy only and Pulitzer Inc. ("Pulitzer") only supplemental financial information is being provided because it is a required reporting covenant in the debt agreements of Lee Enterprises, Incorporated (the "Company"). Lee Legacy constitutes the business of the Company, including its 50% interest in Madison Newspapers, Inc.("MNI"), but excluding Pulitzer and the Company’s 50% interest in TNI Partners ("TNI").

The Lee Legacy and Pulitzer separate income statement presentations are not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") as non-operating income (expense) and income tax expense are allocations of the consolidated balances and have not been prepared in accordance with Accounting Standards Codification 280: Segment Reporting. This presentation is only intended to be used for purposes of complying with covenants under the Company's debt agreements and should not be used as a substitute for the Company's consolidated financial statements prepared in accordance with GAAP. Refer to the Company's consolidated financial statements prepared in accordance with GAAP as periodically filed on Form 10-Q and Form 10-K with the Securities and Exchange Commission.


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
 
 
 
 
/s/ Ronald A. Mayo
 
 
 
 
 
Date:
February 3, 2017
By:
 
 
 
 
Ronald A. Mayo
 
 
 
 
Vice President, Chief Financial Officer,
 
 
 
 
and Treasurer
 


INDEX TO EXHIBITS

Exhibit No.
Description
 
 
99.1
Supplemental Financial Information - First fiscal quarter ended December 25, 2016



Exhibit


Exhibit 99.1 - Supplemental Financial Information – First fiscal quarter ended December 25, 2016.

https://cdn.kscope.io/7a32184912a86a4e69bc1a3ab1054236-leelogo2013a01a01a03a02a03.jpg
201 N. Harrison St.
Davenport, IA 52801
www.lee.net






13 Weeks Ended (unaudited)
 
 
 
 
 
 
 
 
December 25, 2016
 
December 27, 2015
(in thousands)
Consolidated
Lee Legacy
Pulitzer Inc.
 
Consolidated
Lee Legacy
Pulitzer Inc.
Operating revenue:
 
 
 
 
 
 
 
Advertising and marketing services
93,035

64,105

28,930

 
105,637

72,438

33,199

Subscription
48,888

34,018

14,870

 
50,430

34,538

15,892

Other
12,066

9,988

2,078

 
12,338

10,408

1,930

Total operating revenue
153,989

108,111

45,878

 
168,405

117,384

51,021

Operating expenses:
 
 
 
 
 
 
 
Compensation
55,056

42,053

13,003

 
58,665

44,848

13,817

Newsprint and ink
6,893

4,902

1,991

 
6,685

5,147

1,538

Other cash costs
52,777

31,224

21,553

 
58,869

34,067

24,802

Depreciation and amortization
10,380

7,410

2,970

 
10,943

7,635

3,308

Loss (gain) on sale of assets, net
68


68

 
(971
)
37

(1,008
)
Workforce adjustments
65

62

3

 
604

543

61

Total operating expenses
125,239

85,651

39,588

 
134,795

92,277

42,518

Equity in earnings of MNI and TNI
2,689

1,136

1,553

 
2,799

1,183

1,616

Operating income
31,439

23,596

7,843

 
36,409

26,290

10,119

Non-operating income (expense), net
(12,733
)
(13,576
)
843

 
(17,754
)
(18,454
)
700

Income tax expense
6,266

3,111

3,155

 
7,147

3,218

3,929

Net income
12,440

6,909

5,531

 
11,508

4,618

6,890


Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:
Net Income
12,440

6,909

5,531

 
11,508

4,618

6,890

Adjusted to exclude
 
 
 
 
 
 
 
Non-operating expenses, net
12,733

13,576

(843
)
 
17,754

18,454

(700
)
Income tax expense
6,266

3,111

3,155

 
7,147

3,218

3,929

Equity in earnings of TNI and MNI
(2,689
)
(1,136
)
(1,553
)
 
(2,799
)
(1,183
)
(1,616
)
Depreciation and amortization
10,380

7,410

2,970

 
10,943

7,635

3,308

Loss (gain) on sale of assets, net
68


68

 
(971
)
37

(1,008
)
Workforce adjustments
65

62

3

 
604

543

61

Stock compensation
524

524


 
570

570


Add:
 
 
 
 
 
 
 
Ownership share of TNI and MNI EBITDA (50%)
3,476

1,818

1,658

 
3,809

2,088

1,721

Adjusted EBITDA
43,263

32,274

10,989

 
48,565

35,980

12,585

 
 
 
 
 
 
 
 
Supplemental cash flow information
 
 
 
 
 
Distributions from MNI and TNI
2,233

1,250

983

 
3,229

1,750

1,479

Capital expenditures
(1,090
)
(926
)
(164
)
 
(1,470
)
(1,203
)
(267
)
Pension contributions



 
(744
)

(744
)
Cash income tax refunds (payments)
(370
)
(366
)
(4
)
 
11

11


Interest income
75

(768
)
843

 
76

(621
)
697

Interest to be settled in cash
(14,952
)
(11,051
)
(3,901
)
 
(17,142
)
(12,885
)
(4,257
)
Debt financing and administrative costs



 
(44
)

(44
)