Delaware (State of Incorporation) | 42-0823980 (I.R.S. Employer Identification No.) |
Item 7.01. | Regulation FD Disclosure. |
LEE ENTERPRISES, INCORPORATED | ||||
/s/ Timothy R. Millage | ||||
Date: | May 4, 2018 | By: | ||
Timothy R. Millage | ||||
Acting Principal Financial and Accounting | ||||
Officer |
13 Weeks Ended (unaudited) | |||||||||||||
March 25, 2018 | March 26, 2017 | ||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | |||||||
Operating revenue: | |||||||||||||
Advertising and marketing services | 71,553 | 50,292 | 21,261 | 77,533 | 54,601 | 22,932 | |||||||
Subscription | 45,972 | 32,055 | 13,917 | 45,009 | 31,349 | 13,660 | |||||||
Other | 10,280 | 8,519 | 1,761 | 10,845 | 8,981 | 1,864 | |||||||
Total operating revenue | 127,805 | 90,866 | 36,939 | 133,387 | 94,931 | 38,456 | |||||||
Operating expenses: | |||||||||||||
Compensation | 48,656 | 37,253 | 11,403 | 52,414 | 40,138 | 12,276 | |||||||
Newsprint and ink | 5,640 | 4,027 | 1,613 | 6,200 | 4,279 | 1,921 | |||||||
Other operating expenses | 49,315 | 30,036 | 19,279 | 48,756 | 28,232 | 20,524 | |||||||
Depreciation and amortization | 8,016 | 5,226 | 2,790 | 10,318 | 7,391 | 2,927 | |||||||
Gain on sale of assets and other, net | (1,300 | ) | (1,272 | ) | (28 | ) | (3,783 | ) | (3,714 | ) | (69 | ) | |
Workforce adjustments and other | 1,816 | 1,741 | 75 | 2,405 | 1,560 | 845 | |||||||
Total operating expenses | 112,143 | 77,011 | 35,132 | 116,310 | 77,886 | 38,424 | |||||||
Equity in earnings of associated companies | 1,608 | 464 | 1,144 | 1,729 | 465 | 1,264 | |||||||
Operating income | 17,270 | 14,319 | 2,951 | 18,806 | 17,510 | 1,296 | |||||||
Non-operating income (expense), net | (13,810 | ) | (16,011 | ) | 2,201 | (11,285 | ) | (12,152 | ) | 867 | |||
Income tax expense (benefit) | 927 | (944 | ) | 1,871 | 1,144 | 359 | 785 | ||||||
Net income | 2,533 | (748 | ) | 3,281 | 6,377 | 4,999 | 1,378 |
Net Income | 2,533 | (748 | ) | 3,281 | 6,377 | 4,999 | 1,378 | ||||||
Adjusted to exclude | |||||||||||||
Non-operating expenses (income), net | 13,810 | 16,011 | (2,201 | ) | 11,285 | 12,152 | (867 | ) | |||||
Income tax expense (benefit) | 927 | (944 | ) | 1,871 | 1,144 | 359 | 785 | ||||||
Equity in earnings of TNI and MNI | (1,608 | ) | (464 | ) | (1,144 | ) | (1,729 | ) | (465 | ) | (1,264 | ) | |
Depreciation and amortization | 8,016 | 5,226 | 2,790 | 10,318 | 7,391 | 2,927 | |||||||
Gain on sale of assets and other, net | (1,300 | ) | (1,272 | ) | (28 | ) | (3,783 | ) | (3,714 | ) | (69 | ) | |
Workforce adjustments and other | 1,816 | 1,741 | 75 | 2,405 | 1,560 | 845 | |||||||
Stock compensation | 497 | 497 | — | 559 | 559 | — | |||||||
Add: | |||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 2,086 | 838 | 1,248 | 2,220 | 852 | 1,368 | |||||||
Adjusted EBITDA | 26,777 | 20,885 | 5,892 | 28,796 | 23,693 | 5,103 | |||||||
Supplemental cash flow information | |||||||||||||
Distributions from MNI and TNI | 2,881 | 1,250 | 1,631 | 2,437 | 1,000 | 1,437 | |||||||
Capital expenditures | (1,350 | ) | (1,051 | ) | (299 | ) | (990 | ) | (954 | ) | (36 | ) | |
Cash income tax refunds (payments) | (175 | ) | (165 | ) | (10 | ) | (269 | ) | (269 | ) | — | ||
Interest income | 126 | (2,075 | ) | 2,201 | 109 | 109 | — | ||||||
Interest to be settled in cash | (3,257 | ) | — | (3,257 | ) | (14,637 | ) | (10,747 | ) | (3,890 | ) | ||
Debt financing and administrative costs | (1 | ) | (1 | ) | — | — | — | — |
26 Weeks Ended (unaudited) | |||||||||||||
March 25, 2018 | March 26, 2017 | ||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | |||||||
Operating revenue: | |||||||||||||
Advertising and marketing services | 156,213 | 109,368 | 46,845 | 170,568 | 118,706 | 51,862 | |||||||
Subscription | 94,241 | 64,968 | 29,273 | 93,896 | 65,366 | 28,530 | |||||||
Other | 21,136 | 17,533 | 3,603 | 22,912 | 18,970 | 3,942 | |||||||
Total operating revenue | 271,590 | 191,869 | 79,721 | 287,376 | 203,042 | 84,334 | |||||||
Operating expenses: | |||||||||||||
Compensation | 99,567 | 76,261 | 23,306 | 107,470 | 82,191 | 25,279 | |||||||
Newsprint and ink | 11,478 | 8,138 | 3,340 | 13,093 | 9,181 | 3,912 | |||||||
Other operating expenses | 99,671 | 60,201 | 39,470 | 101,533 | 59,456 | 42,077 | |||||||
Depreciation and amortization | 16,068 | 10,461 | 5,607 | 20,698 | 14,801 | 5,897 | |||||||
Gain on sale of assets and other, net | (1,297 | ) | (1,270 | ) | (27 | ) | (3,716 | ) | (3,715 | ) | (1 | ) | |
Workforce adjustments and other | 2,284 | 2,063 | 221 | 2,470 | 1,622 | 848 | |||||||
Total operating expenses | 227,771 | 155,854 | 71,917 | 241,548 | 163,536 | 78,012 | |||||||
Equity in earnings of associated companies | 3,991 | 1,328 | 2,663 | 4,417 | 1,600 | 2,817 | |||||||
Operating income | 47,810 | 37,343 | 10,467 | 50,245 | 41,106 | 9,139 | |||||||
Non-operating income (expense), net | (28,713 | ) | (32,959 | ) | 4,246 | (24,017 | ) | (25,727 | ) | 1,710 | |||
Income tax expense (benefit) | (18,763 | ) | (24,107 | ) | 5,344 | 7,410 | 3,470 | 3,940 | |||||
Net income | 37,860 | 28,491 | 9,369 | 18,818 | 11,909 | 6,909 |
Net Income | 37,860 | 28,491 | 9,369 | 18,818 | 11,909 | 6,909 | |||||||
Adjusted to exclude | |||||||||||||
Non-operating expenses (income), net | 28,713 | 32,959 | (4,246 | ) | 24,017 | 25,727 | (1,710 | ) | |||||
Income tax expense (benefit) | (18,763 | ) | (24,107 | ) | 5,344 | 7,410 | 3,470 | 3,940 | |||||
Equity in earnings of TNI and MNI | (3,991 | ) | (203 | ) | (3,788 | ) | (4,417 | ) | (1,600 | ) | (2,817 | ) | |
Depreciation and amortization | 16,068 | 10,461 | 5,607 | 20,698 | 14,801 | 5,897 | |||||||
Gain on sale of assets and other, net | (1,297 | ) | (1,270 | ) | (27 | ) | (3,716 | ) | (3,715 | ) | (1 | ) | |
Workforce adjustments and other | 2,284 | 2,063 | 221 | 2,470 | 1,622 | 848 | |||||||
Stock compensation | 1,016 | 1,016 | — | 1,083 | 1,083 | — | |||||||
Add: | |||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 5,245 | 2,373 | 2,872 | 5,696 | 2,670 | 3,026 | |||||||
Adjusted EBITDA | 67,135 | 51,783 | 15,352 | 72,059 | 55,967 | 16,092 | |||||||
Supplemental cash flow information: | |||||||||||||
Distributions from MNI and TNI | 5,198 | 2,000 | 3,198 | 4,670 | 2,250 | 2,420 | |||||||
Capital expenditures | (2,452 | ) | (1,940 | ) | (512 | ) | (2,079 | ) | (1,879 | ) | (200 | ) | |
Cash income tax refunds (payments) | (284 | ) | (251 | ) | (33 | ) | (639 | ) | (643 | ) | 4 | ||
Interest income | 222 | (3,845 | ) | 4,067 | 184 | 184 | — | ||||||
Interest to be settled in cash | (6,742 | ) | — | (6,742 | ) | (29,588 | ) | (21,797 | ) | (7,791 | ) | ||
Debt financing and administrative costs | (5 | ) | (5 | ) | — | — | — | — |