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: | December 14, 2018 | By: | ||
Timothy R. Millage | ||||
Vice President, Chief Financial Officer and | ||||
Treasurer |
Quarter Ended (unaudited) | |||||||||||||
September 30, 2018 | September 24,2017 | ||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | |||||||
Operating revenue: | |||||||||||||
Advertising and marketing services | 73,695 | 51,702 | 21,993 | 79,544 | 56,242 | 23,302 | |||||||
Subscription | 52,703 | 36,904 | 15,799 | 50,616 | 35,870 | 14,746 | |||||||
Other | 13,348 | 11,792 | 1,556 | 10,052 | 8,308 | 1,744 | |||||||
Total operating revenue | 139,746 | 100,398 | 39,348 | 140,212 | 100,420 | 39,792 | |||||||
Operating expenses: | |||||||||||||
Compensation | 48,906 | 37,334 | 11,572 | 50,645 | 38,705 | 11,940 | |||||||
Newsprint and ink | 7,028 | 4,836 | 2,192 | 5,688 | 3,859 | 1,829 | |||||||
Other operating expenses | 50,824 | 30,148 | 20,676 | 49,647 | 30,097 | 19,550 | |||||||
Depreciation and amortization | 7,794 | 5,082 | 2,712 | 10,288 | 7,450 | 2,838 | |||||||
Assets loss (gain) on sales, impairments, and other | 7,626 | 695 | 6,931 | 2,628 | 881 | 1,747 | |||||||
Restructuring costs and other | 1,400 | 1,021 | 379 | 1,150 | 1,006 | 144 | |||||||
Total operating expenses | 123,578 | 79,116 | 44,462 | 120,046 | 81,998 | 38,048 | |||||||
Equity in earnings of associated companies | 3,679 | 2,605 | 1,074 | 1,575 | 708 | 867 | |||||||
Operating income | 19,847 | 23,887 | (4,040 | ) | 21,741 | 19,130 | 2,611 | ||||||
Non-operating income (expense), net | (14,848 | ) | (17,558 | ) | 2,710 | (15,882 | ) | (17,415 | ) | 1,533 | |||
Income tax expense (benefit) | 561 | 1,044 | (483 | ) | 2,358 | 853 | 1,505 | ||||||
Net income | 4,438 | 5,285 | (847 | ) | 3,501 | 862 | 2,639 |
Net Income | 4,438 | 5,285 | (847 | ) | 3,501 | 862 | 2,639 | ||||||
Adjusted to exclude | |||||||||||||
Non-operating expenses (income), net | 14,848 | 17,558 | (2,710 | ) | 15,882 | 17,415 | (1,533 | ) | |||||
Income tax expense (benefit) | 561 | 1,044 | (483 | ) | 2,358 | 853 | 1,505 | ||||||
Equity in earnings of TNI and MNI | (3,679 | ) | (2,605 | ) | (1,074 | ) | (1,575 | ) | (708 | ) | (867 | ) | |
Depreciation and amortization | 7,794 | 5,082 | 2,712 | 10,288 | 7,450 | 2,838 | |||||||
Assets loss (gain) on sales, impairments, and other | 7,626 | 695 | 6,931 | 2,628 | 881 | 1,747 | |||||||
Restructuring costs and other | 1,400 | 1,021 | 379 | 1,150 | 1,006 | 144 | |||||||
Stock compensation | 417 | 417 | — | 524 | 524 | — | |||||||
Add: | |||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 2,449 | 1,270 | 1,179 | 1,985 | 1,013 | 972 | |||||||
Adjusted EBITDA | 35,854 | 29,767 | 6,087 | 36,741 | 29,296 | 7,445 | |||||||
Supplemental cash flow information | |||||||||||||
Distributions from MNI and TNI | 2,339 | 900 | 1,439 | 1,762 | 750 | 1,012 | |||||||
Capital expenditures | (1,744 | ) | (1,529 | ) | (215 | ) | (850 | ) | (802 | ) | (48 | ) | |
Pension contributions | (4,210 | ) | — | (4,210 | ) | (106 | ) | (106 | ) | — | |||
Cash income tax payments | (35 | ) | (30 | ) | (5 | ) | (134 | ) | (164 | ) | 30 | ||
Interest income | 154 | (2,556 | ) | 2,710 | 111 | (1,422 | ) | 1,533 | |||||
Interest to be settled in cash | (13,004 | ) | (10,046 | ) | (2,958 | ) | (13,654 | ) | (9,969 | ) | (3,685 | ) | |
Debt financing and administrative costs | (4 | ) | (4 | ) | — | (2 | ) | (2 | ) | — |
Year Ended (unaudited) | |||||||||||||
September 30, 2018 | September 24,2017 | ||||||||||||
(in thousands) | Consolidated | Lee Legacy | Pulitzer Inc. | Consolidated | Lee Legacy | Pulitzer Inc. | |||||||
Operating revenue: | |||||||||||||
Advertising and marketing services | 303,446 | 212,265 | 91,181 | 331,360 | 231,342 | 100,018 | |||||||
Subscription | 195,108 | 135,309 | 59,799 | 191,922 | 133,993 | 57,929 | |||||||
Other | 45,401 | 38,543 | 6,858 | 43,661 | 36,136 | 7,525 | |||||||
Total operating revenue | 543,955 | 386,117 | 157,838 | 566,943 | 401,471 | 165,472 | |||||||
Operating expenses: | |||||||||||||
Compensation | 196,334 | 149,924 | 46,410 | 209,692 | 160,598 | 49,094 | |||||||
Newsprint and ink | 24,949 | 17,591 | 7,358 | 24,904 | 17,274 | 7,630 | |||||||
Other operating expenses | 199,653 | 119,673 | 79,980 | 199,754 | 118,792 | 80,962 | |||||||
Depreciation and amortization | 31,766 | 20,676 | 11,090 | 41,282 | 29,643 | 11,639 | |||||||
Assets loss (gain) on sales, impairments, and other | 6,429 | (475 | ) | 6,904 | (1,150 | ) | (2,838 | ) | 1,688 | ||||
Restructuring costs and other | 5,550 | 4,587 | 963 | 7,523 | 6,293 | 1,230 | |||||||
Total operating expenses | 464,681 | 311,976 | 152,705 | 482,005 | 329,762 | 152,243 | |||||||
Equity in earnings of associated companies | 9,249 | 4,629 | 4,620 | 7,609 | 2,954 | 4,655 | |||||||
Operating income | 88,523 | 78,770 | 9,753 | 92,547 | 74,663 | 17,884 | |||||||
Non-operating income (expense), net | (57,703 | ) | (67,071 | ) | 9,368 | (52,331 | ) | (57,049 | ) | 4,718 | |||
Income tax expense (benefit) | (16,228 | ) | (23,173 | ) | 6,945 | 11,611 | 3,402 | 8,209 | |||||
Net income | 47,048 | 34,872 | 12,176 | 28,605 | 14,212 | 14,393 |
Net Income | 47,048 | 34,872 | 12,176 | 28,605 | 14,212 | 14,393 | |||||||
Adjusted to exclude | |||||||||||||
Non-operating expenses (income), net | 57,703 | 67,071 | (9,368 | ) | 52,331 | 57,049 | (4,718 | ) | |||||
Income tax expense (benefit) | (16,228 | ) | (23,173 | ) | 6,945 | 11,611 | 3,402 | 8,209 | |||||
Equity in earnings of TNI and MNI | (9,249 | ) | (4,629 | ) | (4,620 | ) | (7,609 | ) | (2,954 | ) | (4,655 | ) | |
Depreciation and amortization | 31,766 | 20,676 | 11,090 | 41,282 | 29,643 | 11,639 | |||||||
Assets loss (gain) on sales, impairments, and other | 6,429 | (475 | ) | 6,904 | (1,150 | ) | (2,838 | ) | 1,688 | ||||
Restructuring costs and other | 5,550 | 4,587 | 963 | 7,523 | 6,293 | 1,230 | |||||||
Stock compensation | 1,857 | 1,857 | — | 2,088 | 2,088 | — | |||||||
Add: | |||||||||||||
Ownership share of TNI and MNI EBITDA (50%) | 9,883 | 4,845 | 5,038 | 9,927 | 4,854 | 5,073 | |||||||
Adjusted EBITDA | 134,759 | 105,631 | 29,128 | 144,608 | 111,749 | 32,859 | |||||||
Supplemental cash flow information: | |||||||||||||
Distributions from MNI and TNI | 9,214 | 3,400 | 5,814 | 8,144 | 3,500 | 4,644 | |||||||
Capital expenditures | (6,025 | ) | (4,660 | ) | (1,365 | ) | (4,078 | ) | (3,711 | ) | (367 | ) | |
Pension contributions | (4,990 | ) | (40 | ) | (4,950 | ) | (106 | ) | (106 | ) | — | ||
Cash income tax payments | (464 | ) | (396 | ) | (68 | ) | (1,214 | ) | (1,215 | ) | 1 | ||
Interest income | 489 | (8,879 | ) | 9,368 | 372 | (4,346 | ) | 4,718 | |||||
Interest to be settled in cash | (52,842 | ) | (39,988 | ) | (12,854 | ) | (57,573 | ) | (42,268 | ) | (15,305 | ) | |
Debt financing and administrative costs | (437 | ) | (437 | ) | — | (373 | ) | (373 | ) | — |