| | | |
PAGE
|
| |||
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | | |
| | | | | [•] | | |
|
Date and Time:
|
| | [•], 2022, at [•] a.m. Central Time | |
|
Place:
|
| |
4620 E. 53rd Street, Room 120, Davenport, Iowa 52807
If we determine to hold the Annual Meeting by means of remote communication due to concerns about COVID-19 or otherwise, we will announce the decision to do so in advance and provide details on how to participate in a press release issued by the Company. We would also file definitive additional solicitation materials with the U.S. Securities and Exchange Commission (the “SEC”) announcing that the Annual Meeting is being held exclusively by means of remote communication.
|
|
|
Record Date:
|
| | [•], 2022 (the “Record Date”) | |
|
Proxy Materials:
|
| |
The Notice of 2022 Annual Meeting of Shareholders, this Proxy Statement, the accompanying WHITE proxy card, and the Company’s annual report are first being sent to shareholders of record as of the Record Date on or about [•], 2022.
|
|
Proposals:
|
| |
Unanimous Board
Recommendation: |
| |
For more detail,
see page: |
|
Proposal 1 — Election of Three Directors, Each For a Term of Three Years | | |
FOR ALL
|
| |
[•]
|
|
Proposal 2 — Ratification of Selection of BDO USA, LLP | | |
FOR
|
| |
[•]
|
|
| By Phone | | | By Internet | |
|
Vote by dialing the number on the WHITE proxy card or WHITE voting instruction form and following the easy voice prompts.
|
| |
Follow the instructions included on the WHITE proxy card or WHITE voting instruction form.
|
|
| By Mail | | | In Person | |
|
If you request printed copies of the proxy materials by mail, you will receive a WHITE proxy card and you may vote the proxy by filling out the WHITE proxy card and returning it in the enclosed postage-paid envelope.
|
| |
Attend the Annual Meeting and vote in person. If you hold any shares in “street name,” you may not vote in person unless you bring with you a legal proxy from the organization that holds your shares.
|
|
| |
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
The Company’s Proxy Statement, form of WHITE proxy card, and 2021 Annual Report on Form 10-K are available at [•] |
| |
| | |
Audit
Committee(1) |
| |
Executive
Committee |
| |
ECC(1)
|
| |
NCGC(1)
|
| ||||||||||||
Steven C. Fletcher
|
| | | | Member | | | | | | — | | | | | | Member | | | | | | Member | | |
Margaret R. Liberman
|
| | | | — | | | | | | — | | | | | | — | | | | | | Member | | |
Mary E. Junck
|
| | | | — | | | | | | Chairman | | | | | | — | | | | | | — | | |
Brent M. Magid
|
| | | | Chairman | | | | | | — | | | | | | Member | | | | | | — | | |
Herbert W. Moloney III
|
| | | | Member | | | | | | Member | | | | | | Chairman | | | | | | Member | | |
Kevin D. Mowbray
|
| | | | — | | | | | | Member | | | | | | — | | | | | | — | | |
David T. Pearson
|
| | | | Member | | | | | | — | | | | | | — | | | | | | — | | |
Gregory P. Schermer
|
| | | | — | | | | | | — | | | | | | — | | | | | | Chairman | | |
(Dollars)
|
| |
Fees Earned
or Paid in Cash(1) |
| |
Value of
Stock Awards(3) |
| |
Total
|
| |||||||||
Richard R. Cole (2)
|
| | | | 18,333 | | | | | | — | | | | | | 18,333 | | |
Steven C. Fletcher
|
| | | | 100,000 | | | | | | 50,000 | | | | | | 150,000 | | |
Margaret R. Liberman
|
| | | | 100,000 | | | | | | 50,000 | | | | | | 150,000 | | |
Brent M. Magid
|
| | | | 115,000 | | | | | | 50,000 | | | | | | 165,000 | | |
William E. Mayer (2)
|
| | | | 16,667 | | | | | | — | | | | | | 16,667 | | |
Herbert W. Moloney III
|
| | | | 135,000 | | | | | | 50,000 | | | | | | 185,000 | | |
David T. Pearson
|
| | | | 100,000 | | | | | | 50,000 | | | | | | 150,000 | | |
Gregory P. Schermer
|
| | | | 108,333 | | | | | | 50,000 | | | | | | 158,333 | | |
Mary E. Junck
|
| | | | 250,000 | | | | | | 150,000 | | | | | | 400,000 | | |
Name and Address of Beneficial Owner
|
| | | | |
Title of Class
|
| |
Shares of
Common Stock |
| |
Percent of
Class |
| ||||||
Cannell Capital, LLC(1) | | |
245 Meriwether Circle,
Alta, WY 83414 |
| |
Common Stock
|
| | | | 483,267 | | | | | | 8.23% | | |
Praetorian Capital Management LLC(2) | | |
330 Mangrove Thicket Blvd.,
Ponte Vedra,FL 32081 |
| |
Common Stock
|
| | | | 430,000 | | | | | | 7.32% | | |
Strategic Investment Opportunities LLC(3)
|
| |
5990 Washington St.,
Denver, CO 80202 |
| |
Common Stock
|
| | | | 371,117 | | | | | | 6.32% | | |
Beneficial Owner(1)
|
| |
Shares of
Common Stock |
| |
Percent of
Class |
| ||||||
Ray G. Farris(2)
|
| | | | 22,716 | | | | | | * | | |
Steven C. Fletcher
|
| | | | 6,804 | | | | | | * | | |
Mary E. Junck(3)
|
| | | | 175,664 | | | | | | 3.0% | | |
Margaret R. Liberman
|
| | | | 5,804 | | | | | | * | | |
Brent M. Magid
|
| | | | 14,641 | | | | | | | | |
Timothy R. Millage
|
| | | | 21,817 | | | | | | | | |
Kevin D. Mowbray(2)
|
| | | | 110,316 | | | | | | 1.9% | | |
Herbert W. Moloney III
|
| | | | 15,978 | | | | | | * | | |
David T. Pearson
|
| | | | 4,804 | | | | | | * | | |
Gregory P. Schermer(4)
|
| | | | 140,781 | | | | | | 2.4% | | |
All current directors and executive officers as a group (15 persons)(2)(3)(4)(5)
|
| | | | 602,443 | | | | | | 10.2% | | |
Plan Category
|
| |
Number of Securities to be
Issued Upon Exercise of Outstanding Options, Warrants and Rights (A)(1) |
| |
Weighted Average
Exercise Price of Outstanding Options, Warrants and Rights (Dollars) (B) |
| |
Number of Securities
Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Shares in column A)(2)(3) |
| |||||||||
Equity compensation plans approved by shareholders
|
| | | | 35,735 | | | | | | 11.40 | | | | | | 332,360 | | |
| Kevin D. Mowbray | | | President and Chief Executive Officer | |
| Timothy R. Millage | | | Vice President, Chief Financial Officer & Treasurer | |
| Ray G. Farris | | | Vice President — Advertising | |
Name
|
| |
Offices or Positions to be Held
|
| |
Biographical Information
|
|
Kevin D. Mowbray
|
| | President and Chief Executive Officer | | |
Mr. Mowbray, age 60, has been President and Chief Executive Officer since February 2016. Previously, Mr. Mowbray held the titles of Executive Vice President and Chief Operating Officer from April 2015 to February 2016, Vice President and Chief Operating Officer from May 2013 to April 2015, Publisher of the St. Louis Post-Dispatch from 2006 to May 2013, and Vice President — Publishing from 2004 to May 2013. Mr. Mowbray joined the Company in 1986, and served in several positions in the Company’s sales and marketing and newspaper management functions, including as Vice President for Sales and Marketing and General Manager of the Missoulian.
|
|
Timothy R. Millage
|
| | Vice President — Chief Financial Officer and Treasurer | | |
Mr. Millage, age 40, has been Vice President, Chief Financial Officer and Treasurer since August 2018. Mr. Millage served as the corporate controller of the Company from 2012 to 2018. Prior to joining the Company, Mr. Millage served as an audit manager with Deloitte, LLP and worked for multinational clients in various industries.
|
|
Nathan E. Bekke | | | Operating Vice President; Vice President — Consumer Sales & Marketing | | |
Mr. Bekke, age 52, has been Vice President — Consumer Sales and Marketing since February 2015. Previously, Mr. Bekke served as Publisher of the Casper Star-Tribune, a Company newspaper, from 2003 to February 2015. Mr. Bekke joined the Company in 1988, and served in several positions in the Company’s sales and marketing function, including as director of sales and marketing at Billings Gazette and the Helena Independent Record.
|
|
Ray G. Farris | | | Operating Vice President; Vice President — Advertising | | |
Mr. Farris, age 65, has been Vice President — Group Publisher since December 2018. Previously, Mr. Farris held the titles of President and Publisher of the St. Louis Post-Dispatch from May 2013 to December 2018, General Manager and Vice President of Sales of the St. Louis Post-Dispatch from August 2010 to May 2013, and Vice President of Classified Advertising of the St. Louis Post-Dispatch from October 2006 to August 2010.
|
|
Astrid J. Garcia | | | Vice President — Human Resources and Legal | | |
Ms. Garcia, age 71, has been Vice President — Human Resources and Legal since 2013. Previously, Ms. Garcia served as Vice President of Human Resources and Operations at the St. Louis Post-Dispatch from December 2006 to 2013. Prior to joining the Company, Ms. Garcia served as a senior human resources professional and legal advisor for a number of companies in the publishing industry.
|
|
Name
|
| |
Offices or Positions to be Held
|
| |
Biographical Information
|
|
Joseph J. Battistoni
|
| | Vice President — Local Advertising | | |
Mr. Battistoni, age 39, has been Vice President — Local Advertising since January 2020. Previously, Mr. Battistoni held the titles of General Manager and Vice President of Sales and Marketing at The Times of Northwest Indiana from November 2015 to January 2020. Mr. Battistoni joined the Company as Digital Director of The Times in March 2014. Prior to joining the Company, Mr. Battistoni was employed by Tribune Media Company in various leadership positions involving the delivery of digital services and targeted media.
|
|
(Dollars)
|
| |
Total Accounting
Value of 2021 Grants |
| |
Accounting Charge
Recorded in 2021 for 2021 Grants |
| |
Accounting Charge
Recorded in 2021 for 2020, 2019, and 2018 Grants |
| |
Accounting Charge
to be Recorded in 2022-2024 for 2021 Grants |
| ||||||||||||
Kevin D. Mowbray
|
| | | | 168,000 | | | | | | 44,333 | | | | | | 271,500 | | | | | | 123,667 | | |
Timothy R. Millage
|
| | | | 56,000 | | | | | | 14,778 | | | | | | 55,111 | | | | | | 41,222 | | |
Ray G. Farris
|
| | | | 48,783 | | | | | | 12,873 | | | | | | 68,467 | | | | | | 35,910 | | |
(Dollars)
|
| |
Year
|
| |
Salary
|
| |
Stock
Awards(1) |
| |
Option
Awards (1) |
| |
Non-Equity
Incentive Plan Compensation(2) |
| |
All
Other Compensation(3)(4) |
| |
Total
|
| |||||||||||||||||||||
Kevin D. Mowbray
President and Chief Executive Officer |
| | | | 2021 | | | | | | 900,000 | | | | | | 168,000 | | | | | | — | | | | | | 1,083,595 | | | | | | 23,017 | | | | | | 2,174,611 | | |
| | | 2020 | | | | | | 837,692 | | | | | | 324,000 | | | | | | — | | | | | | — | | | | | | 16,823 | | | | | | 1,178,515 | | | ||
Timothy R. Millage
Vice President, Chief Financial Officer and Treasurer |
| | | | 2021 | | | | | | 450,000 | | | | | | 56,000 | | | | | | — | | | | | | 270,899 | | | | | | 12,829 | | | | | | 789,728 | | |
| | | 2020 | | | | | | 390,000 | | | | | | 87,480 | | | | | | — | | | | | | — | | | | | | 10,302 | | | | | | 487,782 | | | ||
Ray G. Farris
Vice President, Advertising |
| | | | 2021 | | | | | | 490,000 | | | | | | 48,782 | | | | | | — | | | | | | 294,979 | | | | | | 11,676 | | | | | | 845,437 | | |
| | | 2020 | | | | | | 456,077 | | | | | | 55,080 | | | | | | — | | | | | | — | | | | | | 14,518 | | | | | | 525,675 | | |
(Dollars, Except Share Data)
|
| |
2021 Grant Date
|
| |
All Other Stock
Awards: Number of Shares of Stock |
| |
2021 Grant Date
Fair Value of Stock Awards |
| |||||||||
Kevin D. Mowbray
|
| | | | 12/11/2020 | | | | | | 15,000 | | | | | | 168,000 | | |
Timothy R. Millage
|
| | | | 12/11/2020 | | | | | | 5,000 | | | | | | 56,000 | | |
Ray G. Farris
|
| | | | 12/11/2020 | | | | | | 4,356 | | | | | | 48,783 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Restricted Common Stock Awards
|
| |||||||||
| | |
Number of Securities
Underlying Unexercised Options |
| |
Option Awards
|
| |
Number of
Shares of Stock That Have Not Vested |
| |
Market
Value of Shares of Stock That Have Not Vested |
| ||||||||||||||||||||||||
(Dollars, Except Share Data)
|
| |
Exercisable(1)
|
| |
Unexercisable(2)
|
| |
Exercise
Price |
| |
Expiration
Date |
| ||||||||||||||||||||||||
Kevin D. Mowbray | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,000 | | | | | | 356,100 | | |
2020 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 20,000 | | | | | | 474,800 | | |
2019 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,500 | | | | | | 534,150 | | |
2012 Options
|
| | | | 8,000 | | | | | | — | | | | | | 11.30 | | | | | | 4/30/2022 | | | | | | | | | | | | | | |
Timothy R. Millage | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,000 | | | | | | 118,700 | | |
2020 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,400 | | | | | | 128,196 | | |
2019 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,780 | | | | | | 65,997 | | |
Ray G. Farris | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2021 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,356 | | | | | | 103,402 | | |
2020 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,400 | | | | | | 80,716 | | |
2019 Stock Award
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,150 | | | | | | 74,781 | | |
| | |
Restricted Common Stock
|
| |||||||||
(Dollars, Except Share Data)
|
| |
Number of
Shares Acquired on Vesting |
| |
Value Realized on
Vesting |
| ||||||
Kevin D. Mowbray
|
| | | | 22,500 | | | | | | 559,125 | | |
Timothy R. Millage
|
| | | | 2,780 | | | | | | 69,083 | | |
Ray G. Farris
|
| | | | 3,150 | | | | | | 78,278 | | |
(Dollars)
|
| |
NEO
Contributions(1) |
| |
Company
Contributions(2) |
| |
Aggregate
Earnings(3) |
| |
Distributions
|
| |
Aggregate
Balance at September 30, 2021(4) |
| |||||||||||||||
Kevin D. Mowbray
|
| | | | 43,041 | | | | | | 17,217 | | | | | | 67 | | | | | | — | | | | | | 484,237 | | |
Timothy R. Millage
|
| | | | 17,753 | | | | | | 7,029 | | | | | | 7,236 | | | | | | 2,962 | | | | | | 56,133 | | |
Ray G. Farris
|
| | | | 14,691 | | | | | | 5,876 | | | | | | 2,027 | | | | | | — | | | | | | 190,605 | | |
| CEO | | | 3x annual base salary and highest recent annual bonus | |
| Vice Presidents | | | 1x annual base salary and highest recent annual bonus | |
(Dollars)
|
| |
Estimated Net Present
Value of Change of Control Severance and Benefits |
| |||
Kevin D. Mowbray
|
| | | | 6,450,008 | | |
Timothy R. Millage
|
| | | | 1,011,447 | | |
Ray G. Farris
|
| | | | 1,090,793 | | |
(Dollars)
|
| |
2021
|
| |
2020
|
| ||||||
Audit fees
|
| | | | 1,650,000 | | | | | | 2,194,290 | | |
Audit-related fees
|
| | | | — | | | | | | — | | |
Tax Fees
|
| | | | — | | | | | | — | | |
All Other Fees
|
| | | | — | | | | | | — | | |
| | | | | 1,650,000 | | | | | | 2,194,290 | | |
Name
|
| |
Principal Business Name
|
| |
Principal Business Address
|
|
Steven C. Fletcher | | | Explorer Parent LLC | | | 533 Airport Boulevard, Suite 400, Burlingame, California 94010 | |
Mary E. Junck | | | Lee Enterprises, Incorporated | | |
4600 E. 53rd Street
Davenport, Iowa 52807 |
|
Margaret R. Liberman | | | Sirius XM Holdings Inc. | | |
1221 Avenue of the Americas
35th Floor New York, New York 10020 |
|
Brent M. Magid | | | Frank N. Magid Associates, Inc. | | |
8500 Normandale Lake Boulevard
Suite 630 Minneapolis, Minnesota 55437 |
|
Herbert W. Moloney III | | | Lee Enterprises, Incorporated | | |
4600 E. 53rd Street
Davenport, Iowa 52807 |
|
David T. Pearson | | | Lee Enterprises, Incorporated | | |
4600 E. 53rd Street
Davenport, Iowa 52807 |
|
Gregory P. Schermer | | | Lee Enterprises, Incorporated | | |
4600 E. 53rd Street
Davenport, Iowa 52807 |
|
Kevin D. Mowbray | | | Lee Enterprises, Incorporated | | |
4600 E. 53rd Street
Davenport, Iowa 52807 |
|
Name
|
| |
Principal Occupation
|
|
Kevin D. Mowbray | | | President and Chief Executive Officer | |
Timothy R. Millage | | | Vice President, Chief Financial Officer & Treasurer | |
Name
|
| |
Transaction
Date |
| |
Number of
Securities |
| |
Transaction
Description |
| |||||||||
Steven C. Fletcher
|
| | | | 6/1/2020 | | | | | | 30,454 | | | | | | 2 | | |
| | | 6/1/2021 | | | | | | 1,758 | | | | | | 2 | | | ||
Mary E. Junck
|
| | | | 12/11/2020 | | | | | | 89,286 | | | | | | 2 | | |
| | | 12/10/2021 | | | | | | 4,998 | | | | | | 2 | | | ||
Margaret R. Liberman
|
| | | | 6/1/2020 | | | | | | 30,454 | | | | | | 2 | | |
| | | 6/1/2021 | | | | | | 1,758 | | | | | | 2 | | | ||
Brent M. Magid
|
| | | | 6/1/2020 | | | | | | 28,627 | | | | | | 2 | | |
| | | 6/1/2021 | | | | | | 1,758 | | | | | | 2 | | | ||
Herbert W. Moloney III
|
| | | | 6/1/2020 | | | | | | 26,191 | | | | | | 2 | | |
| | | 6/1/2021 | | | | | | 1,758 | | | | | | 2 | | | ||
David T. Pearson
|
| | | | 6/1/2020 | | | | | | 30,454 | | | | | | 2 | | |
| | | 6/1/2021 | | | | | | 1,758 | | | | | | 2 | | | ||
Gregory P. Schermer
|
| | | | 6/1/2020 | | | | | | 30,454 | | | | | | 2 | | |
| | | 6/1/2021 | | | | | | 1,758 | | | | | | 2 | | | ||
Kevin D. Mowbray
|
| | | | 12/9/2020 | | | | | | 60,700 | | | | | | 8 | | |
| | | 12/11/2020 | | | | | | 150,000 | | | | | | 7 | | | ||
| | | 12/7/2021 | | | | | | 6,829 | | | | | | 8 | | | ||
| | | 12/10/2021 | | | | | | 13,329 | | | | | | 7 | | | ||
Timothy R. Millage
|
| | | | 12/8/2020 | | | | | | 2,277 | | | | | | 8 | | |
| | | 12/11/2020 | | | | | | 50,000 | | | | | | 7 | | | ||
| | | 12/7/2021 | | | | | | 844 | | | | | | 8 | | | ||
| | | 12/10/2021 | | | | | | 8,331 | | | | | | 7 | | |
Transaction Descriptions
|
| | | | |||
1 | | | Open Market Sale | | | ||
2 | | | Annual Restricted Stock Awards For Non-Employee Directors under Long Term Incentive Plan | | | ||
3 | | | Deferred Stock Units Granted Under Outside Directors Deferral Plan | | | ||
4 | | | Time-Based Restricted Stock Unit Vesting | | | ||
5 | | | Performance-Based Restricted Stock Unit Vesting | | | ||
6 | | | Time-Based Restricted Stock Unit Grant | | | ||
7 | | | Performance-Based Restricted Stock Unit Grant | | | ||
8 | | | Withholding For Taxes | | | ||
9 | | | Open Market Acquisition | | |
Transaction Descriptions
|
| | | | |||
10
|
| | Bona Fide Gift | | | ||
11
|
| | Stock Option Exercise | | | ||
12
|
| | Cancellation Of Common Stock Award | | | ||
* | | | Shares Held By Family Trust | | |
(Thousands of Dollars)
|
| |
Amount
|
| |||
Net Income (loss)
|
| | | | 24,832 | | |
Adjusted to exclude | | | | | | | |
Income tax expense (benefit)
|
| | | | 7,215 | | |
Non-operating expenses, net
|
| | | | 24,509 | | |
Equity in earnings of TNI and MNI
|
| | | | (6,412) | | |
Assets loss (gain) on sales, impairments and other
|
| | | | 8,214 | | |
Depreciation and amortization
|
| | | | 42,841 | | |
Restructuring costs and other
|
| | | | 7,182 | | |
Stock compensation
|
| | | | 854 | | |
Add | | | | | | | |
TNI and MNI Adjusted EBITDA (50%)
|
| | | | 7,317 | | |
Pro-forma Adjusted EBITDA
|
| | | | 116,552 | | |
(Thousands of Dollars)
|
| |
Amount
|
| |||
Operating expenses
|
| | | | 744,505 | | |
Depreciation and amortization
|
| | | | 42,841 | | |
Assets loss (gain) on sales, impairments and other
|
| | | | 8,214 | | |
Total cash costs
|
| | | | 693,450 | | |
Restructuring costs and other
|
| | | | 7,182 | | |
Total cash costs, excluding restructuring costs and other
|
| | | | 686,268 | | |