Lee Enterprises Reports May Advertising Revenue
DAVENPORT, Iowa--(BUSINESS WIRE)--June 19, 2006--Lee Enterprises, Incorporated (NYSE:LEE), reported today that advertising revenue in the May statistical period grew 4.0 percent compared with a year ago at the former Pulitzer newspapers, including 2.0 percent in St. Louis. Advertising revenue growth in Tucson was 11.2 percent.
In the rest of Lee, where revenue is reported by months rather than by statistical periods, same property advertising revenue in April and May increased 1.1 percent over a year ago. Because of Sunday exchanges between periods in April and May, a combination of the two months provides the most meaningful year-over-year comparison, as Sundays generate substantially more revenue than any other day of the week. April had five Sundays in 2006 and four in 2005, while May had four Sundays in 2006 and five in 2005. Combined, April and May had nine Sundays in both years.
For the two months combined, on a same property(1) basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue increased 1.1 percent. Classified advertising revenue decreased 1.8 percent, with employment up 6.3 percent, automotive down 11.7 percent, real estate down 2.4 percent, other newspaper classified categories up 3.7 percent, and classified in non-daily publications down 6.3 percent. National advertising revenue, a small category for Lee, decreased 10.6 percent. Online advertising revenue climbed 42.0 percent, and niche publication revenue rose 14.9 percent. Circulation revenue increased 0.7 percent.
Total same property operating revenue for April and May increased 1.0 percent over a year ago. Including the effect of acquisitions and divestitures, total advertising revenue increased 70.9 percent, and total operating revenue increased 66.8 percent, due primarily to the acquisition of Pulitzer Inc. in June 2005.
In Lee's 50 percent partnership in Madison, Wisconsin, which is reported using the equity method of accounting and is not included in the same property revenue described above, advertising revenue in April and May increased 5.6 percent, and total revenue increased 1.6 percent.
The following tables combine April and May operating revenue and volume to eliminate the effect of the Sunday exchanges and facilitate comparison.
April-May Combined
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(Thousands) 2006 2005 %
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Advertising revenue:
Retail................................... $51,978 $51,436 1.1 %
National................................. 3,012 3,371 (10.6)
Classified:
Daily newspapers:......................
Employment........................... 10,018 9,428 6.3
Automotive........................... 6,042 6,846 (11.7)
Real estate.......................... 6,592 6,753 (2.4)
All other............................ 4,542 4,381 3.7
Other publications..................... 5,757 6,145 (6.3)
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Total classified revenue................. 32,951 33,553 (1.8)
Online................................... 3,888 2,738 42.0
Niche publications....................... 2,426 2,111 14.9
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Total advertising revenue.................. 94,255 93,209 1.1
Circulation................................ 21,709 21,551 0.7
Commercial printing........................ 3,661 3,524 3.9
Online services and other.................. 4,481 4,539 (1.3)
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Total same property
operating revenue......................... 124,106 122,823 1.0
Acquisitions &
divestitures.............................. 81,609 524 NM
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Total operating revenue.................... $205,715 $123,347 66.8 %
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DAILY NEWSPAPER ADVERTISING VOLUME
April-May Combined
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(Thousands of Inches) 2006 2005 %
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Retail..................................... 1,838 1,818 1.1 %
National................................... 85 102 (16.7)
Classified................................. 2,076 2,087 (0.5)
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Total, same property....................... 3,999 4,007 (0.2)%
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PULITZER RESULTS
Pulitzer revenue is reported in statistical periods, which eliminates the effect of Sunday exchanges. For the statistical reporting period ended May 28, 2006, comparing the current year period to last year, which is before Lee's ownership, Pulitzer advertising revenue increased 4.0 percent, with total revenue up 2.9 percent. In St. Louis, advertising revenue climbed 2.0 percent, and total revenue increased 1.3 percent. In the other former Pulitzer newspapers, advertising revenue increased 8.5 percent, and total revenue increased 6.5 percent.
In the 50 percent partnership in Tucson, which is accounted for using the equity method and is not included in the Pulitzer revenue described above, advertising revenue for the May statistical period increased 11.2 percent, and total revenue rose 8.4 percent.
Same property revenue statistics for May and year to date follow.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
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May Fiscal Year to Date
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(Thousands) 2006 2005 % 2006 2005 %
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Advertising
revenue:
Retail........... $26,546 $27,312 (2.8)% $204,299 $202,944 0.7 %
National......... 1,385 1,623 (14.7) 14,901 15,625 (4.6)
Classified:
Daily
newspapers:
Employment..... 4,864 5,003 (2.8) 36,013 32,512 10.8
Automotive..... 2,920 3,376 (13.5) 22,560 25,942 (13.0)
Real estate.... 3,168 3,476 (8.9) 25,129 24,728 1.6
All other...... 2,321 2,321 - 15,921 15,529 2.5
Other
publications... 2,963 3,029 (2.2) 22,058 22,691 (2.8)
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Total classified
revenue......... 16,236 17,205 (5.6) 121,681 121,402 0.2
Online........... 1,954 1,393 40.3 12,821 9,314 37.7
Niche
publications.... 1,315 1,041 26.3 8,648 8,028 7.7
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Total advertising
revenue.......... 47,436 48,574 (2.3) 362,350 357,313 1.4
Circulation....... 10,651 11,108 (4.1) 84,374 85,701 (1.5)
Commercial
printing......... 1,890 1,733 9.1 13,492 14,025 (3.8)
Online services
and other........ 2,348 2,372 (1.0) 17,539 17,384 0.9
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Total same
property
operating revenue 62,325 63,787 (2.3) 477,755 474,423 0.7
Acquisitions &
divestitures..... 37,505 280 NM 306,368 1,703 NM
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Total operating
revenue.......... $99,830 $64,067 55.8 % $784,123 $476,126 64.7 %
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DAILY NEWSPAPER ADVERTISING VOLUME
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May Fiscal Year to Date
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(Thousands of Inches) 2006 2005 % 2006 2005 %
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Retail................. 949 949 - % 7,090 7,245 (2.1)%
National............... 43 53 (18.9) 349 403 ( 13.4)
Classified............. 1,043 1,065 (2.1) 7,626 7,718 (1.2)
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Total, same property... 2,035 2,067 (1.5)% 15,065 15,366 (2.0)%
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NOTES:
(1) Same property comparisons exclude acquisitions and divestitures
made in the current and prior year. Same property revenue also
excludes revenue of Madison Newspapers, Inc. (MNI), in which Lee
owns a 50% share. It is reported using the equity method of
accounting.
(2) May had one more Wednesday and one fewer Sunday than the prior
period. The year to date had one more Wednesday and one fewer
Friday.
(3) Certain amounts as previously reported have been reclassified to
conform with the current period presentation. The prior period has
been restated for comparative purposes, and the reclassifications
have no impact on earnings.
(4) The Company's fiscal year ends on September 30.
(5) The Company disclaims responsibility for updating information
beyond the release date.
Lee Enterprises is a premier publisher of newspapers in midsize markets, with 52 dailies and a joint interest in six others, a rapidly growing online business and more than 300 weekly newspapers and specialty publications in 23 states. Lee's newspapers have circulation of 1.7 million daily and 1.9 million Sunday, reaching more than four million readers daily. Lee's newspaper online sites reach more than two million users, and Lee's weekly publications have distribution of more than 4.5 million households. Lee's newspapers include such diverse markets as Napa, Calif.; Bloomington, Ill.; Billings, Mont.; Madison, Wis.; and St. Louis, Mo. Lee is based in Davenport, Iowa, and its stock is traded on the New York Stock Exchange under the symbol LEE. For more information about Lee Enterprises, please visit www.lee.net.
CONTACT:
Lee Enterprises, Davenport
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE:
Lee Enterprises