Lee Enterprises Reports July Advertising Revenue
DAVENPORT, Iowa--(BUSINESS WIRE)--Aug. 16, 2006--Lee Enterprises, Incorporated (NYSE:LEE), reported today that same property advertising revenue in July decreased 1.1 percent compared with a year ago.
On a same property(1) basis, which excludes the impact of acquisitions and divestitures made in the current or prior year, retail advertising revenue decreased 2.6 percent. Classified advertising revenue decreased 1.6 percent, with employment up 2.0 percent, automotive down 4.3 percent, real estate up 1.3 percent, other newspaper classified categories down 3.2 percent, and classified in non-daily publications down 7.0. National advertising revenue decreased 22.2 percent. Online advertising revenue increased 48.4 percent. Niche publication advertising revenue increased 9.6 percent. Circulation revenue decreased 1.3 percent. The month included an unfavorable day exchange, as a year ago included an additional Friday, a relatively strong advertising day, and this year included an additional Monday, which is traditionally the slowest advertising day of the week.
Total same property revenue decreased 0.6 percent. Including the effect of acquisitions and divestitures, total advertising revenue decreased 0.9 percent, and total operating revenue decreased 0.2 percent.
In Lee's 50 percent partnership in Madison, Wisconsin, which is reported using the equity method of accounting and is not included in the revenue described above, advertising revenue in July increased 1.5 percent, and total revenue decreased 0.2 percent.
PULITZER RESULTS
Lee acquired Pulitzer Inc. in June 2005, and Pulitzer revenue is reported in statistical periods. For the statistical reporting period ended July 30, 2006, Pulitzer advertising revenue decreased 0.7 percent compared with 2005, with total revenue down 0.6 percent. In St. Louis, advertising revenue decreased 2.2 percent, and total revenue decreased 2.0 percent. In the other former Pulitzer newspapers, advertising revenue increased 2.5 percent, and total revenue increased 2.4 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 July statistical reporting period increased 2.8 percent, and total revenue increased 1.5 percent.
Lee Enterprises is a premier publisher of local news, information and advertising in primarily midsize markets, with 52 daily newspapers and a joint interest in six others, rapidly growing online sites 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 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 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.
LEE ENTERPRISES, INCORPORATED
Revenue and Statistical Summary
(Unaudited)
OPERATING REVENUE
July Fiscal Year to Date
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(Thousands) 2006 2005 % 2006 2005 %
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Advertising
revenue:
Retail.......... $22,965 $23,569 (2.6)% $251,564 $250,699 0.3%
National........ 1,297 1,667 (22.2) 17,740 18,873 (6.0)
Classified:
Daily
newspapers:
Employment.... 5,163 5,062 2.0 45,914 42,101 9.1
Automotive.... 3,396 3,549 (4.3) 29,081 32,792 (11.3)
Real estate... 3,672 3,625 1.3 32,105 31,660 1.4
All other..... 2,029 2,096 (3.2) 20,302 19,926 1.9
Other
publications.. 2,851 3,064 (7.0) 28,424 28,933 (1.8)
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Total classified
revenue........ 17,111 17,396 (1.6) 155,826 155,412 0.3
Online.......... 2,007 1,352 48.4 16,780 11,975 40.1
Niche
publications... 1,058 965 9.6 10,922 9,926 10.0
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Total advertising
revenue......... 44,438 44,949 (1.1) 452,832 446,885 1.3
Circulation...... 10,987 11,132 (1.3) 105,674 107,176 (1.4)
Commercial
printing........ 1,572 1,300 20.9 16,724 16,985 (1.5)
Online services
and other....... 2,079 2,075 0.2 21,691 21,783 (0.4)
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Total same
property revenue 59,076 59,456 (0.6) 596,921 592,829 0.7
Acquisitions &
divestitures.... 40,945 40,767 0.4 382,607 78,028 NM
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Total operating
revenue.........$100,021 $100,223 (0.2)% $979,528 $670,857 46.0 %
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DAILY NEWSPAPER ADVERTISING VOLUME
July Fiscal Year to Date
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(Thousands of Inches) 2006 2005 % 2006 2005 %
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Retail................. 847 851 (0.5)% 8,841 8,965 (1.4)%
National............... 32 45 (28.9) 420 496 (15.3)
Classified............. 1,102 1,088 1.3 9,779 9,862 (0.8)
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Total, same property... 1,981 1,984 (0.2)% 19,040 19,323 (1.5)%
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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., in which Lee owns a
50% share. It is reported using the equity method of accounting.
(2) July had one more Monday and one fewer Friday than the prior
period.
(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.
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. This release contains information that may be deemed forward-looking and that is based largely on the Company's current expectations and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties are changes in advertising demand, newsprint prices, energy costs, interest rates, labor costs, legislative and regulatory rulings and other results of operations or financial conditions, difficulties in integration of acquired businesses or maintaining employee and customer relationships and increased capital and other costs. The words "may," "will," "would," "could," "believes," "expects," "anticipates," "intends," "plans," "projects," "considers" and similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this release. The Company does not publicly undertake to update or revise its forward-looking statements.
CONTACT:
Lee Enterprises, Incorporated, Davenport
Dan Hayes, 563-383-2100
dan.hayes@lee.net
SOURCE:
Lee Enterprises, Incorporated