SEC Filing | Lee Enterprises, Inc.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ x ] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended March 31, 1999 OR [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-6227 Lee Enterprises, Incorporated A Delaware Corporation I.D. #42-0823980 215 N. Main Street, Davenport, Iowa 52801 Phone: (319) 383-2100 Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ x ] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Class Outstanding at March 31, 1999 - --------------------------------------- ----------------------------- Common stock, $2.00 par value 32,827,441 Class "B" Common Stock, $2.00 par value 11,490,555

PART I. FINANCIAL INFORMATION Item. 1. LEE ENTERPRISES, INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Data) Three Months Ended Six Months Ended March 31, March 31, -------------------- --------------------- 1999 1998 1999 1998 -------------------------------------------- (Unaudited) Operating revenue: Publishing: Daily newspaper: Advertising ........................... $ 45,829 $ 43,224 $ 100,719 $ 95,229 Circulation ........................... 20,159 20,227 40,848 41,018 Other ................................... 28,800 25,337 57,516 50,396 Broadcasting ............................... 27,072 30,947 62,662 62,202 Equity in net income of associated companies 1,736 1,610 3,978 3,759 -------------------------------------------- 123,596 121,345 265,723 252,604 -------------------------------------------- Operating expenses: Compensation costs ......................... 48,697 47,174 100,000 94,842 Newsprint and ink .......................... 9,107 9,574 19,935 20,136 Depreciation ............................... 5,185 4,700 10,270 9,320 Amortization of intangibles ................ 4,477 4,473 8,880 8,929 Other ...................................... 33,977 31,676 69,685 65,531 -------------------------------------------- 101,443 97,597 208,770 198,758 -------------------------------------------- Operating income .................... 22,153 23,748 56,953 53,846 -------------------------------------------- Financial (income) expenses, net Financial (income) ......................... (235) (1,188) (1,451) (1,718) Financial expense .......................... 2,986 4,344 7,252 8,050 -------------------------------------------- 2,751 3,156 5,801 6,332 -------------------------------------------- Income before taxes on income ...... 19,402 20,592 51,152 47,514 Income taxes .................................. 7,434 7,981 19,545 18,319 -------------------------------------------- Net income .......................... $11,968 $12,611 $31,607 $29,195 ============================================ Average outstanding shares: Basic ...................................... 44,246 44,990 44,257 45,153 ============================================ Diluted .................................... 44,859 45,783 44,851 45,904 ============================================ Earnings per share: Basic ...................................... $ 0.27 $ 0.28 $ 0.71 $ 0.65 ============================================ Diluted .................................... $ 0.27 $ 0.28 $ 0.70 $ 0.64 ============================================ Dividends per share ........................... $ 0.15 $ 0.14 $ 0.30 $ 0.28 ============================================

LEE ENTERPRISES, INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) March 31, September 30, ASSETS 1999 1998 - ---------------------------------------------------------------------------------------------------------------------- (Unaudited) Cash and cash equivalents ............................................................ $ 15,859 $ 16,941 Accounts receivable, net ............................................................. 60,199 61,880 Newsprint inventory .................................................................. 3,344 3,878 Program rights and other ............................................................. 12,215 16,892 ------------------- Total current assets ....................................................... 91,617 99,591 Investments .......................................................................... 27,139 26,471 Property and equipment, net .......................................................... 134,459 128,372 Intangibles and other assets ......................................................... 398,911 406,151 ------------------- $ 652,126 $660,585 =================== LIABILITIES AND STOCKHOLDERS' EQUITY - ---------------------------------------------------------------------------------------------------------- Current liabilities .................................................................. $ 72,210 $ 98,061 Long-term debt, less current maturities .............................................. 186,133 186,028 Deferred items ....................................................................... 57,510 56,737 Stockholders' equity ................................................................. 336,273 319,759 ------------------- $ 652,126 $660,585 ===================

LEE ENTERPRISES, INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) 1999 1998 - ---------------------------------------------------------------------------------------------------------------------- (Unaudited) Six Months Ended March 31: Cash Provided by Operations: Net income ................................................................... $ 31,607 $ 29,195 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization .............................................. 19,150 18,249 Distributions in excess of earnings of associated companies ................ 1,650 1,287 Other balance sheet changes ................................................ (1,151) (245) ---------------------------- Net cash provided by operations .......................................... 51,256 48,486 ---------------------------- Cash Provided by (Required For) Investing Activities: Purchase of property and equipment ........................................... (16,301) (12,518) Acquisitions ................................................................. (2,147) (250) Other ........................................................................ (127) (379) ---------------------------- Net cash provided by (required for) investing activities ................. (18,575) (13,147) ---------------------------- Cash Provided by (Required for) Financing Activities: Purchase of common stock ..................................................... (2,265) (32,888) Cash dividends paid .......................................................... (6,654) (6,383) Proceeds from long-term borrowings ........................................... -- 185,000 Principal payments on long-term debt ......................................... (25,000) (25,000) Principal payments on short-term notes payable, net .......................... -- (5,000) Other ........................................................................ 156 496 --------------------------- Net cash provided by (required for) financing activities ................. (33,763) 116,225 --------------------------- Net increase in cash and cash equivalents ................................ (1,082) 151,564 Cash and cash equivalents: Beginning .................................................................... 16,941 14,163 --------------------------- Ending ....................................................................... $ 15,859 $165,727 ===========================

LEE ENTERPRISES, INCORPORATED NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- Note 1. Basis of Presentation The information furnished reflects all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary to a fair presentation of the financial position as of March 31, 1999 and the results of operations for the three- and six-month periods ended March 31, 1999 and 1998 and cash flows for the six-month periods ended March 31, 1999 and 1998. Note 2. Investment in Associated Companies Condensed operating results of Madison Newspapers, Inc. (50% owned) and other unconsolidated associated companies are as follows (dollars in thousands): Three Months Ended Six Months Ended Marh 31, March 31, ---------------------------- ---------------------------- 1999 1998 1999 1998 ---------------------------- ---------------------------- Revenues $ 21,660 $ 20,242 $ 45,250 $ 42,027 Operating expenses, except depreciation and amortization 15,487 14,427 31,114 28,672 Income before depreciation and amortization, interest, and taxes 6,173 5,815 14,136 13,355 Depreciation and amortization 756 717 1,549 1,430 Operating income 5,417 5,098 12,587 11,925 Financial income 363 291 686 623 Income before income taxes 5,780 5,389 13,273 12,548 Income taxes 2,285 2,169 5,316 5,030 Net income 3,495 3,220 7,957 7,518 Note 3. Cash Flows Information The components of other balance sheet changes are: Six Months Ended March 31, ---------------------------- 1999 1998 ---------------------------- (In Thousands) (Increase) decrease in receivables $ 244 $(3,035) Decrease in inventories, film rights and other 1,347 3,986 (Decrease) in accounts payable, accrued expenses and unearned income (3,556) (1,689) Increase in income taxes payable 163 433 Other, primarily deferred items 651 60 ---------------------------- $(1,151) $ (245) ============================

Note 4. Change in Accounting Principles In June 1997, the FASB issued Statement No. 130 "Reporting Comprehensive Income" and Statement No. 131 "Disclosures about Segments of an Enterprise and Related Information". Statement No. 130 establishes standards for reporting comprehensive income in financial statements. Statement No. 131 expands certain reporting and disclosure requirements for segments from current standards. The Company adopted these standards effective for the fiscal year beginning October 1, 1998. The adoption of these new standards did not result in material changes to previously reported amounts or disclosures. Note 5. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands except per share amounts): Three Months Ended Six Months Ended March 31, March 31, --------------------------- --------------------------- 1999 1998 1999 1998 ---------------------------- ---------------------------- Numerator, income applicable to common shares, net income $ 11,968 $ 12,611 $ 31,607 $ 29,195 ========================================================== Denominator: Basic-weighted average common shares outstanding 44,246 44,990 44,257 45,153 Dilutive effect of employee stock options 613 793 594 751 ---------------------------------------------------------- Diluted outstanding shares 44,859 45,783 44,851 45,904 ========================================================== Earnings per share: Basic $ 0.27 $ 0.28 $ 0.71 $ 0.65 Diluted 0.27 0.28 0.70 0.64

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Operations by line of business are as follows (dollars in thousands, except per share data): Three Months Ended Percent Six Months Ended Percent March 31, Increase March 31, Increase ------------------------- -------------------------- 1999 1998 (Decrease) 1999 1998 (Decrease) ---------------------------------------------------------------------------- Revenue: Publishing $ 96,524 $ 90,398 6.8% $ 203,061 $ 190,402 6.6% Broadcasting 27,072 30,947 (12.5) 62,662 62,202 0.7 ------------------------------------- -------------------------------------- $ 123,596 $ 121,345 1.9% $ 265,723 $ 252,604 5.2% ===================================== ====================================== Income before depreciation and amortization, interest and taxes (EBITDA): * Publishing $ 30,474 $ 27,132 12.3% $ 66,194 $ 61,838 7.0% Broadcasting 4,674 8,394 (44.3) 17,202 16,817 2.3 Corporate (3,333) (2,605) (27.9) (7,293) (6,560) (11.2) ------------------------------------- -------------------------------------- $ 31,815 $ 32,921 (3.4)% $ 76,103 $ 72,095 5.6% ===================================== ====================================== Operating income: Publishing $ 24,025 $ 21,110 13.8% $ 53,302 $ 49,720 7.2% Broadcasting 1,846 5,579 (66.9) 11,653 11,259 3.5 Corporate (3,718) (2,941) (26.4) (8,002) (7,133) (12.2) ------------------------------------- -------------------------------------- $ 22,153 $ 23,748 (6.7)% $ 56,953 $ 53,846 5.8% ===================================== ====================================== Capital expenditures: Publishing $ 5,184 $ 5,696 $ 10,777 $ 8,327 Broadcasting 2,247 1,755 5,142 3,205 Corporate -- 720 382 986 -------------------------- --------------------------- $ 7,431 $ 8,171 $ 16,301 $ 12,518 ========================== =========================== * EBITDA is not a financial performance measurement under generally accepted accounting principles (GAAP), and should not be considered in isolation or a substitute for GAAP performance measurements. EBITDA is also not reflected in our consolidated statement of cash flows; but it is a common and meaningful alternative performance measurement for comparison to other companies in our industry. QUARTER ENDED MARCH 31, 1999 PUBLISHING Wholly-owned daily newspaper advertising revenue increased $2,605,000, 6.0%. Advertising revenue from local merchants increased $1,131,000, 4.8%. Local "run-of-press" advertising increased $754,000, 4.7%, as a result of a 3.7% increase in advertising inches. Local preprint revenue increased $377,000, 5.1%. Classified advertising revenue increased $650,000, 4.1%, as a result of a 4.7% increase in advertising inches offset by a decrease in average rates. Circulation revenue was flat due to promotional pricing and minimal rate increases. Other revenue consists of revenue from weekly newspapers, classified and specialty publications, commercial printing, products delivered outside the newspaper (which include activities such as target marketing and special event production) and editorial service contracts with Madison Newspapers, Inc.

Other revenue by category and by property is as follows: 1999 1998 ---------------------------- (In Thousands) Weekly newspapers, classified and specialty publications: Properties owned for entire period .......................................... $ 17,140 $ 16,657 Acquired since September 30, 1997 ........................................... 2,521 106 Commercial printing ............................................................ 3,805 3,360 Products delivered outside the newspaper ....................................... 2,938 2,831 Editorial service contracts .................................................... 2,396 2,383 ---------------------------- $ 28,800 $ 25,337 ============================ The following table sets forth the percentage of revenue of certain items in the publishing segment ............................................................. 1999 1998 ----------------------------- Revenue ........................................................................ 100.0% 100.0% ----------------------------- Compensation costs ............................................................. 35.9 36.1 Newsprint and ink .............................................................. 9.4 10.6 Other operating expenses ....................................................... 23.1 23.3 ----------------------------- 68.4 70.0 ----------------------------- Income before depreciation, amortization, interest and taxes ................... 31.6 30.0 Depreciation and amortization ................................................... 6.7 6.6 ----------------------------- Operating margin wholly-owned properties ....................................... 24.9% 23.4% ============================= QUARTER ENDED MARCH 31, 1999 Exclusive of the effects of acquisitions, costs other than depreciation and amortization increased $1,027,000, 1.6%. Compensation expense increased $1,205,000, 3.7%, due primarily to increase in average compensation. Newsprint and ink costs decreased $(616,000), (6.4%), due primarily to lower prices paid for newsprint. Other operating costs exclusive of depreciation and amortization increased $438,000, 2.1%, due to higher distribution expense and other cost increases. BROADCASTING Revenue for the quarter decreased $(3,875,000), (12.5%), as political advertising decreased $(112,000), (84.2%) and local/regional/national advertising decreased $(2,612,000), (9.9%), primarily due to the absence of the Winter Olympics advertising on our CBS-affiliates and the Super Bowl on our NBC-affiliates. Production revenue and revenues from other services decreased $(916,000), (32.4%), as a result of the discontinuance of certain production services and loss of NBA production during the strike. Advertising revenue growth may be unfavorably affected later in the year due to the absence of primary elections and increase in competitive conditions.

The following table sets forth the percentage of revenue of certain items in the broadcasting segment. 1999 1998 -------------------------- Revenue 100.0% 100.0% -------------------------- Compensation costs 46.5 42.2 Programming costs 8.7 6.7 Other operating expenses 27.5 24.0 -------------------------- 82.7 72.9 -------------------------- Income before depreciation, amortization, interest and taxes 17.3 27.1 Depreciation and amortization 10.4 9.1 -------------------------- Operating margin wholly-owned properties 6.9% 18.0% ========================== Compensation costs decreased $(478,000), (3.7%), due to decreases in incentive compensation and hours worked related to the reduced level of production services. Programming costs for the quarter increased $271,000, 13.1%, primarily due to accelerated amortization on new programming. Other operating expenses, exclusive of depreciation and amortization, increased $52,000, .7%, due to reduced costs related to production services which offset other cost increases. CORPORATE COSTS Corporate costs increased by $777,000, 26.4%. The prior year period costs were lower due to one time cost reduction. QUARTER ENDED MARCH 31, 1999 FINANCIAL EXPENSE AND INCOME TAXES Interest expense decreased due to payments on long-term debt. Income taxes were 38.3% and 38.8% of pretax income for the quarters ended March 31, 1999 and 1998, respectively. SIX MONTHS ENDED MARCH 31, 1999 PUBLISHING Wholly-owned daily newspaper advertising revenue increased $5,490,000, 5.8%. Advertising revenue from local merchants increased $3,178,000, 5.8%. Local "run-of-press" advertising increased $2,553,000, 6.9%, as a result of a 6.4% increase in advertising inches. Local preprint revenue increased $625,000, 3.5%. Classified advertising revenue increased $1,349,000, 4.3%, as a result of higher averages rates and a 1% increase in advertising inches. The employment category was the biggest contributor to the increase. Circulation revenue was flat due to promotional pricing and minimal rate increases. Other revenue consists of revenue from weekly newspapers, classified and specialty publications, commercial printing, products delivered outside the newspaper (which include activities such as target marketing and special event production) and editorial service contracts with Madison Newspapers, Inc.

Other revenue by category and by property is as follows: 1999 1998 ------------------------------- (In Thousands) Weekly newspapers, classified and specialty publications: Properties owned for entire period $ 34,662 $ 33,199 Acquired since September 30, 1997 4,370 106 Commercial printing 7,952 7,180 Products delivered outside the newspaper 5,939 5,409 Editorial service contracts 4,593 4,502 ------------------------------- $ 57,516 $ 50,396 =============================== SIX MONTHS ENDED MARCH 31, 1999 The following table sets forth the percentage of revenue of certain items in the publishing segment. 1999 1998 ------------------------------ Revenue 100.0% 100.0% ------------------------------ Compensation costs 34.8 34.4 Newsprint and ink 9.8 10.6 Other operating expenses 22.8 22.5 ------------------------------ 67.4 67.5 ============================== Income before depreciation, amortization, interest and taxes 32.6 32.5 Depreciation and amortization 6.3 6.4 ------------------------------ Operating margin wholly-owned properties 26.3% 26.1% ============================== Exclusive of the effects of acquisitions, costs other than depreciation and amortization increased $5,065,000, 3.9%. Compensation expense increased $3,622,000, 5.5%, due primarily to increase in average compensation. Newsprint and ink costs decreased $(467,000), (2.3%), due primarily to lower prices paid for newsprint. Other operating costs exclusive of depreciation and amortization increased $1,910,000, 4.5%, due to higher distribution expenses and other cost increases. BROADCASTING Revenue increased $460,000, .7%, political advertising increased $4,925,000, 759.4% while local/regional/national advertising decreased $(2,610,000), (4.9%), primarily due to the absence of the Winter Olympics advertising on our CBS-affiliates and the Super Bowl on our NBC-affiliates in the second quarter. Production revenue and revenues from other services decreased $(1,284,000), (25.0%), as a result of the discontinuance of certain production services and loss of NBA production during the strike.

The following table sets forth the percentage of revenue of certain items in the broadcasting segment. 1999 1998 ------------------------- Revenue 100.0% 100.0% -------------------------- Compensation costs 41.2 41.5 Programming costs 7.5 6.9 Other operating expenses 23 .8 24.6 -------------------------- 72.5 73.0 -------------------------- Income before depreciation, amortization, interest and taxes 27.5 27.0 Depreciation and amortization 8.9 8.9 -------------------------- Operating margin wholly-owned properties 18.6% 18.1% ========================== SIX MONTHS ENDED MARCH 31,1999. Compensation costs were flat as higher average rates were offset by a reduction in the hours worked related to production services and to a lesser extent reductions in incentive compensation. Programming costs for the period increased $409,000, 9.5%, primarily due to accelerated amortization on new programming. Other operating expenses, exclusive of depreciation and amortization, decreased $(339,000), (2.2%) due to a reduced level of production services which offset other cost increases. CORPORATE COSTS Corporate costs increased by $869,000, 12.2%. The increase occurred in the second quarter as previously discussed. FINANCIAL EXPENSE AND INCOME TAXES Interest expense decreased due to payments on long-term debt. Income taxes were 38.2% and 38.6% of pretax income for the six months ended March 31, 1999 and 1998, respectively. LIQUIDITY AND CAPITAL RESOURCES Cash provided by operations, which is the Company's primary source of liquidity, generated $51,256,000 for the six month period ended March 31, 1999. Available cash balances, cash flow from operations, and a $50,000,000 bank line of credit provide adequate liquidity. Covenants related to the Company's credit agreement are not considered restrictive to operations and anticipated stockholder dividends. YEAR 2000 The Year 2000 issue concerns the inability of information technology (IT) systems and equipment utilizing microprocessors to recognize and process date-sensitive information after 1999 due to the use of only the last two digits to refer to a year. This problem could affect both computer software and hardware and other equipment that relies on microprocessors. Management has completed a company-wide evaluation of this impact on its IT systems and its date-sensitive publishing equipment. The evaluation of critical broadcasting equipment is continuing. Year 2000 software updates for identified critical date-sensitive broadcasting equipment have been obtained and will be tested by June 30, 1999. Broadcasting equipment is believed to be 80% tested and Year 2000 compliant. Renovation and testing have been completed on all significant IT systems that utilize company-developed software that were not Year 2000 compliant. The Company has received representations and completed testing to determine that significant software developed by others is Year 2000 compliant. Installation of a new Year 2000-compliant financial system is approximately 90% complete and is planned to be complete by July 31, 1999. Testing of computer hardware for IT systems is approximately 90% complete. Renovation efforts and testing of systems/equipment are expected to be complete by June 30, 1999.

The Company will monitor the progress of material vendors and suppliers whose uninterrupted delivery of product or service is material to the production or distribution of our print and broadcast products in their efforts to become Year 2000 compliant. Material vendors and suppliers include electric utilities, telecommunications, news and content providers, television networks, other television programming suppliers, the U.S. Postal Service, and financial institutions. From September 30, 1994 through March 31, 1999, the Company has spent approximately $500,000 to address Year 2000 issues for IT systems (exclusive of the cost of the new financial, newspaper production and other systems that were scheduled to be replaced before the year 2000 for reasons other than Year 2000 compliance). Total costs to address Year 2000 issues for IT systems are currently estimated to be less than $1,000,000 and consist primarily of staff and consultant costs. Year 2000 remediation will require the replacement of telephone switches and software at a cost of $600,000 to $1,000,000. Through March 31, 1999 approximately $300,000 had been spent for new telephone equipment. Funds for these costs are expected to be provided by the operating cash flows or bank line of credit of the Company. The Company could be faced with severe consequences if Year 2000 issues are not identified and resolved in a timely manner by the Company and material third parties. A worst-case scenario would result in the short-term inability of the Company to produce/distribute newspapers or broadcast television programming due to unresolved Year 2000 issues. This would result in lost revenues; however, the amount would be dependent on the length and nature of the disruption, which cannot be predicted or estimated. In light of the possible consequences, the Company is devoting the resources needed to address Year 2000 issues in a timely manner. Management monitors the progress of the Company's Year 2000 efforts and provides update reports to the audit committee of the Board of Directors at each meeting. While management expects a successful resolution of these issues, there can be no guarantee that material third parties, on which the Company relies, will address all Year 2000 issues on a timely basis or that their failure to successfully address all issues would not have an adverse effect on the Company. The Company is in the process of reviewing its existing contingency plans in case business interruptions do occur. Management expects the review of these plans to be complete by June 30, 1999. SAFE HARBOR STATEMENT This report contains certain forward-looking statements that are based largely on the Company's current expectations and are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends, and uncertainties are changes in advertising demand, newsprint prices, interest rates, regulatory rulings, availability of quality broadcast programming at competitive prices; quality and ratings of network over-the-air broadcast programs, legislative or regulatory initiatives affecting the cost of delivery of over-the-air broadcast programs to the Company's customers, and other economic conditions and the effect of acquisitions, investments, and dispositions on the Company's results of operations or financial condition. The words "believe," "expect," "anticipate," "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 as of the date of this report. Further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, is included in the Company's annual report on Form 10-K.

LEE ENTERPRISES, INCORPORATED PART II. OTHER INFORMATION Item 4. Submission of matters a vote of security holders (a) The annual meeting of the Company was held on January 26, 1999. (b) Rance E. Crain, Richard D. Gottlieb, and Phyllis Sewell were re-elected directors of three-year terms expiring at the 2002 annual meeting. Lloyd G. Schermer was re-elected as a director for a one-year term expiring at the 2000 annual meeting. Directors whose terms of office continued after the meeting include: J.P. Guerin, Charles E. Rickershauser, Jr., Mark Vittert, Andrew E. Newman, Ronald L. Rickman, Gordon D. Prichett and William E. Mayer. (c) Votes were cast, all by proxy, for nominees for director as follows: Vote For Withheld ------------------------------ Rance E. Crain 111,627,978 1,362,617 Richard D. Gottlieb 111,516,213 1,474,382 Phyllis Sewell 111,235,400 1,755,195 Lloyd G. Schermer 111,210,414 1,780,181 Abstentions and broker non-votes were not significant. (d) Not applicable Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: (b) There were no reports on Form 8-K required to be filed during the quarter for which this report is filed.

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LEE ENTERPRISES, INCORPORATED Date May 6, 1999 /s/ G. C. Wahlig, Chief Accounting Officer ------------------------ ------------------------------------------- G. C. Wahlig, Chief Accounting Officer

5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH 31, 1999 FORM 10-Q OF LEE ENTERPRISES, INCORPORATED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 6-MOS SEP-30-1999 MAR-31-1999 15,859 0 64,900 4,701 3,344 91,617 314,642 180,183 652,126 72,210 186,133 0 0 88,636 247,637 652,126 261,745 265,273 0 0 208,770 0 7,252 51,152 19,545 31,607 0 0 0 31,607 .71 .70