Lee Enterprises Inc. (LEE, Financial) filed Quarterly Report for the period ended 2008-12-28.
LEE ENTERPRISES INC. is a premier publisher of local news information and advertising in primarily midsize markets with 50 daily newspapers and a joint interest in four others rapidly growing online sites and more than 300 weekly newspapers and specialty publications in 23 states. Lee?s newspapers have circulation of 1.6 million daily and 1.9 million Sunday reaching more than four million readers daily. Lee?s online sites attract 12 million unique visitors monthly and Lee?s weekly publications have distribution of more than 4.5 million households. Lee?s other newspaper markets include St. Louis Mo.; Lincoln Neb.; Madison Wis.; Davenport Iowa; Billings Mont.; Bloomington Ill.; and Tucson Ariz. Lee Enterprises Inc. has a market cap of $14.51 million; its shares were traded at around $0.31 with a P/E ratio of 0.4 and P/S ratio of 0.01. Lee Enterprises Inc. had an annual average earning growth of 6.5% over the past 10 years.
On a combined basis, print and online classified revenue decreased 27.1%. Same property print classified advertising revenue decreased $15,544,000, or 26.2%, for the 13 weeks ended December 28, 2008. Higher rate print employment advertising at the daily newspapers decreased 43.5% for the period on a same property basis. Same property print automotive advertising decreased 26.3% amid an industry-wide decline. Same property print real estate advertising decreased 29.6% in a weak housing market nationally, which also negatively impacted the home improvement, furniture and home electronics categories of retail revenue. Other daily newspaper print classified advertising increased 0.6% on a same property basis. Same property classified advertising rates decreased 12.6%.
National advertising decreased $731,000, or 5.4%, on a same property basis due to a 17.8% decline in lineage offset by a 13.7% increase in average national rate. Advertising in niche publications decreased 8.9% on a same property basis.
Circulation revenue decreased $2,249,000, or 4.5%, in the 13 weeks ended December 28, 2008, and same property circulation revenue decreased $2,245,000, or 4.5%. The Companys unaudited average daily newspaper circulation units, including TNI and MNI, decreased 5.1% and Sunday circulation decreased 3.2% for the 13 weeks ended December 28, 2008, compared to the prior year period. Discontinuation of daily publication of The Capital Times in Madison, WI and the South Idaho Press in Burley, ID magnified the decrease in daily circulation units. Company research in its larger markets indicates it is reaching an increasingly larger audience in these markets through modest growth in newspaper readership and rapid online growth, as well as through additional specialty and niche publications.
Compensation expense decreased $13,711,000, or 12.7%, in the 13 weeks ended December 28, 2008 and same property compensation expense decreased 12.1% driven primarily by a decline in same property full time equivalent employees of 10.7%. Bonus programs and employee benefits have also been substantially reduced and stock compensation grants have been suspended.
As a result of the above operating cash flow decreased $19,303,000, or 26.6%, in the current year period. Operating cash flow margin decreased to 21.8% from 25.9% in the prior year period. Same property operating cash flow margin decreased to 24.1%, from 28.4% in the prior year period.
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LEE ENTERPRISES INC. is a premier publisher of local news information and advertising in primarily midsize markets with 50 daily newspapers and a joint interest in four others rapidly growing online sites and more than 300 weekly newspapers and specialty publications in 23 states. Lee?s newspapers have circulation of 1.6 million daily and 1.9 million Sunday reaching more than four million readers daily. Lee?s online sites attract 12 million unique visitors monthly and Lee?s weekly publications have distribution of more than 4.5 million households. Lee?s other newspaper markets include St. Louis Mo.; Lincoln Neb.; Madison Wis.; Davenport Iowa; Billings Mont.; Bloomington Ill.; and Tucson Ariz. Lee Enterprises Inc. has a market cap of $14.51 million; its shares were traded at around $0.31 with a P/E ratio of 0.4 and P/S ratio of 0.01. Lee Enterprises Inc. had an annual average earning growth of 6.5% over the past 10 years.
Highlight of Business Operations:
In 2005, the Company acquired Pulitzer. Pulitzer published 14 daily newspapers, including the St. Louis Post-Dispatch, and more than 100 weekly newspapers and specialty publications. Pulitzer also owned a 50% interest in TNI. The acquisition of Pulitzer increased the Companys circulation by more than 50% to more than 1.6 million daily and 1.9 million Sunday, and revenue, on an annualized basis, by more than 60% at that time. In 2006, the Company sold the assets of The Daily News in Rhinelander, Wisconsin, the smallest of these newspapers. In 2008, the Company sold the assets of The Daily Chronicle in DeKalb, Illinois.On a combined basis, print and online classified revenue decreased 27.1%. Same property print classified advertising revenue decreased $15,544,000, or 26.2%, for the 13 weeks ended December 28, 2008. Higher rate print employment advertising at the daily newspapers decreased 43.5% for the period on a same property basis. Same property print automotive advertising decreased 26.3% amid an industry-wide decline. Same property print real estate advertising decreased 29.6% in a weak housing market nationally, which also negatively impacted the home improvement, furniture and home electronics categories of retail revenue. Other daily newspaper print classified advertising increased 0.6% on a same property basis. Same property classified advertising rates decreased 12.6%.
National advertising decreased $731,000, or 5.4%, on a same property basis due to a 17.8% decline in lineage offset by a 13.7% increase in average national rate. Advertising in niche publications decreased 8.9% on a same property basis.
Circulation revenue decreased $2,249,000, or 4.5%, in the 13 weeks ended December 28, 2008, and same property circulation revenue decreased $2,245,000, or 4.5%. The Companys unaudited average daily newspaper circulation units, including TNI and MNI, decreased 5.1% and Sunday circulation decreased 3.2% for the 13 weeks ended December 28, 2008, compared to the prior year period. Discontinuation of daily publication of The Capital Times in Madison, WI and the South Idaho Press in Burley, ID magnified the decrease in daily circulation units. Company research in its larger markets indicates it is reaching an increasingly larger audience in these markets through modest growth in newspaper readership and rapid online growth, as well as through additional specialty and niche publications.
Compensation expense decreased $13,711,000, or 12.7%, in the 13 weeks ended December 28, 2008 and same property compensation expense decreased 12.1% driven primarily by a decline in same property full time equivalent employees of 10.7%. Bonus programs and employee benefits have also been substantially reduced and stock compensation grants have been suspended.
As a result of the above operating cash flow decreased $19,303,000, or 26.6%, in the current year period. Operating cash flow margin decreased to 21.8% from 25.9% in the prior year period. Same property operating cash flow margin decreased to 24.1%, from 28.4% in the prior year period.
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