Lee Enterprises: High Risk And Very High Potential Return
Jonah Jones, CFA • 11 Comments
Jonah Jones, CFA • 11 Comments
Lee Enterprises' Shares May Double Again
Thu, May 5, 8:36 PM
- Lee Enterprises (NYSE:LEE) slid 10.3% today, denting YTD gains of more than 32%, after its fiscal Q2 earnings were flat from a year ago after excluding extraordinary items.
- On a headline basis, the publisher posted EPS of $0.36 vs. a year-ago $0.03, after recording a $30.6M gain from an insurance settlement. Adjusted EBITDA came to $31.1M, down 7.5% from a year ago.
- Revenue by segment: Advertising and Marketing services, $88.7M (down 9.5%); Subscription, $46.7M (down 3%); Digital Services, $3.4M (up 11.5%); Commercial printing, $3M (up 9.7%); other, $4.99M (up 8.6%).
- Average daily newspaper circulation totaled 1M; Sunday circulation came to 1.3M.
- CEO Kevin Mowbray pointed to "significant" debt reduction efforts, as "we continue to use substantially all of our free cash flow to pay down debt ... In the second quarter of 2016, we reduced debt by more than $47 million, reducing the company's leverage, net of cash, to 4.0 times the last 12 months adjusted EBITDA."
- Debt reduction cut interest expense by $2.1M in Q2 and $3.8M YTD. Total debt at quarter's end was $656.5M; unlevered free cash flow was $30.6M.
- Press Release
Thu, May 5, 6:37 AM
Thu, Feb. 4, 12:27 PM
- Lee Enterprises (NYSE:LEE) is among the biggest media decliners, slipping 7.1% today after fiscal Q1 earnings showed operating revenues dropping 5% Y/Y and adjusted EBITDA slipping 3.6%.
- Digital ad revenue grew 7.2%; of that, mobile advertising grew 12.4%. About half the company's revenue now comes from growing categories.
- Ad and marketing services revenue breakout: Retail, $70.6M (down 8.4%); Classified, $25.4M (down 13.4%); National, $6.7M (down 5.7%); Niche and other, $2.9M (up 27.1%).
- In other revenues: Subscription, $50.4M (up 0.1%); Commercial printing, $3.2M (up 14.6%); Digital services, $3.3M (up 5.7%).
- The company's undergoing across the board redesigns, with print products changing up in many markets and all websites changing to a new design this year.
- Operating cash flow dropped 5.2% (down 4.3%, excluding workforce adjustments) to $43.6M.
Thu, Feb. 4, 7:05 AM
- Lee (NYSE:LEE): FQ1 EPS of $0.22
- Revenue of $168.4M (-5.0% Y/Y)
Dec. 10, 2015, 6:59 AM
Nov. 12, 2015, 6:22 PM
- Lee Enterprises (LEE -2.1%) issued some preliminary summary numbers for its fiscal Q4, highlighting operating cash flow growth of 5% Y/Y and adjusted cost reductions of 7.8%, above guidance for cuts of 5.5%-6%.
- It's scheduled to release its full fourth-quarter results along with those for fiscal 2015 on Dec. 10.
- In its preliminary look, total operating revenues have fallen 4% to $156.1M, and total operating expenses fell to $131.4M. Operating income rose 29.6% to $26.8M.
- It's projecting adjusted EBITDA to come in at $39.97M (up 7.5%).
Nov. 12, 2015, 5:25 PM
- Lee (NYSE:LEE): FQ4 EBITDA of $40M.
- Revenue of $156.1M (-4.4% Y/Y) misses by $2.5M.
Aug. 6, 2015, 7:33 AM
- Lee (NYSE:LEE): FQ3 EPS of $0.09 misses by $0.03.
- Revenue of $157.55M (-3.4% Y/Y) misses by $1.48M.
May 7, 2015, 3:51 PM
- Local-news firm Lee Enterprises (NYSE:LEE) has climbed to a 5.3% gain today after reporting fiscal Q2 earnings where it beat expectations on top and bottom lines and cut comparable cash costs, while guiding to further decreases in 2015.
- Digital ad revenue was up 8.3%, while the mobile ad component of that rose 37.9%. More tellingly, perhaps, is that subscription revenue increased 4.7% even after adjustment.
- Cash costs fell 0.2% excluding impact from an expense reclassification, and the company says full-year cash costs on the same basis to fall between 2.25% and 2.75%.
- The company reduced debt $20.3M to a principal amount of $764.3M. Unlevered free cash flow was $31.4M, compared to a year-ago $32.2M.
May 7, 2015, 8:48 AM
- Lee (NYSE:LEE): FQ2 EPS of $0.02 beats by $0.03.
- Revenue of $155.53M (+3.3% Y/Y) beats by $5.04M.
Feb. 5, 2015, 8:34 AM
- Lee (NYSE:LEE): FQ1 EPS of $0.22.
- Revenue of $176.15M (-0.7% Y/Y).
Feb. 3, 2015, 10:17 AM
- The New York Times Co. (NYSE:NYT) is up 5.9% on news of its Q4 earnings beat.
- Digital ad growth of 19% is seen as encouraging as the company wrestles with slipping print advertising revenue.
- News peers are also trading higher today: (GCI +2.8%), (SSP +2.9%), (LEE +3.4%), (AHC +2.5%).
- The NYT conference call comes up at 11 a.m.
Jan. 28, 2015, 4:45 PM
Dec. 11, 2014, 7:09 AM
- Lee (NYSE:LEE): FQ4 EPS of $0.02
- Revenue of $157.65M (-3.0% Y/Y) misses by $0.39M.
Aug. 7, 2014, 8:47 AM
- Lee (NYSE:LEE): FQ3 EPS of $0.11
- Revenue of $163.1M (-2.3% Y/Y)
Lee Enterprises, Inc. provides local news, information, marketing and advertising services. It offers its services in midsize markets with daily newspapers and specialty publications, including Midwest, mountain west and west regions of the United States. The company offers Retail, Classified,... More
Industry: Publishing - Newspapers
Country: United States
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