Lee Enterprises, IncorporatedNYSE
Lee Enterprises: High Risk And Very High Potential Return
Jonah Jones, CFA • 11 Comments
Jonah Jones, CFA • 11 Comments
Fri, Sep. 2, 4:39 PM
- Marc Wilson has been named executive chairman of TownNews.com, the unit of Lee Enterprises (LEE +9.5%) formerly known as the International Newspaper Network.
- Wilson is currently the CEO; he'll give up that post to Brad Ward, currently the company's chief operating officer, effective Oct. 1.
- Ward joined TownNews.com in 2000. The subsidiary provides regional publishing technology across the country.
Mon, Aug. 22, 9:22 AM
- Lee Enterprises (NYSE:LEE) is up 2.7% premarket on news that it's selling its assets in Provo, Utah -- the Daily Herald and heraldextra.com -- to Ogden Newspapers.
- Terms were undisclosed. The sale's expected to close in a week.
- The Provo print newspaper reaches about 20,000 each day and almost 27,000 on Sunday, while the Web property has about 700,000 unique visitors per month.
- Ogden Newspapers publishes 40 dailies along with a number of magazines, weekly papers and shoppers across 14 states.
Thu, Aug. 4, 1:20 PM
- Lee Enterprises (NYSE:LEE) is a top media gainer today, up 6.9% after fiscal Q3 earnings where profits more than doubled from last year though revenue fell nearly 5%.
- Along with revenue, the company is cutting costs (total cash costs fell 4.3%) and saving interest by repaying debt. Adjusted EBITDA was $36.9M.
- Revenue breakout: Advertising and marketing services, $92.3M (down 8.6%); Subscription, $47.2M (down 0.5%); Digital services, $3.5M (up 15.3%); Commercial printing, $3.1M (down 3.8%); other, $4.8M (up 19.6%).
- In advertising, digital advertising increased 4.9% overall; mobile advertising was up 22.2% and national digital advertising rose 15.8%.
- From here, the company says it expects to direct all of its interest savings toward further debt reduction "as we continue to use all our available free cash flow to reduce debt." Debt principal came to $640.3M as of June 26.
- The company expects cash costs for the full year to fall 3.75%-4% (vs. previous estimate of 3.5%-4%).
- Press Release
Thu, Aug. 4, 6:48 AM
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.
Thu, May 5, 6:37 AM
- Lee (NYSE:LEE): FQ2 EPS of -$0.01
- Revenue of $146.84M (-6.2% Y/Y)
Wed, Feb. 24, 5:27 PM
- Lee Enterprises (LEE -5.2%) is putting its money where its debt-reduction plans were, by announcing a repurchase of another $10M of its 9.5% notes at an "attractive discount."
- The company used proceeds from an insurance settlement to buy back the debt and reduce one of its higher costs of capital, said CFO Ron Mayo.
- At Lee's annual meeting, newly elected Executive Chairman Mary Junck said the company would pursue "aggressive deleveraging" with a steady free cash flow.
Tue, Feb. 23, 6:50 PM
- In a filing, Lee Enterprises (NYSE:LEE) has detailed compensation for execs after its recent rearrangement.
- New Executive Chairman (but former chairman, president and CEO) Mary Junck will receive a reduced salary of $575,000 in her new role. Her annual cash bonus award targeted to AOCF goals is another $575,000.
- Meanwhile, new president and CEO Kevin Mowbray (formerly executive VP and COO) will get a salary bump to $700,000. His AOCF-targeted cash bonus award is another $700,000. He also received an incentive-based restricted stock target award of 150K shares.
Wed, Feb. 17, 11:19 AM
- Lee Enterprises (NYSE:LEE) elected longtime CEO Mary Junck its executive chairman, and named COO Kevin Mowbray the new CEO and president, formalizing a transition begun in December.
- The moves came at Lee's annual meeting. Mowbray also joined the board of directors. Herbert Moloney, a member of the board since 2001, has been re-elected as well.
- At the meeting, Junck noted that digital revenues are on a "strong trajectory," margins are strong, and steady free cash flow will keep fueling "aggressive deleveraging." At last report, the company had $704M in total debt.
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. 17, 2015, 5:00 PM
- Publisher Lee Enterprises (NYSE:LEE) has set a leadership transition to start with its annual meeting in February, tapping Kevin Mowbray as its new president and CEO.
- Mary Junck, the current chairman, president and CEO, will become executive chairman. She's been CEO for 15 years.
- "The board has total confidence in both Kevin and Mary, and we're thankful for Mary's careful planning of this transition," said lead independent director Herb Moloney.
- Mowbray is a 29-year veteran of the company and is its current executive VP and chief operating officer. He's been COO since 2013 and previously was publisher of the firm's flagship St. Louis Post-Dispatch.
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.
Oct. 28, 2015, 11:47 AM
- McClatchy's (MNI +3%) Tru Measure unit will power digital marketing and ad offerings to small and mid-sized business customers of Lee Enterprises (LEE +2.6%) in a new deal.
- Lee will launch Tru Measure's "Tru Local" digital agency solution to build and amnage ad campaigns for its local markets.
- The offering also promises customizable analytics including "a combination of historical pre- and post-click data and analysis" to better show ROI for ad spending.
- Lee publishes 50 daily newspapers and 300 specialty publications across 22 states; its online sites have more than 26M unique visitors/month.