Lee Enterprises (LEE) 8-K Regulation FD Disclosure

Exhibit 99.1 - Supplemental Financial Information – First fiscal quarter ended December 25, 2016.

201 N. Harrison St.

Davenport, IA 52801

www.lee.net

13 Weeks Ended (unaudited)
	December 25, 2016					December 27, 2015
(in thousands)	Consolidated		Lee Legacy		Pulitzer Inc.	Consolidated		Lee Legacy		Pulitzer Inc.
Operating revenue:
Advertising and marketing services	93,035		64,105		28,930	105,637		72,438		33,199
Subscription	48,888		34,018		14,870	50,430		34,538		15,892
Other	12,066		9,988		2,078	12,338		10,408		1,930
Total operating revenue	153,989		108,111		45,878	168,405		117,384		51,021
Operating expenses:
Compensation	55,056		42,053		13,003	58,665		44,848		13,817
Newsprint and ink	6,893		4,902		1,991	6,685		5,147		1,538
Other cash costs	52,777		31,224		21,553	58,869		34,067		24,802
Depreciation and amortization	10,380		7,410		2,970	10,943		7,635		3,308
Loss (gain) on sale of assets, net	68		—		68	(971	)	37		(1,008	)
Workforce adjustments	65		62		3	604		543		61
Total operating expenses	125,239		85,651		39,588	134,795		92,277		42,518
Equity in earnings of MNI and TNI	2,689		1,136		1,553	2,799		1,183		1,616
Operating income	31,439		23,596		7,843	36,409		26,290		10,119
Non-operating income (expense), net	(12,733	)	(13,576	)	843	(17,754	)	(18,454	)	700
Income tax expense	6,266		3,111		3,155	7,147		3,218		3,929
Net income	12,440		6,909		5,531	11,508		4,618		6,890

Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:

Net Income	12,440		6,909		5,531		11,508		4,618		6,890
Adjusted to exclude
Non-operating expenses, net	12,733		13,576		(843	)	17,754		18,454		(700	)
Income tax expense	6,266		3,111		3,155		7,147		3,218		3,929
Equity in earnings of TNI and MNI	(2,689	)	(1,136	)	(1,553	)	(2,799	)	(1,183	)	(1,616	)
Depreciation and amortization	10,380		7,410		2,970		10,943		7,635		3,308
Loss (gain) on sale of assets, net	68		—		68		(971	)	37		(1,008	)
Workforce adjustments	65		62		3		604		543		61
Stock compensation	524		524		—		570		570		—
Add:
Ownership share of TNI and MNI EBITDA (50%)	3,476		1,818		1,658		3,809		2,088		1,721
Adjusted EBITDA	43,263		32,274		10,989		48,565		35,980		12,585
Supplemental cash flow information
Distributions from MNI and TNI	2,233		1,250		983		3,229		1,750		1,479
Capital expenditures	(1,090	)	(926	)	(164	)	(1,470	)	(1,203	)	(267	)
Pension contributions	—		—		—		(744	)	—		(744	)
Cash income tax refunds (payments)	(370	)	(366	)	(4	)	11		11		—
Interest income	75		(768	)	843		76		(621	)	697
Interest to be settled in cash	(14,952	)	(11,051	)	(3,901	)	(17,142	)	(12,885	)	(4,257	)
Debt financing and administrative costs	—		—		—		(44	)	—		(44	)