Lee Enterprises (LEE) 8-K Regulation FD Disclosure

Exhibit 99.1 - Supplemental Financial Information – Second fiscal quarter ended March 26, 2017.

201 N. Harrison St.

Davenport, IA 52801

www.lee.net

13 Weeks Ended (unaudited)
	March 26, 2017						March 27, 2016
(in thousands)	Consolidated		Lee Legacy		Pulitzer Inc.		Consolidated		Lee Legacy	Pulitzer Inc.
Operating revenue:
Advertising and marketing services	77,533		54,601		22,932		88,731		62,247	26,484
Subscription	45,009		31,349		13,660		46,658		32,300	14,358
Other	10,845		8,981		1,864		11,446		9,723	1,723
Total operating revenue	133,387		94,931		38,456		146,835		104,270	42,565
Operating expenses:
Compensation	52,414		40,138		12,276		58,850		44,754	14,096
Newsprint and ink	6,200		4,279		1,921		6,053		4,559	1,494
Other cash costs	48,756		28,232		20,524		54,107		30,970	23,137
Depreciation and amortization	10,318		7,391		2,927		10,941		7,673	3,268
Loss (gain) on sale of assets, net	(3,783	)	(3,714	)	(69	)	(438	)	96	(534	)
Workforce adjustments	2,405		1,560		845		588		571	17
Total operating expenses	116,310		77,886		38,424		130,101		88,623	41,478
Equity in earnings of MNI and TNI	1,729		465		1,264		2,009		645	1,364
Operating income	18,806		17,510		1,296		18,743		16,292	2,451
Non-operating income (expense), net	(11,285	)	(12,152	)	867		13,129		12,358	771
Income tax expense	1,144		359		785		12,389		11,218	1,171
Net income	6,377		4,999		1,378		19,483		17,432	2,051

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	6,377		4,999		1,378		19,483		17,432		2,051
Adjusted to exclude
Non-operating expenses, net	11,285		12,152		(867	)	(13,129	)	(12,358	)	(771	)
Income tax expense	1,144		359		785		12,389		11,218		1,171
Equity in earnings of TNI and MNI	(1,729	)	(465	)	(1,264	)	(2,009	)	(645	)	(1,364	)
Depreciation and amortization	10,318		7,391		2,927		10,941		7,673		3,268
Loss (gain) on sale of assets, net	(3,783	)	(3,714	)	(69	)	(438	)	96		(534	)
Workforce adjustments	2,405		1,560		845		588		571		17
Stock compensation	559		559		—		594		594		—
Add:
Ownership share of TNI and MNI EBITDA (50%)	2,220		852		1,368		2,711		1,242		1,469
Adjusted EBITDA	28,796		23,693		5,103		31,130		25,823		5,307
Supplemental cash flow information
Distributions from MNI and TNI	2,437		1,000		1,437		4,501		2,250		2,251
Capital expenditures	(989	)	(953	)	(36	)	(1,801	)	(1,644	)	(157	)
Pension contributions	—		—		—		(744	)	—		(744	)
Cash income tax refunds (payments)	(269	)	(269	)	—		(282	)	(282	)	—
Interest income	109		109		—		110		110		—
Interest to be settled in cash	(14,637	)	(10,747	)	(3,890	)	(16,281	)	(12,151	)	(4,130	)

26 Weeks Ended (unaudited)
	March 26, 2017						March 27, 2016
(in thousands)	Consolidated		Lee Legacy		Pulitzer Inc.		Consolidated		Lee Legacy		Pulitzer Inc.
Operating revenue:
Advertising and marketing services	170,568		118,706		51,862		194,368		134,685		59,683
Subscription	93,896		65,366		28,530		97,089		66,839		30,250
Other	22,912		18,970		3,942		23,783		20,130		3,653
Total operating revenue	287,376		203,042		84,334		315,240		221,654		93,586
Operating expenses:
Compensation	107,470		82,191		25,279		117,514		89,601		27,913
Newsprint and ink	13,093		9,181		3,912		12,738		9,706		3,032
Other cash costs	101,533		59,456		42,077		112,977		65,038		47,939
Depreciation and amortization	20,698		14,801		5,897		21,884		15,308		6,576
Loss (gain) on sale of assets, net	(3,716	)	(3,715	)	(1	)	(1,409	)	133		(1,542	)
Workforce adjustments	2,470		1,622		848		1,192		1,114		78
Total operating expenses	241,548		163,536		78,012		264,896		180,900		83,996
Equity in earnings of MNI and TNI	4,417		1,600		2,817		4,808		1,828		2,980
Operating income	50,245		41,106		9,139		55,152		42,582		12,570
Non-operating income (expense), net	(24,017	)	(25,727	)	1,710		(4,626	)	(6,098	)	1,472
Income tax expense	7,410		3,470		3,940		19,535		14,435		5,100
Net income	18,818		11,909		6,909		30,991		22,049		8,942

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	18,818		11,909		6,909		30,991		22,049		8,942
Adjusted to exclude
Non-operating expenses, net	24,017		25,727		(1,710	)	4,626		6,098		(1,472	)
Income tax expense	7,410		3,470		3,940		19,535		14,435		5,100
Equity in earnings of TNI and MNI	(4,417	)	(1,600	)	(2,817	)	(4,808	)	(1,828	)	(2,980	)
Depreciation and amortization	20,698		14,801		5,897		21,884		15,308		6,576
Loss (gain) on sale of assets, net	(3,716	)	(3,715	)	(1	)	(1,409	)	133		(1,542	)
Workforce adjustments	2,470		1,622		848		1,192		1,114		78
Stock compensation	1,083		1,083		—		1,164		1,164		—
Add:
Ownership share of TNI and MNI EBITDA (50%)	5,696		2,670		3,026		6,519		3,330		3,189
Adjusted EBITDA	72,059		55,967		16,092		79,694		61,803		17,891
Supplemental cash flow information:
Distributions from MNI and TNI	4,670		2,250		2,420		7,729		4,000		3,729
Capital expenditures	(2,079	)	(1,879	)	(200	)	(3,271	)	(2,846	)	(425	)
Pension contributions	—		—		—		(1,488	)	—		(1,488	)
Cash income tax refunds (payments)	(639	)	(635	)	(4	)	(271	)	(271	)	—
Interest income	184		184		—		185		185		—
Interest to be settled in cash	(29,588	)	(21,797	)	(7,791	)	(33,423	)	(25,035	)	(8,388	)
Debt financing and administrative costs	—		—		—		(44	)	—		(44	)