Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 27, 2020 | Jan. 31, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000058361 | |
Entity Registrant Name | LEE ENTERPRISES, INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-26 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6227 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-0823980 | |
Entity Address, Address Line One | 4600 E. 53rd Street | |
Entity Address, City or Town | Davenport | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 52807 | |
City Area Code | 563 | |
Local Phone Number | 383-2100 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | LEE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 58,764,532 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 27, 2020 | Sep. 27, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 37,142,000 | $ 33,733,000 |
Accounts receivable and contract assets, net | 68,031,000 | 52,598,000 |
Inventories | 6,957,000 | 7,534,000 |
Prepaids and other | 13,690,000 | 14,888,000 |
Total current assets | 125,820,000 | 108,753,000 |
Investments: | ||
Associated companies | 28,204,000 | 27,624,000 |
Other | 6,424,000 | 6,255,000 |
Total investments | 34,628,000 | 33,879,000 |
Property and equipment: | ||
Land and improvements | 17,964,000 | 18,711,000 |
Buildings and improvements | 116,397,000 | 128,475,000 |
Equipment | 236,332,000 | 245,117,000 |
Construction in process | 3,526,000 | 2,323,000 |
Property, Plant and Equipment, Gross, Ending Balance | 374,219,000 | 394,626,000 |
Less accumulated depreciation | 278,643,000 | 289,017,000 |
Property and equipment, net | 95,576,000 | 105,609,000 |
Operating lease right-of-use assets | 71,579,000 | 70,933,000 |
Goodwill | 328,848,000 | 328,445,000 |
Other intangible assets, net | 176,887,000 | 182,680,000 |
Other | 13,132,000 | 13,699,000 |
Total assets | 867,315,000 | 864,057,000 |
Current liabilities: | ||
Current portion of lease liabilities | 8,465,000 | 8,577,000 |
Current maturities of long-term debt | 17,142,000 | 13,733,000 |
Accounts payable | 18,011,000 | 17,163,000 |
Compensation and other accrued liabilities | 54,798,000 | 44,278,000 |
Income taxes payable | 2,940,000 | 0 |
Unearned revenue | 60,176,000 | 60,271,000 |
Total current liabilities | 161,532,000 | 144,022,000 |
Long-term debt, net of current maturities | 506,414,000 | 524,557,000 |
Operating lease liabilities | 63,124,000 | 62,374,000 |
Pension obligations | 73,880,000 | 75,656,000 |
Postretirement and postemployment benefit obligations | 15,222,000 | 39,543,000 |
Deferred income taxes | 15,155,000 | 15,208,000 |
Income taxes payable | 18,778,000 | 18,048,000 |
Warrants and other | 25,613,000 | 14,282,000 |
Total liabilities | 879,718,000 | 893,690,000 |
Stockholders' equity (deficit): | ||
Serial convertible preferred stock, no par value; authorized 500 shares; none issued | 0 | 0 |
Additional paid-in capital | 256,593,000 | 256,431,000 |
Accumulated deficit | (252,627,000) | (268,529,000) |
Accumulated other comprehensive loss | (18,908,000) | (20,050,000) |
Total stockholders' deficit | (14,354,000) | (31,564,000) |
Non-controlling interests | 1,951,000 | 1,931,000 |
Total deficit | (12,403,000) | (29,633,000) |
Total liabilities and deficit | 867,315,000 | 864,057,000 |
Common Class A [Member] | ||
Stockholders' equity (deficit): | ||
Common Stock | 588,000 | 584,000 |
Common Class B [Member] | ||
Stockholders' equity (deficit): | ||
Common Stock | 0 | 0 |
Pension Plan [Member] | ||
Property and equipment: | ||
Retirement plan assets, net | 5,042,000 | 4,147,000 |
Postretirement Health Coverage [Member] | ||
Property and equipment: | ||
Retirement plan assets, net | $ 15,803,000 | $ 15,912,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Dec. 27, 2020 | Sep. 27, 2020 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authoritzed (in shares) | 500 | 500 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000 | 120,000 |
Common stock, shares issued (in shares) | 58,765 | 58,353 |
Common stock, shares outstanding (in shares) | 58,765 | 58,353 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 30,000 | 30,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Operating revenue: | ||
Total operating revenue | $ 211,817,000 | $ 122,343,000 |
Operating expenses: | ||
Compensation | 84,163,000 | 43,243,000 |
Newsprint and ink | 7,992,000 | 4,736,000 |
Other operating expenses | 81,767,000 | 48,462,000 |
Depreciation and amortization | 10,441,000 | 6,719,000 |
Assets loss on sales, impairments and other, net | 5,222,000 | 814,000 |
Restructuring costs and other | 3,167,000 | 1,632,000 |
Total operating expenses | 192,752,000 | 105,606,000 |
Equity in earnings of associated companies | 1,743,000 | 1,569,000 |
Operating income | 20,808,000 | 18,306,000 |
Non-operating income (expense): | ||
Interest expense | (11,882,000) | (11,115,000) |
Debt financing and administrative costs | 0 | (1,196,000) |
Curtailment Gain | 23,830,000 | 0 |
Pension withdrawal cost | (12,310,000) | 0 |
Other, net | 2,268,000 | 1,593,000 |
Total non-operating income (expense), net | 1,906,000 | (10,718,000) |
Income before income taxes | 22,714,000 | 7,588,000 |
Income tax expense | 6,311,000 | 1,871,000 |
Net income | 16,403,000 | 5,717,000 |
Net income attributable to non-controlling interests | (501,000) | (397,000) |
Income attributable to Lee Enterprises, Incorporated | 15,902,000 | 5,320,000 |
Other comprehensive income, net of income taxes | 1,142,000 | 317,000 |
Comprehensive income attributable to Lee Enterprises, Incorporated | $ 17,044,000 | $ 5,637,000 |
Earnings per common share: | ||
Basic: (in dollars per share) | $ 0.28 | $ 0.09 |
Diluted: (in dollars per share) | $ 0.28 | $ 0.09 |
Advertising and Marketing Services [Member] | ||
Operating revenue: | ||
Total operating revenue | $ 102,629,000 | $ 65,727,000 |
Subscription and Circulation [Member] | ||
Operating revenue: | ||
Total operating revenue | 90,508,000 | 41,694,000 |
Product and Service, Other [Member] | ||
Operating revenue: | ||
Total operating revenue | $ 18,680,000 | $ 14,922,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Retained Earnings [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Sep. 29, 2019 | $ (265,423) | $ 577 | $ 255,476 | $ (29,114) | $ (38,484) |
Shares issued (redeemed) | 0 | 4 | (379) | 0 | (375) |
Income attributable to Lee Enterprises, Incorporated | 5,320 | 0 | 0 | 0 | 5,320 |
Stock compensation | 0 | 0 | 545 | 0 | 545 |
Other comprehensive income | 0 | 0 | 0 | 452 | 452 |
Deferred income taxes, net | 0 | 0 | 0 | (135) | (135) |
Balance at Dec. 29, 2019 | (260,103) | 581 | 255,642 | (28,797) | (32,677) |
Balance at Sep. 27, 2020 | (268,529) | 584 | 256,431 | (20,050) | (31,564) |
Shares issued (redeemed) | 0 | 4 | (58) | 0 | (54) |
Income attributable to Lee Enterprises, Incorporated | 15,902 | 0 | 0 | 0 | 15,902 |
Stock compensation | 0 | 0 | 220 | 0 | 220 |
Other comprehensive income | 0 | 0 | 0 | 1,347 | 1,347 |
Deferred income taxes, net | 0 | 0 | 0 | (205) | (205) |
Balance at Dec. 27, 2020 | $ (252,627) | $ 588 | $ 256,593 | $ (18,908) | $ (14,354) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Cash provided by operating activities: | ||
Net income | $ 16,403 | $ 5,717 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,441 | 6,719 |
Curtailment gain | (23,830) | 0 |
Pension withdrawal cost | 12,310 | 0 |
Stock compensation expense | 220 | 302 |
Assets loss on sales, impairments and other, net | 5,222 | 814 |
Distributions (less) than earnings of MNI | (545) | (658) |
Deferred income taxes | (353) | (8,328) |
Debt financing and administrative costs | 0 | 1,196 |
Pension contributions | (400) | 0 |
Payments to collateralize letters of credit | (14) | 0 |
Other, net | (184) | (101) |
Changes in operating assets and liabilities: | ||
Increase in receivables and contract assets | (14,662) | (8,137) |
Decrease in inventories and other | 602 | 280 |
Increase in accounts payable and other accrued liabilities | 7,205 | 4,016 |
Decrease in pension and other postretirement and postemployment benefit obligations | (1,523) | (709) |
Change in income taxes payable | 6,643 | 10,189 |
Other, including warrants | 836 | (939) |
Net cash provided by operating activities | 18,371 | 10,361 |
Cash required for investing activities: | ||
Purchases of property and equipment | (1,738) | (2,458) |
Proceeds from sales of assets | 2,236 | 12 |
Acquisitions, net of cash acquired | 0 | (1,121) |
Distributions (less) than earnings of TNI | (142) | (173) |
Other, net | (430) | 0 |
Net cash required for investing activities | (74) | (3,740) |
Cash required for financing activities: | ||
Payments on long-term debt | 14,734 | 10,233 |
Debt financing and administrative costs paid | 0 | (193) |
Common stock transactions, net | (154) | (372) |
Net cash required for financing activities | (14,888) | (10,798) |
Net increase (decrease) in cash and cash equivalents | 3,409 | (4,177) |
Cash and cash equivalents: | ||
Beginning of period | 33,733 | 8,645 |
End of period | $ 37,142 | $ 4,468 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1 BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the “Company”) as of December 27, 2020 2020 10 Because of seasonal and other factors, the results of operations for the 13 December 27, 2020 not References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “ 2021 2020 September. The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our 82.5% interest in INN Partners, L.C. (“TownNews.com”), 50% interest in TNI Partners (“TNI”) and 50% interest in Madison Newspapers, Inc. (“MNI”). Investments in TNI and MNI are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets. COVID- 19 With the outbreak of COVID- 19 March 11, 2020, The COVID- 19 19 Purchase Agreement with Berkshire Hathaway On March 16, 2020, January 29, 2020 30 49 32 The Transactions were funded pursuant to a Credit Agreement dated as of January 29, 2020 5. Between July 2, 2018 March 16, 2020, June 26, 2018 ( March 16, 2020. December 29, 2019, 13 March 29, 2020. March 16, 2020. March 16, 2020 not not In connection with the Transactions, the Company also entered into a 10-year term lease with BHMG. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We evaluate these estimates and judgments on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not may Business Combinations The Company accounts for acquisitions in accordance with the provisions of Accounting Standards Codification 805 805” Recently Issued Accounting Standards - Standards Adopted in 2021 In June 2016, September 28, 2020 not Recently Issued Accounting Standards - Standards Not In August 2018, September 27, 2021 |
Note 2 - Revenue
Note 2 - Revenue | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2 REVENUE The following table presents our revenue disaggregated by source: 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Advertising and marketing services revenue 102,629 65,727 Subscription revenue 90,508 41,694 TownNews and other digital services revenue 5,622 5,218 Other revenue 13,058 9,704 Total operating revenue 211,817 122,343 Recognition principles: Arrangements with multiple performance obligations: Contract Assets and Liabilities: twelve December 27, 2020 September 27, 2020 13 December 27, 2020 September 27, 2020 Accounts receivable, excluding allowance for credit losses was $79,013,000 and $66,029,000 as of December 27, 2020 September 27, 2020 December 27, 2020 September 27, 2020 Practical expedients: one one |
Note 3 - Investments in Associa
Note 3 - Investments in Associated Companies | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 3 INVESTMENTS IN ASSOCIATED COMPANIES TNI Partners In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen. Summarized results of TNI are as follows: 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Operating revenue 9,400 10,195 Operating expenses 7,005 8,165 Operating income 2,395 2,030 Company's 50% 1,198 1,015 Less amortization of intangible assets — 104 Equity in earnings of TNI 1,198 911 TNI makes weekly distributions of its earnings and for the 13 December 27, 2020 December 29, 2019, Madison Newspapers, Inc. We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital platforms. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers. Summarized results of MNI are as follows: 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Operating revenue 11,922 13,925 Operating expenses, excluding restructuring costs, depreciation and amortization 10,430 12,120 Restructuring costs 106 — Depreciation and amortization 110 145 Operating income 1,276 1,660 Net income 1,089 1,316 Equity in earnings of MNI 545 658 MNI generally makes quarterly distributions of its earnings, however no 13 December 27, 2020 December 29, 2019, |
Note 4 - Goodwill and Other Int
Note 4 - Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4 GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill are as follows: 13 Weeks Ended December 27, (Thousands of Dollars) 2020 Goodwill, gross amount 1,617,174 Accumulated impairment losses (1,288,729 ) Goodwill, beginning of period 328,445 Measurement period adjustments 403 Goodwill, end of period 328,848 Identified intangible assets consist of the following: December 27, September 27, (Thousands of Dollars) 2020 2020 Non-amortized intangible assets: Mastheads 40,459 40,459 Amortizable intangible assets: Customer and newspaper subscriber lists 774,722 774,604 Less accumulated amortization 638,349 632,457 136,373 142,147 Non-compete and consulting agreements 28,656 28,656 Less accumulated amortization 28,601 28,582 55 74 Other intangible assets, net 176,887 182,680 The Company recognized $27,960,000 of advertiser relationships, $28,200,000 of subscriber relationships, $19,580,000 of commercial print relationships and $20,390,000 of indefinite-lived masthead assets as part of the Transactions. Annual amortization of intangible assets for the five December 2021 December 2025 The Company recognized $78,539,000 of Goodwill as part of the Transactions. The value of the acquired Goodwill is primarily related to an assembled workforce and expected synergies from combining operations. For tax purposes, the amount of Goodwill that is expected to be deductible is $41,734,000. Refer to Note 7 |
Note 5 - Debt
Note 5 - Debt | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5 DEBT On March 16, 2020 “2020 2020 Proceeds of the Term Loan were used to finance the Transactions and repay all of the Company’s outstanding debt at par, including: • To redeem the 9.5% senior secured notes (“Notes”) pursuant to an indenture dated as of March 31, 2014 ( • To repay the 12.0% second March 31, 2014, “2 nd There was no gain or loss recognized upon extinguishment of the Indenture and the 2nd The Credit Agreement documents the primary terms of the Term Loan. The Term Loan matures on March 16, 2045. Debt is summarized as follows: December 27, September 27, Interest (Thousands of Dollars) 2020 2020 Rates (%) Term Loan 523,556 538,290 9.0 Less current maturities of long-term debt 17,142 13,733 Total long-term debt 506,414 524,557 Our weighted average cost of debt at December 27, 2020 For the 13 December 27, 2020 January 2021. December 27, 2020. Interest Interest on the Term Loan bears interest at a fixed annual rate of 9.0%, payable monthly. Principal Payments Voluntary payments under the Credit Agreement are not Excluding the Excess Cash Flow payments described below, there are no • The Company must prepay the Term Loan in an aggregate amount equal to 100% of any Net Cash Proceeds received by the Company or any subsidiary from a sale, transfer, license, lease or other disposition of any property of the Company or any subsidiary in excess of $500,000 ninety 90 • Beginning on June 28, 2020, $20,000,000 • If there is a Change of Control (as defined in the Credit Agreement), BH Finance has the option to require the Company to prepay the Term Loan in cash equal to 105% of the unpaid principal balance, plus accrued and unpaid interest. The Company may, . Covenants and Other Matters The Credit Agreement contains certain customary representations and warranties, certain affirmative and negative covenants and certain conditions, including restrictions on incurring additional indebtedness, creating certain liens, making certain investments or acquisitions, issuing dividends, repurchasing shares of stock of the Company and certain other capital transactions. Certain existing and future direct and indirect material domestic subsidiaries of the Company are guarantors of the Company’s obligations under the Credit Agreement. The Credit Agreement restricts us from paying dividends on our Common Stock. This restriction does not may 2020 Security The Term Loan is fully and unconditionally guaranteed on a joint and several first March 16, 2020 ( Also, the Term Loan is secured, subject to certain exceptions, priorities and limitations in the various agreements, by first Liquidity Pursuant to the terms of the Credit Agreement, our new debt does not Our liquidity, consisting of cash on the balance sheet, totals $37,142,000 at December 27, 2020. twelve not There are numerous potential consequences under the Term Loan if an event of default, as defined, occurs and is not one Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to repay, refinance or amend our debt agreement as it becomes due. The Credit Agreement (as defined above) has only limited affirmative covenants with which we are required to maintain compliance and there are no December 27, 2020. Warrants In connection with the 2 nd March 31, 2014 ( 2 nd March 31, 2014 March 30, 2014 March 2022. The Warrant Agreement contains provisions requiring the Warrants to be measured at fair value and included in warrants and other liabilities in our Consolidated Balance Sheets. We re-measure the fair value of the liability each reporting period, with changes reported in other, net non-operating income (expense). The initial fair value of the Warrants was $16,930,000. See Note 11. In connection with the issuance of the Warrants, we entered into a Registration Rights Agreement dated as of March 31, 2014 |
Note 6 - Pension, Postretiremen
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans | 3 Months Ended |
Dec. 27, 2020 | |
Pension Plan [Member] | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 6 PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS We have several noncontributory defined benefit pension plans that together cover selected employees. Benefits under the plans were generally based on salary and years of service. With the exception of defined benefit plans acquired in the Transactions, effective in 2012, We provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. In addition, St. Louis Post-Dispatch LLC, provides postemployment disability benefits to certain employee groups prior to retirement. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid. As part of the Transactions, the Company assumed several non-contributory defined benefit pension plans that together cover selected employees. Benefits under the plans are generally based on salary and years of service. The liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic corporate equity securities, government and corporate bonds, money markets and deposits with insurance companies. The amount of net pension obligations for those plans as of March 16, 2020, Additionally, as part of the Transactions, the Company assumed certain unfunded postemployment benefit plans which provide coverage to retirees for portions of premiums associated with medical, dental, life, and vision insurance benefits in eight collective bargaining units. The amount of premiums paid in five bargaining units are capped at specific dollar amounts per month. The amount of premiums paid in three March 16, 2020, During the 13 December 27, 2020 Multiemployer Pension Plans During the 13 December 27, 2020, We use a fiscal year end measurement date for all of our Pension and postretirement medical plan obligations. The net periodic pension and postretirement cost (benefit) components for our plans are as follows: PENSION PLANS 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Service cost for benefits earned during the period 633 8 Interest cost on projected benefit obligation 1,787 1,231 Expected return on plan assets (4,672 ) (1,951 ) Amortization of net loss 1,004 792 Amortization of prior service benefit — (2 ) Pension benefit (1,248 ) 78 POSTRETIREMENT MEDICAL PLANS 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Service cost for benefits earned during the period 210 — Interest cost on projected benefit obligation 123 67 Expected return on plan assets (252 ) (265 ) Amortization of net gain (172 ) (186 ) Amortization of prior service benefit (161 ) (161 ) Curtailment gain (23,830 ) — Postretirement medical benefit (24,082 ) (545 ) In the 13 December 27, 2020 we contributed $400,000 to our pension plans. Based December 27, 2020, 2021. |
Note 7 - Acquisitions
Note 7 - Acquisitions | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 7 ACQUISITIONS On March 16, 2020, January 29, 2020 not not 12 not no 5 6. The following table summarizes the preliminary determination of fair values of the assets and liabilities for the Transactions. (in Thousands) Estimated fair value as previously reported Measurement period adjustments Fair value as adjusted Cash and Cash equivalents 22,293 — 22,293 Current assets 52,559 (1,199 ) 51,361 Other assets 12,167 3,448 15,619 Property and equipment 42,952 33 42,985 Operating lease assets 7,445 101 7,546 Advertiser relationships 38,780 (10,820 ) 27,960 Subscriber relationships 36,060 (7,860 ) 28,200 Commercial print relationships 17,130 2,450 19,580 Mastheads 21,680 (1,290 ) 20,390 Goodwill 63,559 14,984 78,539 Total assets 314,625 (152) 314,473 Current liabilities assumed (73,451 ) 1,074 (72,377 ) Operating lease liabilities (6,625 ) (921 ) (7,546 ) Other liabilities assumed (2,246 ) (1) (2,247 ) Pension obligations (43,503 ) — (43,503 ) Postemployment benefit obligations (36,800 ) — (36,800 ) Total liabilities (162,625 ) 152 (162,474 ) Net assets 152,000 — 152,000 Less: acquired cash (22,293 ) — (22,293 ) Total consideration less acquired cash 129,707 — 129,707 The Company had one September 27, 2020, For the 13 December 27, 2020, Pro Forma Information The following table sets forth unaudited pro forma results of operations assuming the Transactions, along with the credit arrangements necessary to finance the Transactions, occurred on September 30, 2019, first 2020. Unaudited 13 Weeks Ended December 29, (Thousands of Dollars, Except Per Share Data) 2019 Total revenues 237,618 Income (loss) attributable to Lee Enterprises, Incorporated 16,554 Earnings per share - diluted 0.29 This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments. This pro forma information is not 2020 The only material, nonrecurring adjustment made relates to the write-off of previously unamortized debt-issuance costs as of October 1, 2018 13 December 29, 2019. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8 INCOME TAXES We recorded an income tax expense of $6,311,000 related to income before taxes of $22,714,000 for the13 December 27, 2020, For the 13 December 29, 2019, The primary differences between these rates and the U.S. federal statutory rate of 21% We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 not 2013. At September 27, 2020 , we had approximately $46,066,000 of state net operating loss benefits. |
Note 9 - Earnings Per Common Sh
Note 9 - Earnings Per Common Share | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9 EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended December 27, December 29, (Thousands of Dollars and Shares, Except Per Share Data) 2020 2019 Income attributable to Lee Enterprises, Incorporated: 15,902 5,320 Weighted average common shares 58,449 57,729 Less weighted average restricted Common Stock (1,545 ) (1,459 ) Basic average common shares 56,904 56,270 Dilutive stock options and restricted Common Stock 418 783 Diluted average common shares 57,322 57,053 Earnings per common share: Basic 0.28 0.09 Diluted 0.28 0.09 For the 13 December 27, 2020 December 29, 2019 , 6,413,000 and 6,384,000 shares, respectively, were not |
Note 10 - Stock Ownership Plans
Note 10 - Stock Ownership Plans | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 10 STOCK OWNERSHIP PLANS A summary of stock option activity during the 13 December 27, 2020 follows: (Thousands of Dollars and Shares, Except Per Share Data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, September 27, 2020 413 1.14 Exercised — — Cancelled — — Outstanding, December 27, 2020 413 1.14 1.4 50 Exercisable, December 27, 2020 413 1.14 1.4 50 Restricted Common Stock The table below summarizes restricted Common Stock activity during the 13 December 27, 2020 : (Thousands of Shares, Except Per Share Data) Shares Weighted Average Grant Date Fair Value Outstanding, September 27, 2020 1,550 2.15 Vested (447 ) 2.77 Granted 458 1.12 Cancelled — — Outstanding, December 27, 2020 1,561 1.67 Total unrecognized compensation expense for unvested restricted Common Stock at December 27, 2020 is $ , which will be recognized over a weighted average period of years. |
Note 11 - Fair Value of Measure
Note 11 - Fair Value of Measurements | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 11 FAIR VALUE MEASUREMENTS We utilize FASB ASC Topic 820, Fair Value Measurements and Disclosures 820 820 three Level 1 Level 2 not Level 3 one The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate value. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments. Investments totaling $ , including our ownership of the non-voting common stock of TCT, are carried at cost. Fair value of the remaining investments are carried at cost. Our fixed rate debt consists of $523,556,000 principal amount of the Term Loan recorded at carrying value. At December 27, 2020, 2 As discussed more fully in Note 5, December 27, 2020 and September 27, 2020 are $247,000 and $363,000 , respectively. Fair value is determined using the Black-Scholes option pricing model. These represent level 2 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingent Liabilities | 3 Months Ended |
Dec. 27, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12 COMMITMENTS AND CONTINGENT LIABILITIES Income Taxes Commitments exclude unrecognized tax benefits to be recorded in accordance with FASB ASC Topic 740, Income Taxes 8. We file income tax returns with the Internal Revenue Service (“IRS”) and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies and those audits may may not We have various income tax examinations ongoing and at various stages of completion, but generally our income tax returns have been audited or closed to audit through 2013. Legal Proceedings We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not Restructuring Costs and Other We have recognized $3,167,000 of expense related to restructuring costs and other. This amount consists of severance expense of $3,167,000. We did not December 27, 2020. Subsequent events We have evaluated subsequent events through February 5, 2021. No December 27, 2020 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the “Company”) as of December 27, 2020 2020 10 Because of seasonal and other factors, the results of operations for the 13 December 27, 2020 not References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “ 2021 2020 September. The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our 82.5% interest in INN Partners, L.C. (“TownNews.com”), 50% interest in TNI Partners (“TNI”) and 50% interest in Madison Newspapers, Inc. (“MNI”). Investments in TNI and MNI are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets. |
COVID-19 Pandemic, Policy [Policy Text Block] | COVID- 19 With the outbreak of COVID- 19 March 11, 2020, The COVID- 19 19 |
Purchase Agreement with Berkshire Hathaway, Policy [Policy Text Block] | Purchase Agreement with Berkshire Hathaway On March 16, 2020, January 29, 2020 30 49 32 The Transactions were funded pursuant to a Credit Agreement dated as of January 29, 2020 5. Between July 2, 2018 March 16, 2020, June 26, 2018 ( March 16, 2020. December 29, 2019, 13 March 29, 2020. March 16, 2020. March 16, 2020 not not In connection with the Transactions, the Company also entered into a 10-year term lease with BHMG. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We evaluate these estimates and judgments on an ongoing basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not may |
Business Combinations Policy [Policy Text Block] | Business Combinations The Company accounts for acquisitions in accordance with the provisions of Accounting Standards Codification 805 805” |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards - Standards Adopted in 2021 In June 2016, September 28, 2020 not Recently Issued Accounting Standards - Standards Not In August 2018, September 27, 2021 |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Advertising and marketing services revenue 102,629 65,727 Subscription revenue 90,508 41,694 TownNews and other digital services revenue 5,622 5,218 Other revenue 13,058 9,704 Total operating revenue 211,817 122,343 |
Note 3 - Investments in Assoc_2
Note 3 - Investments in Associated Companies (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Operating revenue 9,400 10,195 Operating expenses 7,005 8,165 Operating income 2,395 2,030 Company's 50% 1,198 1,015 Less amortization of intangible assets — 104 Equity in earnings of TNI 1,198 911 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Operating revenue 11,922 13,925 Operating expenses, excluding restructuring costs, depreciation and amortization 10,430 12,120 Restructuring costs 106 — Depreciation and amortization 110 145 Operating income 1,276 1,660 Net income 1,089 1,316 Equity in earnings of MNI 545 658 |
Note 4 - Goodwill and Other I_2
Note 4 - Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | 13 Weeks Ended December 27, (Thousands of Dollars) 2020 Goodwill, gross amount 1,617,174 Accumulated impairment losses (1,288,729 ) Goodwill, beginning of period 328,445 Measurement period adjustments 403 Goodwill, end of period 328,848 |
Schedule of Intangible Assets [Table Text Block] | December 27, September 27, (Thousands of Dollars) 2020 2020 Non-amortized intangible assets: Mastheads 40,459 40,459 Amortizable intangible assets: Customer and newspaper subscriber lists 774,722 774,604 Less accumulated amortization 638,349 632,457 136,373 142,147 Non-compete and consulting agreements 28,656 28,656 Less accumulated amortization 28,601 28,582 55 74 Other intangible assets, net 176,887 182,680 |
Note 5 - Debt (Tables)
Note 5 - Debt (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 27, September 27, Interest (Thousands of Dollars) 2020 2020 Rates (%) Term Loan 523,556 538,290 9.0 Less current maturities of long-term debt 17,142 13,733 Total long-term debt 506,414 524,557 |
Note 6 - Pension, Postretirem_2
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Pension Plan [Member] | |
Notes Tables | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | PENSION PLANS 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Service cost for benefits earned during the period 633 8 Interest cost on projected benefit obligation 1,787 1,231 Expected return on plan assets (4,672 ) (1,951 ) Amortization of net loss 1,004 792 Amortization of prior service benefit — (2 ) Pension benefit (1,248 ) 78 POSTRETIREMENT MEDICAL PLANS 13 Weeks Ended December 27, December 29, (Thousands of Dollars) 2020 2019 Service cost for benefits earned during the period 210 — Interest cost on projected benefit obligation 123 67 Expected return on plan assets (252 ) (265 ) Amortization of net gain (172 ) (186 ) Amortization of prior service benefit (161 ) (161 ) Curtailment gain (23,830 ) — Postretirement medical benefit (24,082 ) (545 ) |
Note 7 - Acquisitions (Tables)
Note 7 - Acquisitions (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudited 13 Weeks Ended December 29, (Thousands of Dollars, Except Per Share Data) 2019 Total revenues 237,618 Income (loss) attributable to Lee Enterprises, Incorporated 16,554 Earnings per share - diluted 0.29 |
BHMG [Member] | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (in Thousands) Estimated fair value as previously reported Measurement period adjustments Fair value as adjusted Cash and Cash equivalents 22,293 — 22,293 Current assets 52,559 (1,199 ) 51,361 Other assets 12,167 3,448 15,619 Property and equipment 42,952 33 42,985 Operating lease assets 7,445 101 7,546 Advertiser relationships 38,780 (10,820 ) 27,960 Subscriber relationships 36,060 (7,860 ) 28,200 Commercial print relationships 17,130 2,450 19,580 Mastheads 21,680 (1,290 ) 20,390 Goodwill 63,559 14,984 78,539 Total assets 314,625 (152) 314,473 Current liabilities assumed (73,451 ) 1,074 (72,377 ) Operating lease liabilities (6,625 ) (921 ) (7,546 ) Other liabilities assumed (2,246 ) (1) (2,247 ) Pension obligations (43,503 ) — (43,503 ) Postemployment benefit obligations (36,800 ) — (36,800 ) Total liabilities (162,625 ) 152 (162,474 ) Net assets 152,000 — 152,000 Less: acquired cash (22,293 ) — (22,293 ) Total consideration less acquired cash 129,707 — 129,707 |
Note 9 - Earnings Per Common _2
Note 9 - Earnings Per Common Share (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended December 27, December 29, (Thousands of Dollars and Shares, Except Per Share Data) 2020 2019 Income attributable to Lee Enterprises, Incorporated: 15,902 5,320 Weighted average common shares 58,449 57,729 Less weighted average restricted Common Stock (1,545 ) (1,459 ) Basic average common shares 56,904 56,270 Dilutive stock options and restricted Common Stock 418 783 Diluted average common shares 57,322 57,053 Earnings per common share: Basic 0.28 0.09 Diluted 0.28 0.09 |
Note 10 - Stock Ownership Pla_2
Note 10 - Stock Ownership Plans (Tables) | 3 Months Ended |
Dec. 27, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | (Thousands of Dollars and Shares, Except Per Share Data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, September 27, 2020 413 1.14 Exercised — — Cancelled — — Outstanding, December 27, 2020 413 1.14 1.4 50 Exercisable, December 27, 2020 413 1.14 1.4 50 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | (Thousands of Shares, Except Per Share Data) Shares Weighted Average Grant Date Fair Value Outstanding, September 27, 2020 1,550 2.15 Vested (447 ) 2.77 Granted 458 1.12 Cancelled — — Outstanding, December 27, 2020 1,561 1.67 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($) | Mar. 16, 2020 | Jan. 29, 2020 | Dec. 27, 2020 |
BHMG [Member] | |||
Lessee, Operating Lease, Term of Contract (Year) | 10 years | ||
BHMG [Member] | |||
Payments to Acquire Businesses, Gross | $ 140,000,000 | $ 140,000,000 | |
Business Combination, Termination of Contract, Expected Credits | 5,425,000 | ||
Business Combination, Termination of Contract, Expected Credit, Estimated Pro-rated Fixed Portion | 1,245,000 | ||
Business Combination, Termination of Contract, Expected Credit, Estimated Pro-rated Variable Portion | 4,180,000 | ||
Contract with Customer, Asset, Increase (Decrease) for Contract Acquired in Business Combination | $ (3,589,000) | ||
INN Partners, L.C. [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 82.50% | ||
TNI Partners [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | ||
MNI [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% |
Note 2 - Revenue (Details Textu
Note 2 - Revenue (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 27, 2020 | Sep. 27, 2020 | |
Contract with Customer, Liability, Current | $ 60,176,000 | $ 60,271,000 |
Contract with Customer, Liability, Revenue Recognized | 35,955,000 | |
Accounts Receivable, before Allowance for Credit Loss | 79,013,000 | 66,029,000 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 10,982,000 | $ 13,431,000 |
Note 2 - Revenue - Disaggregati
Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Total operating revenue | $ 211,817 | $ 122,343 |
Advertising and Marketing Services [Member] | ||
Total operating revenue | 102,629 | 65,727 |
Subscription and Circulation [Member] | ||
Total operating revenue | 90,508 | 41,694 |
Digital Services Revenues [Member] | ||
Total operating revenue | 5,622 | 5,218 |
Other Revenues [Member] | ||
Total operating revenue | $ 13,058 | $ 9,704 |
Note 3 - Investments in Assoc_3
Note 3 - Investments in Associated Companies (Details Textual) - TNI Partners [Member] - USD ($) | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Proceeds from Equity Method Investment, Distribution | $ 1,056,000 | $ 738,000 |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% |
Note 3 - Investments in Assoc_4
Note 3 - Investments in Associated Companies - Summarized Financial Results (Details) - USD ($) | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 211,817,000 | $ 122,343,000 |
Operating expenses | 192,752,000 | 105,606,000 |
Operating income | 15,902,000 | 5,320,000 |
Equity in earnings | 1,743,000 | 1,569,000 |
Restructuring Charges, Total | 3,167,000 | 1,632,000 |
Depreciation and amortization | 10,441,000 | 6,719,000 |
Operating income | 20,808,000 | 18,306,000 |
Net income | 16,403,000 | 5,717,000 |
TNI Partners [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 9,400,000 | 10,195,000 |
Operating expenses | 7,005,000 | 8,165,000 |
Operating income | 2,395,000 | 2,030,000 |
Company's 50% share of operating income | 1,198,000 | 1,015,000 |
Less amortization of intangible assets | 0 | 104,000 |
Equity in earnings | 1,198,000 | 911,000 |
Madison Newspapers, Inc. [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 11,922,000 | 13,925,000 |
Operating expenses | 10,430,000 | 12,120,000 |
Equity in earnings | 545,000 | 658,000 |
Restructuring Charges, Total | 106,000 | 0 |
Depreciation and amortization | 110,000 | 145,000 |
Operating income | 1,276,000 | 1,660,000 |
Net income | $ 1,089,000 | $ 1,316,000 |
Note 3 - Investments in Assoc_5
Note 3 - Investments in Associated Companies - Summarized Financial Results (Details) (Parentheticals) | Dec. 27, 2020 | Dec. 29, 2019 |
TNI Partners [Member] | ||
Ownership percentage | 50.00% | 50.00% |
Note 4 - Goodwill and Other I_3
Note 4 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | Mar. 16, 2020 | Dec. 27, 2020 |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 21,262,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 19,688,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 18,893,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 16,460,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 10,783,000 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years 6 months | |
Goodwill, Acquired During Period | $ 78,539,000 | $ 403,000 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 41,734,000 | |
BHMG [Member] | Advertiser Relationships [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 38,780,000 | 27,960,000 |
BHMG [Member] | Subscriber Relationships [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 36,060,000 | 28,200,000 |
BHMG [Member] | Commercial Print Relationships [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 17,130,000 | 19,580,000 |
BHMG [Member] | Mastheads [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 20,390,000 |
Note 4 - Goodwill and Other I_4
Note 4 - Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) | Mar. 16, 2020 | Dec. 27, 2020 |
Goodwill, gross amount | $ 1,617,174,000 | |
Accumulated impairment losses | (1,288,729,000) | |
Goodwill, beginning of period | 328,445,000 | |
Measurement period adjustments | $ 78,539,000 | 403,000 |
Goodwill, end of period | $ 328,848,000 |
Note 4 - Goodwill and Other I_5
Note 4 - Goodwill and Other Intangible Assets - Identified Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 27, 2020 | Sep. 27, 2020 |
Mastheads | $ 40,459 | $ 40,459 |
Other intangible assets, net | 176,887 | 182,680 |
Customer and Newspaper Subscriber Lists [Member] | ||
Amortizable intangible assets, gross | 774,722 | 774,604 |
Less accumulated amortization | 638,349 | 632,457 |
Finite-Lived Intangible Assets, Net, Ending Balance | 136,373 | 142,147 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets, gross | 28,656 | 28,656 |
Less accumulated amortization | 28,601 | 28,582 |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 55 | $ 74 |
Note 5 - Debt (Details Textual)
Note 5 - Debt (Details Textual) - USD ($) | Mar. 16, 2020 | Jan. 29, 2020 | Mar. 31, 2014 | Jan. 31, 2021 | Dec. 27, 2020 | Sep. 27, 2020 |
Long-term Debt, Gross | $ 431,502,000 | |||||
Weighted Average Cost of Debt, Excluding Amortization of Debt Financing Costs | 9.00% | |||||
Pulitzer Excess Cash Flow | $ 17,142,000 | |||||
Liquidity | 37,142,000 | |||||
Future Liquidity Warrant Exercise Proceeds | 25,140,000 | |||||
Warrants and Rights Outstanding | $ 247,000 | $ 363,000 | ||||
Warrants Issued in Connection with Second Lien Term Loan [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 6,000,000 | |||||
Warrants, When Fully Exercised, Percentage of Common Stock Outstanding | 10.40% | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 4.19 | |||||
Warrants and Rights Outstanding | $ 16,930,000 | |||||
Subsequent Event [Member] | ||||||
Proceeds from Sale of Productive Assets, Total | $ 1,000,000 | |||||
BHMG [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 140,000,000 | $ 140,000,000 | ||||
Credit Agreement [Member] | Secured Term Loan [Member] | BH Finance [Member] | ||||||
Debt Instrument, Term (Year) | 25 years | |||||
Debt Instrument, Face Amount | $ 576,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||||
Debt Instrument, Covenant, Percent of Net Cash Proceeds of Property in Excess of $500,000 in 90 Days | 100.00% | |||||
Debt Instrument, Covenant, Excess Cash Flow, Period After Quarter End (Day) | 50 days | |||||
Debt Instrument, Covenant, Change of Control, Repayment Percentage | 105.00% | |||||
Senior Secured Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |||||
Second Lien Credit Faclity [Member] | Term Loan [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||
Senior Secured Notes and 2nd Lien Term Loan [Member] | ||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 0 |
Note 5 - Debt - Debt (Details)
Note 5 - Debt - Debt (Details) - USD ($) | Dec. 27, 2020 | Sep. 27, 2020 | Mar. 16, 2020 |
Long-term debt, gross | $ 431,502,000 | ||
Less current maturities of long-term debt | $ 17,142,000 | $ 13,733,000 | |
Total long-term debt | 506,414,000 | 524,557,000 | |
Term Loan [Member] | |||
Long-term debt, gross | $ 523,556,000 | $ 538,290,000 | |
Interest rate | 9.00% |
Note 6 - Pension, Postretirem_3
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans (Details Textual) | 3 Months Ended | |
Dec. 27, 2020USD ($) | Mar. 16, 2020USD ($) | |
Multiemployer Plans, Withdrawal Obligation | $ 12,310,000 | |
Multiemployer Plans, Withdrawal Obligation, Period (Year) | 20 years | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 400,000 | |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 2,790,000 | |
Postemployment Retirement Benefits [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 23,830,000 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | $ 23,830,000 | |
BHMG [Member] | Pension Plan [Member] | ||
Defined Benefit Plan, Benefit Obligation, Ending Balance | $ 43,503,000 | |
BHMG [Member] | Postemployment Retirement Benefits [Member] | ||
Defined Benefit Plan, Benefit Obligation, Ending Balance | $ 36,800,000 | |
Defined Benefit Plan, Collective Bargaining Units | 8 | |
Defined Benefit Plan, Collective Bargaining Units, Capped Premiums | 5 |
Note 6 - Pension, Postretirem_4
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans - Net Periodic Cost (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Pension Plan [Member] | ||
Service cost for benefits earned during the period | $ 633 | $ 8 |
Interest cost on projected benefit obligation | 1,787 | 1,231 |
Expected return on plan assets | (4,672) | (1,951) |
Amortization of net loss | 1,004 | 792 |
Amortization of prior service benefit | 0 | (2) |
Pension benefit | (1,248) | 78 |
Postretirement Health Coverage [Member] | ||
Service cost for benefits earned during the period | 210 | 0 |
Interest cost on projected benefit obligation | 123 | 67 |
Expected return on plan assets | (252) | (265) |
Amortization of net loss | (172) | (186) |
Amortization of prior service benefit | (161) | (161) |
Pension benefit | (24,082) | (545) |
Curtailment gain | $ (23,830) | $ 0 |
Note 7 - Acquisitions (Details
Note 7 - Acquisitions (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | Dec. 27, 2020 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 211,817,000 | $ 122,343,000 | |
Net Income (Loss) Attributable to Parent, Total | 15,902,000 | 5,320,000 | |
BHMG [Member] | |||
Goodwill, Purchase Accounting Adjustments | 403,000 | $ 14,984,000 | |
Revenue from Contract with Customer, Including Assessed Tax | 109,061,000 | ||
Net Income (Loss) Attributable to Parent, Total | $ 23,132,000 | ||
BHMG [Member] | Acquisition-related Costs [Member] | |||
Net Income (Loss) Attributable to Parent, Total | $ 897,000 |
Note 7 - Acquisitions - Prelimi
Note 7 - Acquisitions - Preliminary Determination of Fair Values of Assets and Liabilities (Details) - USD ($) | Dec. 27, 2020 | Mar. 16, 2020 | Dec. 27, 2020 | Dec. 29, 2019 | Dec. 27, 2020 | Sep. 27, 2020 |
Goodwill | $ 328,848,000 | $ 328,848,000 | $ 328,848,000 | $ 328,445,000 | ||
Total consideration less acquired cash | 0 | $ 1,121,000 | ||||
BHMG [Member] | ||||||
Cash and Cash equivalents | 22,293,000 | $ 22,293,000 | 22,293,000 | 22,293,000 | ||
Current assets | 51,361,000 | 52,559,000 | 51,361,000 | 51,361,000 | ||
Current assets, adjustment | (1,199,000) | |||||
Other assets | 15,619,000 | 12,167,000 | 15,619,000 | 15,619,000 | ||
Other assets, adjustment | 3,448,000 | |||||
Property and equipment | 42,985,000 | 42,952,000 | 42,985,000 | 42,985,000 | ||
Property and equipment, adjustment | 33,000 | |||||
Operating lease assets | 7,546,000 | 7,445,000 | 7,546,000 | 7,546,000 | ||
Operating lease assets, adjustment | 101,000 | |||||
Goodwill | 78,539,000 | 63,559,000 | 78,539,000 | 78,539,000 | ||
Goodwill, adjustment | 403,000 | 14,984,000 | ||||
Total assets | 314,473,000 | 314,625,000 | 314,473,000 | 314,473,000 | ||
Total assets, adjustment | (152,000) | |||||
Current liabilities assumed | (72,377,000) | (73,451,000) | (72,377,000) | (72,377,000) | ||
Current liabilities assumed, adjustment | 1,074,000 | |||||
Operating lease liabilities | (7,546,000) | (6,625,000) | (7,546,000) | (7,546,000) | ||
Operating lease liabilities, adjustment | (921,000) | |||||
Other liabilities assumed | (2,247,000) | (2,246,000) | (2,247,000) | (2,247,000) | ||
Other liabilities assumed | (1,000) | |||||
Pension obligations | (43,503,000) | (43,503,000) | (43,503,000) | (43,503,000) | ||
Postemployment benefit obligations | (36,800,000) | (36,800,000) | (36,800,000) | (36,800,000) | ||
Total liabilities | (162,474,000) | (162,625,000) | (162,474,000) | (162,474,000) | ||
Total liabilities, adjustment | 152,000 | |||||
Net assets | 152,000,000 | 152,000,000 | 152,000,000 | 152,000,000 | ||
Less: acquired cash | (22,293,000) | (22,293,000) | ||||
Total consideration less acquired cash | 129,707,000 | 129,707,000 | ||||
BHMG [Member] | Mastheads [Member] | ||||||
Relationship, adjustment | (1,290,000) | |||||
Mastheads | 20,390,000 | 21,680,000 | 20,390,000 | 20,390,000 | ||
BHMG [Member] | Advertiser Relationships [Member] | ||||||
Relationships | 27,960,000 | 38,780,000 | 27,960,000 | 27,960,000 | ||
Relationship, adjustment | (10,820,000) | |||||
BHMG [Member] | Subscriber Relationships [Member] | ||||||
Relationships | 28,200,000 | 36,060,000 | 28,200,000 | 28,200,000 | ||
Relationship, adjustment | (7,860,000) | |||||
BHMG [Member] | Commercial Print Relationships [Member] | ||||||
Relationships | $ 19,580,000 | $ 17,130,000 | $ 19,580,000 | 19,580,000 | ||
Relationship, adjustment | $ 2,450,000 |
Note 7 - Acquisitions - Pro For
Note 7 - Acquisitions - Pro Forma Information (Details) - BHMG [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Dec. 29, 2019USD ($)$ / shares | |
Total revenues | $ 237,618 |
Income (loss) attributable to Lee Enterprises, Incorporated | $ 16,554 |
Earnings per share - diluted (in dollars per share) | $ / shares | $ 0.29 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 27, 2020 | Dec. 29, 2019 | Sep. 27, 2020 | |
Income Tax Expense (Benefit), Total | $ 6,311,000 | $ 1,871,000 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | $ 22,714,000 | $ 7,588,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 27.80% | 24.70% | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards, Total | $ 46,066,000 |
Note 9 - Earnings Per Common _3
Note 9 - Earnings Per Common Share (Details Textual) - shares | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 6,413,000 | 6,384,000 |
Note 9 - Earnings Per Common _4
Note 9 - Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Income attributable to Lee Enterprises, Incorporated | $ 15,902 | $ 5,320 |
Weighted average common shares (in shares) | 58,449 | 57,729 |
Less weighted average restricted Common Stock (in shares) | (1,545) | (1,459) |
Basic average common shares (in shares) | 56,904 | 56,270 |
Dilutive stock options and restricted Common Stock (in shares) | 418 | 783 |
Diluted average common shares (in shares) | 57,322 | 57,053 |
Basic: (in dollars per share) | $ 0.28 | $ 0.09 |
Diluted: (in dollars per share) | $ 0.28 | $ 0.09 |
Note 10 - Stock Ownership Pla_3
Note 10 - Stock Ownership Plans (Details Textual) | 3 Months Ended |
Dec. 27, 2020USD ($) | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,534,000 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 10 months 24 days |
Note 10 - Stock Ownership Pla_4
Note 10 - Stock Ownership Plans - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Dec. 27, 2020USD ($)$ / sharesshares | |
Outstanding, Shares (in shares) | shares | 413 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.14 |
Exercised, Shares (in shares) | shares | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0 |
Cancelled, Shares (in shares) | shares | 0 |
Cancelled, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 0 |
Outstanding, Shares (in shares) | shares | 413 |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.14 |
Outstanding, Weighted Average Remaining Contractual Term (Year) | 1 year 4 months 24 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 50 |
Exercisable, Shares (in shares) | shares | 413 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1.14 |
Exercisable, Weighted Average Remaining Contractual Term (Year) | 1 year 4 months 24 days |
Exercisable, Aggregate Intrinsic Value | $ | $ 50 |
Note 10 - Stock Ownership Pla_5
Note 10 - Stock Ownership Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Dec. 27, 2020$ / sharesshares | |
Outstanding, shares (in shares) | shares | 1,550 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 2.15 |
Vested, shares (in shares) | shares | (447) |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 2.77 |
Granted, shares (in shares) | shares | 458 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 1.12 |
Cancelled, shares (in shares) | shares | 0 |
Cancelled, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Outstanding, shares (in shares) | shares | 1,561 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 1.67 |
Note 11 - Fair Value of Measu_2
Note 11 - Fair Value of Measurements (Details Textual) - USD ($) | Dec. 27, 2020 | Sep. 27, 2020 | Mar. 31, 2014 |
Long-term Debt, Total | $ 506,414,000 | $ 524,557,000 | |
Warrants and Rights Outstanding | 247,000 | $ 363,000 | |
Fair Value, Inputs, Level 3 [Member] | |||
Investments, Fair Value Disclosure, Total | $ 4,226,000 | ||
Fair Value, Inputs, Level 3 [Member] | TCT and Private Equity Investment [Member] | |||
Equity Securities without Readily Determinable Fair Value, Percent | 17.00% | ||
Fair Value, Inputs, Level 2 [Member] | |||
Long-term Debt, Fair Value | $ 532,456,000 | ||
Warrants and Rights Outstanding | $ 16,930,000 | ||
Fair Value, Inputs, Level 2 [Member] | Senior Secured Notes [Member] | |||
Long-term Debt, Total | $ 523,556,000 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingent Liabilities (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 27, 2020 | Dec. 29, 2019 | |
Restructuring Charges, Total | $ 3,167,000 | $ 1,632,000 |
Restructuring Reserve, Ending Balance | 0 | |
Employee Severance [Member] | ||
Restructuring Charges, Total | $ 3,167,000 |