Lee Enterprises (LEE) 10-Q 4 Aug 23 2023 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 25, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 25, 2023
Document Transition Report	false
Entity File Number	1-6227
Entity Registrant Name	LEE ENTERPRISES, INCORPORATED
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	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,072,392
Entity Central Index Key	0000058361
Current Fiscal Year End Date	--09-24
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 25, 2023	Sep. 25, 2022
Current assets:
Cash and cash equivalents	$ 16,955	$ 16,185
Accounts receivable, net	69,182	69,522
Inventories	7,933	8,265
Prepaid and other current assets	15,098	15,151
Total current assets	109,168	109,123
Investments:
Associated companies	29,654	27,378
Other	5,791	5,971
Total investments	35,445	33,349
Property and equipment:
Land and improvements	13,098	14,505
Buildings and improvements	89,246	95,111
Equipment	216,872	215,731
Construction in process	2,570	1,449
Property and equipment, gross	321,786	326,796
Less accumulated depreciation	255,693	253,083
Property and equipment, net	66,093	73,713
Operating lease right-of-use assets	43,543	47,490
Goodwill	329,504	329,504
Other intangible assets, net	107,111	121,373
Other	12,262	9,896
Total assets	722,824	744,042
Current liabilities:
Current portion of lease liabilities	7,971	7,859
Current maturities of long-term debt	2,013	0
Accounts payable	38,466	28,608
Compensation and other accrued liabilities	32,332	44,740
Unearned revenue	43,875	49,929
Total current liabilities	124,657	131,136
Long-term debt, net of current maturities	457,981	462,554
Operating lease liabilities	39,421	46,003
Pension obligations	711	966
Postretirement and postemployment benefit obligations	9,465	9,221
Deferred income taxes	42,259	42,719
Income taxes payable	8,650	8,292
Withdrawal liabilities and other	25,081	25,914
Total liabilities	708,225	726,805
Stockholders' equity:
Serial convertible preferred stock, no par value; authorized 500 shares; none issued	0	0
Additional paid-in capital	260,425	259,521
Accumulated deficit	(264,512)	(261,229)
Accumulated other comprehensive income	16,233	16,653
Total stockholders' equity	12,207	15,005
Non-controlling interests	2,392	2,232
Total equity	14,599	17,237
Total liabilities and equity	722,824	744,042
Common Class A
Stockholders' equity:
Common stock	61	60
Common Class B
Stockholders' equity:
Common stock	0	0
Pension Plan
Property and equipment:
Pension and medical plan assets	105	528
Medical Plan
Property and equipment:
Pension and medical plan assets	$ 19,593	$ 19,066

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 25, 2023	Sep. 25, 2022
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	500	500
Preferred stock, shares issued (in shares)	0	0
Common Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	12,000	12,000
Common stock, shares issued (in shares)	6,072	5,979
Common stock, shares outstanding (in shares)	6,072	5,979
Common Class B
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, shares authorized (in shares)	3,000	3,000
Common stock, shares issued (in shares)	0	0

Consolidated Statements of Inco

Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Operating revenue:
Total operating revenue	$ 171,310	$ 195,037	$ 527,129	$ 587,333
Operating expenses:
Compensation	63,582	78,126	207,859	246,333
Newsprint and ink	6,346	7,542	20,244	22,254
Other operating expenses	80,010	88,004	249,353	258,665
Depreciation and amortization	7,478	8,818	23,097	27,445
Assets (gain) loss on sales, impairments and other, net	(900)	1,086	(4,255)	(11,340)
Restructuring costs and other	3,780	6,072	8,120	19,862
Total operating expenses	160,296	189,648	504,418	563,219
Equity in earnings of associated companies	1,194	1,050	3,534	4,211
Operating income	12,208	6,439	26,245	28,325
Non-operating (expense) income:
Interest expense	(10,235)	(10,292)	(31,144)	(31,478)
Curtailment gain	0	0	0	1,027
Pension withdrawal cost	0	0	0	(2,335)
Pension and OPEB related benefit and other, net	555	4,205	2,255	13,525
Total non-operating expense, net	(9,680)	(6,087)	(28,889)	(19,261)
Income (loss) before income taxes	2,528	352	(2,644)	9,064
Income tax expense (benefit)	394	156	(1,237)	2,363
Net income (loss)	2,134	196	(1,407)	6,701
Net income attributable to non-controlling interests	(631)	(465)	(1,876)	(1,588)
(Loss) income attributable to Lee Enterprises, Incorporated	1,503	(269)	(3,283)	5,113
Other comprehensive loss, net of income taxes	(140)	(1,167)	(420)	(8,446)
Comprehensive income (loss) attributable to Lee Enterprises, Incorporated	$ 1,363	$ (1,436)	$ (3,703)	$ (3,333)
Earnings (loss) per common share:
Basic (in dollars per share)	$ 0.26	$ (0.05)	$ (0.56)	$ 0.89
Diluted (in dollars per share)	$ 0.25	$ (0.05)	$ (0.56)	$ 0.87
Advertising and marketing services
Operating revenue:
Total operating revenue	$ 79,120	$ 91,001	$ 246,406	$ 277,388
Subscription
Operating revenue:
Total operating revenue	77,557	89,048	235,838	263,915
Other
Operating revenue:
Total operating revenue	$ 14,633	$ 14,988	$ 44,885	$ 46,030

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Accumulated Deficit	Common Stock	Additional paid-in capital	Accumulated Other Comprehensive Loss
Beginning Balance at Sep. 26, 2021	$ 41,097	$ (259,212)	$ 59	$ 258,063	$ 42,187
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (redeemed)	(385)		1	(386)
Income (loss) attributable to Lee Enterprises, Incorporated	12,658	12,658
Stock compensation	186			186
Other comprehensive loss	(8,174)				(8,174)
Deferred income taxes, net	2,062				2,062
Ending Balance at Dec. 26, 2021	47,444	(246,554)	60	257,863	36,075
Beginning Balance at Sep. 26, 2021	41,097	(259,212)	59	258,063	42,187
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income (loss) attributable to Lee Enterprises, Incorporated	5,113
Ending Balance at Jun. 26, 2022	38,923	(254,099)	60	259,221	33,741
Beginning Balance at Dec. 26, 2021	47,444	(246,554)	60	257,863	36,075
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (redeemed)	(3)			(3)
Income (loss) attributable to Lee Enterprises, Incorporated	(7,276)	(7,276)
Stock compensation	663			663
Other comprehensive loss	(1,667)				(1,667)
Deferred income taxes, net	500				500
Ending Balance at Mar. 27, 2022	39,661	(253,830)	60	258,523	34,908
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (redeemed)	371			371
Income (loss) attributable to Lee Enterprises, Incorporated	(269)	(269)
Stock compensation	327			327
Other comprehensive loss	(1,667)				(1,667)
Deferred income taxes, net	500				500
Ending Balance at Jun. 26, 2022	38,923	(254,099)	60	259,221	33,741
Beginning Balance at Sep. 25, 2022	15,005	(261,229)	60	259,521	16,653
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (redeemed)	(383)			(383)
Income (loss) attributable to Lee Enterprises, Incorporated	1,099	1,099
Stock compensation	349			349
Other comprehensive loss	(200)				(200)
Deferred income taxes, net	60				60
Ending Balance at Dec. 25, 2022	15,930	(260,130)	60	259,487	16,513
Beginning Balance at Sep. 25, 2022	15,005	(261,229)	60	259,521	16,653
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income (loss) attributable to Lee Enterprises, Incorporated	(3,283)
Ending Balance at Jun. 25, 2023	12,207	(264,512)	61	260,425	16,233
Beginning Balance at Dec. 25, 2022	15,930	(260,130)	60	259,487	16,513
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (redeemed)	(97)			(97)
Income (loss) attributable to Lee Enterprises, Incorporated	(5,885)	(5,885)
Stock compensation	574			574
Other comprehensive loss	(200)				(200)
Deferred income taxes, net	60				60
Ending Balance at Mar. 26, 2023	10,382	(266,015)	60	259,964	16,373
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (redeemed)	1			0
Income (loss) attributable to Lee Enterprises, Incorporated	1,503	1,503
Stock compensation	461			461
Other comprehensive loss	(200)				(200)
Deferred income taxes, net	60				60
Ending Balance at Jun. 25, 2023	$ 12,207	$ (264,512)	$ 61	$ 260,425	$ 16,233

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022
Cash provided by (required for) operating activities:
Net (loss) income	$ (1,407)	$ 6,701
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,097	27,445
Curtailment gain	0	(1,027)
Pension withdrawal cost	0	2,335
Stock compensation expense	1,384	1,026
Assets (gain) loss on sales, impairments and other, net	(4,255)	(11,340)
Gain on sale of investment	(1,736)	0
Deferred income taxes	(460)	62
Return of letters of credit collateral	778	2,451
Other, net	(1,705)	(1,492)
Changes in operating assets and liabilities:
Decrease (increase) in receivables	124	(8,004)
Decrease in inventories and other	(348)	(2,369)
(Decrease) increase in accounts payable and other accrued liabilities	(14,435)	1,775
Decrease in pension and other postretirement and postemployment benefit obligations	(186)	(13,910)
Change in income taxes payable	358	(2,986)
Other, net	(2,693)	49
Net cash (required for) provided by operating activities	(1,484)	716
Cash provided by investing activities:
Purchases of property and equipment	(3,791)	(5,738)
Proceeds from sales of assets	7,231	14,824
Distributions less than earnings of TNI and MNI	(234)	(276)
Other, net	1,873	(295)
Net cash provided by investing activities	5,079	8,515
Cash required for financing activities:
Payments on long-term debt	(2,560)	(20,062)
Common stock transactions, net	(265)	380
Net cash required for financing activities	(2,825)	(19,682)
Net increase (decrease) in cash and cash equivalents	770	(10,451)
Cash and cash equivalents:
Beginning of period	16,185	26,112
End of period	$ 16,955	$ 15,661

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Jun. 25, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 June 25, 2023, and our results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2022 Annual Report on Form 10-K. The Company's fiscal year ends on the last Sunday in September. Fiscal year 2023 ends on September 24, 2023, and fiscal year 2022 ended September 25, 2022. Fiscal year 2023 and 2022 are 52-week years with 13 weeks in each quarter. Because of seasonal and other factors, the results of operations for the three and nine months ended June 25, 2023, are not necessarily indicative of the results to be expected for the full year. The Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries, as well as our 82.5% interest in INN Partners, L.C. (“BLOX Digital", formerly "TownNews”). Our 50% interest in TNI Partners ("TNI") and our 50% interest in Madison Newspapers, Inc. ("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.

Revenue

Revenue	9 Months Ended
	Jun. 25, 2023
Revenue from Contract with Customer [Abstract]
Revenue	REVENUE The following table presents our revenue disaggregated by source: Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Operating revenue: Print advertising revenue 29,216 44,814 102,503 145,032 Digital advertising revenue 49,904 46,187 143,903 132,356 Advertising and marketing services revenue 79,120 91,001 246,406 277,388 Print subscription revenue 61,842 78,079 193,799 234,962 Digital subscription revenue 15,715 10,969 42,039 28,953 Subscription revenue 77,557 89,048 235,838 263,915 Print other revenue 9,773 10,671 30,542 32,430 Digital other revenue 4,860 4,317 14,343 13,600 Other revenue 14,633 14,988 44,885 46,030 Total operating revenue 171,310 195,037 527,129 587,333 Recognition principles: Revenue is recognized when a performance obligation is satisfied by the transfer of control of the contracted goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Arrangements with multiple performance obligations: We have various advertising and subscription agreements which include both print and digital performance obligations. Revenue from sales agreements that contain multiple performance obligations are allocated to each obligation based on the relative standalone selling price. We determine standalone selling prices based on observable prices charged to customers. Contract Assets and Liabilities: The Company’s primary source of contract liabilities is unearned revenue from subscriptions paid in advance of the service provided. The Company expects to recognize the revenue related to unsatisfied performance obligations over the next twelve months in accordance with the terms of the subscriptions and other contracts with customers. Revenue recognized in the nine months ended June 25, 2023, that was included in the contract liability as of September 25, 2022, was $45.5 million. Accounts receivable, excluding allowance for credit losses were $74.2 million and $74.8 million as of June 25, 2023, and September 25, 2022 , respectively. Allowance for credit losses was $5.0 million and $5.2 million as of June 25, 2023, and September 25, 2022 , respectively. Sales commissions are expensed as incurred as the associated contractual periods are one year or less. These costs are recorded within compensation. Most of our contracts have original expected lengths of one year or less and revenue is earned at a rate and amount that corresponds directly with the value to the customer.

Investments In Associated Compa

Investments In Associated Companies	9 Months Ended
	Jun. 25, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investments In Associated Companies	INVESTMENTS IN ASSOCIATED COMPANIES TNI Partners In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Gannets Co. Inc.'s subsidiary Citizen Publishing Company (“Citizen”), is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star as well as the related digital platforms and specialty publications. TNI collects all receipts and income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspaper and other media. Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen. Summarized results of TNI are as follows: Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Operating revenue 7,244 8,229 23,954 25,805 Operating expenses 5,677 6,492 19,041 19,365 Operating income 1,567 1,737 4,913 6,440 Net Income 1,581 1,737 5,247 6,440 Equity in earnings of TNI 791 869 2,624 3,220 TNI makes periodic distributions of its earnings and for the three months ended June 25, 2023, and June 26, 2022, we received $0.4 million and $0.7 million in distributions, respectively. In the nine months ended June 25, 2023 and June 26, 2022, we received $2.8 million and $2.9 million in distributions, respectively. 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 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: Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Operating revenue 10,963 11,921 33,470 35,677 Operating expenses, excluding restructuring costs, depreciation and amortization (1) 8,470 9,682 26,496 28,402 Restructuring costs 10 122 137 122 Depreciation and amortization 129 167 402 507 Operating income 2,354 1,950 6,435 6,646 Net income 807 362 1,821 1,982 Equity in earnings of MNI 404 181 911 991 (1) Amounts were reclassed to align with current year presentation MNI makes periodic distributions of its earnings and in the three months ended June 25, 2023 and June 26, 2022, we received $0.2 million in distributions for both periods. In the nine months ended June 25, 2023 and June 26, 2022 we received distributions of $0.5 million and $1.0 million, respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Jun. 25, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill And Other Intangible Assets	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and identified intangible assets consist of the following: (Thousands of Dollars) June 25, September 25, Goodwill, beginning of period 329,504 330,204 Impairment — (700) Goodwill, end of period 329,504 329,504 Non-amortized intangible assets: Mastheads 26,346 26,346 Amortizable intangible assets: Customer and newspaper subscriber lists 321,804 323,568 Less accumulated amortization (241,039) (228,541) 80,765 95,027 Total intangibles, net 436,615 450,877 The weighted average amortization period for amortizable assets is 11.70 years.

Debt

Debt	9 Months Ended
	Jun. 25, 2023
Debt Disclosure [Abstract]
Debt	DEBTThe Company has debt consisting of a single 25-year term loan with BH Finance LLC, with an aggregate principal balance of $460.0 million at a 9% annual fixed rate and maturing on March 16, 2045 (referred to herein as “Credit Agreement” and “Term Loan”). On June 25, 2023, the fair value is $462.4 million. This represents a level 2 fair value measurement. During the nine months ended June 25, 2023, we made principal debt payments of $2.6 million. Future payments are contingent on the Company's ability to generate future excess cash flow, as defined in the Credit Agreement. Subsequent to June 25, 2023, the Company will make a $2.0 million payment related to net proceeds received from the sale of non-core assets as required by our Credit Agreement.

Pension, Postretirement and Pos

Pension, Postretirement and Postemployment Defined Benefit Plans	9 Months Ended
	Jun. 25, 2023
Retirement Benefits [Abstract]
Pension, Postretirement and Postemployment Defined Benefit Plans	PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS We have a defined benefit pension plan that covers certain employees, including plans established under collective bargaining agreements. Additionally, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. Through June 25, 2023, our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. The net periodic pension and postretirement cost (benefit) components for our plans are as follows: PENSION PLANS Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Service cost for benefits earned during the period 5 287 15 1,030 Interest cost on projected benefit obligation 2,592 2,001 7,776 5,939 Expected return on plan assets (2,548) (4,535) (7,644) (13,606) Amortization of net (gain) loss 2 (687) 6 (2,633) Amortization of prior service benefit 213 212 639 424 Curtailment gain — — (1,027) Pension cost (benefit) 264 (2,722) 792 (9,873) POSTRETIREMENT MEDICAL PLANS Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Service cost for benefits earned during the period 17 27 51 81 Interest cost on projected benefit obligation 149 85 447 255 Expected return on plan assets (295) (263) (885) (789) Amortization of net gain (254) (249) (762) (747) Amortization of prior service benefit (162) (162) (486) (486) Postretirement medical benefit (545) (562) (1,635) (1,686) In the nine months ended June 25, 2023 and June 26, 2022, we made no contributions to our pension plans. W e have no required contributions to our pension plans for 2023. Multiemployer Pension Plans In prior periods, the Company effectuated withdrawals from several multiemployer plans. As of June 25, 2023, and September 25, 2022, we had $23.1 million and $25.0 million of accrued withdrawal liabilities. The liabilities reflect the estimated value of payments to the fund, payable over 20 years.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 25, 2023
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES We recorded an income tax expense of $0.4 million related to income before taxes of $2.5 million for the three months ended June 25, 2023, and an income tax benefit of $1.2 million related to a loss before income taxes of $2.6 million for the nine months ended June 25, 2023. We recorded an income tax expense of $0.2 million related to income before taxes of $0.4 million for the three months ended June 26, 2022 and income tax expense of $2.4 million related to income before income taxes of $9.1 million for the nine months ended June 26, 2022. The effective income tax rate for the three and nine months ended June 25, 2023, were 15.6% and 46.8%, respectively. The effective income tax rate for the three and nine months ended June 26, 2022, were 44.3% and 26.1%, respectively. The primary differences between these rates and the U.S. federal statutory rate of 21% are because of state taxes, non-deductible expenses and adjustments to reserves for uncertain tax positions, including any related interest. We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 state and local jurisdictions. We do not currently have any federal or material state income tax examinations in progress. Our income tax returns have generally been audited or closed to audit through 2015.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Jun. 25, 2023
Earnings Per Share [Abstract]
Earnings Per Common Share	EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Nine months ended (Thousands of Dollars and Shares, Except Per Share Data) June 25, June 26, June 25, June 26, Income (loss) attributable to Lee Enterprises, Incorporated: 1,503 (269) (3,283) 5,113 Weighted average common shares 6,051 5,965 6,045 5,935 Less weighted average restricted Common Stock (173) (170) (172) (168) Basic average common shares 5,878 5,795 5,873 5,767 Dilutive stock options and restricted Common Stock 30 — — 93 Diluted average common shares 5,908 5,795 5,873 5,860 Earnings per common share: Basic 0.26 (0.05) (0.56) 0.89 Diluted 0.25 (0.05) (0.56) 0.87 For the three months ended June 25, 2023, 136,853 shares were excluded in the computation of diluted earnings per common share because their inclusion would result in an anti-dilutive effect on per share amounts. For the three months ended June 26, 2022, no shares were considered in the computation of diluted earnings per common share because the Company recorded net losses. For the nine months ended June 25, 2023, no shares were considered in the computation of diluted earnings per common share because the Company recorded net losses. For the nine months ended June 25, 2022, 74,804 shares were excluded in the computation of diluted earnings per common share because their inclusion would result in an anti-dilutive effect on per share amounts.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Jun. 25, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent Liabilities	COMMITMENTS AND CONTINGENT LIABILITIES 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

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 25, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 June 25, 2023, and our results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2022 Annual Report on Form 10-K. The Company's fiscal year ends on the last Sunday in September. Fiscal year 2023 ends on September 24, 2023, and fiscal year 2022 ended September 25, 2022. Fiscal year 2023 and 2022 are 52-week years with 13 weeks in each quarter. Because of seasonal and other factors, the results of operations for the three and nine months ended June 25, 2023, are not necessarily indicative of the results to be expected for the full year. The Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries, as well as our 82.5% interest in INN Partners, L.C. (“BLOX Digital", formerly "TownNews”). Our 50% interest in TNI Partners ("TNI") and our 50% interest in Madison Newspapers, Inc. ("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.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Jun. 25, 2023
Revenue from Contract with Customer [Abstract]
Revenue Disaggregated by Source	The following table presents our revenue disaggregated by source: Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Operating revenue: Print advertising revenue 29,216 44,814 102,503 145,032 Digital advertising revenue 49,904 46,187 143,903 132,356 Advertising and marketing services revenue 79,120 91,001 246,406 277,388 Print subscription revenue 61,842 78,079 193,799 234,962 Digital subscription revenue 15,715 10,969 42,039 28,953 Subscription revenue 77,557 89,048 235,838 263,915 Print other revenue 9,773 10,671 30,542 32,430 Digital other revenue 4,860 4,317 14,343 13,600 Other revenue 14,633 14,988 44,885 46,030 Total operating revenue 171,310 195,037 527,129 587,333

Investments In Associated Com_2

Investments In Associated Companies (Tables)	9 Months Ended
	Jun. 25, 2023
Equity Method Investments and Joint Ventures [Abstract]
Summarized Results of TNI and MNI	Summarized results of TNI are as follows: Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Operating revenue 7,244 8,229 23,954 25,805 Operating expenses 5,677 6,492 19,041 19,365 Operating income 1,567 1,737 4,913 6,440 Net Income 1,581 1,737 5,247 6,440 Equity in earnings of TNI 791 869 2,624 3,220 Summarized results of MNI are as follows: Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Operating revenue 10,963 11,921 33,470 35,677 Operating expenses, excluding restructuring costs, depreciation and amortization (1) 8,470 9,682 26,496 28,402 Restructuring costs 10 122 137 122 Depreciation and amortization 129 167 402 507 Operating income 2,354 1,950 6,435 6,646 Net income 807 362 1,821 1,982 Equity in earnings of MNI 404 181 911 991 (1) Amounts were reclassed to align with current year presentation

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Jun. 25, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill and Intangible Assets	Goodwill and identified intangible assets consist of the following: (Thousands of Dollars) June 25, September 25, Goodwill, beginning of period 329,504 330,204 Impairment — (700) Goodwill, end of period 329,504 329,504 Non-amortized intangible assets: Mastheads 26,346 26,346 Amortizable intangible assets: Customer and newspaper subscriber lists 321,804 323,568 Less accumulated amortization (241,039) (228,541) 80,765 95,027 Total intangibles, net 436,615 450,877

Pension, Postretirement and P_2

Pension, Postretirement and Postemployment Defined Benefit Plans (Tables)	9 Months Ended
	Jun. 25, 2023
Retirement Benefits [Abstract]
Schedule of Net Periodic Pension and Postretirement Cost (Benefit) Components	The net periodic pension and postretirement cost (benefit) components for our plans are as follows: PENSION PLANS Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Service cost for benefits earned during the period 5 287 15 1,030 Interest cost on projected benefit obligation 2,592 2,001 7,776 5,939 Expected return on plan assets (2,548) (4,535) (7,644) (13,606) Amortization of net (gain) loss 2 (687) 6 (2,633) Amortization of prior service benefit 213 212 639 424 Curtailment gain — — (1,027) Pension cost (benefit) 264 (2,722) 792 (9,873) POSTRETIREMENT MEDICAL PLANS Three months ended Nine months ended (Thousands of Dollars) June 25, June 26, June 25, June 26, Service cost for benefits earned during the period 17 27 51 81 Interest cost on projected benefit obligation 149 85 447 255 Expected return on plan assets (295) (263) (885) (789) Amortization of net gain (254) (249) (762) (747) Amortization of prior service benefit (162) (162) (486) (486) Postretirement medical benefit (545) (562) (1,635) (1,686)

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Jun. 25, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Nine months ended (Thousands of Dollars and Shares, Except Per Share Data) June 25, June 26, June 25, June 26, Income (loss) attributable to Lee Enterprises, Incorporated: 1,503 (269) (3,283) 5,113 Weighted average common shares 6,051 5,965 6,045 5,935 Less weighted average restricted Common Stock (173) (170) (172) (168) Basic average common shares 5,878 5,795 5,873 5,767 Dilutive stock options and restricted Common Stock 30 — — 93 Diluted average common shares 5,908 5,795 5,873 5,860 Earnings per common share: Basic 0.26 (0.05) (0.56) 0.89 Diluted 0.25 (0.05) (0.56) 0.87

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details)	Jun. 25, 2023
TNI Partners
Noncontrolling Interest [Line Items]
Equity method investment, ownership percentage	50%
MNI
Noncontrolling Interest [Line Items]
Equity method investment, ownership percentage	50%
INN Partners, L.C.
Noncontrolling Interest [Line Items]
Noncontrolling interest, ownership percentage by parent	82.50%

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Operating revenue:
Total operating revenue	$ 171,310	$ 195,037	$ 527,129	$ 587,333
Advertising and marketing services revenue
Operating revenue:
Total operating revenue	79,120	91,001	246,406	277,388
Advertising and marketing services revenue | Print advertising revenue
Operating revenue:
Total operating revenue	29,216	44,814	102,503	145,032
Advertising and marketing services revenue | Digital advertising revenue
Operating revenue:
Total operating revenue	49,904	46,187	143,903	132,356
Subscription revenue
Operating revenue:
Total operating revenue	77,557	89,048	235,838	263,915
Subscription revenue | Print advertising revenue
Operating revenue:
Total operating revenue	61,842	78,079	193,799	234,962
Subscription revenue | Digital advertising revenue
Operating revenue:
Total operating revenue	15,715	10,969	42,039	28,953
Other revenue
Operating revenue:
Total operating revenue	14,633	14,988	44,885	46,030
Other revenue | Print advertising revenue
Operating revenue:
Total operating revenue	9,773	10,671	30,542	32,430
Other revenue | Digital advertising revenue
Operating revenue:
Total operating revenue	$ 4,860	$ 4,317	$ 14,343	$ 13,600

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 25, 2023	Sep. 25, 2022
Revenue from Contract with Customer [Abstract]
Contract liability revenue recognized	$ 45.5
Accounts receivable, excluding allowance for credit loss	74.2	$ 74.8
Allowance for credit loss	$ 5	$ 5.2

Investments In Associated Com_3

Investments In Associated Companies - Summarized Financial Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Schedule of Equity Method Investments [Line Items]
Operating revenue	$ 171,310	$ 195,037	$ 527,129	$ 587,333
Operating expenses	160,296	189,648	504,418	563,219
Restructuring costs	3,780	6,072	8,120	19,862
Depreciation and amortization	7,478	8,818	23,097	27,445
Operating income	12,208	6,439	26,245	28,325
Net income	2,134	196	(1,407)	6,701
Equity in earnings	1,194	1,050	3,534	4,211
TNI Partners
Schedule of Equity Method Investments [Line Items]
Equity in earnings	791	869	2,624	3,220
MNI
Schedule of Equity Method Investments [Line Items]
Equity in earnings	404	181	911	991
TNI Partners
Schedule of Equity Method Investments [Line Items]
Operating revenue	7,244	8,229	23,954	25,805
Operating expenses	5,677	6,492	19,041	19,365
Operating income	1,567	1,737	4,913	6,440
Net income	1,581	1,737	5,247	6,440
MNI
Schedule of Equity Method Investments [Line Items]
Operating revenue	10,963	11,921	33,470	35,677
Operating expenses	8,470	9,682	26,496	28,402
Restructuring costs	10	122	137	122
Depreciation and amortization	129	167	402	507
Operating income	2,354	1,950	6,435	6,646
Net income	$ 807	$ 362	$ 1,821	$ 1,982

Investments In Associated Com_4

Investments In Associated Companies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
TNI Partners
Schedule of Equity Method Investments [Line Items]
Distribution from equity method investments	$ 0.4	$ 0.7	$ 2.8	$ 2.9
MNI
Schedule of Equity Method Investments [Line Items]
Distribution from equity method investments	$ 0.2	$ 0.2	$ 0.5	$ 1
Equity method investments, ownership percentage	50%		50%

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets -Schedule of Goodwill and Identified Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 25, 2023	Sep. 25, 2022	Sep. 26, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 329,504	$ 329,504	$ 330,204
Impairment	0	(700)
Amortizable intangible assets:
Total intangibles, net	436,615	450,877
Customer and newspaper subscriber lists
Amortizable intangible assets:
Customer and newspaper subscriber lists	321,804	323,568
Less accumulated amortization	(241,039)	(228,541)
Amortizable intangible assets, net	80,765	95,027
Mastheads
Non-amortized intangible assets:
Mastheads	$ 26,346	$ 26,346

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Narrative (Details)	9 Months Ended
	Jun. 25, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Weighted average amortization period (in years)	11 years 8 months 12 days

Debt (Details)

Debt (Details) - USD ($) $ in Thousands		9 Months Ended
	Mar. 16, 2020	Jun. 25, 2023	Jun. 26, 2022	Sep. 22, 2023
Debt Instrument [Line Items]
Payments on long-term debt		$ 2,560	$ 20,062
Forecast
Debt Instrument [Line Items]
Principal repayments on long term borrowings due to excess cash flow				$ 2,000
Credit Agreement | Secured Term Loan | BH Finance
Debt Instrument [Line Items]
Long-term debt, term (years)	25 years
Long-term debt	$ 460,000
Long-term debt, interest rate	9%
Payments on long-term debt		2,600
Credit Agreement | Secured Term Loan | BH Finance | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Long-term debt, fair value		$ 462,400

Pension, Postretirement and P_3

Pension, Postretirement and Postemployment Defined Benefit Plans - Net Periodic Cost (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost for benefits earned during the period	$ 5	$ 287	$ 15	$ 1,030
Interest cost on projected benefit obligation	2,592	2,001	7,776	5,939
Expected return on plan assets	(2,548)	(4,535)	(7,644)	(13,606)
Amortization of net gain (loss)	2	(687)	6	(2,633)
Amortization of prior service benefit	213	212	639	424
Curtailment gain		0	0	(1,027)
Pension and postretirement medical cost (benefit)	264	(2,722)	792	(9,873)
Postretirement Medical Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost for benefits earned during the period	17	27	51	81
Interest cost on projected benefit obligation	149	85	447	255
Expected return on plan assets	(295)	(263)	(885)	(789)
Amortization of net gain (loss)	(254)	(249)	(762)	(747)
Amortization of prior service benefit	(162)	(162)	(486)	(486)
Pension and postretirement medical cost (benefit)	$ (545)	$ (562)	$ (1,635)	$ (1,686)

Pension, Postretirement and P_4

Pension, Postretirement and Postemployment Defined Benefit Plans - Narrative (Details) - USD ($)	9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Sep. 25, 2022
Defined Benefit Plan Disclosure [Line Items]
Multiemployer plans, withdrawal obligation	$ 23,100,000		$ 25,000,000
Multiemployer plans, withdrawal obligation, period (years)	20 years
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, contributions by employer	$ 0	$ 0
Defined benefit plan, expected future employer contributions, next fiscal year	$ 0

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 25, 2023 USD ($) jurisdiction	Jun. 26, 2022 USD ($)	Jun. 25, 2023 USD ($) jurisdiction	Jun. 26, 2022 USD ($)
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 394	$ 156	$ (1,237)	$ 2,363
Loss (Income) before taxes	$ 2,500	$ 400	$ (2,600)	$ 9,100
Effective income tax rate	15.60%	44.30%	46.80%	26.10%
Number of state and local jurisdictions | jurisdiction	27		27

Earnings Per Common Share - Com

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						9 Months Ended
	Jun. 25, 2023	Mar. 26, 2023	Dec. 25, 2022	Jun. 26, 2022	Mar. 27, 2022	Dec. 26, 2021	Jun. 25, 2023	Jun. 26, 2022
Earnings Per Share [Abstract]
Income (loss) attributable to Lee Enterprises, Incorporated:	$ 1,503	$ (5,885)	$ 1,099	$ (269)	$ (7,276)	$ 12,658	$ (3,283)	$ 5,113
Weighted average common shares (in shares)	6,051			5,965			6,045	5,935
Less weighted average restricted Common Stock (in shares)	(173)			(170)			(172)	(168)
Basic average common shares (in shares)	5,878			5,795			5,873	5,767
Dilutive stock options and restricted Common Stock (in shares)	30			0			0	93
Diluted average common shares (in shares)	5,908			5,795			5,873	5,860
Earnings per common share:
Basic (in dollars per share)	$ 0.26			$ (0.05)			$ (0.56)	$ 0.89
Diluted (in dollars per share)	$ 0.25			$ (0.05)			$ (0.56)	$ 0.87

Earnings Per Common Share - Nar

Earnings Per Common Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Jun. 25, 2023	Jun. 26, 2022	Jun. 25, 2023	Jun. 26, 2022
Earnings Per Share [Abstract]
Anti-dilutive shares excluded (in shares)	136,853	0	0	74,804