NEWS RELEASE
Lee Enterprises February Revenue Summary and Assessment
DAVENPORT, Iowa (March 20, 2001) -- Lee Enterprises, Incorporated, (NYSE: LEE)
reported today that publishing revenue in February was flat compared with a year
ago, as revenues from newly acquired properties offset the effects of a slowdown
in advertising and the loss of a calendar day.
Excluding the effects of acquisitions and divestitures, total publishing revenue
declined 3 percent in February compared with the 29-day month a year ago.
Advertising revenue decreased 2 percent. Retail revenue was flat, national
increased 6 percent, and classified revenue decreased 6 percent. The automotive
and employment categories were both under last year, a result of reduced
spending and the shorter month. Circulation revenue decreased 4 percent. Other
sources of revenue decreased 5 percent. Online revenue, which is included in
other revenue, increased 54 percent.
Mary Junck, president and chief executive officer, said: "The economic
uncertainty has pushed advertising revenue, especially classified, below last
year, and we aren't counting on a pick-up for the balance of the year. We
continue to work aggressively to offset the effects of the lackluster economy by
emphasizing growth in new local accounts and market share."
She added: "We've also made hard choices to control costs in every area. We've
implemented a company-wide hiring freeze, except for key revenue-related
positions, and we have selectively reduced our workforce. We have trimmed
newsprint use, renegotiated vendor contracts, cut back discretionary costs and
delayed some capital spending."
Newsprint producers have announced an increase of $50 a ton in the price of
newsprint effective March 1. Junck said it is not possible at this time to
predict the impact, as there is a belief in the industry that the suppliers will
reconsider.
She said earnings will continue to benefit from the investment of the proceeds
of the sale of Lee's broadcast properties. In addition, income tax expense is
expected to decrease by $1.3 million over the balance of the fiscal year due to
state tax incentives.
As a result, she said, Lee expects earnings per diluted share of 28-30 cents in
its second quarter, which ends March 31. Income from continuing operations in
the second quarter a year ago was 27 cents and net income was 31 cents.
The monthly and year-to-date statistical information is included in the
accompanying worksheet.
Lee Enterprises owns 23 daily newspapers and a joint interest in five others.
Lee also owns more than 100 weekly newspapers, shoppers and classified and
specialty publications, along with associated online services.
Released March 20, 2001
(In Thousands)
February Year to Date
--------------------------- ----------------------------
2001 2000 % 2001 2000 %
--------------------------- ----------------------------
PUBLISHING, Operations Basis (1)
Advertising
Retail ...................... $ 12,618 $ 12,681 0% $ 74,404 $ 72,429 3%
National .................... 855 808 6% 5,089 4,360 17%
Classified .................. 8,745 9,268 -6% 45,003 45,586 -1%
---------------------------------------------------------
Total Advertising ........ $ 22,218 $ 22,757 -2% $124,496 $122,375 2%
Circulation .................. 6,689 6,936 -4% 36,496 37,460 -3%
Other ........................ 5,228 5,500 -5% 27,285 26,942 1%
---------------------------------------------------------
Total Revenue ............ $ 34,135 $ 35,193 -3% $188,277 $186,777 1%
Equity Basis Adjustment ...... (3,507) (3,010) 17% (19,551) (16,165) 21%
Acquired/Disposed Properties . 2,796 1,136 N/M 15,637 3,540 N/M
---------------------------------------------------------
$ 33,424 $ 33,319 0% $184,363 $174,152 6%
=========================================================
Daily Newspaper Advertising
Inches (1)
Retail ....................... 391.7 441.5 -11% 2,576.5 2,698.8 -5%
National ..................... 27.5 22.6 22% 163.2 128.4 27%
Classified ................... 427.7 444.3 -4% 2,281.9 2,275.5 0%
<FN>
(1) Operations basis includes 50% of the revenue and statistical information of
Madison Newspapers, Inc., which for financial reporting purposes is
reported on the equity method of accounting. Previously reported data has
been restated for comparative purposes to exclude acquired/disposed
properties.
(2) The month has one less Tuesday than the prior period. The year to date has
one more Wednesday and one less Friday and Saturday than the prior period.
(3) The Company's fiscal year ends on September 30.
(4) Issuer disclaims responsibility for updating information beyond release
date.
</FN>
This news release contains certain forward-looking statements that are based
largely on the Company's current expectations and are subject to certain risks,
trends and uncertainties that could cause actual results to differ materially
from those anticipated. Among such risks, trends and uncertainties are changes
in advertising demand, newsprint prices, interest rates, regulatory rulings and
other economic conditions and the effect of acquisitions, investments and
dispositions on the Company's results of operations or financial condition. The
words "believes," "expects," "anticipates," "intends," "plans," "projects,"
"considers," and similar expressions generally identify forward-looking
statements. Readers are cautioned not to place undue reliance on such
forward-looking statements, which are as of the date of this news release.
A copy of this news release is available at www.lee.net. For more information,
please contact Chris Wahlig, (319) 383-2176.