Lee Enterprises outlines digital strategies, improves cost outlook
February 19 2014 - 9:00AM
DAVENPORT, Iowa (February 19, 2014) -- At its
annual meeting of stockholders today, Lee Enterprises, Incorporated
(NYSE: LEE), a major provider of local news, information and
advertising in 50 markets, will provide a review of its digital
news, sales and audience strategies, along with a financial update
that includes improved cost guidance.
The presentation is available at lee.net. It
includes remarks by Mary Junck, chairman and chief executive
officer; Kevin Mowbray, vice president and chief operating officer;
and Carl Schmidt, vice president, chief financial officer and
treasurer.
"As we recently reported, Lee is off to a solid
start in 2014," Junck said. "We grew digital revenue and audiences
at a double-digit pace, continued to reduce expenses, again posted
strong cash flow, reduced our debt further and announced a
commitment for a favorable refinancing of our second lien debt.
Those reasons reinforce our upbeat outlook."
Strategies include:
-
Expanded local news and information tailored for
each digital platform - desktop and tablet web, mobile web, mobile
apps, tablet apps, e-editions and niche apps.
In providing improved cost guidance, Schmidt said
2014 operating expenses, excluding depreciation and amortization,
as well as impairment charges in the prior year, are expected to
decrease 1.5-2.5%, a change of about $5 million from the prior
estimate. This guidance excludes the impact of a
circulation-related expense reclassification that will increase
both subscription revenue and expenses, but have no impact on
operating cash flow or operating income.
Schmidt also reviewed plans for refinancing Lee's
long-term debt. He said that in addition to completing a previously
announced agreement for refinancing Lee's second lien debt to
December 2022, the company is focused on refinancing its first lien
debt, which matures in December 2015. He said Lee will seek to
refinance its first lien debt over the next few months, using a
combination of pre-payable and non-pre-payable facilities, with a
goal of extending the company's non-Pulitzer weighted average
maturities beyond seven years.
Lee Enterprises is a leading provider of local
news and information, and a major platform for advertising, in its
markets, with 46 daily newspapers and a joint interest in four
others, rapidly growing digital products and nearly 300 specialty
publications in 22 states. Lee's newspapers have circulation of 1.2
million daily and 1.6 million Sunday, reaching nearly four million
readers in print alone. Lee's websites and mobile and tablet
products attracted 25.6 million unique visitors in December 2013.
Lee's markets include St. Louis, MO; Lincoln, NE; Madison, WI;
Davenport, IA; Billings, MT; Bloomington, IL; and Tucson, AZ. Lee
Common Stock is traded on the New York Stock Exchange under the
symbol LEE. For more information about Lee, please visit
lee.net.
FORWARD-LOOKING STATEMENTS -- The Private
Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. This news release contains
information that may be deemed forward-looking that is based
largely on our current expectations, and is subject to certain
risks, trends and uncertainties that could cause actual results to
differ materially from those anticipated. Among such risks, trends
and other uncertainties, which in some instances are beyond our
control, are that the refinancings described herein will not be
consummated, or if consummated, the terms will differ substantially
from those described herein, and the possibility that the warrants
to be granted in conjunction therewith will not be exercised, our
ability to generate cash flows and maintain liquidity sufficient to
service our debt, comply with or obtain amendments or waivers of
the financial covenants contained in our credit facilities, if
necessary, and to refinance our debt as it comes due. Other risks
and uncertainties include the impact and duration of continuing
adverse conditions in certain aspects of the economy affecting our
business, changes in advertising demand, potential changes in
newsprint and other commodity prices, energy costs, interest rates,
labor costs, legislative and regulatory rulings, difficulties in
achieving planned expense reductions, maintaining employee and
customer relationships, increased capital costs, maintaining our
listing status on the NYSE, competition and other risks detailed
from time to time in our publicly filed documents. Any statements
that are not statements of historical fact (including statements
containing the words "may", "will", "would", "could", "believe",
"expect", "anticipate", "intend", "plan", "project", "consider" and
similar expressions) generally should be considered forward-looking
statements. Readers are cautioned not to place undue reliance on
such forward-looking statements, which are made as of the date of
this news release. We do not undertake to publicly update or revise
our forward-looking statements.
Contact: dan.hayes@lee.net, (563) 383-2100
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Lee Enterprises Inc. via Globenewswire
HUG#1762946
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