Lee Enterprises, parent company of The Garden Island newspaper, last week reported that for its fiscal fourth quarter ending Sept. 26, 2010, earnings per diluted common share were 11 cents, compared with 4 cents a year ago. Excluding adjustments for
Lee Enterprises, parent company of The Garden Island newspaper, last week reported that for its fiscal fourth quarter ending Sept. 26, 2010, earnings per diluted common share were 11 cents, compared with 4 cents a year ago.
Excluding adjustments for unusual matters in both years, earnings per diluted common share were 16 cents, compared with 5 cents a year ago.
Lower interest expense, overall reduction in operating expenses and strong digital revenue growth contributed to the results, while newsprint costs increased and total year-over-year revenue performance mirrored the previous quarter.
“The economic recovery in our markets stalled a bit in the September quarter, but the revenue trend improved markedly in October, and we expect the improvement to continue in November, as we continue ratcheting up digital sales, which have been growing at a double-digit clip since February,” said Mary Junck, Lee chairman and chief executive officer. “In 2010 we have been building on our rapid digital-audience growth by providing local news and information through mobile apps for smartphones, and this fall we have begun rolling out apps with extensive coverage of local prep and college sports. As technology and media choices continue to evolve, we are making sure that our newspapers and digital products remain, by far, the primary source of local news, information and advertising in our communities, reaching more than 80 percent of all adults.”
Fourth-quarter results
— Operating revenue for the quarter totaled $188.7 million, a decline of 3.7 percent from a year ago;
— Combined print and digital advertising revenue decreased 4.4 percent to $134.3 million, with retail advertising down 4.4 percent, national down 11.7 percent and classified down 3.5 percent;
— Digital retail advertising revenue climbed 38.6 percent and digital classified revenue rose 8.1 percent;
— Circulation revenue declined 1.2 percent;
— Newsprint and ink expense increased 40.2 percent, a result of price increases and accounting adjustments;
— Compensation expense declined 4.6 percent, with the average number of full-time equivalent employees down 5.4 percent;
— The number of unique visitors at Lee digital platforms totaled 48.9 million in the quarter, an increase of 27.1 percent from a year ago;
— Paid newspaper circulation, in the six-month Audit Bureau of Circulations Fas-Fax period ended Sept. 30, 2010, decreased 3.9 percent daily and 4.9 percent Sunday, compared with industry average declines of 4.9 percent daily and 4.4 percent Sunday. Factors contributing to the declines include selective price increases and general economic conditions.
Lee Enterprises is a leading provider of local news, information and advertising in primarily midsize markets, with 49 daily newspapers and a joint interest in four others, rapidly growing digital products and almost 300 specialty publications in 23 states. Lee’s newspapers, including the Quad-City Times, have circulation of 1.4 million daily and 1.7 million Sunday, reaching nearly 4 million readers daily. Lee’s digital sites attract more than 16 million unique visits monthly, and Lee’s weekly publications have distribution of 4 million households.
Lee stock is traded on the New York Stock Exchange under the symbol LEE.
