Lee Enterprises, Incorporated (NASDAQ: LEE), a leading provider of
high quality, trusted, local news, information and a major platform
for advertising in 77 markets, today reported second quarter
fiscal 2022 financial results(2) for the period ended
March 27, 2022.
“Our second quarter results demonstrate the
investments in our Three Pillar Digital Growth strategy are paying
off with tremendous digital revenue growth. Execution of our
strategy has put Lee in position to achieve our digital revenue
targets for the fiscal year; advancing Lee as a vibrant,
digital-centric company with a strong base of recurring,
sustainable, digital revenue,” said Kevin Mowbray, President and
Chief Executive Officer. “In the second quarter, total digital
revenue was $58 million, a 33% increase over the prior year, and
represented 31% of our total operating revenue — up from 23% a
year ago,” Mowbray added.
“I'm particularly pleased our strong growth in
digital advertising revenue more than offset the decline in print.
Total advertising and marketing services revenue increased 2% in
the second quarter, as digital advertising
increased 36%. Digital advertising and marketing services
revenue totaled $43 million in the quarter and $160 million
over the last twelve months — pacing well towards our goal of
$175 million of digital advertising and marketing services revenue
in fiscal year 2022. Amplified Digital®, our full service digital
marketing solutions agency, fueled the digital growth with revenue
of $19 million in the quarter, up 108%,” Mowbray added.
"Lee is the fastest growing digital subscription
platform in local media and has been for the last nine quarters.
And digital-only subscriber growth continued at a rapid pace in the
second quarter — up 59% over the prior year. Lee now has
492,000 digital-only subscribers, putting us six months ahead of
our year-end goal. At the same time, we are driving an increase in
average rates for digital-only subscriptions, which were up 22% in
the second quarter compared to the first quarter. Digital-only
subscription revenue increased 45% to $10 million in the quarter
and totaled $33 million over the last twelve months, nearly
achieving our year-end guidance six months early,” Mowbray
added.
“Our second quarter results have us on track to
achieve all of our fiscal year 2022 digital revenue targets. These
early returns on our digital investments give us confidence we have
the right strategy, the right team and we are executing with
velocity,” said Mowbray.
“Operating expenses were up 5% due to
investments in digital talent and technology to drive our digital
revenue growth and increases in input costs, partially offset by
reductions in costs tied to print revenue streams. We continue to
drive efficiencies in our legacy cost structure and are pulling
additional levers to better align our legacy costs with the
associated revenues,” said Tim Millage, Vice President, Chief
Financial Officer and Treasurer. "These cost reduction
actions taken early in the third quarter have an annualized
benefit of $45 million. We continue to expect Adjusted EBITDA
to be in the $95 - $98 million range," Millage added.
SECOND QUARTER HIGHLIGHTS
- Total operating revenue of $190.0 million.
- Total Digital Revenue was $58.1 million, a 33.0% increase
compared to the same period last year.
- Digital-only subscription revenue increased 44.7% in the
second quarter compared to the same quarter last year and
totaled $32.9 million over the last twelve months.
Digital-only subscribers increased 59.2% and now total
492,000.
- Digital advertising and marketing services revenue increased
36% in the quarter and totaled $43.4 million. Digital
marketing services revenue at Amplified Digital® fueled the
growth, with revenue up 108% in the quarter totaling
$18.6 million in the quarter and $57.3 million over the
last twelve months.
- Digital services revenue, which is predominantly TownNews,
totaled $4.7 million in the quarter. On a standalone basis,
revenue at TownNews increased 12.5% in the second quarter
totaling $7.5 million.
- Total Print Revenue, which includes print advertising, print
subscription revenue and other print related revenue, totaled
$131.9 million in the second quarter, an 11.3% decline
compared to the same quarter a year ago due to continued secular
declines of print revenue, particularly print advertising
revenue.
- Audiences remain strong in both print and digital due to our
focus on relevant news in our local markets. Monthly average page
views totaled 376 million and monthly average unique
visitors totaled 44 million.
- Operating expenses totaled $194.6 million and Cash
Costs(3) were up 3.0%. Increases in Cash Costs were attributed to
increased investments in digital talent and technology tied to our
digital growth strategy, increased cost of goods sold attributed to
revenue growth at Amplified Digital®, an increase in restructuring
costs and other, and cycling one-time cost benefits received in the
prior year. Partially offsetting the increases were declines
in Cash Costs that support our print revenue streams.
- Net loss totaled $6.7 million and Adjusted EBITDA(3)
totaled $16.9 million.
YEAR TO DATE HIGHLIGHTS
- Total operating revenue of $392.3 million.
- Total Digital revenue was $113.4 million, a 24.9% increase
compared to the same period last year.
- Digital-only subscription revenue increased 35.6% compared to
the same period last year.
- Digital advertising and marketing services revenue increased
26.9% and totaled $86.2 million. Digital marketing services revenue
at Amplified Digital® fueled the growth, with revenue up 89.2%
totaling $33.3 million.
- Digital services revenue, which is predominantly TownNews,
totaled $9.3 million. On a standalone basis, revenue at TownNews
increased 9.5% totaling $14.7 million.
- Total Print Revenue, which includes print advertising, print
subscription revenue and other print related revenue, totaled
$278.9 million, an 11.0% decline compared to the same period a
year ago due to continued secular declines of print revenue,
particularly print advertising revenue.
- Operating expenses totaled $373.6 million and Cash
Costs(3) were up 2.7%. Increases in Cash Costs were attributed
to increased investments in digital talent and technology tied to
our digital growth strategy, increased cost of goods sold
attributed to revenue growth at Amplified Digital®, an increase in
restructuring costs and other, and cycling one-time cost
benefits received in the prior year. Partially offsetting the
increases were declines in Cash Costs that support our print
revenue streams.
- Net income totaled $6.5 million and Adjusted EBITDA(3)
totaled $43.0 million.
DEBT AND FREE CASH FLOW
On March 16, 2020, the Company closed on the
comprehensive refinancing of all of its outstanding debt(4). The
$576 million in financing has a 25-year maturity, a fixed annual
interest rate of 9.0%, mandatory payments based on the Company’s
Excess Cash Flow(4), and no financial performance covenants.
As of and for the 13 weeks ended March 27, 2022:
- The principal amount of debt totaled $462.6 million, reduction
of $20.1 million for the fiscal year to date.
- Cash on the balance sheet totaled $15.3 million. Debt, net of
cash on the balance sheet, totaled $447.3 million.
- Capital expenditures totaled $2.8 million in the 13 weeks ended
March 27, 2022. For 2022, we expect capital expenditures to total
less than $12 million.
- For 2022, we expect cash paid for income taxes to total between
$8 million and $11 million.
- We made no pension contributions in the fiscal year. We do not
expect any material pension contributions in fiscal year 2022 as
our plans are fully funded in the aggregate.
CONFERENCE CALL INFORMATION
As previously announced, we will hold an
earnings conference call and audio webcast today at 9 a.m. Central
Time. The live webcast will be accessible at www.lee.net and will
be available for replay two hours later. Several analysts have been
invited to ask questions on the call. Questions from other
participants may be submitted by participating in the webcast. The
call also may be monitored on a listen-only conference line by
dialing (toll free) 877-612-6725 and entering a conference
passcode of 967807 at least five minutes before the scheduled
start. Participants on the listen-only line will not have the
opportunity to ask questions.
ABOUT LEE
Lee Enterprises is a major subscription and
advertising platform and a leading provider of local news and
information, with daily newspapers, rapidly growing digital
products and over 350 weekly and specialty publications
serving 77 markets in 26 states. Year to date, Lee's newspapers
have average daily circulation of 1.0 million, and our
legacy websites, including acquisitions, reach more than
44 million digital unique visitors. Lee's markets include St.
Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE;
Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is
traded on NASDAQ under the symbol LEE. For more information
about Lee, please visit www.lee.net.
FORWARD-LOOKING STATEMENTS — The Private
Securities Litigation Reform Act of 1995 provides a “safe harbor”
for forward-looking statements. This 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:
- The overall impact the COVID-19 pandemic has on the Company's
revenues and costs;
- The long-term or permanent changes the COVID-19 pandemic may
have on the publishing industry, which may result in permanent
revenue reductions and other risks and uncertainties;
- We may be required to indemnify the previous owners of the BH
Media or the Buffalo for unknown legal and other matters that may
arise;
- Our ability to manage declining print revenue and circulation
subscribers;
- The warrants issued in our 2014 refinancing will not be
exercised;
- The impact and duration of adverse conditions in certain
aspects of the economy affecting our business;
- Changes in advertising and subscription demand;
- Changes in technology that impact our ability to deliver
digital advertising;
- Potential changes in newsprint, other commodities and energy
costs;
- Interest rates;
- Labor costs;
- Significant cyber security breaches or failure of our
information technology systems;
- Our ability to achieve planned expense reductions and realize
the expected benefit of our acquisitions;
- Our ability to maintain employee and customer
relationships;
- Our ability to manage increased capital costs;
- Our ability to maintain our listing status on NASDAQ;
- 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 "aim",
“may”, “will”, “would”, “could”, “believes”, “expects”,
“anticipates”, “intends”, “plans”, “projects”, “considers” and
similar expressions) generally should be considered forward-looking
statements. Statements regarding our plans, strategies, prospects
and expectations regarding our business and industry, including
statements regarding the impacts that the COVID-19 pandemic and our
responses thereto may have on our future operations, are
forward-looking statements. They reflect our expectations, are not
guarantees of performance and speak only as of the date the
statement is made. Readers are cautioned not to place undue
reliance on such forward-looking statements, which are made as of
the date of this release. We do not undertake to publicly update or
revise our forward-looking statements, except as required by
law.
Contact:IR@lee.net(563) 383-2100
CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three months ended |
|
|
Six months ended |
|
|
|
March 27, |
|
|
March 28, |
|
|
Percent |
|
|
March 27, |
|
|
March 28, |
|
|
Percent |
|
(Thousands of Dollars, Except Per Share Data) |
|
2022 |
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Print |
|
|
44,248 |
|
|
|
53,685 |
|
|
|
(17.6 |
) |
|
|
100,218 |
|
|
|
120,291 |
|
|
|
(16.7 |
) |
Digital |
|
|
43,385 |
|
|
|
31,890 |
|
|
|
36.0 |
|
|
|
86,169 |
|
|
|
67,913 |
|
|
|
26.9 |
|
Advertising and marketing services revenue |
|
|
87,633 |
|
|
|
85,575 |
|
|
|
2.4 |
|
|
|
186,387 |
|
|
|
188,204 |
|
|
|
(1.0 |
) |
Print |
|
|
77,255 |
|
|
|
82,801 |
|
|
|
(6.7 |
) |
|
|
156,883 |
|
|
|
167,816 |
|
|
|
(6.5 |
) |
Digital |
|
|
10,093 |
|
|
|
6,976 |
|
|
|
44.7 |
|
|
|
17,984 |
|
|
|
13,264 |
|
|
|
35.6 |
|
Subscription revenue |
|
|
87,348 |
|
|
|
89,777 |
|
|
|
(2.7 |
) |
|
|
174,867 |
|
|
|
181,080 |
|
|
|
(3.4 |
) |
Print |
|
|
10,374 |
|
|
|
12,240 |
|
|
|
(15.2 |
) |
|
|
21,759 |
|
|
|
25,301 |
|
|
|
(14.0 |
) |
Digital |
|
|
4,659 |
|
|
|
4,838 |
|
|
|
(3.7 |
) |
|
|
9,283 |
|
|
|
9,663 |
|
|
|
(3.9 |
) |
Other
revenue |
|
|
15,033 |
|
|
|
17,078 |
|
|
|
(12.0 |
) |
|
|
31,042 |
|
|
|
34,964 |
|
|
|
(11.2 |
) |
Total
operating revenue |
|
|
190,014 |
|
|
|
192,430 |
|
|
|
(1.3 |
) |
|
|
392,296 |
|
|
|
404,248 |
|
|
|
(3.0 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
83,513 |
|
|
|
83,154 |
|
|
|
0.4 |
|
|
|
168,207 |
|
|
|
167,317 |
|
|
|
0.5 |
|
Newsprint and ink |
|
|
7,068 |
|
|
|
7,179 |
|
|
|
(1.5 |
) |
|
|
14,712 |
|
|
|
15,171 |
|
|
|
(3.0 |
) |
Other operating expenses |
|
|
84,679 |
|
|
|
79,865 |
|
|
|
6.0 |
|
|
|
170,661 |
|
|
|
161,632 |
|
|
|
5.6 |
|
Depreciation and amortization |
|
|
8,951 |
|
|
|
12,517 |
|
|
|
(28.5 |
) |
|
|
18,627 |
|
|
|
22,958 |
|
|
|
(18.9 |
) |
Assets (gain) loss on sales, impairments and other, net |
|
|
(152 |
) |
|
|
1,474 |
|
|
|
NM |
|
|
|
(12,426 |
) |
|
|
6,696 |
|
|
|
NM |
|
Restructuring costs and other |
|
|
10,590 |
|
|
|
1,294 |
|
|
|
NM |
|
|
|
13,790 |
|
|
|
4,461 |
|
|
|
NM |
|
Operating expenses |
|
|
194,649 |
|
|
|
185,483 |
|
|
|
4.9 |
|
|
|
373,571 |
|
|
|
378,235 |
|
|
|
(1.2 |
) |
Equity
in earnings of associated companies |
|
|
1,407 |
|
|
|
1,471 |
|
|
|
(4.4 |
) |
|
|
3,161 |
|
|
|
3,213 |
|
|
|
(1.6 |
) |
Operating income |
|
|
(3,228 |
) |
|
|
8,418 |
|
|
|
NM |
|
|
|
21,886 |
|
|
|
29,226 |
|
|
|
(25.1 |
) |
Non-operating (expense)
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(10,523 |
) |
|
|
(11,237 |
) |
|
|
(6.4 |
) |
|
|
(21,186 |
) |
|
|
(23,119 |
) |
|
|
(8.4 |
) |
Curtailment gain |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,027 |
|
|
|
23,830 |
|
|
|
(95.7 |
) |
Pension withdrawal cost |
|
|
(2,335 |
) |
|
|
- |
|
|
|
NM |
|
|
|
(2,335 |
) |
|
|
(12,310 |
) |
|
|
(81.0 |
) |
Other, net |
|
|
6,248 |
|
|
|
1,640 |
|
|
|
(31.1 |
) |
|
|
9,320 |
|
|
|
3,908 |
|
|
|
NM |
|
Non-operating expenses, net |
|
|
(6,610 |
) |
|
|
(9,597 |
) |
|
|
(31.1 |
) |
|
|
(13,174 |
) |
|
|
(7,691 |
) |
|
|
71.3 |
|
Income (loss) before income
taxes |
|
|
(9,838 |
) |
|
|
(1,179 |
) |
|
|
NM |
|
|
|
8,712 |
|
|
|
21,535 |
|
|
|
(59.5 |
) |
Income tax (benefit) expense |
|
|
(3,144 |
) |
|
|
(571 |
) |
|
|
NM |
|
|
|
2,207 |
|
|
|
5,740 |
|
|
|
(61.6 |
) |
Net income (loss) |
|
|
(6,694 |
) |
|
|
(608 |
) |
|
|
NM |
|
|
|
6,505 |
|
|
|
15,795 |
|
|
|
(58.8 |
) |
Net
income (loss) attributable to non-controlling interests |
|
|
(582 |
) |
|
|
(526 |
) |
|
|
10.6 |
|
|
|
(1,123 |
) |
|
|
(1,027 |
) |
|
|
9.3 |
|
Income attributable to Lee Enterprises, Incorporated |
|
|
(7,276 |
) |
|
|
(1,134 |
) |
|
|
NM |
|
|
|
5,382 |
|
|
|
14,768 |
|
|
|
(63.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(1.26 |
) |
|
|
(0.20 |
) |
|
|
NM |
|
|
|
0.94 |
|
|
|
2.59 |
|
|
|
(63.8 |
) |
Diluted |
|
|
(1.26 |
) |
|
|
(0.20 |
) |
|
|
NM |
|
|
|
0.92 |
|
|
|
2.55 |
|
|
|
(64.0 |
) |
DIGITAL / PRINT REVENUE
COMPOSITION(UNAUDITED)
|
|
|
Three months ended |
|
|
|
Six months ended |
|
|
|
|
March 27, |
|
|
|
March 28, |
|
|
|
Percent |
|
|
|
March 27, |
|
|
|
March 28, |
|
|
|
Percent |
|
(Thousands of Dollars, Except per share Data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
Change |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital Advertising and Marketing Services Revenue |
|
|
43,385 |
|
|
|
31,890 |
|
|
|
36.0 |
|
|
|
86,169 |
|
|
|
67,913 |
|
|
|
26.9 |
|
Digital Only Subscription Revenue |
|
|
10,093 |
|
|
|
6,976 |
|
|
|
44.7 |
|
|
|
17,984 |
|
|
|
13,264 |
|
|
|
35.6 |
|
Digital Services Revenue |
|
|
4,659 |
|
|
|
4,838 |
|
|
|
(3.7 |
) |
|
|
9,283 |
|
|
|
9,663 |
|
|
|
(3.9 |
) |
Total Digital Revenue |
|
|
58,137 |
|
|
|
43,704 |
|
|
|
33.0 |
|
|
|
113,436 |
|
|
|
90,840 |
|
|
|
24.9 |
|
Print Advertising Revenue |
|
|
44,248 |
|
|
|
53,685 |
|
|
|
(17.6 |
) |
|
|
100,218 |
|
|
|
120,291 |
|
|
|
(16.7 |
) |
Print Subscription Revenue |
|
|
77,255 |
|
|
|
82,801 |
|
|
|
(6.7 |
) |
|
|
156,883 |
|
|
|
167,816 |
|
|
|
(6.5 |
) |
Other Print Revenue |
|
|
10,374 |
|
|
|
12,240 |
|
|
|
(15.2 |
) |
|
|
21,759 |
|
|
|
25,301 |
|
|
|
(14.0 |
) |
Total
Print Revenue |
|
|
131,877 |
|
|
|
148,726 |
|
|
|
(11.3 |
) |
|
|
278,860 |
|
|
|
313,408 |
|
|
|
(11.0 |
) |
Total
Operating Revenue |
|
|
190,014 |
|
|
|
192,430 |
|
|
|
(1.3 |
) |
|
|
392,296 |
|
|
|
404,248 |
|
|
|
(3.0 |
) |
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(UNAUDITED)
The table below reconciles the non-GAAP financial performance
measure of Adjusted EBITDA to net income, its most directly
comparable GAAP measure:
|
|
Three months ended |
|
|
Six months ended |
|
(Thousands of Dollars) |
|
March 27, |
|
|
March 28, |
|
|
March 27, |
|
|
March 28, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(6,694 |
) |
|
|
(608 |
) |
|
|
6,505 |
|
|
|
15,795 |
|
Adjusted to exclude |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
|
(3,144 |
) |
|
|
(571 |
) |
|
|
2,207 |
|
|
|
5,740 |
|
Non-operating expenses, net |
|
|
6,610 |
|
|
|
9,597 |
|
|
|
13,174 |
|
|
|
7,691 |
|
Equity in earnings of TNI and MNI |
|
|
(1,407 |
) |
|
|
(1,471 |
) |
|
|
(3,161 |
) |
|
|
(3,213 |
) |
(Gain) loss on sale of assets and other, net |
|
|
(152 |
) |
|
|
1,474 |
|
|
|
(12,426 |
) |
|
|
6,696 |
|
Depreciation and amortization |
|
|
8,951 |
|
|
|
12,517 |
|
|
|
18,627 |
|
|
|
22,958 |
|
Restructuring costs and other |
|
|
10,590 |
|
|
|
1,294 |
|
|
|
13,790 |
|
|
|
4,461 |
|
Stock compensation |
|
|
512 |
|
|
|
214 |
|
|
|
699 |
|
|
|
434 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership share of TNI and MNI EBITDA (50%) |
|
|
1,657 |
|
|
|
1,608 |
|
|
|
3,596 |
|
|
|
3,498 |
|
Adjusted EBITDA |
|
|
16,923 |
|
|
|
24,054 |
|
|
|
43,011 |
|
|
|
64,060 |
|
The table below reconciles the non-GAAP financial performance
measure of Cash Costs to Operating expenses, the most directly
comparable GAAP measure:
|
|
|
Three months ended |
|
|
|
Six months ended |
|
|
|
|
March 27, |
|
|
|
March 28, |
|
|
|
March 27, |
|
|
|
March 28, |
|
(Thousands of Dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
194,649 |
|
|
|
185,483 |
|
|
|
373,571 |
|
|
|
378,235 |
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
8,951 |
|
|
|
12,517 |
|
|
|
18,627 |
|
|
|
22,958 |
|
Assets (gain) loss on sales, impairments and other, net |
|
|
(152 |
) |
|
|
1,474 |
|
|
|
(12,426 |
) |
|
|
6,696 |
|
Restructuring costs and other |
|
|
10,590 |
|
|
|
1,294 |
|
|
|
13,790 |
|
|
|
4,461 |
|
Cash
Costs |
|
|
175,260 |
|
|
|
170,198 |
|
|
|
353,580 |
|
|
|
344,120 |
|
NOTES
(1 |
) |
Total Digital Revenue in the prior year was reclassified to conform
to the current year presentation. Total Digital Revenue is defined
as digital advertising and marketing services revenue (including
Amplified), digital-only subscription revenue and digital services
revenue. Previously other digital subscription revenue was
included. All periods have been restated for the
reclassification. |
|
|
(2 |
) |
This earnings release is a preliminary report of results for the
periods included. The reader should refer to the Company's
most recent reports on Form 10-Q and on Form 10-K for definitive
information. |
|
|
(3 |
) |
The following are non-GAAP (Generally Accepted Accounting
Principles) financial measures for which reconciliations to
relevant GAAP measures are included in tables accompanying this
release: |
|
|
|
• |
Adjusted EBITDA is a non-GAAP financial performance measure
that enhances financial statement users overall understanding of
the operating performance of the Company. The measure isolates
unusual, infrequent or non-cash transactions from the operating
performance of the business. This allows users to easily compare
operating performance among various fiscal periods and how
management measures the performance of the business. This measure
also provides users with a benchmark that can be used when
forecasting future operating performance of the Company that
excludes unusual, nonrecurring or one time transactions. Adjusted
EBITDA is a component of the calculation used by stockholders and
analysts to determine the value of our business when using the
market approach, which applies a market multiple to financial
metrics. It is also a measure used to calculate the leverage ratio
of the Company, which is a key financial ratio monitored and used
by the Company and its investors. Adjusted EBITDA is defined as net
income (loss), plus non-operating expenses, income tax expense,
depreciation and amortization, assets loss (gain) on sales,
impairments and other, restructuring costs and other, stock
compensation and our 50% share of EBITDA from TNI and MNI, minus
equity in earnings of TNI and MNI. |
|
|
|
|
• |
Cash Costs represent a non-GAAP financial performance measure
of operating expenses which are measured on an accrual basis and
settled in cash. This measure is useful to investors in
understanding the components of the Company’s cash-settled
operating costs. Periodically, the Company provides forward-looking
guidance of Cash Costs, which can be used by financial statement
users to assess the Company's ability to manage and control its
operating cost structure. Cash Costs are defined as compensation,
newsprint and ink and other operating expenses. Depreciation and
amortization, assets loss (gain) on sales, impairments and other,
other non-cash operating expenses and other expenses are excluded.
Cash Costs also exclude restructuring costs and other, which are
typically paid in cash. |
|
|
(4 |
) |
The Company's debt is the $576 million term loan under a credit
agreement with BH Finance LLC dated January 29, 2020 (the "Credit
Agreement"). Excess Cash Flow is defined under the Credit Agreement
as any cash greater than $20,000,000 on the balance sheet in
accordance with GAAP at the end of each fiscal quarter, beginning
with the quarter ending June 28, 2020. |
|
|
(5 |
) |
TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI
refers to Madison Newspapers, Inc. publishing operations in
Madison, WI. |
Lee Enterprises (NASDAQ:LEE)
過去 株価チャート
から 6 2024 まで 7 2024
Lee Enterprises (NASDAQ:LEE)
過去 株価チャート
から 7 2023 まで 7 2024