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  Title	Form 8-K - Current report
  ID	6686195
  External ID	7533133489
  Author	Unknown
  Published Date	Feb. 7, 2025, 2:24 p.m.
  Summary	false us-gaap:CommonStockMember lee:PreferredSharePurchaseRightsMember UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT
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  URL	https://mx.advfn.com/bolsa-de-valores/nasdaq/lee/noticias/95394344/form-8-k-current-report
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  Content ID	4150760
  Key	cdc7277e-f448-4ec0-b8bb-d31c7f1d3bcf
  Content	false us-gaap:CommonStockMember lee:PreferredSharePurchaseRightsMember UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 6, 2025 _______________________________________________________________________________________ LEE ENTERPRISES, INC ORPORATED (Exact name of Registrant as specified in its charter) _______________________________________________________________________________________ Delaware (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 4600 E. 53rd Street Davenport Iowa (Address of Principal Executive Offices) Registrant's telephone number, including area code Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $.01 per share LEE The Nasdaq Global Select Market Preferred Share Purchase Rights LEE The Nasdaq Global Select Market Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Item 2.02. Results of Operations and Financial Condition. On February 6, 2025, Lee Enterprises, Incorporated (the “Company”) reported its preliminary results for the first quarter ended December 29, 2024. In connection with the preliminary results, the Company issued a news release, which is attached hereto as Exhibit 99.1 (“News Release”). The Company also prepared presentation materials which were presented by management during the Company's earnings conference call, which are attached hereto as Exhibit 99.2 and have been made available on the Company's website, investors.lee.net (“Presentation Materials”). In addition to the information in the News Release, the Presentation Materials include content and financial figures showing its expectation to be sustainable without reliance on print media within five years. The information furnished by and incorporated by reference in this Item 2.02, including the attached Exhibits, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. Item 7.01 Regulation FD Disclosure The disclosure contained in Item 2.02 is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits. (d) Exhibits Earnings Release Presentation Materials Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LEE ENTERPRISES, INCORPORATED Date: February 6, 2025 By: /s/ Timothy R. Millage Timothy R. Millage Vice President, Chief Financial Officer and Treasurer Lee Enterprises Reports First Quarter Results Total Digital Revenue increased 5% YOY ; represented 51% of total revenue Digital-only subscription revenue increased 14% Amplified Digital ® Agency revenue totaled $24M, up 14% YOY DAVENPORT, Iowa (February 6, 2025) — Lee Enterprises, Incorporated (NASDAQ: LEE), a digital-first subscription platform providing high quality, trusted, local news, information and a major platform for advertising in 72 markets, today reported preliminary first quarter fiscal 2025 financial results for the period ended December 29, 2024. “Our first quarter results demonstrate the continued progression of our digital transformation. We achieved over $300 million in Total Digital Revenue over the last twelve months, including over $100 million in Amplified Digital Agency ® revenue," said Kevin Mowbray, Lee's President and Chief Executive Officer. "To accelerate our digital transformation, we recently announced a strategic partnership with Amazon Web Services (AWS). By leveraging AWS's cutting-edge cloud computing solutions, we aim to optimize content delivery, improve customer engagement, and drive innovative digital products across our extensive portfolio of publications. This partnership highlights our commitment to embracing advanced technologies to meet the evolving needs of our audience and advertisers while achieving long-term growth and scalability. With AWS's proven expertise, Lee Enterprises is well-positioned to drive sustainable growth, enhance efficiency, and deliver increased value to our shareholders," said Mowbray. "As we look forward into the rest of the fiscal year, we expect digital revenue growth to accelerate achieving full year guidance of growth between 7% and 10%. In addition, we have identified approximately $40 million of annualized cost reductions that we expect to have executed on by the end of the second quarter. We expect strong digital revenue growth combined with strong cost management of our print business to keep us on track to achieve our overall Adjusted EBITDA guidance for the fiscal year," Mowbray added. Key First Quarter Highlights: • Total operating revenue was $145 million. • Total Digital Revenue was $73 million, a 5% increase over the prior year , and represented 51% of our total operating revenue. • Revenue from digital-only subscribers totaled $22 million, up 14% over the prior year • Digital advertising and marketing services revenue represented 70% of our total advertising revenue and totaled $47 million. • Digital services revenue, which is predominantly from BLOX Digital, totaled $5 million in the quarter. • Operating expenses totaled $149 million and Cash Costs totaled $139 million, flat and a 1% decrease compared to the prior year, respectively. • Net loss totaled $16 million and Adjusted EBITDA totaled $8 million. Debt and Free Cash Flow: The Company has $446 million of debt outstanding under our Credit Agreement with BH Finance. The financing has favorable terms including a 25-year maturity, a fixed annual interest rate of 9.0%, no fixed principal payments, and no financial performance covenants. As of and for the period ended December 29, 2024: • The principal amount of debt totaled $446 million. • Cash on the balance sheet totaled $6 million. Debt, net of cash on the balance sheet, totaled $440 million. • Capital expenditures totaled $2 million for the quarter. We expect up to $12 million of capital expenditures in FY25. • We expect cash paid for income taxes to total between $4 million and $10 million in 2025. • We do not expect any material pension contributions in the fiscal year 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 24 hours later. Analysts have been invited to ask questions on the call. Questions from other participants may be submitted by participating in the webcast. To participate in the live conference call via telephone, please visit www.lee.net . Upon registering, a dial-in number and unique PIN will be provided to join the conference call. 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 nearly 350 weekly and specialty publications serving 72 markets in 25 states. Our core commitment is to provide valuable, intensely local news and information to the communities we serve. Our 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: • We may be required to indemnify the previous owners of BH Media or The Buffalo News for unknown legal and other matters that may arise; • Our ability to manage declining print revenue and circulation subscribers; • 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 “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 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 report. We do not undertake to publicly update or revise our forward-looking statements, except as required by law. Contact: IR@lee.net CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three months ended (Thousands of Dollars, Except Per Common Share Data) December 29, December 24, Percent Change Operating revenue: Print advertising revenue Digital advertising revenue Advertising and marketing services revenue Print subscription revenue Digital subscription revenue Subscription revenue Print other revenue Digital other revenue Other revenue Total operating revenue Operating expenses: Compensation Newsprint and ink Other operating expenses — Depreciation and amortization Assets (gain) on sales, impairments and other, net Restructuring costs and other Total operating expenses — Equity in earnings of associated companies Operating (loss) income NM Non-operating (expense) income: Interest expense Pension and OPEB related benefit and other, net NM Curtailment/Settlement gains — NM Total non-operating expense, net (Loss) income before income taxes NM Income tax expense NM Net (loss) income NM Net income attributable to non-controlling interests (Loss) income attributable to Lee Enterprises, Incorporated NM Other comprehensive loss, net of income taxes Comprehensive loss attributable to Lee Enterprises, Incorporated NM (Loss) earnings per common share: Basic: NM Diluted: NM DIGITAL / PRINT REVENUE COMPOSITION (UNAUDITED) Three months Ended (Thousands of Dollars) December 29, December 24, Digital Advertising and Marketing Services Revenue Digital Only Subscription Revenue Digital Services Revenue Total Digital Revenue Print Advertising Revenue Print Subscription Revenue Other Print Revenue Total Print Revenue Total Operating Revenue RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) The table below reconciles the non-GAAP financial performance measure of Adjusted EBITDA to Net loss, its most directly comparable U.S. GAAP measure: Three months ended (Thousands of Dollars) December 29, 2024 December 24, 2023 Net (loss) income Adjusted to exclude Income tax expense Non-operating expenses, net Equity in earnings of TNI and MNI Depreciation and amortization Restructuring costs and other Assets gain on sales, impairments and other, net Stock compensation Add: Ownership share of TNI and MNI EBITDA (50%) Adjusted EBITDA The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable U.S. GAAP measure: Three months ended (Thousands of Dollars) December 29, 2024 December 24, 2023 Operating expenses Adjustments Depreciation and amortization Assets (gain) loss on sales, impairments and other, net Restructuring costs and other Cash Costs The table below reconciles the non-GAAP financial performance measure of Same-store Revenues to Operating Revenues, its most directly comparable U.S. GAAP measure: Three months ended (Thousands of Dollars) December 29, 2024 December 24, 2023 Percent Change Print Advertising Revenue Exited operations NM Same-store, Print Advertising Revenue Digital Advertising and Marketing Services Revenue Exited operations NM Same-store, Digital Advertising and Marketing Services Revenue Total Advertising Revenue Exited operations NM Same-store, Total Advertising Revenue Print Subscription Revenue Exited operations NM Same-store, Print Subscription Revenue Digital Subscription Revenue Exited operations NM Same-store, Digital Subscription Revenue Total Subscription Revenue Exited operations NM Same-store, Total Subscription Revenue Print Other Revenue Exited operations — NM Same-store, Print Other Revenue Digital Other Revenue Exited operations — — NM Same-store, Digital Other Revenue Total Other Revenue Exited operations — NM Same-store, Total Other Revenue Total Operating Revenue Exited operations NM Same-store, Total Operating Revenue NOTES Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified Digital ® Agency), digital-only subscription revenue and digital services revenue. Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets. 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. The following are non-GAAP (Generally Accepted Accounting Principles) financial measures for which reconciliations to relevant U.S 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. 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 U.S. GAAP at the end of each fiscal quarter, beginning with the quarter ending June 28, 2020. TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI. FIRST QUARTER FY2025 EARNINGS FEBRUARY 6, 2025 2 SAFE HARBOR The information provided in this presentation may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “aims”, “anticipates,” “plans,” “expects,” “intends,” “will,” “potential,” “hope” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements relating to the Company may be found in the Company's periodic filings with the Commission, including the factors described in the sections entitled “Risk Factors,” copies of which may be obtained from the SEC's website at www.sec.gov. The Company does not undertake any obligation to update forward-looking statements contained in this presentation. 3 LEE'S THREE PILLAR DIGITAL GROWTH STRATEGY LEE IS RAPIDLY TRANSFORMING FROM A PRINT-CENTRIC TO A DIGITAL-CENTRIC COMPANY PILLAR 1 Expand our audience by providing compelling local content PILLAR 2 Accelerate digital subscription growth PILLAR 3 Diversify and expand offerings for local advertisers Lee expects the Three Pillar Digital Growth Strategy to drive more than $450 million of digital revenue by 2028, resulting in a business that is sustainable and vibrant from solely our digital products 4 Digital Sub Revenue Growth Leads Industry Digital Agency Revenue Growth Leads Industry Total Digital Revenue Growing Significantly $86M LTM Digital Sub Revenue $102M LTM Amplified Digital® Agency $302M LTM Total Digital Revenue Industry-leading 30% YOY(1) LTM growth Q4 2024 3-Year CAGR Industry-leading 13% YOY(1) LTM growth Q4 2024 3-Year CAGR 9% YOY(1) LTM annual growth LTM Dec FY25 3-Year CAGR 15% INDUSTRY-LEADING DIGITAL GROWTH LTM Dec FY22 LTM Dec FY25 (1) Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets. $302M $197M 5 DIGITAL REVENUE CONTINUES TO GROW Digital Advertising Digital-only Subscription Digital Other Total Digital Revenue Q1 FY2025 Revenue Mix Q1 FY25 % of Total Revenue $47M % Variance to Prior Year(1) +2% YOY $22M +14% YOY $5M +3% YOY $73M +5% YOY (1) Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets. 3% 15% 32% Amplified Digital® Agency $24M +14% YOY17% 51% Digital 49% Print 51% 6 AI CREATES A NEW ECONOMIC MODEL PARTNERSHIPS DRIVE THE MODEL LEE ADVERTISING & AUDIENCE 2020 20282025 AI PARTNERS LLMs, GPTs, SLMs, PLATFORMS NEWS & MEDIA LANDSCAPE EVOLUTION SEARCH ENGINE ANSWER ENGINE AD NETWORK AGENCY PRODUCTS NEW VALUE DRIVERS DATA SERVICES GOOGLE & SOCIAL AI SEARCH - ANSWER AI APP NETWORKS CONTENT CHANNEL & AD NETWORK PERPLEXITY PRORATA.AI AMAZON WEB SERVICES ADDITIONAL AI PARTNERS 7 FY21 FY22 FY23 FY24 FY25E FY26E FY27E FY28E Digital Margin SG&A Digital transformation Digital sustainability LEE NEARS SUSTAINABILITY FROM DIGITAL REVENUE KEY HIGHLIGHTS • Digital revenue replacing print revenue and growing at 17% CAGR since 2021 • Digital gross margin(1) growing at a 13% CAGR since 2021 • Digital subscription revenue and gross margin growing at a 44% CAGR since 2021 • Amplified Digital® Agency revenue growing at a 34% CAGR since 2021 • Digital gross margin(1) expected to exceed total SG&A costs in FY26 • Digital gross margin(1) remains strong at 72% margin GROSS MARGIN FY24 Total Company Gross Margin (1) Digital Gross Margin is a non-GAAP performance measure calculated by Digital Revenue less Cost of Good Sold (“COGS”) directly tied to digital products. Digital Margin excludes all Selling, General, and Administrative (“SG&A”) costs. 8 FIRST QUARTER 2025 RESULTS (1) Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets. (2) Adjusted EBITDA and Cash Costs are non-GAAP financial measures. See appendix. Q1 Revenue Total Digital Revenue $73M, +5% YOY on a Same-store basis(1) • Digital subscription revenue $22M, +14%(1) • Digital advertising revenue $47M, +2%(1) • Amplified Digital® revenue $24M, +14%(1) Total Print Revenue $71M, -15%(1) Total Operating Revenue $145M, -6%(1) Q1 Cash Costs(2) • Total Cash Costs $139M, -1% YOY Q1 Adjusted EBITDA(2) • Adjusted EBITDA $8M Continued digital revenue growth Strong cost control of legacy business Investments to drive digital transformation 9 STRONG TRACK RECORD OF SUSTAINABLE COST MANAGEMENT KEY TAKEAWAYS • Proficient in driving efficiencies • Current base of $187M of direct costs associated with our legacy revenue streams that will be managed with associated revenue trends • Ongoing initiatives aimed at optimizing manufacturing, distribution, and corporate services • Digital transformation fueled by thoughtful investments • Significant investments in talent and technology to fund successful execution of Lee's Three Pillar Digital Growth Strategy • Incremental investments in marketing & branding to drive Digital Subscription revenue growth • Digital COGS investments to support revenue growth at BLOX Digital and Amplified Digital® Agency $1.0B $705M $693M $615M $553M 2017 2020 2022 2023 2024 Total Cash Costs(1) Managing legacy business & investing in digital future (1) Adjusted EBITDA and Cash Costs are non-GAAP financial measures. See appendix. Cost management: Identified approximately $40 million of annualized cost reductions that we expect to have been executed by the end of the second quarter 10 Q2 2020 Q1 2025 CREDIT AGREEMENT REPRESENTS STRATEGIC ASSET • $130M debt reduction since refinancing in March 2020 • Favorable credit agreement with Berkshire Hathaway • 25-year runway with no breakage costs or prepayment penalties • Fixed annual interest rate, no financial performance covenants and no fixed amortization • Pension plans now frozen and fully funded in the aggregate with no material pension contributions expected in 2025 • Asset sales of $5M in the quarter • Identified approximately $25M of noncore assets to monetize Monetization of noncore assets will propel debt reduction $576M $446M Significant Gross Debt Reduction 11 DIGITAL REVENUE GROWTH IS FUELED BY AMPLIFIED AND DIGITAL SUBSCRIPTION GROWTH • Amplified Digital® Agency will drive digital marketing services revenue growth • Our owned & operated digital products provide a unique opportunity to grow high margin digital advertising revenue • We expect significant growth in digital subscribers • Expect 1.2 million digital subscribers by 2028 • Drive digital subscription revenue through ARPU expansion • Maximizing ARPU through data and sophisticated analytics • Strategic Artificial Intelligence (AI) partnerships expected to unlock new opportunities and accelerate digital revenue growth $169M $189M $240M $273M $299M $324M $450M $M $100M $200M $300M $400M $500M FY20 FY21 FY22 FY23 FY24 FY25 FY28 LONG-TERM OUTLOOK: DIGITAL REVENUE Lee expects $450 million in Digital Revenue in 2028 (1) FY25 represents the midpoint of our FY25 Outlook. (1) 12 2025 OUTLOOK (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix. Key Metric 2025 Outlook Total Digital Revenue YOY growth in the range of 7% - 10% Adjusted EBITDA(1) YOY growth in the low-single digits 14 NON-GAAP RECONCILIATION The Company uses non-GAAP financial performance measures to supplement the financial information presented on a U.S. GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not be considered in isolation from or as a substitute for the related U.S. GAAP measures and should be read together with financial information presented on a U.S. GAAP basis. The Company defines its non-GAAP measures as follows: 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. Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets. Gross Margin is a non-GAAP financial performance measure that enhances financial statement users overall understanding of the operating performance of the Company. The measure isolates operating costs that directly support revenue. Depreciation and amortization, assets loss (gain) on sales, impairments and other, net, other non-cash operating expenses, Selling, General, and Administrative (“SG&A”) compensation and SG&A other operating expenses are excluded from Gross Margin. TNI and MNI – TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI. Management's Use of Non-GAAP Measures These Non-GAAP Measures are not measurements of financial performance under U.S. GAAP and should not be considered in isolation or as an alternative to income from operations, net income (loss), revenues, or any other measure of performance or liquidity derived in accordance with U.S. GAAP. We believe these non-GAAP financial measures, as we have defined them, are helpful in identifying trends in our day-to-day performance because the items excluded have little or no significance on our day-to-day operations. These measures provide an assessment of controllable expenses and afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieve optimal financial performance. We use these Non-GAAP measures of our day-to-day operating performance, which is evidenced by the publishing and delivery of news and other media and excludes certain expenses that may not be indicative of our day-to-day business operating results. Limitations of Non-GAAP Measures Each of our non-GAAP measures have limitations as analytical tools. They should not be viewed in isolation or as a substitute for U.S. GAAP measures of earnings. Material limitations in making the adjustments to our earnings to calculate Adjusted EBITDA using these non-GAAP financial measures as compared to U.S. GAAP net income (loss) include: the cash portion of interest / financing expense, income tax (benefit) provision, and charges related to asset impairments, which may significantly affect our financial results. Management believes these items are important in evaluating our performance, results of operations, and financial position. We use non-GAAP financial measures to supplement our U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. 15 QUARTERLY REVENUE COMPOSITION (1) Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the current period, excluding exited operations. Exited operations include (1) business divestitures and (2) the elimination of stand-alone print products discontinued within our markets. (2)Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified), digital-only subscription revenue and digital services revenue. Rounding – Items may not foot due to rounding. (Millions of Dollars) Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 FY 2024 Q1 FY2025 Digital Advertising and Marketing Services 46.5 45.4 49.9 52.5 194.2 46.7 YoY % (1) -1.1% -0.2% 1.6% 7.5% 2.0% 1.7% Digital Only Subscription Revenue 19.5 20.3 20.7 23.9 84.3 21.6 YoY % (1) 60.2% 47.6% 34.1% 29.9% 41.2% 13.5% Digital Services Revenue 5.0 5.1 5.2 5.3 20.5 5.1 YoY % (1) 4.9% 7.6% 6.0% 5.1% 5.9% 2.6% Total Digital Revenue(2) 70.9 70.8 75.8 81.6 299.1 73.4 YoY % (1) 11.0% 10.7% 9.2% 13.0% 11.0% 4.9% % of Total Revenue 45.5% 48.3% 50.3% 51.5% 48.9% 50.8% Print Advertising Revenue 24.4 18.7 18.9 19.4 81.5 19.9 YoY % (1) -27.6% -29.4% -24.8% -13.9% -24.5% -15.7% Print Subscription Revenue 51.9 49.0 47.6 49.1 197.6 43.4 YoY % (1) -22.5% -23.5% -22.4% -15.9% -21.2% -15.5% Other Print Revenue 8.5 8.1 8.3 8.4 33.3 7.9 YoY % (1) -22.8% -15.5% -14.4% -5.3% -15.0% -7.0% Total Print Revenue 84.8 75.8 74.8 76.9 312.3 71.2 YoY % (1) -24.0% -24.3% -22.2% -14.3% -21.5% -14.7% Total Revenue 155.7 146.5 150.6 158.6 611.4 144.6 YoY % (1) -11.3% -10.6% -9.1% -2.2% -8.3% -5.8% 16 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 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. TNI and MNI – TNI refers to TNI Partners publishing operations in Tucson, AZ. MNI refers to Madison Newspapers, Inc. publishing operations in Madison, WI. Rounding – Items may not visually foot due to rounding. (Millions of Dollars) Q1 FY2025 Net loss (16.2) Adjusted to exclude Income tax expense 3.2 Non-operating expenses, net 9.6 Equity in earnings of TNI and MNI (1.1) Depreciation and amortization 6.3 Restructuring costs and other 5.1 Assets gain on sales, impairments and other, net (0.9) Stock compensation 0.4 Add Ownership share of TNI and MNI EBITDA (50%) 1.2 Adjusted EBITDA 7.6 17 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 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. Rounding – Items may not visually foot due to rounding. (Millions of Dollars) Q1 FY2025 Q1 FY2024 Operating Expenses 149.0 149.4 Adjusted to exclude Depreciation and amortization 6.3 7.3 Assets gain on sales, impairments and other, net (0.9) (1.5) Restructuring costs and other 5.1 4.3 Cash Costs 138.6 139.3 18 SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) (1) Same-store revenues is a non-GAAP performance measure based on U.S. GAAP revenues for Lee for the periods presented, excluding exited operations. Exited operations include (1) businesses divested and (2) the elimination of stand-alone print products discontinued within our markets. Rounding – Items may not foot due to rounding. (Millions of Dollars) Q1 FY2025 Q1 FY2024 $ Change % Change Print Advertising Revenue 19.9 24.4 (4.6) -18.7% Exited operations (0.0) (0.9) 0.9 NM Same-store, Print Advertising Revenue 19.8 23.5 (3.7) -15.7% Digital Advertising and Marketing Services Revenue 46.7 46.5 0.3 0.6% Exited operations (0.0) (0.5) 0.5 NM Same-store, Digital Advertising and Marketing Services 46.7 46.0 0.8 1.7% Total Advertising Revenue 66.6 70.9 (4.3) -6.1% Exited operations (0.0) (1.4) 1.4 NM Same-store, Total Advertising Revenue 66.5 69.5 (2.9) -4.2% (Millions of Dollars) Q1 FY2025 Q1 FY2024 $ Change % Change Print Subscription Revenue 43.4 51.9 (8.4) -16.3% Exited operations (0.0) (0.4) 0.4 NM Same-store, Print Subscription Revenue 43.4 51.4 (8.0) -15.5% Digital Subscription Revenue 21.6 19.5 2.1 10.8% Exited operations (0.0) (0.5) 0.5 NM Same-store, Digital Subscription Revenue 21.6 19.0 2.6 13.5% Total Subscription Revenue 65.0 71.3 (6.3) -8.9% Exited operations (0.0) (0.9) 0.9 NM Same-store, Total Subscription Revenue 65.0 70.4 (5.4) -7.7% (Millions of Dollars) Q1 FY2025 Q1 FY2024 $ Change % Change Print Other Revenue 7.9 8.5 (0.6) -7.1% Exited operations - (0.0) 0.0 NM Same-store, Print Other Revenue 7.9 8.5 (0.6) -7.0% Digital Other Revenue 5.1 5.0 0.1 2.6% Exited operations - - - NM Same-store, Digital Other Revenue 5.1 5.0 0.1 2.6% Total Other Revenue 13.0 13.5 (0.5) -3.5% Exited operations - (0.0) 0.0 NM Same-store, Total Other Revenue 13.0 13.4 (0.5) -3.5% (Millions of Dollars) Q1 FY2025 Q1 FY2024 $ Change % Change Total Operating Revenue 144.6 155.7 (11.1) -7.1% Exited operations (0.0) (2.3) 2.3 NM Same-store, Total Operating Revenue 144.5 153.3 (8.8) -5.8% v3.25.0.1 Cover Feb. 06, 2025 Document Information [Line Items] Document Type 8-K Document Period End Date Feb. 06, 2025 Entity Registrant Name LEE ENTERPRISES, INC Entity Incorporation, State or Country Code DE Entity File Number Entity Tax Identification Number 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 City Area Code Local Phone Number Written Communications false Soliciting Material false Pre-commencement Tender Offer false Pre-commencement Issuer Tender Offer false Entity Emerging Growth Company false Amendment Flag false Entity Central Index Key Common Stock, par value $.01 per share Document Information [Line Items] Title of 12(b) Security Common Stock, par value $.01 per share Trading Symbol LEE Security Exchange Name NASDAQ Preferred Share Purchase Rights Document Information [Line Items] Title of 12(b) Security Preferred Share Purchase Rights Trading Symbol LEE Security Exchange Name NASDAQ X - Definition Boolean flag that is true when the XBRL content amends previously-filed or accepted submission. + References No definition available. + Details Name: dei_AmendmentFlag Namespace Prefix: dei_ Data Type: xbrli:booleanItemType Balance Type: na Period Type: duration X - Definition Area code of city + References No definition available. + Details Name: dei_CityAreaCode Namespace Prefix: dei_ Data Type: xbrli:normalizedStringItemType Balance Type: na Period Type: duration X - Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details Name: dei_DocumentInformationLineItems Namespace Prefix: dei_ Data Type: xbrli:stringItemType Balance Type: na Period Type: duration X - Definition For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD. + References No definition available. + Details Name: dei_DocumentPeriodEndDate Namespace Prefix: dei_ Data Type: xbrli:dateItemType Balance Type: na Period Type: duration X - Definition The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'. + References No definition available. + Details Name: dei_DocumentType Namespace Prefix: dei_ Data Type: dei:submissionTypeItemType Balance Type: na Period Type: duration X - Definition Address Line 1 such as Attn, Building Name, Street Name + References No definition available. + Details Name: dei_EntityAddressAddressLine1 Namespace Prefix: dei_ Data Type: xbrli:normalizedStringItemType Balance Type: na Period Type: duration X - Definition Name of the City or Town + References No definition available. + Details Name: dei_EntityAddressCityOrTown Namespace Prefix: dei_ Data Type: xbrli:normalizedStringItemType Balance Type: na Period Type: duration X - Definition Code for the postal or zip code + References No definition available. + Details Name: dei_EntityAddressPostalZipCode Namespace Prefix: dei_ Data Type: xbrli:normalizedStringItemType Balance Type: na Period Type: duration X - Definition Name of the state or province. + References No definition available. + Details Name: dei_EntityAddressStateOrProvince Namespace Prefix: dei_ Data Type: dei:stateOrProvinceItemType Balance Type: na Period Type: duration X - Definition A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2 + Details Name: dei_EntityCentralIndexKey Namespace Prefix: dei_ Data Type: dei:centralIndexKeyItemType Balance Type: na Period Type: duration X - Definition Indicate if registrant meets the emerging growth company criteria. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2 + Details Name: dei_EntityEmergingGrowthCompany Namespace Prefix: dei_ Data Type: xbrli:booleanItemType Balance Type: na Period Type: duration X - Definition Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen. + References No definition available. + Details Name: dei_EntityFileNumber Namespace Prefix: dei_ Data Type: dei:fileNumberItemType Balance Type: na Period Type: duration X - Definition Two-character EDGAR code representing the state or country of incorporation. + References No definition available. + Details Name: dei_EntityIncorporationStateCountryCode Namespace Prefix: dei_ Data Type: dei:edgarStateCountryItemType Balance Type: na Period Type: duration X - Definition The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2 + Details Name: dei_EntityRegistrantName Namespace Prefix: dei_ Data Type: xbrli:normalizedStringItemType Balance Type: na Period Type: duration X - Definition The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2 + Details Name: dei_EntityTaxIdentificationNumber Namespace Prefix: dei_ Data Type: dei:employerIdItemType Balance Type: na Period Type: duration X - Definition Local phone number for entity. + References No definition available. + Details Name: dei_LocalPhoneNumber Namespace Prefix: dei_ Data Type: xbrli:normalizedStringItemType Balance Type: na Period Type: duration X - Definition Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c + Details Name: dei_PreCommencementIssuerTenderOffer Namespace Prefix: dei_ Data Type: xbrli:booleanItemType Balance Type: na Period Type: duration X - Definition Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b + Details Name: dei_PreCommencementTenderOffer Namespace Prefix: dei_ Data Type: xbrli:booleanItemType Balance Type: na Period Type: duration X - Definition Title of a 12(b) registered security. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b + Details Name: dei_Security12bTitle Namespace Prefix: dei_ Data Type: dei:securityTitleItemType Balance Type: na Period Type: duration X - Definition Name of the Exchange on which a security is registered. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1 + Details Name: dei_SecurityExchangeName Namespace Prefix: dei_ Data Type: dei:edgarExchangeCodeItemType Balance Type: na Period Type: duration X - Definition Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14a -Subsection 12 + Details Name: dei_SolicitingMaterial Namespace Prefix: dei_ Data Type: xbrli:booleanItemType Balance Type: na Period Type: duration X - Definition Trading symbol of an instrument as listed on an exchange. + References No definition available. + Details Name: dei_TradingSymbol Namespace Prefix: dei_ Data Type: dei:tradingSymbolItemType Balance Type: na Period Type: duration X - Definition Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425 + Details Name: dei_WrittenCommunications Namespace Prefix: dei_ Data Type: xbrli:booleanItemType Balance Type: na Period Type: duration X - Details Name: us-gaap_StatementClassOfStockAxis=us-gaap_CommonStockMember Namespace Prefix: Data Type: na Balance Type: Period Type: X - Details Name: us-gaap_StatementClassOfStockAxis=lee_PreferredSharePurchaseRightsMember Namespace Prefix: Data Type: na Balance Type: Period Type: Lee Enterprises (NASDAQ:LEE) Gráfica de Acción Histórica De Ene 2025 a Feb 2025 Lee Enterprises (NASDAQ:LEE) Gráfica de Acción Histórica De Feb 2024 a Feb 2025
  Content Reference URL	None

• Publisher

  Publisher Name	Advanced Financial Network
  Publisher URL	https://www.advfn.com
  Description	None
  Trust Flow Score	61
  Citation Flow Score	45

• Data Source

  Data Source Name	Quantexa News
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
  Weight	10