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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lee Enterprises Inc | NYSE:LEE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 28.50 | 0 | 01:00:00 |
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|
|
Delaware
|
42-0823980
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
Large accelerated filer
|
[ ]
|
Accelerated filer
|
[X]
|
|
Non-accelerated filer
|
[ ]
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
[ ]
|
|
Table Of Contents
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PAGE
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FORWARD LOOKING STATEMENTS
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PART I
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements (Unaudited)
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Consolidated Balance Sheets - June 26, 2016 and September 27, 2015
|
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Consolidated Statements of Operations and Comprehensive Operations - 13 weeks and 39 weeks ended June 26, 2016 and June 28, 2015
|
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Consolidated Statements of Cash Flows - 39 weeks ended June 26, 2016 and June 28, 2015
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Notes to Consolidated Financial Statements
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Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
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Controls and Procedures
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PART II
|
OTHER INFORMATION
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||
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Item 1.
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Legal Proceedings
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|
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Item 6.
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Exhibits
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|
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SIGNATURES
|
|
|
(Thousands of Dollars)
|
June 26
2016 |
|
September 27
2015 |
|
|
|
|
||
ASSETS
|
|
|
||
|
|
|
||
Current assets:
|
|
|
||
Cash and cash equivalents
|
21,872
|
|
11,134
|
|
Accounts receivable, net
|
53,476
|
|
58,899
|
|
Income taxes receivable
|
—
|
|
413
|
|
Inventories
|
4,038
|
|
3,914
|
|
Other
|
6,947
|
|
8,304
|
|
Total current assets
|
86,333
|
|
82,664
|
|
Investments:
|
|
|
||
Associated companies
|
30,722
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|
35,069
|
|
Other
|
9,932
|
|
9,083
|
|
Total investments
|
40,654
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|
44,152
|
|
Property and equipment:
|
|
|
||
Land and improvements
|
22,024
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|
22,257
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Buildings and improvements
|
177,603
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|
179,731
|
|
Equipment
|
282,363
|
|
290,127
|
|
Construction in process
|
1,589
|
|
997
|
|
|
483,579
|
|
493,112
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Less accumulated depreciation
|
349,201
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|
349,343
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|
Property and equipment, net
|
134,378
|
|
143,769
|
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Goodwill
|
243,729
|
|
243,729
|
|
Other intangible assets, net
|
166,185
|
|
185,962
|
|
Postretirement assets, net
|
14,456
|
|
13,421
|
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Other
|
29,487
|
|
34,128
|
|
|
|
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||
|
|
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||
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|
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||
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||
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||
Total assets
|
715,222
|
|
747,825
|
|
(Thousands of Dollars and Shares, Except Per Share Data)
|
June 26
2016 |
|
September 27
2015 |
|
|
|
|
||
LIABILITIES AND EQUITY
|
|
|
||
|
|
|
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Current liabilities:
|
|
|
||
Current maturities of long-term debt
|
30,992
|
|
25,000
|
|
Accounts payable
|
15,449
|
|
20,113
|
|
Compensation and other accrued liabilities
|
22,596
|
|
27,055
|
|
Accrued interest
|
12,636
|
|
4,184
|
|
Income taxes payable
|
324
|
|
—
|
|
Unearned revenue
|
29,176
|
|
28,929
|
|
Total current liabilities
|
111,173
|
|
105,281
|
|
Long-term debt, net of current maturities
|
609,290
|
|
700,872
|
|
Pension obligations
|
48,316
|
|
52,522
|
|
Postretirement and postemployment benefit obligations
|
10,766
|
|
11,060
|
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Deferred income taxes
|
42,740
|
|
22,137
|
|
Income taxes payable
|
5,723
|
|
4,856
|
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Other
|
9,357
|
|
9,680
|
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Total liabilities
|
837,365
|
|
906,408
|
|
Equity (deficit):
|
|
|
||
Stockholders' equity (deficit):
|
|
|
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Serial convertible preferred stock, no par value; authorized 500 shares; none issued
|
—
|
|
—
|
|
Common Stock, $0.01 par value; authorized 120,000 shares; issued and outstanding:
|
558
|
|
547
|
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June 26, 2016: 55,778 shares;
|
|
|
||
September 27, 2015: 54,679 shares
|
|
|
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Class B Common Stock, $2 par value; authorized 30,000 shares; none issued
|
—
|
|
—
|
|
Additional paid-in capital
|
249,181
|
|
247,302
|
|
Accumulated deficit
|
(356,409
|
)
|
(390,966
|
)
|
Accumulated other comprehensive loss
|
(16,405
|
)
|
(16,276
|
)
|
Total stockholders' deficit
|
(123,075
|
)
|
(159,393
|
)
|
Non-controlling interests
|
932
|
|
810
|
|
Total deficit
|
(122,143
|
)
|
(158,583
|
)
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Total liabilities and deficit
|
715,222
|
|
747,825
|
|
|
13 Weeks Ended
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39 Weeks Ended
|
|
||||
(Thousands of Dollars, Except Per Common Share Data)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
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||||
Operating revenue:
|
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|
|
|
||||
Advertising and marketing services
|
92,294
|
|
100,934
|
|
286,662
|
|
314,780
|
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Subscription
|
47,160
|
|
47,394
|
|
144,249
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145,904
|
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Other
|
11,492
|
|
10,350
|
|
35,275
|
|
31,760
|
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Total operating revenue
|
150,946
|
|
158,678
|
|
466,186
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|
492,444
|
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Operating expenses:
|
|
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|
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|
|||
Compensation
|
57,218
|
|
58,442
|
|
174,733
|
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181,615
|
|
Newsprint and ink
|
6,604
|
|
7,421
|
|
19,343
|
|
23,928
|
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Other operating expenses
|
53,356
|
|
56,538
|
|
166,332
|
|
173,641
|
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Depreciation
|
4,323
|
|
4,559
|
|
12,975
|
|
13,860
|
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Amortization of intangible assets
|
6,545
|
|
6,836
|
|
19,777
|
|
20,597
|
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Loss (gain) on sales of assets, net
|
(354
|
)
|
686
|
|
(1,763
|
)
|
434
|
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Workforce adjustments
|
424
|
|
1,056
|
|
1,616
|
|
1,908
|
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Total operating expenses
|
128,116
|
|
135,538
|
|
393,013
|
|
415,983
|
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Equity in earnings of associated companies
|
1,825
|
|
1,705
|
|
6,633
|
|
6,114
|
|
Operating income
|
24,655
|
|
24,845
|
|
79,806
|
|
82,575
|
|
Non-operating income (expense):
|
|
|
|
|
||||
Financial income
|
141
|
|
79
|
|
326
|
|
258
|
|
Interest expense
|
(15,783
|
)
|
(18,121
|
)
|
(49,206
|
)
|
(55,314
|
)
|
Debt financing and administrative costs
|
(1,196
|
)
|
(1,445
|
)
|
(4,563
|
)
|
(4,040
|
)
|
Gain on insurance settlement
|
—
|
|
—
|
|
30,646
|
|
—
|
|
Other, net
|
(413
|
)
|
(1,082
|
)
|
920
|
|
58
|
|
Total non-operating expense, net
|
(17,251
|
)
|
(20,569
|
)
|
(21,877
|
)
|
(59,038
|
)
|
Income before income taxes
|
7,404
|
|
4,276
|
|
57,929
|
|
23,537
|
|
Income tax expense
|
3,037
|
|
2,141
|
|
22,571
|
|
9,353
|
|
Net income
|
4,367
|
|
2,135
|
|
35,358
|
|
14,184
|
|
Net income attributable to non-controlling interests
|
(275
|
)
|
(253
|
)
|
(801
|
)
|
(749
|
)
|
Income attributable to Lee Enterprises, Incorporated
|
4,092
|
|
1,882
|
|
34,557
|
|
13,435
|
|
Other comprehensive loss, net of income taxes
|
(43
|
)
|
(192
|
)
|
(129
|
)
|
(576
|
)
|
Comprehensive income attributable to Lee Enterprises, Incorporated
|
4,049
|
|
1,690
|
|
34,428
|
|
12,859
|
|
Earnings per common share:
|
|
|
|
|
||||
Basic:
|
0.08
|
|
0.04
|
|
0.65
|
|
0.26
|
|
Diluted:
|
0.08
|
|
0.03
|
|
0.64
|
|
0.25
|
|
|
39 Weeks Ended
|
|
||
(Thousands of Dollars)
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
||
Cash provided by operating activities:
|
|
|
||
Net income
|
35,358
|
|
14,184
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
||
Depreciation and amortization
|
32,752
|
|
34,457
|
|
Net (gain) loss on sales of assets and insurance settlement
|
(32,409
|
)
|
434
|
|
Stock compensation expense
|
1,714
|
|
1,645
|
|
Distributions greater than earnings of MNI
|
3,072
|
|
1,699
|
|
Deferred income tax expense
|
20,693
|
|
8,251
|
|
Debt financing and administrative costs
|
4,563
|
|
4,040
|
|
Gain on extinguishment of debt
|
(1,250
|
)
|
—
|
|
Pension contributions
|
(2,314
|
)
|
(1,565
|
)
|
Changes in operating assets and liabilities:
|
|
|
||
Decrease in receivables
|
5,614
|
|
4,631
|
|
Decrease (increase) in inventories and other
|
(440
|
)
|
596
|
|
Decrease in accounts payable, compensation and other accrued liabilities and unearned revenue
|
(1,592
|
)
|
(163
|
)
|
Decrease in pension, postretirement and postemployment benefit obligations
|
(3,440
|
)
|
(2,893
|
)
|
Change in income taxes receivable or payable
|
1,604
|
|
1,164
|
|
Other, net
|
1,902
|
|
(331
|
)
|
Net cash provided by operating activities
|
65,827
|
|
66,149
|
|
Cash provided by (required for) investing activities:
|
|
|
||
Purchases of property and equipment
|
(5,793
|
)
|
(7,686
|
)
|
Decrease in restricted cash
|
—
|
|
441
|
|
Insurance settlement
|
30,646
|
|
—
|
|
Proceeds from sales of assets
|
3,983
|
|
3,341
|
|
Distributions greater than earnings of TNI
|
1,275
|
|
300
|
|
Other, net
|
(500
|
)
|
(323
|
)
|
Net cash provided by (required for) investing activities
|
29,611
|
|
(3,927
|
)
|
Cash provided by (required for) financing activities:
|
|
|
||
Proceeds from long-term debt
|
5,000
|
|
5,000
|
|
Payments on long-term debt
|
(89,340
|
)
|
(64,750
|
)
|
Debt financing costs paid
|
(420
|
)
|
(477
|
)
|
Common stock transactions, net
|
60
|
|
205
|
|
Net cash required for financing activities
|
(84,700
|
)
|
(60,022
|
)
|
Net increase in cash and cash equivalents
|
10,738
|
|
2,200
|
|
Cash and cash equivalents:
|
|
|
||
Beginning of period
|
11,134
|
|
16,704
|
|
End of period
|
21,872
|
|
18,904
|
|
1
|
BASIS OF PRESENTATION
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
|
|
||||
Operating revenue
|
12,231
|
|
13,063
|
|
41,053
|
|
43,035
|
|
Operating expenses
|
10,073
|
|
10,936
|
|
32,515
|
|
34,783
|
|
Operating income
|
2,158
|
|
2,127
|
|
8,538
|
|
8,252
|
|
Company's 50% share of operating income
|
1,080
|
|
1,064
|
|
4,269
|
|
4,127
|
|
Less amortization of intangible assets
|
105
|
|
105
|
|
314
|
|
314
|
|
Equity in earnings of TNI
|
975
|
|
959
|
|
3,955
|
|
3,813
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
|
|
||||
Operating revenue
|
16,263
|
|
16,685
|
|
49,602
|
|
51,580
|
|
Operating expenses, excluding workforce adjustments, depreciation and amortization
|
13,160
|
|
13,623
|
|
39,819
|
|
42,650
|
|
Workforce adjustments
|
13
|
|
261
|
|
32
|
|
318
|
|
Depreciation and amortization
|
410
|
|
463
|
|
1,303
|
|
1,390
|
|
Operating income
|
2,680
|
|
2,338
|
|
8,448
|
|
7,222
|
|
Net income
|
1,699
|
|
1,491
|
|
5,347
|
|
4,603
|
|
Equity in earnings of MNI
|
850
|
|
746
|
|
2,678
|
|
2,301
|
|
3
|
GOODWILL AND OTHER INTANGIBLE ASSETS
|
|
39 Weeks Ended
|
|
(Thousands of Dollars)
|
June 26
2016 |
|
|
|
|
Goodwill, gross amount
|
1,532,458
|
|
Accumulated impairment losses
|
(1,288,729
|
)
|
Goodwill, beginning of period
|
243,729
|
|
Goodwill, end of period
|
243,729
|
|
(Thousands of Dollars)
|
June 26
2016 |
|
September 27
2015 |
|
|
|
|
||
Nonamortized intangible assets:
|
|
|
||
Mastheads
|
25,102
|
|
25,102
|
|
Amortizable intangible assets:
|
|
|
||
Customer and newspaper subscriber lists
|
687,182
|
|
687,182
|
|
Less accumulated amortization
|
546,099
|
|
526,322
|
|
|
141,083
|
|
160,860
|
|
Noncompete and consulting agreements
|
28,524
|
|
28,524
|
|
Less accumulated amortization
|
28,524
|
|
28,524
|
|
|
—
|
|
—
|
|
Other intangible assets, net
|
166,185
|
|
185,962
|
|
4
|
DEBT
|
•
|
$400,000,000
aggregate principal amount of
9.5%
Senior Secured Notes (the “Notes”), pursuant to an Indenture dated as of March 31, 2014 (the “Indenture”).
|
•
|
$250,000,000
first lien term loan (the "1
st
Lien Term Loan") and
$40,000,000
revolving facility (the "Revolving Facility") under a First Lien Credit Agreement dated as of March 31, 2014 (together the “1
st
Lien Credit Facility”).
|
•
|
$150,000,000
second lien term loan under a Second Lien Loan Agreement dated as of March 31, 2014 (the “2
nd
Lien Term Loan”).
|
Period Beginning
|
Percentage of Principal Amount
|
|
|
March 15, 2018
|
104.75
|
March 15, 2019
|
102.38
|
March 15, 2020
|
100.00
|
|
13 Weeks Ended
|
|
13 Weeks Ending
|
|
||||
(Thousands of Dollars)
|
December 27
2015 |
|
March 27
2016 |
|
June 26
2016 |
|
September 25
2016 |
|
|
|
|
|
|
||||
Mandatory
|
6,250
|
|
6,250
|
|
6,250
|
|
6,250
|
|
Voluntary
|
5,000
|
|
27,000
|
|
3,000
|
|
—
|
|
Excess cash flow payment
|
—
|
|
1,135
|
|
6,441
|
|
5,992
|
|
|
11,250
|
|
34,385
|
|
15,691
|
|
12,242
|
|
For the Period Ending
(Thousands of Dollars)
|
Pulitzer Excess Cash Flow
|
Payment Amount
(not rejected)
|
|
|
|
|
|
September 27, 2015
|
5,143
|
3,326
|
|
December 27, 2015
|
2,864
|
1,867
|
|
March 27, 2016
|
2,730
|
525
|
|
June 26, 2016
|
1,583
|
*
|
|
|
|
|
Interest Rates
(%)
|
||
(Thousands of Dollars)
|
June 26
2016 |
|
September 27
2015 |
|
June 26
2016 |
|
|
|
|
||
Revolving Facility
|
—
|
|
—
|
|
5.65
|
1
st
Lien Term Loan
|
119,546
|
|
180,872
|
|
7.25
|
Notes
|
385,000
|
|
400,000
|
|
9.50
|
2
nd
Lien Term Loan
|
135,736
|
|
145,000
|
|
12.00
|
|
640,282
|
|
725,872
|
|
|
Less current maturities of long-term debt
|
30,992
|
|
25,000
|
|
|
Total long-term debt
|
609,290
|
|
700,872
|
|
|
5
|
PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS
|
PENSION PLANS
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
|
|
||||
Service cost for benefits earned during the period
|
49
|
|
226
|
|
147
|
|
678
|
|
Interest cost on projected benefit obligation
|
1,515
|
|
1,859
|
|
4,545
|
|
5,577
|
|
Expected return on plan assets
|
(2,174
|
)
|
(2,466
|
)
|
(6,522
|
)
|
(7,398
|
)
|
Amortization of net loss
|
599
|
|
420
|
|
1,797
|
|
1,260
|
|
Amortization of prior service benefit
|
(34
|
)
|
(34
|
)
|
(102
|
)
|
(102
|
)
|
Pension expense (benefit)
|
(45
|
)
|
5
|
|
(135
|
)
|
15
|
|
|
|
|
|
|
||||
POSTRETIREMENT MEDICAL PLANS
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
|
|
||||
Service cost for benefits earned during the period
|
16
|
|
39
|
|
48
|
|
117
|
|
Interest cost on projected benefit obligation
|
156
|
|
211
|
|
468
|
|
633
|
|
Expected return on plan assets
|
(331
|
)
|
(361
|
)
|
(993
|
)
|
(1,083
|
)
|
Amortization of net gain
|
(273
|
)
|
(347
|
)
|
(819
|
)
|
(1,041
|
)
|
Amortization of prior service benefit
|
(365
|
)
|
(365
|
)
|
(1,095
|
)
|
(1,095
|
)
|
Postretirement medical benefit
|
(797
|
)
|
(823
|
)
|
(2,391
|
)
|
(2,469
|
)
|
6
|
INCOME TAXES
|
7
|
EARNINGS PER COMMON SHARE
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars and Shares, Except Per Share Data)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
|
|
||||
Income attributable to Lee Enterprises, Incorporated:
|
4,092
|
|
1,882
|
|
34,557
|
|
13,435
|
|
Weighted average common shares
|
55,735
|
|
54,642
|
|
55,398
|
|
54,352
|
|
Less weighted average restricted Common Stock
|
(2,524
|
)
|
(2,045
|
)
|
(2,222
|
)
|
(1,831
|
)
|
Basic average common shares
|
53,211
|
|
52,597
|
|
53,176
|
|
52,521
|
|
Dilutive stock options and restricted Common Stock
|
1,114
|
|
1,459
|
|
783
|
|
1,436
|
|
Diluted average common shares
|
54,325
|
|
54,056
|
|
53,959
|
|
53,957
|
|
Earnings per common share:
|
|
|
|
|
||||
Basic
|
0.08
|
|
0.04
|
|
0.65
|
|
0.26
|
|
Diluted
|
0.08
|
|
0.03
|
|
0.64
|
|
0.25
|
|
8
|
STOCK OWNERSHIP PLANS
|
(Thousands of Dollars and Shares, Except Per Share Data)
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term
(Years)
|
Aggregate
Intrinsic
Value
|
|
|
|
|
|
|
|||
Outstanding, September 27, 2015
|
1,871
|
|
2.71
|
|
|
|
|
Exercised
|
(57
|
)
|
1.13
|
|
|
|
|
Cancelled
|
(99
|
)
|
8.78
|
|
|
|
|
Outstanding, June 26, 2016
|
1,715
|
|
2.41
|
|
4.8
|
609
|
|
|
|
|
|
|
|||
Exercisable, June 26, 2016
|
1,709
|
|
2.41
|
|
4.8
|
609
|
|
(Thousands of Shares, Except Per Share Data)
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|
|
|
|
||
Outstanding, September 27, 2015
|
1,546
|
|
3.62
|
|
Vested
|
(8
|
)
|
3.62
|
|
Granted
|
1,018
|
|
1.49
|
|
Cancelled
|
(32
|
)
|
3.44
|
|
Outstanding, June 26, 2016
|
2,524
|
|
2.76
|
|
9
|
FAIR VALUE MEASUREMENTS
|
10
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
11
|
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars)
|
June 26
2016 |
|
June 28
2015 |
|
June 26
2016 |
|
June 28
2015 |
|
|
|
|
|
|
||||
Net Income
|
4,367
|
|
2,135
|
|
35,358
|
|
14,184
|
|
Adjusted to exclude
|
|
|
|
|
||||
Income tax expense
|
3,037
|
|
2,141
|
|
22,571
|
|
9,353
|
|
Non-operating expenses, net
|
17,251
|
|
20,569
|
|
21,877
|
|
59,038
|
|
Equity in earnings of TNI and MNI
|
(1,825
|
)
|
(1,705
|
)
|
(6,633
|
)
|
(6,114
|
)
|
Loss (gain) on sale of assets, net
|
(354
|
)
|
686
|
|
(1,763
|
)
|
434
|
|
Depreciation and amortization
|
10,868
|
|
11,395
|
|
32,752
|
|
34,457
|
|
Workforce adjustments
|
424
|
|
1,056
|
|
1,616
|
|
1,908
|
|
Stock compensation
|
550
|
|
562
|
|
1,714
|
|
1,645
|
|
Add:
|
|
|
|
|
||||
Ownership share of TNI and MNI EBITDA (50%)
|
2,625
|
|
2,464
|
|
9,145
|
|
8,432
|
|
Adjusted EBITDA
|
36,943
|
|
39,303
|
|
116,637
|
|
123,337
|
|
•
|
49 daily and 37 Sunday newspapers with subscribers totaling
0.9 million
and
1.3 million
, respectively, which we believe are read by over three million people in print; and
|
•
|
Nearly 300 weekly newspapers and classified and niche publications.
|
•
|
$400,000,000
aggregate principal amount of 9.5% Senior Secured Notes (the “Notes”), pursuant to an Indenture dated as of March 31, 2014 (the “Indenture”), of which
$385,000,000
is outstanding at
June 26, 2016
;
|
•
|
$250,000,000
first lien term loan (the "1st Lien Term Loan") and
$40,000,000
revolving facility (the "Revolving Facility") under a First Lien Credit Agreement dated as of March 31, 2014 (together, the “1
st
Lien Credit Facility”), of which
$119,546,000
is outstanding at
June 26, 2016
; and
|
•
|
$150,000,000
second lien term loan under a Second Lien Loan Agreement dated as of March 31, 2014 (the “ 2
nd
Lien Term Loan”), of which
$135,736,000
is outstanding at
June 26, 2016
.
|
|
13 Weeks Ended
|
|
||||
(Thousands of Dollars, Except Per Share Data)
|
June 26
2016 |
|
June 28
2015 |
|
Percent
Change
|
|
|
|
|
|
|||
Advertising and marketing services revenue:
|
|
|
|
|||
Retail
|
59,181
|
|
63,601
|
|
(6.9
|
)
|
Classified
|
25,562
|
|
29,719
|
|
(14.0
|
)
|
National
|
4,527
|
|
4,608
|
|
(1.8
|
)
|
Niche publications and other
|
3,024
|
|
3,006
|
|
0.6
|
|
Total advertising and marketing services revenue
|
92,294
|
|
100,934
|
|
(8.6
|
)
|
Subscription
|
47,160
|
|
47,394
|
|
(0.5
|
)
|
Digital services
|
3,541
|
|
3,070
|
|
15.3
|
|
Commercial printing
|
3,116
|
|
3,239
|
|
(3.8
|
)
|
Other
|
4,835
|
|
4,041
|
|
19.6
|
|
Total operating revenue
|
150,946
|
|
158,678
|
|
(4.9
|
)
|
Operating expenses:
|
|
|
|
|||
Compensation
|
57,218
|
|
58,442
|
|
(2.1
|
)
|
Newsprint and ink
|
6,604
|
|
7,421
|
|
(11.0
|
)
|
Other operating expenses
|
53,356
|
|
56,538
|
|
(5.6
|
)
|
Workforce adjustments
|
424
|
|
1,056
|
|
(59.8
|
)
|
Cash costs
|
117,602
|
|
123,457
|
|
(4.7
|
)
|
|
33,344
|
|
35,221
|
|
(5.3
|
)
|
Depreciation and amortization
|
10,868
|
|
11,395
|
|
(4.6
|
)
|
Loss (gain) on sales of assets, net
|
(354
|
)
|
686
|
|
NM
|
|
Equity in earnings of associated companies
|
1,825
|
|
1,705
|
|
7.0
|
|
Operating income
|
24,655
|
|
24,845
|
|
(0.8
|
)
|
Non-operating income (expense), net
|
(17,251
|
)
|
(20,569
|
)
|
NM
|
|
Income before income taxes
|
7,404
|
|
4,276
|
|
73.2
|
|
Income tax expense
|
3,037
|
|
2,141
|
|
41.8
|
|
Net income
|
4,367
|
|
2,135
|
|
NM
|
|
Net income attributable to non-controlling interests
|
(275
|
)
|
(253
|
)
|
8.7
|
|
Income attributable to Lee Enterprises, Incorporated
|
4,092
|
|
1,882
|
|
NM
|
|
Other comprehensive loss, net of income taxes
|
(43
|
)
|
(192
|
)
|
(77.6
|
)
|
Comprehensive income attributable to Lee Enterprises, Incorporated
|
4,049
|
|
1,690
|
|
NM
|
|
Earnings per common share:
|
|
|
|
|||
Basic
|
0.08
|
|
0.04
|
|
NM
|
|
Diluted
|
0.08
|
|
0.03
|
|
NM
|
|
|
13 Weeks Ended
|
|
||||||
|
June 26
2016 |
|
June 28
2015 |
|
||||
(Thousands of Dollars, Except Per Share Data)
|
Amount
|
|
Per Share
|
|
Amount
|
|
Per Share
|
|
|
|
|
|
|
||||
Income attributable to Lee Enterprises, Incorporated, as reported
|
4,092
|
|
0.08
|
|
1,882
|
|
0.03
|
|
Adjustments:
|
|
|
|
|
||||
Warrants fair value adjustment
|
415
|
|
|
1,091
|
|
|
||
|
415
|
|
0.01
|
|
1,091
|
|
0.02
|
|
Income attributable to Lee Enterprises, Incorporated, as adjusted
|
4,507
|
|
0.08
|
|
2,973
|
|
0.05
|
|
|
39 Weeks Ended
|
|
||||
(Thousands of Dollars, Except Per Share Data)
|
June 26
2016 |
|
June 28
2015 |
|
Percent
Change
|
|
|
|
|
|
|||
Operating revenue:
|
|
|
|
|||
Retail
|
185,184
|
|
201,678
|
|
(8.2
|
)
|
Classified
|
75,998
|
|
87,849
|
|
(13.5
|
)
|
National
|
16,675
|
|
17,134
|
|
(2.7
|
)
|
Niche publications and other
|
8,805
|
|
8,119
|
|
8.4
|
|
Total advertising and marketing services revenue
|
286,662
|
|
314,780
|
|
(8.9
|
)
|
Subscription
|
144,249
|
|
145,904
|
|
(1.1
|
)
|
Digital services
|
10,271
|
|
9,267
|
|
10.8
|
|
Commercial printing
|
9,385
|
|
8,830
|
|
6.3
|
|
Other
|
15,619
|
|
13,663
|
|
14.3
|
|
Total operating revenue
|
466,186
|
|
492,444
|
|
(5.3
|
)
|
Operating expenses:
|
|
|
|
|||
Compensation
|
174,733
|
|
181,615
|
|
(3.8
|
)
|
Newsprint and ink
|
19,343
|
|
23,928
|
|
(19.2
|
)
|
Other operating expenses
|
166,332
|
|
173,641
|
|
(4.2
|
)
|
Workforce adjustments
|
1,616
|
|
1,908
|
|
(15.3
|
)
|
Cash costs
|
362,024
|
|
381,092
|
|
(5.0
|
)
|
|
104,162
|
|
111,352
|
|
(6.5
|
)
|
Depreciation and amortization
|
32,752
|
|
34,457
|
|
(4.9
|
)
|
Loss (gain) on sales of assets, net
|
(1,763
|
)
|
434
|
|
NM
|
|
Equity in earnings of associated companies
|
6,633
|
|
6,114
|
|
8.5
|
|
Operating income
|
79,806
|
|
82,575
|
|
(3.4
|
)
|
Non-operating expense, net
|
(21,877
|
)
|
(59,038
|
)
|
(62.9
|
)
|
Income before income taxes
|
57,929
|
|
23,537
|
|
NM
|
|
Income tax expense
|
22,571
|
|
9,353
|
|
NM
|
|
Net income
|
35,358
|
|
14,184
|
|
NM
|
|
Net income attributable to non-controlling interests
|
(801
|
)
|
(749
|
)
|
6.9
|
|
Income attributable to Lee Enterprises, Incorporated
|
34,557
|
|
13,435
|
|
NM
|
|
Other comprehensive loss, net of income taxes
|
(129
|
)
|
(576
|
)
|
(77.6
|
)
|
Comprehensive income attributable to Lee Enterprises, Incorporated
|
34,428
|
|
12,859
|
|
NM
|
|
Earnings per common share:
|
|
|
|
|||
Basic
|
0.65
|
|
0.26
|
|
NM
|
|
Diluted
|
0.64
|
|
0.25
|
|
NM
|
|
|
|
|
39 Weeks Ended
|
|
||||
|
June 26
2016 |
|
June 28
2015 |
|
||||
(Thousands of Dollars, Except Per Share Data)
|
Amount
|
|
Per Share
|
|
Amount
|
|
Per Share
|
|
|
|
|
||||||
Income attributable to Lee Enterprises, Incorporated, as reported
|
34,557
|
|
0.64
|
|
13,435
|
|
0.25
|
|
Adjustments:
|
|
|
|
|
||||
Warrants fair value adjustment
|
404
|
|
|
312
|
|
|
||
Gain on insurance settlement
|
(30,646
|
)
|
|
—
|
|
|
||
|
(30,242
|
)
|
|
312
|
|
|
||
Income tax effect of adjustments, net
|
10,726
|
|
|
—
|
|
|
||
|
(19,516
|
)
|
(0.36
|
)
|
312
|
|
0.01
|
|
Income attributable to Lee Enterprises, Incorporated, as adjusted
|
15,041
|
|
0.28
|
|
13,747
|
|
0.25
|
|
Number
|
|
Description
|
|
|
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) certification
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) certification
|
32
|
|
Section 1350 certification
|
|
|
|
LEE ENTERPRISES, INCORPORATED
|
|
|
|
|
|
/s/ Ronald A. Mayo
|
|
August 5, 2016
|
Ronald A. Mayo
|
|
|
Vice President, Chief Financial Officer and Treasurer
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
1 Year Lee Enterprises Chart |
1 Month Lee Enterprises Chart |
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