Business News
Lee Enterprises Reports Continued Improvement in Advertising Outlook
Monday 14. December 2009 - Advertising sales for Lee Enterprises, Incorporated (NYSE: LEE), strengthened in November for the third month in a row. As a result of the continuing improved outlook, Lee expects operating revenue to decline by 14 to 15 percent year over year for the quarter ending Dec. 27, 2009. In comparison, revenue declined an average of 20 percent in the March, June and September 2009 quarters.
“Based on trends through early December, were hopeful that the turnaround has begun,” said Mary Junck, Lee chairman and chief executive officer. “Although its premature to guess when year-over-year revenue comparisons will turn positive, we expect our aggressive cost reductions will enable meaningful earnings growth when they do.”
She said Lee expects cash costs, excluding unusual items, to decrease 17-18 percent in the December quarter versus a year ago, an improvement from earlier guidance, and reaffirmed a 6-7 percent decrease in fiscal 2010.
Lees Annual Report on Form 10-K is being filed today with the Securities and Exchange Commission. Included in the filing will be two notable matters:
Lees independent registered public accounting firm, KPMG LLP, will exclude from its audit opinion the explanatory paragraph included in the opinion a year ago that raised doubt about Lees ability to continue as a going concern. The change is primarily a result of Lees successful debt refinancing in February 2009, the companys continuing compliance with its debt covenants, adequate liquidity, and now improving business conditions.
Also, in the December 2009 quarter, Lee made changes to its postretirement medical plans for certain groups of employees, including increases in premium cost sharing and elimination of coverage for certain participants. The changes are expected to reduce annual net periodic postretirement medical cost beginning in 2010 and will reduce the benefit obligation liability by up to $30 million. Lee may recognize non-cash gains related to certain of the changes in 2010.
