LEE Enterprises, Inc. Files 10-Q for Period Ending March 24, 2024

TL;DR

<b>LEE Enterprises, Inc. has filed its Q2 2024 10-Q report, detailing financial performance and segment information.</b>

AI Summary

LEE ENTERPRISES, Inc (LEE) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. LEE Enterprises, Inc. filed a 10-Q report for the period ending March 24, 2024. The filing covers the second quarter of fiscal year 2024. Key financial data points and segment revenues are detailed within the report. The company's fiscal year ends on September 29th. The report includes information on common stock, preferred share rights, and pension plans.

Why It Matters

For investors and stakeholders tracking LEE ENTERPRISES, Inc, this filing contains several important signals. This filing provides investors with the latest financial snapshot of LEE Enterprises, Inc., crucial for understanding recent performance and making informed investment decisions. The detailed segment revenue breakdown allows for an analysis of which business areas are driving growth or decline within the company.

Risk Assessment

Risk Level: medium — LEE ENTERPRISES, Inc shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not indicate any immediate, significant positive or negative events. However, the nature of the newspaper industry can present ongoing market risks.

Analyst Insight

Review the detailed segment revenues and compare them to previous periods to identify trends in advertising and subscription performance.

Revenue Breakdown

Key Numbers

• 2024-03-24 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-03 — Filing Date (Filed As Of Date)
• 2023-09-29 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• LEE ENTERPRISES, Inc (company) — Filer name
• 0000058361 (company) — Central Index Key
• 2711 (company) — Standard Industrial Classification for Newspapers
• 420823980 (company) — IRS Number
• DE (company) — State of Incorporation
• 0929 (company) — Fiscal Year End
• 5633832100 (company) — Business Phone

FAQ

Industry Context

LEE Enterprises operates in the newspaper publishing industry, which is characterized by evolving digital media consumption and advertising revenue models.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the revenue breakdown by segment to understand performance drivers.
2. Compare key financial metrics to prior periods and industry benchmarks.
3. Review any disclosed risk factors for potential impacts on future operations.

Key Dates

• 2024-03-24: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing provided for analysis in this session, so a direct comparison to a previous filing is not possible with the given data.

Filing Documents

• lee-20240324.htm (10-Q) — 739KB
• lee-20240324xex311.htm (EX-31.1) — 9KB
• lee-20240324xex312.htm (EX-31.2) — 9KB
• lee-20240324xex321.htm (EX-32.1) — 6KB
• lee-20240324xex322.htm (EX-32.2) — 5KB
• 0001628280-24-020172.txt (&nbsp;) — 3950KB
• lee-20240324.xsd (EX-101.SCH) — 25KB
• lee-20240324_cal.xml (EX-101.CAL) — 65KB
• lee-20240324_def.xml (EX-101.DEF) — 173KB
• lee-20240324_lab.xml (EX-101.LAB) — 336KB
• lee-20240324_pre.xml (EX-101.PRE) — 239KB
• lee-20240324_htm.xml (XML) — 428KB

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS 1 PART I FINANCIAL INFORMATION 2 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Consolidated Balance Sheets 2 Consolidated Statements of Loss and Comprehensive Loss 4 Consolidated Statements of Stockholder s' Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Controls and Procedures

Controls and Procedures 23 PART II OTHER INFORMATION 23 Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1.A.

Risk Factors

Risk Factors 23 I tem 5 . O th er Information 23 Item 6. Exhibits 24

SIGNATURES

SIGNATURES 25 Table of Contents References to "we", "our", "us" and the like throughout this document refer to Lee Enterprises, Incorporated (the "Company"). References to "2024", "2023" and the like refer to the fiscal years ended the last Sunday in September.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This report 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 the BH Media or 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 refl

Financial Statements

Item 1. Financial Statements LEE ENTERPRISES, INCORPORATED CONSOLIDATED BALANCE SHEETS (Unaudited) (Thousands of Dollars) March 24, 2024 September 24, 2023 ASSETS Current assets: Cash and cash equivalents 16,107 14,548 Accounts receivable, net 59,186 69,104 Inventories 6,699 7,504 Prepaid and other current assets 20,045 15,373 Total current assets 102,037 106,529 Investments: Associated companies 27,826 27,819 Other 5,555 5,572 Total investments 33,381 33,391 Property and equipment: Land and improvements 12,324 12,366 Buildings and improvements 82,805 83,140 Equipment 206,055 213,714 Construction in process 2,615 2,453 303,799 311,673 Less accumulated depreciation 245,396 250,439 Property and equipment, net 58,403 61,234 Operating lease right-of-use assets 37,087 40,822 Goodwill 328,243 329,504 Other intangible assets, net 78,187 94,988 Pension plan assets, net 11,151 10,843 Medical plan assets, net 22,333 21,565 Other 13,985 12,741 Total assets 684,807 711,617 The accompanying Notes are an integral part of the Consolidated Financial Statements. 2 Table of Contents (Unaudited) (Thousands of Dollars and Shares, Except Per Share Data) March 24, 2024 September 24, 2023 LIABILITIES AND EQUITY Current liabilities: Current portion of lease liabilities 7,431 7,755 Accounts payable 31,685 36,290 Compensation and other accrued liabilities 31,443 29,448 Unearned revenue 38,391 40,843 Total current liabilities 108,950 114,336 Long-term debt, net of current maturities 453,644 455,741 Operating lease liabilities 32,795 36,580 Pension obligations 535 586 Postretirement and postemployment benefit obligations 7,433 8,618 Deferred income taxes 40,759 41,351 Income taxes payable 6,222 5,809 Withdrawal liabilities and other 24,048 24,890 Total liabilities 674,386 687,911 Equity: Stockholders' equity: Serial convertible preferred stock, no par value; authorized 500 shares; none issued — — Common Stock, $ 0.01 par value; au

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1 BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the "Company") as of March 24, 2024, and our results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2023 Annual Report on Form 10-K. The Company's fiscal year ends on the last Sunday in September. Fiscal year 2024 ends September 29, 2024, and fiscal year 2023 ended September 24, 2023. Fiscal year 2024 includes 53 weeks of operations and 2023 included 52 weeks of operations. Because of seasonal and other factors, the results of operations for the three and six months ended March 24, 2024, are not necessarily indicative of the results to be expected for the full year. The Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries, as well as our 82.5 % interest in INN Partners, L.C. ("BLOX Digital" formerly "TownNews"). Our 50 % interest in TNI Partners ("TNI") and our 50 % interest in Madison Newspapers, Inc. ("MNI") are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets. In 2024, certain prior period amounts within the consolidated financial statements have been adjusted to conform with current period presentation. These matters did not change operating revenues, net income (loss), accu

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