Lee Enterprises Files Q3 2024 10-Q

TL;DR

Lee Enterprises dropped its Q3 10-Q. Check financials.

AI Summary

Lee Enterprises, Inc. filed its 10-Q for the period ending June 23, 2024, reporting on its third fiscal quarter. The filing details financial performance and operational updates for the newspaper publishing company. Specific financial figures and operational metrics for the quarter are presented within the report.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Lee Enterprises, a key player in the regional media landscape.

Risk Assessment

Risk Level: medium — The newspaper industry faces ongoing challenges from digital disruption and changing advertising models, which can impact Lee Enterprises' financial stability.

Key Numbers

• 09/29 — Fiscal Year End (Indicates the end of the company's fiscal year.)
• 2024-06-23 — Quarter End Date (Marks the end of the reporting period for this 10-Q.)
• 2024-08-02 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• LEE ENTERPRISES, Inc (company) — Filer of the 10-Q
• 20240623 (date) — End of the reporting period
• 20240802 (date) — Filing date
• 4600 E. 53RD STREET, DAVENPORT, IA 52807 (address) — Company's business and mailing address
• 5633832100 (phone_number) — Company's business phone number

FAQ

Filing Documents

• lee-20240623.htm (10-Q) — 785KB
• lee-20240624xex311.htm (EX-31.1) — 9KB
• lee-20240624xex312.htm (EX-31.2) — 9KB
• lee-20240624xex321.htm (EX-32.1) — 6KB
• lee-20240624xex322.htm (EX-32.2) — 5KB
• 0001628280-24-034325.txt ( ) — 4167KB
• lee-20240623.xsd (EX-101.SCH) — 26KB
• lee-20240623_cal.xml (EX-101.CAL) — 66KB
• lee-20240623_def.xml (EX-101.DEF) — 175KB
• lee-20240623_lab.xml (EX-101.LAB) — 343KB
• lee-20240623_pre.xml (EX-101.PRE) — 247KB
• lee-20240623_htm.xml (XML) — 458KB

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) Income and Comprehensive (Loss) Income 4 Consolidated Statements of Stockholders' Equity 5 Consolidated Statements of Cash Flows 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 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 15 Item 3.

Controls and Procedures

Controls and Procedures 24 PART II OTHER INFORMATION 24 Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1.A.

Risk Factors

Risk Factors 25 Item 5 . Other Information 25 Item 6. Exhibits 26

SIGNATURES

SIGNATURES 27 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 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 ma

Financial Statements

Item 1. Financial Statements LEE ENTERPRISES, INCORPORATED CONSOLIDATED BALANCE SHEETS (Unaudited) (Thousands of Dollars) June 23, 2024 September 24, 2023 ASSETS Current assets: Cash and cash equivalents 13,425 14,548 Accounts receivable, net 61,222 69,104 Inventories 5,965 7,504 Prepaid and other current assets 21,298 15,373 Total current assets 101,910 106,529 Investments: Associated companies 27,948 27,819 Other 5,565 5,572 Total investments 33,513 33,391 Property and equipment: Land and improvements 11,524 12,366 Buildings and improvements 76,967 83,140 Equipment 205,472 213,714 Construction in process 4,694 2,453 298,657 311,673 Less accumulated depreciation 241,754 250,439 Property and equipment, net 56,903 61,234 Operating lease right-of-use assets 36,326 40,822 Goodwill 328,243 329,504 Other intangible assets, net 73,900 94,988 Pension plan assets, net 11,206 10,843 Medical plan assets, net 22,754 21,565 Other 12,700 12,741 Total assets 677,455 711,617 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) June 23, 2024 September 24, 2023 LIABILITIES AND EQUITY Current liabilities: Current portion of lease liabilities 8,052 7,755 Current maturities of long-term debt 2,586 — Accounts payable 31,356 36,290 Compensation and other accrued liabilities 32,442 29,448 Unearned revenue 36,027 40,843 Total current liabilities 110,463 114,336 Long-term debt, net of current maturities 450,140 455,741 Operating lease liabilities 31,437 36,580 Pension obligations 510 586 Postretirement and postemployment benefit obligations 7,488 8,618 Deferred income taxes 40,749 41,351 Income taxes payable 6,405 5,809 Withdrawal liabilities and other 23,771 24,890 Total liabilities 670,963 687,911 Equity: Stockholders' equity: Serial convertible preferred stock, no par value; authorized 500 shares; none iss

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 June 23, 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 nine months ended June 23, 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), accum

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View this 10-Q filing on SEC EDGAR