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 7, 2020

 


LEE ENTERPRISES, INCORPORATED

(Exact name of Registrant as specified in its charter)

 

 


 

Commission File Number 1-6227

 

Delaware

(State of Incorporation)

42-0823980

(I.R.S. Employer Identification No.)

 

4600 E. 53rd Street, Davenport, Iowa 52807

(Address of Principal Executive Offices)

 

(563) 383-2100

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

New York Stock Exchange

 

 

 


 

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:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

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 ☐

 

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. ☐

 

 

 

 

Item 7.01.

Regulation FD Disclosure.

 

The supplemental financial information is furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

 

Lee Legacy only and Pulitzer Inc. ("Pulitzer") only supplemental financial information is being provided because it is a required reporting covenant in the debt agreements of the Company. Lee Legacy constitutes the business of the Company, including its 50% interest in Madison Newspapers, Inc. ("MNI"), but excluding Pulitzer and the Company’s 50% interest in TNI Partners ("TNI").

 

The Lee Legacy and Pulitzer separate income statement presentations are not prepared in accordance with Generally Accepted Accounting Principles ("GAAP") as non-operating income (expense) and income tax expense are allocations of the consolidated balances and have not been prepared in accordance with Accounting Standards Codification 280: Segment Reporting. This presentation is only intended to be used for purposes of complying with covenants under the Company's debt agreements and should not be used as a substitute for the Company's consolidated financial statements prepared in accordance with GAAP. Refer to the Company's consolidated financial statements prepared in accordance with GAAP as periodically filed on Form 10-Q and Form 10-K with the Securities and Exchange Commission.

 

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

Exhibits

 

 

99.1

Supplemental Financial Information – First quarter ended December 29, 2019

 

 

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 7, 2020

By:

/s/ Timothy R. Millage

 

 

 

 

Timothy R. Millage

 

 

 

 

Vice President, Chief Financial Officer and Treasurer

 

 

Exhibit 99.1

 

Exhibit 99.1 - Supplemental Financial Information – First fiscal quarter ended December 29, 2019.

 

 

4600 E. 53rd St

Davenport, IA 52807

www.lee.net

 

 

 

 

Quarter Ended (unaudited)

   

December 29, 2019

   

December 30, 2018

 

(in thousands)

 

Consolidated

   

Lee Legacy

   

Pulitzer Inc.

   

Consolidated

   

Lee Legacy

   

Pulitzer Inc.

 

Operating revenue:

                                               

Advertising and marketing services

    65,727       45,648       20,079       75,962       52,195       23,767  

Subscription

    41,694       28,242       13,452       46,268       31,972       14,296  

Other

    14,922       13,500       1,422       13,971       12,396       1,575  

Total operating revenue

    122,343       87,390       34,953       136,201       96,563       39,638  

Operating expenses:

                                               

Compensation

    43,243       31,937       11,306       47,038       35,286       11,752  

Newsprint and ink

    4,736       3,290       1,446       6,339       4,323       2,016  

Other operating expenses

    48,462       30,755       17,707       49,743       30,450       19,293  

Depreciation and amortization

    6,719       4,359       2,360       7,529       4,932       2,597  

Assets loss (gain) on sales, impairments, and other

    814       806       8       (100 )     (100 )      

Restructuring costs and other

    1,632       1,400       232       62       44       18  

Total operating expenses

    105,606       72,547       33,059       110,611       74,935       35,676  

Equity in earnings of associated companies

    1,569       658       911       2,129       699       1,430  

Operating income

    18,306       15,501       2,805       27,719       22,327       5,392  

Non-operating income (expense), net

    (10,718 )     (13,530 )     2,812       (12,487 )     (15,995 )     3,508  

Income tax expense

    1,871       467       1,404       4,513       2,288       2,225  

Net income

    5,717       1,504       4,213       10,719       4,044       6,675  

 

Adjusted EBITDA is a non-GAAP financial measure. Below is a reconciliation of adjusted EBITDA to net income, the most directly comparable measure under GAAP:

 

Net Income

    5,717       1,504       4,213       10,719       4,044       6,675  

Adjusted to exclude

                                               

Non-operating expenses (income), net

    10,718       13,530       (2,812 )     12,487       15,995       (3,508 )

Income tax expense 

    1,871       467       1,404       4,513       2,288       2,225  

Equity in earnings of TNI and MNI

    (1,569 )     (658 )     (911 )     (2,129 )     (699 )     (1,430 )

Depreciation and amortization

    6,719       4,359       2,360       7,529       4,932       2,597  

Assets loss (gain) on sales, impairments, and other

    814       806       8       (100 )     (100 )      

Restructuring costs and other

    1,632       1,400       232       62       44       18  

Stock compensation

    302       302             463       463        

Add:

                                               

Ownership share of TNI and MNI EBITDA (50%)

    1,918       903       1,015       2,601       1,066       1,535  

Adjusted EBITDA

    28,122       22,613       5,509       36,145       28,033       8,112  
                                                 

Supplemental cash flow information

                                               

Distributions from MNI and TNI

    738       0       738       1,299       750       549  

Capital expenditures

    (2,428 )     (2,308 )     (120 )     (1,002 )     (752 )     (250 )
Pension Contributions                       (650 )           (650 )

Cash income tax payments

    (8 )     (8 )           (21 )     (20 )     (1 )

Interest income

    76       (2,252 )     2,328       124       (2,660 )     2,784  

Interest to be settled in cash

    (11,115 )     (8,734 )     (2,381 )     (12,256 )     (9,463 )     (2,793 )

Debt financing and administrative costs

    (193 )     (193 )           (8 )     (8 )