Life-Changing Stock: Lee Enterprises, Incorporated (NYSE: LEE)

Lee Enterprises, Incorporated (NYSE: LEE) spotted trading -62.78% off 52-week high price. On the other end, the stock has been noted 61.97% away from the low price over the last 52-weeks. The stock changed -4.96% to recent value of $1.15. The stock transacted 400966 shares during most recent day however it has an average volume of 346.59K shares. The company has 56.27M of outstanding shares and 50.04M shares were floated in the market.

Lee Enterprises, Incorporated (LEE) recently stated second quarter fiscal 2020 financial results for the period ended March 29, 2020.

“We are happy to announce our solid second quarter financial results,” stated Kevin Mowbray, President and Chief Executive Officer. “Revenue and Adjusted EBITDA performance were strong, despite the immediate disruption in the last two weeks of the quarter Because of the COVID-19 pandemic. Strong performance in our audience revenue and continued top line growth at TownNews, which have historically been stable revenue streams, drove results in the second quarter. Importantly, we closed on the transaction with Berkshire Hathaway, a planned acquisition and financing that nearly doubled the size of our operations and eliminated our looming debt maturities, at highly attractive terms,” stated Mowbray.

“The impact on our business from COVID-19 was important and immediate. Our main priorities in the response to the pandemic were to ensure the safety and well-being of our employees, our advertisers and our consumers, while also continuing to deliver vital news and information to consumers in our local markets.” Mowbray stated. “Our newsrooms play a crucial role in providing intensely local coverage of critical issues, and we are incredibly proud of our employees across the company during this challenging time,” stated Mowbray.

Second Quarter Operating Results

  • Operating revenue totaled $121.4M, a decrease of 1.1%, as a result of continuing decline of print trends and the negative impact from the COVID-19 pandemic, partially offset by revenue from BHMG and Buffalo, which totaled $14.6M of revenue in the quarter. Total operating revenue on a pro forma basis reduced 10.0% in the quarter.
  • Subscription revenue increased 3.0% including the impact of acquisitions. Pro forma subscription revenue totaled $86.0M, a decline of 2.8% contrast to the previous year. Pro forma subscription revenue represented 41.4% of our total operating revenue.
  • TownNews revenue increased 11.1% on a standalone basis and totaled over $24M over the last twelve months.
  • Advertising revenue declined 3.2% including the impact of acquisitions. Pro forma advertising revenue totaled $102.0M, a decline of 15.5%, largely consistent with the first quarter pro forma trends.
  • Pro forma digital advertising and marketing services revenue totaled $32.8M, or 32.2% of total advertising revenue. Legacy Lee digital advertising represents 43.0% of total advertising revenue.
  • Pro forma total digital revenue was $46.0M, representing 22.2% of operating revenue.
  • Digital only subscribers totaled nearly 200,000, with a 91.7% increase over the previous year at Legacy Lee, and page views were up 8.6%, not including acquisitions and including MNI and TNI(4).
  • Operating expenses reduced 2.6%Because of continued business transformation efforts, partially offset by expenses associated with BHMG and Buffalo. Pro forma Cash Costs(3)declined 9.8%.
  • Adjusted EBITDA totaled $17.4M, despite the immediate negative revenue impact from COVID-19. Pro forma Adjusted EBITDA totaled $24.0M.

Its earnings per share (EPS) expected to touch remained -32.80% for this year while earning per share for the next 5-years is expected to reach at 3.00%. LEE has a gross margin of 95.80% and an operating margin of 13.20% while its profit margin remained 1.90% for the last 12 months.   According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of 6.34% from the mean of 20 days, 23.74% from mean of 50 days SMA and performed -22.51% from mean of 200 days price. Company’s performance for the week was -4.96%, 48.14% for month and YTD performance remained -19.01%.


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