Server: Netscape-Enterprise/2.01 Date: Thu, 18 Dec 1997 17:29:19 GMT Accept-ranges: bytes Last-modified: Wed, 19 Nov 1997 22:46:39 GMT Content-length: 4776 Content-type: text/html Lee Enterprises News Release, 10/9/97


News Release

For Immediate Release Nov. 5, 1997

 

Lee earnings up for 4th quarter, fiscal year

DAVENPORT, Iowa Lee Enterprises, Incorporated (NYSE:LEE) reported a 16.9 percent increase in income from continuing operations for the year ended Sept. 30, 1997. Lee earned $62.745 million or $1.33 per share from continuing operations, as compared to $53.670 million or $1.12 per share. Net income comparisons are not meaningful because the 1996 results include a $8.223 million loss from discontinued graphic arts operations.

The company reported income from continuing operations of $14.638 million for the quarter ended Sept. 30, 1997, up from $14.513 million in 1996 and earnings per share from continuing operations increased 3.3 percent to $.31, compared with $.30 for 1996.

Richard D. Gottlieb, president and chief executive officer said, "The newspaper segment operations continue to benefit from a healthy advertising environment and lower newsprint prices. Our broadcast segment operations were inconsistent. Our ABC and NBC affiliates performed to our expectations, but our CBS affiliates, which account for more than 60 percent of our broadcast revenue, have not done as well. Non-political revenue increased by more than 5 percent, which offset the lack of Olympic advertising revenue at our NBC affiliates; however, we could not overcome the loss of $2.6 million of political advertising revenue. Positive market response to our investment in local news and promotional programs does provide us with some encouragement, but our first quarter comparisons will be affected by the absence of political advertising revenues which were approximately $5.4 million in the first quarter of fiscal year 1997."

Exclusive of the effects of the acquisition of the Pacific Northwest Publishing Group from ABC, Inc. on Sept. 8, 1997, newspaper revenues grew 4.6 percent, and operating income increased 4.0 percent for the quarter. The significant factors in the earnings improvement were a 4.9 percent increase in advertising revenue and lower newsprint prices which reduced costs by approximately $1 million in the fourth quarter of 1997 as compared to the fourth quarter of 1996.

Broadcasting revenue decreased 4.1 percent for the quarter. Operating expenses decreased approximately .8 percent. Operating income decreased $1.0 million for the quarter.

The company continued its common stock repurchase program, purchasing in excess of 900,000 shares in the fourth quarter and approximately 1.7 million during the last fiscal year.

Lee Enterprises, headquartered in Davenport, Iowa, owns and operates nine full-service network affiliated television stations and seven satellite television stations; publishes 21 daily newspapers and 73 weekly and specialty publications; and provides direct marketing and commercial printing divisions.

Tables containing unaudited financial information are on the next page.

 

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