Lee reports results for quarter ended Dec. 25, eyes January emergence

By Caroline Salls

Pittsburgh, Jan. 17 - Lee Enterprises, Inc. reported $39.2 million of operating income for the 13 weeks ended Dec. 25 on $199.56 million of total operating revenue, according to a company news release.

The figures showed a decline from the $49.18 million of operating income posted for the 13 weeks ended Dec. 26, 2010 on $207.67 million in total operating revenue.

"Advertising sales in the quarter continued largely in line with recent trends and reflected our expectations, given the still-uneven economy," chairman and chief executive officer Mary Junck said in the release.

"Comparisons from a year ago should take into account that our December 2010 quarter was the strongest of the year, with revenue then down only 1.0% to prior.

"We continue to expect revenue trends to improve slowly in 2012, as we press forward with more digital and print initiatives.

"Meanwhile, we expect to complete our Chapter 11 refinancing process within a few weeks. Our refinancing agreements, along with our continued strong cash flow, will provide a solid financial footing as we continue reshaping Lee for future growth."

The company posted $14.62 million of net income for the quarter ended Dec. 25, down from $18.95 million of net income for the same period of 2010.

Lee reported $31.43 million of cash as of Dec. 25, compared with $17.01 million at Dec. 26, 2010.

Exit timing

According to the release, vice president, chief financial officer and treasurer Carl Schmidt said Lee's pre-packaged Chapter 11 case is on course for timely completion. He said a plan confirmation hearing has been scheduled for Jan. 23, and the court will be asked to set Jan. 30 as the effective date deadline.

Schmidt said Lee has not drawn on the $40 million of court-approved interim financing and is not expected to do so. The $40 million facility will become a revolving credit upon conclusion of the refinancing.

Listing update

In addition, Schmidt said Lee continues to be listed on the New York Stock Exchange, although the stock price currently remains below the minimum average closing price of $1 per share.

"Lee's price cure period will extend through its annual meeting in March 2012 in order to receive shareholder approval to implement a reverse stock split, if necessary, as permitted under NYSE rules," Schmidt said in the release.

"In addition, Lee continues to operate under a planned cure period with respect to its minimum market capitalization that provides for a maximum cure date no later than February 2013, with continuing assessment by the NYSE throughout."

An increase in the average closing price to $1 per share would return Lee to compliance with all quantitative listing requirements, absent a reverse stock split.

Lee, a Davenport, Iowa-based print and digital provider of local news, information and advertising, filed for bankruptcy on Dec. 12 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 11-13918.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.