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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