UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For Quarter Ended June 30, 1998
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission File Number 1-6227
Lee Enterprises, Incorporated
A Delaware Corporation I.D. #42-0823980
215 N. Main Street
Davenport, Iowa 52801
Phone: (319) 383-2100
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Class Outstanding at June 30, 1998
- --------------------------------------- ----------------------------
Common Stock, $2.00 par value 32,730,378
Class "B" Common Stock, $2.00 par value 11,819,962
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1.
LEE ENTERPRISES, INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
<TABLE>
Three Months Nine Months
Ended June 30, Ended June 30,
-------------------- ---------------------
1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating revenue:
Publishing:
Daily newspaper:
Advertising ....................................... $ 50,770 $ 45,991 $145,999 $134,319
Circulation ....................................... 20,439 20,199 61,457 60,219
Other ............................................... 27,245 13,890 77,641 42,084
Broadcasting ........................................... 34,549 30,675 96,751 92,095
Equity in net income of associated companies ........... 2,090 1,938 5,849 5,431
-------------------- --------------------
135,093 112,693 387,697 334,148
-------------------- --------------------
Operating expenses:
Compensation costs ..................................... 48,898 40,807 143,740 122,596
Newsprint and ink ...................................... 10,637 7,938 30,773 22,838
Depreciation ........................................... 4,963 4,366 14,283 12,321
Amortization of intangibles ............................ 4,533 2,703 13,462 8,108
Other .................................................. 33,605 27,943 99,136 87,937
-------------------- --------------------
102,636 83,757 301,394 253,800
-------------------- --------------------
Operating income ............................ 32,457 28,936 86,303 80,348
-------------------- --------------------
Financial (income) expense, net:
Financial (income) ..................................... (673) (1,145) (2,391) (3,143)
Financial expense ...................................... 3,742 1,346 11,792 5,115
-------------------- --------------------
3,069 201 9,401 1,972
-------------------- --------------------
Income from continuing operations
before taxes on income ...................... 29,388 28,735 76,902 78,376
Income taxes .............................................. 11,297 10,976 29,616 30,269
-------------------- --------------------
Income from continuing operations ........... 18,091 17,759 47,286 48,107
Income from discontinued operations
net of income tax effect ............................... - - 485 - - 1,485
-------------------- --------------------
Net income .................................. $ 18,091 $ 18,244 $ 47,286 $ 49,592
==================== ====================
Average outstanding shares:
Basic .................................................. 44,642 46,301 44,982 46,546
==================== ====================
Diluted ................................................ 45,398 47,156 45,735 47,422
==================== ====================
Earnings per share:
Basic:
Income from continuing operations ................... $ 0.41 $ 0.38 $ 1.05 $ 1.03
Income from discontinuing operations ................ - - 0.01 - - 0.03
-------------------- --------------------
Net income .................................. $ 0.41 $ 0.39 $ 1.05 $ 1.06
==================== ====================
Diluted:
Income from continuing operations ................... $ 0.40 $ 0.38 $ 1.03 $ 1.01
Income from discontinuing operations ................ - - 0.01 - - 0.03
-------------------- --------------------
Net income .................................. $ 0.40 $ 0.39 $ 1.03 $ 1.04
==================== ====================
Dividends per share ....................................... $ 0.14 $ 0.13 $ 0.42 $ 0.39
==================== ====================
</TABLE>
<PAGE>
LEE ENTERPRISES, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, September 30,
ASSETS 1998 1997
- --------------------------------------------------------------------------------
(Unaudited)
Cash and cash equivalents ......................... $ 33,245 $ 14,163
Accounts receivable, net .......................... 63,909 58,397
Newsprint inventory ............................... 1,346 3,716
Program rights and other .......................... 12,715 17,691
---------------------
Total current assets ................ 111,215 93,967
Investments ....................................... 26,063 24,691
Property and equipment, net ....................... 124,704 120,026
Intangibles and other assets ...................... 402,152 412,279
---------------------
$664,134 $650,963
=====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities ............................... $105,290 $248,908
Long-term debt, less current maturities ........... 185,620 26,174
Deferred items .................................... 56,689 56,491
Stockholders' equity .............................. 316,535 319,390
--------------------
$664,134 $650,963
====================
<PAGE>
LEE ENTERPRISES, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Nine Months Ended June 30: 1998 1997
- --------------------------------------------------------------------------------
(Unaudited)
Cash Provided by Operations:
Net income ......................................... $ 47,286 $ 49,592
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation and amortization .................... 27,745 21,706
Distributions in excess of earnings of associated
companies ..................................... 640 1,140
Adjustment of estimated loss on disposition of
discontinued operations ....................... - - (1,985)
Other balance sheet changes ...................... 5,994 6,835
-------------------
Net cash provided by operations ............ 81,665 77,288
-------------------
Cash Provided by (Required for) Investing Activities:
Acquisitions ....................................... (3,037) (1,200)
Purchase of property and equipment ................. (18,723) (11,229)
Net proceeds from sale of subsidiary ............... - - 54,795
Other .............................................. (575) (884)
-------------------
Net cash provided by (required for)
investing activities ....................... (22,335) 41,482
-------------------
Cash (Required for) Financing Activities:
Purchase of common stock ........................... (45,228) (25,902)
Cash dividends paid ................................ (12,702) (12,149)
Principal payments on long-term debt ............... (25,000) (35,000)
Principal payments on short-term notes payable, net (145,000) - -
Proceeds from long-term borrowings ................. 185,000 - -
Other .............................................. 2,682 5,120
-------------------
Net cash (required for) financing activities (40,248) (67,931)
-------------------
Net increase in cash and cash equivalents .. 19,082 50,839
Cash and cash equivalents:
Beginning ............................................. 14,163 19,267
-------------------
Ending ................................................ $ 33,245 $ 70,106
===================
<PAGE>
LEE ENTERPRISES, INCORPORATED
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
Note 1. Basis of Presentation
The information furnished reflects all adjustments, consisting of normal
recurring accruals, which are, in the opinion of management, necessary to a fair
presentation of the financial position as of June 30, 1998 and the results of
operations for the three- and nine-month periods ended June 30, 1998 and 1997
and cash flows for the nine-month periods ended June 30, 1998 and 1997.
Note 2. Investment in Associated Companies
Condensed operating results of unconsolidated associated companies are as
follows:
<TABLE>
Three Months Nine Months
Ended June 30, Ended June 30,
-------------------- --------------------
1998 1997 1998 1997
----------------------------------------------
<S> <C> <C> <C> <C>
Revenues ........................................... $21,430 $19,963 $63,457 $58,769
Operating expenses, except
depreciation and amortization ................... 14,018 13,235 42,690 39,893
Income before depreciation and
amortization, interest, and taxes ............... 7,412 6,728 20,767 18,876
Depreciation and amortization ...................... 720 502 2,150 1,506
Operating income ................................... 6,692 6,226 18,617 17,370
Financial income ................................... 338 293 961 847
Income before income taxes ......................... 7,030 6,519 19,578 18,217
Income taxes ....................................... 2,832 2,642 7,875 7,352
Net income ......................................... 4,198 3,877 11,703 10,865
<FN>
a. Madison Newspaper, Inc. (50% owned)
b. Quality Information Systems (50% owned)
c. Inn Partnership, LC (an effective 50% owned)
</FN>
</TABLE>
Note 3. Cash Flows Information
The components of other balance sheet changes are:
Nine Months Ended
June 30,
-------------------
1998 1997
-------------------
(In Thousands)
(Unaudited)
(Increase) in receivables ............................. $(6,943) $(5,658)
Decrease in inventories, film rights and other ........ 2,024 3,063
Increase in accounts payable, accrued expenses
and unearned income ................................ 7,771 5,222
Increase in income taxes payable ...................... 3,431 1,599
Other, primarily deferred items ....................... (289) 2,609
-------------------
$ 5,994 $ 6,835
===================
<PAGE>
Note 4. Change in Accounting Principles
In 1997, the Financial Accounting Standards Board (FASB) issued Statement No.
128, "Earnings Per Share". Statement No. 128 replaced the previously reported
primary and fully diluted earnings per share with basic and diluted earnings per
share. Unlike primary earnings per share, basic earnings per share excludes any
dilutive effects of options, warrants, and convertible securities. Diluted
earnings per share is very similar to the previously reported fully diluted
earnings per share. All earnings per share amounts for all periods have been
presented, and where necessary, restated to conform to Statement No. 128
requirements.
The American Institute of Certified Public Accountants issued Statement of
Position (SOP) 98-1 "Accounting for the Costs of Computer Software Developed for
Internal Use". In accordance with SOP 98-1, the Company has capitalized the
costs of certain software developed for internal use.
Note 5. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per
share (in thousands except per share amounts):
<TABLE>
Three Months Ended Nine Months Ended
June 30, June 30,
------------------- -------------------
1998 1997 1998 1997
------------------- -------------------
<S> <C> <C> <C> <C>
Numerator income applicable to common shares:
Income from continuing operations .................... $18,091 $17,759 $47,286 $48,107
Income from discontinuing operations ................. - - 485 - - 1,485
------------------- -------------------
Net income ................................ $18,091 $18,244 $47,286 $49,592
=================== ===================
Denominator:
Basic-weighted average common
shares outstanding ................................ 44,642 46,301 44,982 46,546
Dilutive effect of employee stock
options ........................................... 756 855 753 876
------------------- -------------------
Dulited outstanding shares ........................... 45,398 47,156 45,735 47,422
=================== ===================
Basic earnings per share:
Income from continuing operations .................... $ 0.41 $ 0.38 $ 1.05 $ 1.03
Income from discontinuing operations ................. - - 0.01 - - 0.03
------------------- -------------------
Net income ................................ $ 0.41 $ 0.39 $ 1.05 $ 1.06
=================== ===================
Diluted earnings per share:
Income from continuing operations .................... $ 0.40 $ 0.38 $ 1.03 $ 1.01
Income from discontinuing operations ................. - - 0.01 - - 0.03
------------------- -------------------
Net income ................................ $ 0.40 $ 0.39 $ 1.03 $ 1.04
=================== ===================
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Operating results (dollars in thousands, except per share data):
<TABLE>
Three Months Nine Months
Ended June 30, Ended June 30,
------------------------------ ------------------------------
1998 1997 1997 1998 1997 1997
------------------------------ ------------------------------
(Pro Forma) (Pro Forma)
<S> <C> <C> <C> <C> <C> <C>
Revenue .......................................................... $135,093 $112,693 $126,788 $387,697 $334,148 $373,875
Percent change ................................................ 19.9% 16.0%
Percent change, pro forma ..................................... 6.6 3.7
Income before depreciation
and amortization,
interest and taxes
(EBITDA) ...................................................... 41,953 36,005 40,216 114,048 100,777 112,195
Percent change ................................................ 16.5% 13.2%
Percent change, pro forma ..................................... 4.3 1.7
Operating income ................................................. 32,457 28,936 30,950 86,303 80,348 85,211
Percent change ................................................ 12.2% 7.4%
Percent change, pro forma ..................................... 4.9 1.3
Income from continuing
operations .................................................... 18,091 17,759 17,067 47,286 48,107 45,432
Percent change ................................................ 1.9% (1.7)%
Percent change, pro forma ..................................... 6.0 4.1
Net income ....................................................... 18,091 18,244 17,552 47,286 49,592 46,917
Percent change ................................................ (0.8)% (4.6)%
Percent change, pro forma ..................................... 3.1 0.8
Earnings per share:
Basic:
Income from continuing
operations ............................................... $ 0.41 $ 0.38 $ 0.37 $ 1.05 $ 1.03 $ 0.98
Percent change ........................................... 7.9% 1.9%
Percent change,
pro forma ............................................. 10.8 7.1
Net income ................................................. 0.41 0.39 0.38 1.05 1.06 1.01
Percent change ........................................... 5.1% (0.9)%
Percent change,
pro forma ............................................. 7.9 4.0
Diluted:
Income from continuing
operations ............................................... $ 0.40 0.38 0.36 1.03 1.01 0.96
Percent change ........................................... 5.3% 2.0%
Percent change,
pro forma ............................................. 11.1 7.3
Net income ................................................. 0.40 0.39 0.37 1.03 1.04 0.99
Percent change ........................................... 2.6% (1.0)%
Percent change,
pro forma ............................................. 8.1 4.0
</TABLE>
<PAGE>
Operations by line of business are as follows (dollars in thousands, except per
share date):
<TABLE>
Three Months Nine Months
Ended June 30, Ended June 30,
------------------------------ ------------------------------
1998 1997 1997 1998 1997 1997
------------------------------ ------------------------------
(Pro Forma)
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Publishing ........................ $100,544 $ 82,018 $ 96,113 $290,946 $242,053 $281,780
Broadcasting ...................... 34,549 30,675 30,675 96,751 92,095 92,095
------------------------------ ------------------------------
$135,093 $112,693 $126,788 $387,697 $334,148 $373,875
============================== ==============================
Income before depreciation and
amortization, interest and taxes
(EBITDA):
Publishing ........................ $ 33,533 $ 30,321 $ 34,532 $ 95,371 $ 84,456 $ 95,874
Broadcasting ...................... 11,845 9,113 9,113 28,662 26,901 26,901
Corporate ......................... (3,425) (3,429) (3,429) (9,985) (10,580) (10,580)
------------------------------ ------------------------------
$ 41,953 $ 36,005 $ 40,216 $114,048 $100,777 $112,195
============================== ==============================
Operating income:
Publishing ........................ $ 27,195 $ 26,423 $ 28,437 $ 76,915 $ 73,147 $ 78,010
Broadcasting ...................... 8,931 6,097 6,097 20,190 18,231 18,231
Corporate ......................... (3,669) (3,584) (3,584) (10,802) (11,030) (11,030)
------------------------------ ------------------------------
$ 32,457 $ 28,936 $ 30,950 $ 86,303 $ 80,348 $ 85,211
============================== ==============================
Capital expenditures:
Publishing ........................ $ 4,376 $ 1,424 $ 12,703 $ 5,132
Broadcasting ...................... 1,276 1,426 4,481 5,259
Corporate ......................... 553 652 1,539 838
------------------- -------------------
$ 6,205 $ 3,502 $ 18,723 $ 11,229
=================== ===================
</TABLE>
<PAGE>
QUARTER ENDED JUNE 30, 1998
PUBLISHING
The following daily newspaper revenue information is presented on a pro forma
basis to include The Pacific Northwest Group as if the acquisition had occurred
October 1, 1996.
Pro forma wholly-owned daily newspaper advertising revenue increased $2,883,000,
6.0%. Advertising revenue from local merchants increased $1,227,000, 4.7%. Local
"run-of-press" advertising increased $799,000, 4.4%, as a result of a 2.5%
increase in advertising inches. Local preprint revenue increased $428,000, 5.2%.
Classified advertising revenue increased $1,358,000, 8.0%, as a result of higher
averages rates and a 2.4% increase in advertising inches. The employment
category was the biggest contributor to the increase. Circulation revenue
decreased $(268,000), (1.3%), as a result of a (.4%) decrease in volume.
Other revenue consists of revenue from weekly newspapers, classified and
specialty publications, commercial printing, products delivered outside the
newspaper (which include activities such as target marketing and special event
production) and editorial service contracts with Madison Newspapers, Inc.
Other revenue by category and by property is as follows:
<TABLE>
1998 1997
----------------
(In Thousands)
<S> <C> <C>
Weekly newspapers, classified and specialty publications:
Properties owned for entire period .................................................... $ 6,149 $ 5,703
Acquired since March 31, 1997 ......................................................... 12,064 95
Commercial printing:
Properties owned for entire period .................................................... 3,645 3,502
Acquired since March 31, 1997 ......................................................... 256 - -
Products delivered outside the newspaper:
Properties owned for entire period .................................................... 3,042 2,603
Acquired since March 31, 1997 ......................................................... 4 - -
Editorial service contracts .............................................................. 2,085 1,987
----------------
$27,245 $13,890
================
</TABLE>
The following table sets forth the percentage of revenue of certain items in the
publishing segment.
1998 1997
---------------
Revenue .................................................... 100.0% 100.0%
---------------
Compensation costs ......................................... 34.0 32.2
Newsprint and ink .......................................... 10.6 9.8
Other operating expenses ................................... 22.0 21.0
---------------
66.6 63.0
---------------
Income before depreciation, amortization, interest
and taxes ................................................ 33.4 37.0
Depreciation and amortization .............................. 6.3 4.8
---------------
Operating margin wholly-owned properties ................... 27.1% 32.2%
===============
<PAGE>
Exclusive of the effects of acquisitions, costs other than depreciation and
amortization increased $5,006,000, 9.7%. Compensation expense increased
$2,390,000, 9.1%, due to increases in average compensation rate and incentive
compensation including payments related to circulation sales programs. Newsprint
and ink costs increased $802,000, 10.0%. Approximately 1/2 of the increase was
due to higher prices for newsprint and 1/2 to higher consumption related to
advertising volume increases and circulation promotion programs. Other operating
costs exclusive of depreciation and amortization increased $1,814,000, 10.5%,
due to circulation incentive programs and marketing costs.
BROADCASTING
Revenue for the quarter increased $3,874,000, 12.6%. Local, regional, and
national advertising increased $1,931,000, 7.4%, primarily due to improvement in
rates. Political advertising increased $2,044,000, due to spring primary
elections, and production revenue and revenues from other services were flat.
The following table sets forth the percentage of revenue of certain items in the
broadcasting segment.
1998 1997
---------------
Revenue .................................................... 100.0% 100.0%
---------------
Compensation costs ......................................... 37.2 41.9
Programming costs .......................................... 6.1 6.0
Other operating expenses ................................... 22.4 22.4
---------------
65.7 70.3
---------------
Income before depreciation, amortization, interest
and taxes ................................................ 34.3 29.7
Depreciation and amortization .............................. 8.4 9.8
---------------
Operating margin ........................................... 25.9% 19.9%
===============
Compensation costs were flat. Programming costs for the quarter increased
$264,000, 14.3%, primarily due to accelerated amortization on new programming.
Other operating expenses, exclusive of depreciation and amortization, increased
$851,000, 12.4%, due to increased costs for promotion and bad debt expense
associated with two customer bankruptcies.
CORPORATE COSTS
Corporate costs increased by $85,000, 2.4%. Reductions in new systems training
and installation costs of $409,000 from 1997 levels offset other cost increases.
FINANCIAL EXPENSE AND INCOME TAXES
Interest expense increased due to borrowings to finance The Pacific Northwest
Group acquisition.
Income taxes were 38.4% and 38.2% of pretax income for the quarters ended June
30, 1998 and 1997, respectively.
<PAGE>
NINE MONTHS ENDED JUNE 30, 1998
PUBLISHING
The following daily newspaper revenue information is presented on a pro forma
basis to include The Pacific Northwest Group as if the acquisition had occurred
October 1, 1996.
Pro forma wholly-owned daily newspaper advertising revenue increased $6,274,000,
4.5%. Advertising revenue from local merchants increased $989,000, 1.2%. Local
"run-of-press" advertising decreased $(382,000), (.7%), as a result of a (2.1%)
decrease in advertising inches. Local preprint revenue increased $1,371,000,
5.5%. Classified advertising revenue increased $4,862,000, 10.8%, as a result of
higher averages rates and a 3.9% increase in advertising inches. The employment
category was the biggest contributor to the increase. Circulation revenue
decreased $(269,000), (.4%) as a result of higher rates which offset a (1.1%)
decrease in volume.
Other revenue consists of revenue from weekly newspapers, classified and
specialty publications, commercial printing, products delivered outside the
newspaper (which include activities such as target marketing and special event
production) and editorial service contracts with Madison Newspapers, Inc.
Other revenue by category and by property is as follows:
1998 1997
------------------
(In Thousands)
Weekly newspapers, classified and specialty publications:
Properties owned for entire period ..................... $ 18,334 $ 17,325
Acquired since September 30, 1996 ...................... 33,184 95
Commercial printing:
Properties owned for entire period ..................... 10,381 10,884
Acquired since September 30, 1996 ...................... 700 - -
Products delivered outside the newspaper:
Properties owned for entire period ..................... 8,442 7,496
Acquired since September 30, 1996 ...................... 13 - -
Editorial service contracts ............................... 6,587 6,284
------------------
$ 77,641 $ 42,084
==================
The following table sets forth the percentage of revenue of certain items in the
publishing segment.
1998 1997
---------------
Revenue .................................................... 100.0% 100.0%
---------------
Compensation costs ......................................... 34.3 33.0
Newsprint and ink .......................................... 10.6 9.5
Other operating expenses ................................... 22.3 22.6
---------------
67.2 65.1
---------------
Income before depreciation, amortization, interest
and taxes ................................................ 32.8 34.9
Depreciation and amortization .............................. 6.3 4.7
---------------
Operating margin wholly-owned properties ................... 26.5% 30.2%
===============
<PAGE>
Exclusive of the effects of acquisitions, costs other than depreciation and
amortization increased $8,791,000, 5.6%. Compensation expense increased
$4,794,000, 6.0%, due primarily to increase in the average compensation rate and
incentive compensation. Newsprint and ink costs increased $2,792,000, 12.2%, due
primarily to higher prices for newsprint. Other operating costs exclusive of
depreciation and amortization increased $1,205,000, 2.2%.
BROADCASTING
Revenue increased $4,656,000, 5.1% as local, regional, and national advertising
increased $7,219,000, 9.8%, primarily due to Winter Olympics advertising in the
second quarter and improved rates realized in the third quarter. Production
revenue and revenues from other services increased $434,000, 5.9%. Political
advertising decreased $(2,767,000), (48.4%), principally in the first fiscal
quarter.
The following table sets forth the percentage of revenue of certain items in the
broadcasting segment.
1998 1997
---------------
Revenue .................................................... 100.0% 100.0%
---------------
Compensation costs ......................................... 40.0 41.0
Programming costs .......................................... 6.6 6.2
Other operating expenses ................................... 23.8 23.6
---------------
70.4 70.8
---------------
Income before depreciation, amortization, interest
and taxes ................................................ 29.6 29.2
Depreciation and amortization .............................. 8.8 9.4
---------------
Operating margin ........................................... 20.8% 19.8%
===============
Compensation costs increased $897,000, 2.4%, due to increases in average
compensation. Programming costs for the period increased $706,000, 12.4%,
primarily due to accelerated amortization on new programming. Other operating
expenses, exclusive of depreciation and amortization, increased $1,292,000,
6.0%, as previously discussed.
CORPORATE COSTS
Corporate costs decreased by $(228.000), (2.1%). The decrease occurred in the
second quarter primarily as a result of the capitalization of company software
developed for internal use which was previously expensed as incurred.
FINANCIAL EXPENSE AND INCOME TAXES
Interest expense increased due to borrowings to finance The Pacific Northwest
Group acquisition.
Income taxes were 38.5% and 38.6% of pretax income for the nine months ended
June 30, 1998 and 1997, respectively.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations, which is the Company's primary source of liquidity,
generated $81,665,000 for the nine month period ended June 30, 1998. On March
31, 1998 the Company received $185,000,000 of proceeds from new long-term
borrowings. At that date, the Company had $140,000,000 borrowed under a
$200,000,000 unsecured revolving loan agreement. The borrowings under the
revolving loan agreement were repaid in full and the revolving loan credit
facility was reduced to $50,000,000. Available cash balances and cash flow from
operations provide adequate liquidity. Covenants related to the Company's credit
agreements are not considered restrictive to operations and anticipated
stockholder dividends.
SAFE HARBOR STATEMENT
This report contains forward-looking statements and includes assumptions
concerning the Company's operations, future results and prospects. These
forward-looking statements are based on current expectations and are subject to
risks and uncertainties. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, the Company provides the
following cautionary statements identifying important economic, political, and
technological factors which, among others, could cause the actual results or
events to differ materially from those set forth or implied by the
forward-looking statements or assumptions.
Such factors include the following: (i) changes in the current and future
business environment, including interest rates and capital and consumer
spending; (ii) prices for newsprint products; (iii) the availability of quality
broadcast programming at competitive prices; (iv) the quality and ratings of
network over-the-air broadcast programs; and (v) legislative or regulatory
initiatives affecting the cost of delivery of over-the-air broadcast programs to
the Company's customers. Further information concerning the Company and its
businesses, including additional factors that potentially could materially
affect the Company's financial results, is included in the Company's annual
report on Form 10-K.
<PAGE>
LEE ENTERPRISES, INCORPORATED
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: None
(b) The following report on Form 8-K was filed during the three
months ended June 30, 1998.
Dated of report: May 7, 1998
Item 5. The Board of Directors declared a dividend of one preferred
share purchase right for each outstanding share of common stock.
<PAGE>
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
G.C. Wahlig
DATE August 12, 1998 --------------------------------------
---------------------------- G. C. Wahlig, Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE 30,
1998 10-Q FOR LEE ENTERPRISES, INCORPORATED AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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<S> <C>
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<PERIOD-END> JUN-30-1998
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<PP&E> 290,975
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<BONDS> 185,620
0
0
<COMMON> 89,100
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</TABLE>
