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, 1999
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, 1999
- --------------------------------------- ----------------------------
Common Stock, $2.00 par value 32,978,254
Class "B" Common Stock, $2.00 par value 11,419,820
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1.
LEE ENTERPRISES, INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
<TABLE>
Three Months Ended Nine Months
June 30, Ended June 30,
--------------------------------------------
1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(Unaudited)
Operating revenue:
Publishing:
Daily newspaper:
Advertising ........................... $ 52,805 $ 50,770 $153,524 $145,999
Circulation ........................... 20,348 20,439 61,196 61,457
Other ................................... 29,834 27,245 87,350 77,641
Broadcasting ............................... 30,624 34,549 93,286 96,751
Equity in net income of associated companies 2,176 2,090 6,154 5,849
-------------------- --------------------
135,787 135,093 401,510 387,697
-------------------- --------------------
Operating expenses:
Compensation costs ......................... 51,380 48,898 151,380 143,740
Newsprint and ink .......................... 8,802 10,637 28,737 30,773
Depreciation ............................... 5,484 4,963 15,754 14,283
Amortization of intangibles ................ 4,467 4,533 13,347 13,462
Other ...................................... 34,089 33,605 103,774 99,136
-------------------- --------------------
104,222 102,636 312,992 301,394
-------------------- --------------------
Operating income ................ 31,565 32,457 88,518 86,303
-------------------- --------------------
Financial (income) expense, net:
Financial (income) ......................... (700) (673) (2,151) (2,391)
Financial expense .......................... 3,266 3,742 10,518 11,792
-------------------- --------------------
2,566 3,069 8,367 9,401
-------------------- --------------------
Income before taxes on income ... 28,999 29,388 80,151 76,902
Income taxes .................................. 9,555 11,297 29,100 29,616
-------------------- --------------------
Net income ...................... $ 19,444 $ 18,091 $ 51,051 $ 47,286
==================== ====================
Average outstanding shares:
Basic ...................................... 44,303 44,642 44,272 44,982
==================== ====================
Diluted .................................... 44,926 45,398 44,876 45,735
==================== ====================
Earnings per share:
Basic ...................................... $ 0.44 $ 0.41 $ 1.15 $ 1.05
Diluted .................................... 0.43 0.40 1.14 1.03
Dividends per share ........................... 0.15 0.14 0.45 0.42
</TABLE>
<PAGE>
LEE ENTERPRISES, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, September 30,
ASSETS 1999 1998
- --------------------------------------------------------------------------------
(Unaudited)
Cash and cash equivalents .......................... $ 27,909 $ 16,941
Accounts receivable, net ........................... 65,264 61,880
Newsprint inventory ................................ 3,684 3,878
Program rights and other ........................... 11,685 16,892
-------------------
Total current assets ................. 108,542 99,591
Investments ........................................ 28,315 26,471
Property and equipment, net ........................ 136,458 128,372
Intangibles and other assets ....................... 397,213 406,151
-------------------
$670,528 $660,585
===================
LIABILITIES AND STOCKHOLDERS' EQUITY
- --------------------------------------------------------------------------------
Current liabilities ................................ $ 78,112 $ 98,061
Long-term debt, less current maturities ............ 185,812 186,028
Deferred items ..................................... 57,627 56,737
Stockholders' equity ............................... 348,977 319,759
-------------------
$670,528 $660,585
===================
<PAGE>
LEE ENTERPRISES, INCORPORATED
CONDENSED CONSOLIDATED statements of cash flows
(In Thousands)
Nine Months Ended June 30: 1999 1998
- --------------------------------------------------------------------------------
(Unaudited)
Cash Provided by Operations:
Net income ........................................ $ 51,051 $ 47,286
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation and amortization ................... 29,101 27,745
Distributions in excess of earnings of associated
companies .................................... 885 640
Other balance sheet changes ..................... 317 5,994
-------------------
Net cash provided by operations ........... 81,354 81,665
-------------------
Cash Required for Investing Activities:
Acquisitions ...................................... (5,499) (3,037)
Purchase of property and equipment ................ (23,548) (18,723)
Other ............................................. (593) (575)
-------------------
Net cash required for investing activities (29,640) (22,335)
-------------------
Cash Required for Financing Activities:
Purchase of common stock .......................... (6,172) (45,228)
Cash dividends paid ............................... (13,302) (12,702)
Principal payments on long-term debt .............. (25,000) (25,000)
Principal payments on short-term notes payable, net - - (145,000)
Proceeds from long-term borrowings ................ - - 185,000
Other ............................................. 3,728 2,682
-------------------
Net cash required for financing activities (40,746) (40,248)
-------------------
Net increase in cash and cash equivalents . 10,968 19,082
Cash and cash equivalents:
Beginning ............................................ 16,941 14,163
-------------------
Ending ............................................... $ 27,909 $ 33,245
===================
<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, 1999 and the results of
operations for the three- and nine-month periods ended June 30, 1999 and 1998
and cash flows for the nine-month periods ended June 30, 1999 and 1998.
Note 2. Investment in Associated Companies
Condensed operating results of Madison Newspapers, Inc. (50% owned) and other
unconsolidated associated companies which are engaged primarily in e-commerce
activities are as follows (in thousands):
Three Months Nine Months
Ended June 30, Ended June 30,
----------------------------------
1999 1998 1999 1998
----------------------------------
Revenues ........................... $22,747 $21,430 $67,997 $63,457
Operating expenses, except
depreciation and amortization ... 14,975 14,018 46,089 42,690
Income before depreciation and
amortization, interest, and taxes 7,772 7,412 21,908 20,767
Depreciation and amortization ...... 767 720 2,316 2,150
Operating income ................... 7,005 6,692 19,592 18,617
Financial income ................... 287 338 973 961
Income before income taxes ......... 7,292 7,030 20,565 19,578
Income taxes ....................... 2,939 2,832 8,256 7,875
Net income ......................... 4,353 4,198 12,309 11,703
Note 3. Cash Flows Information
The components of other balance sheet changes are:
Nine Months Ended
June 30,
------------------
1999 1998
------------------
(In Thousands)
Increase in receivables .................................... $(4,821) $(6,943)
(Increase) decrease in inventories, program rights and other (848) 2,024
Increase in accounts payable, accrued expenses
and unearned income ..................................... 5,452 7,771
Increase (decrease) in income taxes payable ................ (837) 3,431
Other, primarily deferred items ............................ 1,371 (289)
-----------------
$ 317 $ 5,994
=================
Note 4. Change in Accounting Principles
In June 1997, the FASB issued Statement No. 130 "Reporting Comprehensive Income"
and Statement No. 131 "Disclosures about Segments of an Enterprise and Related
Information". Statement No. 130 establishes standards for reporting
comprehensive income in financial statements. Statement No. 131 expands certain
reporting and disclosure requirements for segments from current standards. The
Company adopted these standards effective for the fiscal year beginning October
1, 1998. The adoption of these new standards did not result in material changes
to previously reported amounts or disclosures.
<PAGE>
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):
Three Months Nine Months
Ended June 30, Ended June 30,
----------------- -----------------
1999 1998 1999 1998
----------------- -----------------
Numerator, income applicable to common
shares, net income ................ $19,444 $18,091 $51,051 $47,286
=====================================
Denominator:
Basic-weighted average common
shares outstanding ............. 44,303 44,642 44,272 44,982
Dilutive effect of employee
stock options .................. 623 756 604 753
-------------------------------------
Diluted outstanding shares ........ 44,926 45,398 44,876 45,735
=====================================
Earnings per share:
Basic ............................. $ 0.44 $ 0.41 $ 1.15 $ 1.05
Diluted ........................... 0.43 0.40 1.14 1.03
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Operations by line of business are as follows (dollars in thousands):
<TABLE>
Three Months Nine Months
Ended June 30, Percent Ended June 30, Percent
------------------- Increase ----------------- Increase
1999 1998 (Decrease) 1999 1998 (Decrease)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Publishing ........................ $105,163 $100,544 4.6% $308,224 $290,946 5.9%
Broadcasting ...................... 30,624 34,549 (11.4) 93,286 96,751 (3.6)
------------------- ------------------
$135,787 $135,093 0.5 $401,510 $387,697 3.6
=================== ==================
Income before depreciation and
amortization, interest and taxes
(EBITDA): *
Publishing ........................ $ 36,580 $ 33,533 9.1 $102,774 $ 95,371 7.8
Broadcasting ...................... 8,369 11,845 (29.3) 25,571 28,662 (10.8)
Corporate ......................... (3,433) (3,425) (0.2) (10,726) (9,985) (7.4)
------------------- ------------------
$ 41,516 $ 41,953 (1.0) $117,619 $114,048 3.1
=================== ==================
Operating income:
Publishing ........................ $ 30,120 $ 27,195 10.8 $ 83,422 $ 76,915 8.5
Broadcasting ...................... 5,201 8,931 (41.8) 16,854 20,190 (16.5)
Corporate ......................... (3,756) (3,669) (2.4) (11,758) (10,802) (8.9)
------------------- ------------------
$ 31,565 $ 32,457 (2.7) $ 88,518 $ 86,303 2.6
=================== ==================
Capital expenditures:
Publishing ........................ $ 5,265 $ 4,376 $ 16,424 $ 12,703
Broadcasting ...................... 1,369 1,276 6,511 4,481
Corporate ......................... 613 553 613 1,539
------------------- ------------------
$ 7,247 $ 6,205 $ 23,548 $ 18,723
=================== ==================
<FN>
* EBITDA is not a financial performance measurement under generally accepted
accounting principles (GAAP), and should not be considered in isolation or as
a substitute for GAAP performance measurements. EBITDA is also not reflected
in our consolidated statement of cash flows, but it is a common and
meaningful alternative performance measurement for comparison to other
companies in our industry.
</FN>
</TABLE>
<PAGE>
QUARTER ENDED JUNE 30, 1999
PUBLISHING
Exclusive of the effects of acquisitions, wholly-owned daily newspaper
advertising revenue increased $1,916,000, 3.8%. Advertising revenue from local
merchants decreased $(56,000), (.2%). Local "run-of-press" advertising decreased
$(113,000), (.6%), as a result of a (4.9%) decrease in advertising inches offset
by an increase in average rates. Local preprint revenue increased $57,000, .7%.
Classified advertising revenue increased $1,276,000, 7.0%, as a result of a 7.5%
increase in advertising inches primarily in the transportation and employment
categories. Circulation revenue decreased $(130,000), (.6%), due to minimal rate
increases which did not offset the effect of a 2.7% decrease in Sunday
home-delivered newspapers.
Other revenue consists of revenue from weekly newspapers, classified and
specialty publications, commercial printing, products delivered outside the
newspaper (which include activities such as e-commerce, target marketing and
special event production) and editorial service contracts with Madison
Newspapers, Inc.
Other revenue by category and by property is as follows:
1999 1998
----------------
(In Thousands)
Weekly newspapers, classified and specialty publications:
Properties owned for entire period ...................... $18,019 $17,944
Acquired since September 30, 1997 ....................... 2,257 269
Commercial printing ........................................ 3,524 3,901
Products delivered outside the newspaper ................... 3,790 3,046
Editorial service contracts ................................ 2,244 2,085
----------------
$29,834 $27,245
================
The following table sets forth the percentage of revenue of certain items in the
publishing segment.
1999 1998
---------------
Revenue ...................................................... 100.0% 100.0%
---------------
Compensation costs ........................................... 34.4 34.0
Newsprint and ink ............................................ 8.4 10.6
Other operating expenses ..................................... 22.4 22.0
---------------
65.2 66.6
---------------
Income before depreciation, amortization, interest and taxes . 34.8 33.4
Depreciation and amortization ................................ 6.1 6.3
---------------
Operating margin wholly-owned properties ..................... 28.7% 27.1%
===============
Exclusive of the effects of acquisitions, costs other than depreciation and
amortization decreased $(95,000), (.1%). Compensation expense increased
$1,181,000, 3.5%, due to increases in average compensation. Newsprint and ink
costs decreased $(1,992,000), (18.7%), due primarily to lower prices paid for
newsprint. Other operating costs exclusive of depreciation and amortization
increased $716,000, 3.3%, due to higher distribution expense and other cost
increases.
<PAGE>
BROADCASTING
Revenue for the quarter decreased $(3,925,000), (11.4%), as political
advertising decreased $(2,252,000), (97.9%) and local, regional, and national
advertising decreased $(1,127,000), (4.1%), primarily due to a softness in
broadcast advertising sales. Production revenue and revenues from other services
decreased $(548,000), (20.5%) as a result of the sale of MIRA Creative Group.
Management anticipates that advertising revenue comparisons may be unfavorably
affected later in the year due to the absence of elections and increase in
competitive conditions.
The following table sets forth the percentage of revenue of certain items in the
broadcasting segment.
1999 1998
---------------
Revenue ...................................................... 100.0% 100.0%
---------------
Compensation costs ........................................... 43.1 37.2
Programming costs ............................................ 7.5 6.1
Other operating expenses ..................................... 22.1 22.4
---------------
72.7 65.7
---------------
Income before depreciation, amortization, interest and taxes . 27.3 34.3
Depreciation and amortization ................................ 10.3 8.4
---------------
Operating margin ............................................. 17.0% 25.9%
===============
Compensation costs increased by 2.6% primarily due to increases in the average
compensation rate. Programming costs for the quarter increased $196,000, 9.3%,
primarily due to accelerated amortization of new programming. Other operating
expenses, exclusive of depreciation and amortization, decreased $(974,000),
(12.6%), as an increase in consulting services was more than offset by a
reduction in communications, facility, promotion, training, and bad debt
expense.
CORPORATE COSTS
Corporate costs increased by $87,000, 2.4% as increased compensation costs and
depreciation expense were offset in part by reduced consultant costs.
FINANCIAL EXPENSE AND INCOME TAXES
Interest expense decreased due to payments on long-term debt.
Income taxes were 32.9% and 38.4% of pretax income for the quarters ended June
30, 1999 and 1998, respectively. Income tax expense was reduced by $1,500,000 in
June 1999 due to the settlement of a contingency. Exclusive of the settlement,
income taxes were 38.1% of pretax income.
<PAGE>
NINE MONTHS ENDED JUNE 30, 1999
PUBLISHING
Exclusive of the effects of acquisitions, wholly-owned daily newspaper
advertising revenue increased $7,406,000, 5.1%. Advertising revenue from local
merchants increased $3,122,000, 3.8%. Local "run-of-press" advertising increased
$2,440,000, 4.4%, as a result of a 2.5% increase in advertising inches. Local
preprint revenue increased $682,000, 2.6%. Classified advertising revenue
increased $2,625,000, 5.3%, as a result of higher averages rates and a 4.8%
increase in advertising inches. The employment category was the biggest
contributor to the increase. Circulation revenue decreased $(262,000), (.4%) due
to promotional pricing, minimal rate increases, and decreases in Sunday
home-delivered newspapers.
Other revenue consists of revenue from weekly newspapers, classified and
specialty publications, commercial printing, products delivered outside the
newspaper (which include activities such as e-commerce, target marketing and
special event production) and editorial service contracts with Madison
Newspapers, Inc.
Other revenue by category and by property is as follows:
1999 1998
-----------------
(In Thousands)
Weekly newspapers, classified and specialty publications:
Properties owned for entire period ...................... $52,681 $51,143
Acquired since September 30, 1997 ....................... 6,627 375
Commercial printing ........................................ 11,476 11,081
Products delivered outside the newspaper ................... 9,729 8,455
Editorial service contracts ................................ 6,837 6,587
-----------------
$87,350 $77,641
=================
The following table sets forth the percentage of revenue of certain items in the
publishing segment.
1999 1998
---------------
Revenue ...................................................... 100.0% 100.0%
---------------
Compensation costs ........................................... 34.7 34.3
Newsprint and ink ............................................ 9.3 10.6
Other operating expenses ..................................... 22.6 22.3
---------------
66.6 67.2
---------------
Income before depreciation, amortization, interest and taxes . 33.4 32.8
Depreciation and amortization ................................ 6.3 6.3
---------------
Operating margin wholly-owned properties ..................... 27.1% 26.5%
===============
Exclusive of the effects of acquisitions, costs other than depreciation and
amortization increased $4,970,000, 2.5%. Compensation expense increased
$4,803,000, 4.8%, due primarily to increase in average compensation. Newsprint
and ink costs decreased $(2,459,000), (8.0%), due primarily to lower prices paid
for newsprint. Other operating costs exclusive of depreciation and amortization
increased $2,626,000, 4.0% due to higher distribution expense and other cost
increases.
BROADCASTING
Revenue decreased $(3,465,000), (3.6%), as political advertising increased
$2,673,000, 90.7% and local/regional/national advertising decreased
$(3,737,000), (4.6%), primarily due to the absence of the Winter Olympics
advertising on our CBS affiliates and the Super Bowl on our NBC affiliates in
the second quarter and a softness in broadcast advertising sales in the third
quarter. Production revenue and revenues from other services decreased
$(1,831,000), (23.4%), as a result of the sale of MIRA Creative Group and loss
of NBA production services during the strike.
<PAGE>
The following table sets forth the percentage of revenue of certain items in the
broadcasting segment.
1999 1998
---------------
Revenue ...................................................... 100.0% 100.0%
---------------
Compensation costs ........................................... 41.8 40.0
Programming costs ............................................ 7.5 6.6
Other operating expenses ..................................... 23.3 23.8
---------------
72.6 70.4
---------------
Income before depreciation, amortization, interest and taxes . 27.4 29.6
Depreciation and amortization ................................ 9.3 8.8
---------------
Operating margin ............................................. 18.1% 20.8%
===============
Compensation costs increased $334,000, .9%, due to increases in average
compensation. Programming costs for the period increased $605,000, 9.4%,
primarily due to accelerated amortization of new programming. Other operating
expenses, exclusive of depreciation and amortization, decreased $(1,313,000),
(5.7%), as previously discussed.
CORPORATE COSTS
Corporate costs increased by $956,000, 8.9%. The increase was primarily due to a
$777,000 increase in the second quarter as a result of one-time cost reductions
in the prior year period.
FINANCIAL EXPENSE AND INCOME TAXES
Interest expense decreased primarily due to payments on long-term debt.
Income taxes were 36.3% and 38.5% of pretax income for the nine months ended
June 30, 1999 and 1998, respectively. Income tax expense was reduced by
$1,500,000 in June 1999 due to the settlement of a contingency. Exclusive of the
settlement income taxes were 38.2% of pretax income.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations, which is the Company's primary source of liquidity,
generated $81,354,000 for the nine-month period ended June 30, 1999. Available
cash balances, cash flow from operations, and a $50,000,000 bank line of credit
provide adequate liquidity. Covenants related to the Company's credit agreement
are not considered restrictive to operations and anticipated stockholder
dividends.
YEAR 2000
The Year 2000 issue concerns the inability of information technology (IT)
systems and equipment utilizing microprocessors to recognize and process
date-sensitive information after 1999 due to the use of only the last two digits
to refer to a year. This problem could affect both computer software and
hardware and other equipment that relies on microprocessors. Management has
completed its company-wide evaluation of this impact on its IT systems and its
date-sensitive publishing equipment. The evaluation of critical broadcasting
equipment is substantially complete. Year 2000 software updates for identified
critical date-sensitive broadcasting equipment and broadcasting equipment is
believed to be substantially Year 2000 compliant. Renovation and testing have
been completed on all significant IT systems that utilize company-developed
software that were not Year 2000 compliant. The Company has received
representations and completed testing to determine that significant software
developed by others is Year 2000 compliant. Installation of a new Year
2000-compliant financial system is now complete. Testing of computer hardware
for IT systems is substantially complete. Independent IT system testing for Year
2000 compliance of the publishing systems and equipment will be conducted in the
next fiscal quarter.
<PAGE>
The Company will monitor the progress of material vendors and suppliers whose
uninterrupted delivery of product or service is material to the production or
distribution of our print and broadcast products in their efforts to become Year
2000 compliant. Material vendors and suppliers include electric utilities,
telecommunications, news and content providers, television networks, other
television programming suppliers, the U.S. Postal Service, and financial
institutions.
From September 30, 1994 through June 30, 1999, the Company has spent
approximately $500,000 to address Year 2000 issues for IT systems (exclusive of
the cost of the new financial, newspaper production and other systems that were
scheduled to be replaced before the year 2000 for reasons other than Year 2000
compliance). Total costs to address Year 2000 issues for IT systems are
currently estimated to be less than $1,000,000 and consist primarily of staff
and consultant costs. Year 2000 remediation will require the replacement of
telephone switches and software at a cost of $600,000 to $1,000,000. Through
June 30, 1999 approximately $400,000 had been spent for new telephone equipment.
Funds for these costs are expected to be provided by the operating cash flows or
bank line of credit of the Company.
The Company could be faced with severe consequences if Year 2000 issues are not
identified and resolved in a timely manner by the Company and material third
parties. A worst-case scenario would result in the short-term inability of the
Company to produce or distribute newspapers or broadcast television programming
due to unresolved Year 2000 issues. This would result in lost revenues; however,
the amount would be dependent on the length and nature of the disruption, which
cannot be predicted or estimated. In light of the possible consequences, the
Company is devoting the resources needed to address Year 2000 issues in a timely
manner. Management monitors the progress of the Company's Year 2000 efforts and
provides update reports to the audit committee of the Board of Directors at each
meeting. While management expects a successful resolution of these issues, there
can be no guarantee that material third parties, on which the Company relies,
will address all Year 2000 issues on a timely basis or that their failure to
successfully address all issues would not have an adverse effect on the Company.
The Company's contingency plans in case business interruptions do occur are
substantially complete, but will continue to be refined and implemented up to
the Year 2000.
SAFE HARBOR STATEMENT
This report contains certain forward-looking statements that are based largely
on the Company's current expectations and are subject to certain risks, trends,
and uncertainties that could cause actual results to differ materially from
those anticipated. Among such risks, trends, and uncertainties are changes in
advertising demand, newsprint prices, interest rates, regulatory rulings,
availability of quality broadcast programming at competitive prices, changes in
the terms and conditions of network affiliation agreements, quality and ratings
of network over-the-air broadcast programs, legislative or regulatory
initiatives affecting the cost of delivery of over-the-air broadcast programs to
the Company's customers, and other economic conditions and the effect of
acquisitions, investments, and dispositions on the Company's results of
operations or financial condition. The words "believe," "expect," "anticipate,"
"intends," "plans," "projects," "considers," and similar expressions generally
identify forward-looking statements. Readers are cautioned not to place undue
reliance on such forward-looking statements, which are as of the date of this
report. Further information concerning the Company and its businesses, including
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) Report on Form 8-K: none
<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
8/9/99 /s/ G. C. Wahlig
- ----------------------- ---------------------------------------
DATE G. C. Wahlig, Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTIANS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE 30,
1999 FORM 10-Q OF LEE ENTERPRISES, INCORPORATED AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> JUN-30-1999
<CASH> 27,909
<SECURITIES> 0
<RECEIVABLES> 69,805
<ALLOWANCES> 4,541
<INVENTORY> 3,684
<CURRENT-ASSETS> 108,542
<PP&E> 321,567
<DEPRECIATION> 185,109
<TOTAL-ASSETS> 670,528
<CURRENT-LIABILITIES> 78,112
<BONDS> 185,812
0
0
<COMMON> 88,796
<OTHER-SE> 260,181
<TOTAL-LIABILITY-AND-EQUITY> 670,528
<SALES> 395,356
<TOTAL-REVENUES> 401,510
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 312,992
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,518
<INCOME-PRETAX> 80,151
<INCOME-TAX> 29,100
<INCOME-CONTINUING> 51,051
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 51,051
<EPS-BASIC> 1.15
<EPS-DILUTED> 1.14
</TABLE>
