Amid the ruin from Wall Street's decline, an astonishing re-shuffling has occurred in local stocks: the Isle of Capri Casinos, Inc. ($3.40 per share; $104 million market cap as of 12/3/08) is now worth more than Lee Enterprises ($.67 per share; $30.2 million market cap as of 12/3/08).
Lee (parent of the Quad City Times) has continued its steady decline falling from $15 a share a year ago to well below $1 a share this week. Isle has been on a steep fall-off from $18 a share a year ago, but at this writing is three times the value of the fourth largest owner of daily newspapers (7th largest in daily circulation) in the country. Lee owns 49 daily newspapers and 300 weekly newspapers, but is carrying the burden of more than $1.3 billion in debt, principally from the purchase of the St. Louis Post-Dispatch in June 2005.
Lee recently reported fourth quarter financial results (ended Sept. 28) of 12 cents per share, down from 43 cents per share for the same quarter last year. For the year ended Sept. 28, Lee lost $15.23 per share, compared with earnings of $1.77 per share for the same period in 2007.
Total advertising revenue for the 52-week period ended Sept. 28 totaled $865 million, down 9.4 percent compared with the 12-months ended Sept. 30, 2007. The decline in daily newspaper revenues included a 5 percent drop in retail display advertising, a 17 percent drop in classified advertising, a 20 percent decline in national display ads and a 2 percent decline in online advertising revenues.