Lee Enterprises slashes compensation costs by $12 million; QC Times parent still reports $2 million loss for third quarter

Lee Enterprises, Inc. – parent company of the Quad City Times and Dispatch/Argus newspapers – slashed compensation costs by $12 million in the third quarter, but still lost $2 million during the three-month period ended June 29.

The company narrowed its third quarter red ink from a year ago, a loss of 31 cents per share ($2 million) compared to a loss of 73 cents per share ($4.4 million) for the same period a year ago.

“Our third quarter results mark signicant progress in our transformation strategy,” according to Kevin Mowbray, Lee's President and Chief Executive Officer. “By rigorously managing our operating expenses and continuing to grow our digital business, we are driving sustainable improvements in profitability, Mowbray stated in the company's news release Thursday (Aug. 7).

The company did not specify where the company was able to make the large reduction in compensation expenses.

The sharply lower compensation costs helped the company offset a $9 million drop in operating revenues for the period.

Lee resumed paying principal and interest on its $455 million debt, after being unable to make monthly payments in March, April and May. It also paid $1 million in "cyber restoration expenses" during the quarter.

Lee's primary newspapers and online news sites include St. Louis, Buffalo, Omaha, Richmond, Lincoln, Madison, Davenport and Tucson.

CLICK HERE to download the company's third quarter earnings news release.