Shares of Lee Enterprises, Inc. – owner of the Quad City Times – climbed to a 52-week high Tuesday (7/23) after reporting positive earnings for the third quarter ended June 30.
The company announced earnings of $1.97 million, 3 cents a share, for the quarter, compared with a loss of 3 cents per share for the same period a year ago.
Lee stock has risen nearly $2 a share since April, about the same time that investor Warren Buffett disclosed his conglomerate – Berkshire Hathaway – had accumulated 1.6 million shares in the Davenport-based company. Buffett purchased the Omaha World-Herald last year and now owns 68 daily newspapers under his BH Media subsidiary. Just last week, Buffett's media group announced plans to acquire the Press of Atlantic City, N.J.
Lee's operating revenue fell 2.8 percent in the third quarter compared to the same period last year, but the newspaper chain's expenses declined by more than 5 percent. Fueling the reduction in expenses was a 15 percent decrease in newsprint and ink expenses and a more than 8 percent decline in workforce compensation. The company reported 4,678 average full-time equivalent employees June 30, 8.4 percent fewer than June of last year.
Long-term debt of the company now stands at $873 million, down from $956 million at the end of June 2012.
“Continued digital growth and cost reduction again resulted in strong, and improving, cash flow and operating income, enabling even faster debt reduction,” Lee Chairman and Chief Executive Officer Mary Junck stated in the earnings news release. “Looking ahead, we see many more digital opportunities, especially in subscription revenue, mobile advertising and digital marketing services."
Lee owns 48 daily newspapers, including the St. Louis Post-Dispatch, and has joint interest in four other dailies.
CLICK HERE to download the full earnings news release.
