UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):  July 24, 2008

 

_______________________________________________________________________

LEE ENTERPRISES, INCORPORATED

(Exact name of Registrant as specified in its charter)

 

_______________________________________________________________________

 

Commission File Number 1-6227

 

Delaware

(State of Incorporation)

42-0823980

(I.R.S. Employer Identification No.)

 

 

201 N. Harrison Street, Davenport, Iowa 52801

(Address of Principal Executive Offices)

 

(563) 383-2100

Registrant’s telephone number, including area code

 

_____________________________________________________________________________________

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On July 24, 2008, Lee Enterprises, Incorporated (the “Company”) reported its preliminary results for the third fiscal quarter ended June 29, 2008. The Company is furnishing the related earnings release under Item 2.02. A copy of the earnings release is furnished as Exhibit 99.1 to this Form 8-K.

 

This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01.

Financial Statements and Exhibits.

 

 

 

(c) Exhibits

 

 

 

 

 

 

 

 

 

99.1

Earnings Release – Third fiscal quarter ended June 29, 2008

 

 

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

 

 

 


 

 

Date: July 24, 2008

By:

 

 

Carl G. Schmidt

 

 

Vice President, Chief Financial Officer,

 

 

and Treasurer

 

2

 

 

INDEX TO EXHIBITS

 

 

Exhibit No.

Description

 

 

99.1

Earnings Release – Third fiscal quarter ended June 29, 2008

 

 

3

 

 

Exhibit 99.1 - Earnings Release – Third fiscal quarter ended June 29, 2008

 


  

 

201 N. Harrison St.  

Davenport, IA 52801

www.lee.net

 

NEWS RELEASE

Lee Enterprises reports earnings for third fiscal quarter

 

DAVENPORT, Iowa (July 24, 2008) — Lee Enterprises, Incorporated (NYSE: LEE), reported today that diluted earnings per common share from continuing operations were 6 cents for its third fiscal quarter ended June 29, 2008. Earnings were reduced 19 cents as a result of the final determination of previously announced non-cash impairment charges related to goodwill, other assets and the company’s investment in TNI Partners.

 

Excluding the impairment charges and other unusual items(1), earnings per share were 28 cents, compared with 49 cents a year ago.

 

Mary Junck, chairman and chief executive officer, said: “Economic conditions continued to deteriorate during the quarter, resulting in reduced advertising spending, especially in classified employment. We believe the advertising slump will reverse when the economy improves, and we continue to position our company to weather the downturn and remain strong. Our massive audiences continue to grow, reaching more than 70 percent of the adults in our markets. Even in the downturn, retail revenue has stayed relatively stable and we remain an industry leader in revenue performance. We continue to produce strong cash flow, allowing us to reduce net debt by $4.8 million during the quarter and also complete the planned liquidation of a $17.9 million unfunded retirement plan. We believe our financial outlook remains solid.”

 

She added: “Because we cannot foresee the length of the economic downturn, we are focusing on rigorous cost reductions through staff reorganizations, narrower page widths, newsprint conservation programs and other efficiencies, as well as reduced capital spending. In our fiscal year that begins this fall, assuming no new surprises in newsprint prices, we are aiming for a further reduction in cash costs of 5-7 percent.”

 

Total operating revenue from continuing operations for the quarter decreased 8.3 percent from a year ago to $256.4 million. Print advertising revenue declined 10.1 percent, and online advertising revenue declined 9.1 percent. Combined print and online advertising revenue decreased 10.0 percent to $195.5 million. On a same property basis, combined retail advertising revenue declined 3.1 percent and classified decreased 17.2 percent. Combined same property print and online employment advertising revenue decreased 26.5 percent, automotive decreased 12.2 percent and real estate decreased 24.2 percent. Combined same property print and online national advertising revenue decreased 21.2 percent. Circulation revenue decreased 2.7 percent. Total same property revenue declined 8.2 percent. There were no day exchanges between the quarters.

 

Operating expenses, excluding depreciation and amortization and unusual items, decreased 2.3 percent to $202.1 million, with compensation down 3.0 percent, newsprint and ink down 0.2 percent and other cash costs down 2.1 percent. Same property operating expenses, excluding unusual items, decreased 3.2 percent. Compensation declined 3.6 percent, with full-time equivalent employees down 4.9 percent. Newsprint and ink decreased 5.0 percent and other cash costs decreased 1.9 percent.

 

1

 

 

Operating cash flow (3) decreased 26.0 percent compared with a year ago to $53.8 million. Operating income, which includes equity in earnings of associated companies, depreciation and amortization, and non-cash charges for impairment of goodwill and other assets, decreased 61.3 percent to $21.0 million.

 

Non-operating expense, which consists primarily of financial expense, net of financial income, decreased 23.3 percent to $15.0 million. Income from continuing operations before income taxes decreased 82.7 percent to $6.0 million. Income from continuing operations decreased 84.0 percent to $3.5 million. Net income, including discontinued operations, also totaled $3.5 million.

 

Free cash flow(4) totaled $34.2 million for the quarter, compared with $42.4 million a year ago.

 

Net debt was reduced $4.8 million, and an additional $17.9 million of cash flow was used, as planned, to liquidate an unfunded retirement plan.

 

IMPAIRMENT CHARGE

 

Lee recorded preliminary, non-cash charges in the quarter ended March 30, 2008, to reduce the carrying value of goodwill, other assets and the company’s investment in TNI Partners by $709 million after tax. The company recently completed the complex calculations required to make a final determination of the adjustments, which resulted in additional charges totaling $13.4 million pre-tax, $8.6 million after tax, for the quarter ended June 29, 2008.

 

ADJUSTED EARNINGS AND EPS(1)

 

Unusual matters affecting year-over-year comparisons for the quarter included, in 2008, final adjustments to impairment of goodwill, other assets and reduction in the carrying value of the company’s investment in TNI Partners, workforce adjustments at several locations, transition costs at Madison Newspapers, Inc. related to publication changes at The Capital Times, and adjusting of the current value of the company’s future liability related to acquisition of the 5 percent minority share in its St. Louis partnership.

 

The following table summarizes the impact from unusual items on income available to common stockholders and earnings per diluted common share. Per share amounts may not add due to rounding.

           
13 Weeks Ended
June 29, 2008 		 3 Months Ended
June 30, 2007 
(Thousands, except EPS) Amount Per Share Amount Per Share
Income available to common
 stockholders, as reported		 $ 2,832   $ 0.06   $ 22,491   $ 0.49  
Adjustments:                        
  Impairment charges   10,360           —        
  Reduction of investment in TNI
   Partners		   3,000           —        
  Workforce adjustments and
   transition costs		   707           —        
    14,067           —        
Income tax benefit of adjustments,
 net, and impact on minority
 interest		   (4,980 )         —        
    9,087     0.20     —     —  
Net income available to common
 stockholders, as adjusted		   11,919     0.27     22,491     0.49  
Change in redeemable minority
 interest liability		   655     0.01     —     —  
Net income, as adjusted(1) $ 12,574   $ 0.28   $ 22,491   $ 0.49  
 

2

 

 

 

YEAR-TO-DATE OPERATING RESULTS

 

Total operating revenue from continuing operations for the three quarters ended June 29, 2008, decreased 6.4 percent from a year ago to $784.0 million. Print advertising revenue declined 8.2 percent, and online advertising revenue increased 5.3 percent. Combined print and online advertising revenue decreased 7.4 percent to $599.2 million. On a same property basis, combined retail advertising revenue declined 2.1 percent and classified decreased 13.1 percent. Combined same property print and online employment advertising revenue decreased 17.0 percent, automotive decreased 11.2 percent and real estate decreased 22.0 percent. Combined same property print and online national advertising revenue decreased 19.7 percent. Circulation revenue decreased 2.9 percent. There were no day exchanges between the year-to-date periods.

 

Operating expenses, excluding depreciation and amortization and unusual items, decreased 2.8 percent to $612.7 million, with compensation down 3.2 percent, newsprint and ink down 10.2 percent and other cash costs up 0.6 percent. Same property operating expenses, excluding unusual items decreased 3.1 percent, with compensation down 2.5 percent, newsprint and ink down 12.5 percent and other cash costs flat.

 

Operating cash flow (3) decreased 19.3 percent compared with a year ago to $170.4 million. The impairment charges resulted in an operating loss of $834.4 million year to date.

 

Free cash flow(4) totaled $92.1 million year to date, compared with $101.4 million a year ago.

 

Net debt was reduced by $45.0 million. An additional $17.9 million of cash flow was used to liquidate an unfunded retirement plan, and $19 million of Lee common stock was repurchased.

 

YEAR-TO-DATE ADJUSTED EARNINGS AND EPS(1)

 

As reported, diluted per common share results, including non-cash impairment charges, totaled a loss of $15.30 for the three fiscal quarters ended June 29, 2008, compared with earnings of $1.33 cents a year ago. Excluding unusual items(1), diluted earnings per share were 85 cents, compared with $1.27 a year ago.

 

Unusual matters affecting year-to-date comparisons included, in 2008, impairment of goodwill and other assets, reduction of the carrying value of the company’s investment in TNI Partners, workforce adjustments, transition costs in Madison and recording of the current value of the company’s future liability related to acquisition of the 5 percent minority share in its St. Louis partnership. Unusual matters in 2007 included gains related to benefit curtailment for certain groups of employees in Lee and in TNI Partners.

 

3

 

 

The following table summarizes the impact from unusual items on income (loss) available to common stockholders and earnings (loss) per diluted common share.

           
39 Weeks Ended
June 29, 2008 		 9 Months Ended
June 30, 2007 
(Thousands, except EPS) Amount Per Share Amount Per Share
Income (loss) available to common
 stockholders, as reported		 $ (688,079 ) $ (15.30 ) $ 61,033   $ 1.33  
 
Adjustments:                        
  Impairment charges   851,365           —        
  Reduction of investment in TNI
   Partners		   93,384           —        
  Workforce adjustments and
   transition costs		   1,643           —        
  Curtailment gains   —           (3,731 )      
  Curtailment gains, TNI Partners   —           (1,037 )      
    946,392           (4,768 )      
Income tax expense (benefit)
 of adjustments, net, and impact
 on minority interest		   (228,011 )         1,799        
    718,381     15.97     (2,969 )   (0.06 )
Net income available to common
 stockholders, as adjusted		   30,302     0.67     58,064     1.27  
Change in redeemable minority
 interest liability		   8,138     0.18     —     —  
Net income, as adjusted(1) $ 38,440   $ 0.85   $ 58,064   $ 1.27  
 

ABOUT LEE

 

Lee Enterprises is a premier provider of local news, information and advertising in primarily midsize markets, with 50 daily newspapers and a joint interest in four others, rapidly growing online sites and more than 300 weekly newspapers and specialty publications in 23 states. Lee’s newspapers have circulation of 1.6 million daily and 1.9 million Sunday, reaching more than four million readers daily. Lee's online sites attract 12 million unique visitors monthly, and Lee’s weekly publications are distributed to more than 4.5 million households. Lee’s markets include St. Louis, Mo.; Lincoln, Neb.; Madison, Wis.; Davenport, Iowa; Billings, Mont.; Bloomington, Ill.; Tucson, Ariz.; and Napa, Calif. Lee stock is traded on the New York Stock Exchange under the symbol LEE. For more information about Lee, please visit www.lee.net.

 

4

 

 

 
    LEE ENTERPRISES, INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
              (Unaudited) 		 
           
(Thousands, 
 Except EPS)
13 Weeks
Ended 
Jun 29,
2008  		 3 Months
Ended 
Jun 30,
2007  		 % 39 Weeks
Ended 
Jun 29,
2008  		 9 Months
Ended
Jun 30,
2007  		 %
Advertising revenue:                        
 Retail $ 106,694   $ 111,706     (4.5 )% $ 333,360   $ 343,961     (3.1 )%
 National   9,375     11,976     (21.7 )   34,190     42,830     (20.2 )
 Classified:                                    
  Daily newspapers:                                    
   Employment   15,099     21,099     (28.4 )   46,166     60,494     (23.7 )
   Automotive   11,797     13,975     (15.6 )   34,421     41,087     (16.2 )
   Real estate   11,009     14,965     (26.4 )   33,082     43,479     (23.9 )
   All other   11,907     10,758     10.7     31,700     28,645     10.7  
  Other publications   11,143     12,428     (10.3 )   32,665     35,178     (7.1 )
 Total classified   60,955     73,225     (16.8 )   178,034     208,883     (14.8 )
 Online   14,655     16,124     (9.1 )   41,624     39,546     5.3  
 Niche publications   3,823     4,254     (10.1 )   11,997     12,019     (0.2 )
Total advertising revenue   195,502     217,285     (10.0 )   599,205     647,239     (7.4 )
Circulation   48,344     49,698     (2.7 )   147,236     151,646     (2.9 )
Commercial printing   4,433     4,294     3.2     12,413     12,386     0.2  
Online services & other   8,115     8,223     (1.3 )   25,121     26,685     (5.9 )
Total operating revenue   256,394     279,500     (8.3 )   783,975     837,956     (6.4 )
Operating expenses:                                    
 Compensation   103,984     107,160     (3.0 )   317,753     328,289     (3.2 )
 Newsprint and ink   26,859     26,921     (0.2 )   76,311     84,932     (10.2 )
 Other operating expenses   71,211     72,751     (2.1 )   218,587     217,332     0.6  
 Curtailment gains   —     —     —     —     (3,731 )   NM  
 Workforce adjustments   544     —     NM     954     —     NM  
Operating expenses,
 excluding depreciation
 and amortization		   202,598     206,832     (2.0 )   613,605     626,822     (2.1 )
Operating cash flow(3)   53,796     72,668     (26.0 )   170,370     211,134     (19.3 )
Depreciation   8,828     7,896     11.8     25,804     24,735     4.3  
Amortization   13,138     14,941     (12.1 )   42,878     44,829     (4.4 )
Impairment charges   10,360     —     NM     851,365     —     NM  
Equity in earnings of
 associated companies:		                                    
  TNI Partners   1,842     2,590     (28.9 )   5,475     10,465     (47.7 )
  Madison Newspapers   707     1,927     (63.3 )   3,183     5,862     (45.7 )
  Reduction in investment
   in TNI Partners		   (3,000 )   —     NM     (93,384 )   —     NM  
Operating income (loss)   21,019     54,348     (61.3 )   (834,403 )   157,897     NM  
Non-operating income
 (expense):		                                    
  Financial income   1,386     2,491     (44.4 )   4,702     5,522     (14.8 )
  Financial expense   (15,988 )   (22,027 )   (27.4 )   (55,662 )   (68,006 )   (18.2 )
  Other, net   (393 )   (21 )   NM     (369 )   (21 )   NM  
    (14,995 )   (19,557 )   (23.3 )   (51,329 )   (62,505 )   (17.9 )
 
Income (loss) from
 continuing operations
 before income taxes		   6,024     34,791     (82.7 )   (885,732 )   95,392     NM  
Income tax expense
 (benefit)		   2,372     12,281     (80.7 )   (206,215 )   33,707     NM  
Minority interest   113     371     (69.5 )   709     1,175     (39.7 )
 
 
5
 

Income (loss) from
 continuing operations		   3,539     22,139     (84.0 )   (680,226 )   60,510     NM  
Discontinued operations   (52 )   352     NM     285     523     (45.5 )
Net income (loss)   3,487     22,491     (84.5 )   (679,941 )   61,033     NM  
Change in redeemable
 minority interest
 liability		   655     —     NM     8,138     —     NM  
Net income (loss)
 available to common
 stockholders		 $ 2,832     22,491     (87.4 )% $ (688,079 ) $ 61,033     NM  
Earnings (loss)
 per common share:		                                    
 Basic:                                    
  Continuing operations $ 0.07   $ 0.48     (85.4 )% $ (15.31 ) $ 1.33     NM  
  Discontinued operations.   —     0.01     NM     0.01     0.01     NM  
  $ 0.06   $ 0.49     (87.8 )% $ (15.30 ) $ 1.34     NM  
 Diluted:                                    
  Continuing operations $ 0.06   $ 0.48     (87.5 )% $ (15.31 ) $ 1.32     NM  
  Discontinued operations   —     0.01     NM     0.01     0.01     NM  
  $ 0.06   $ 0.49     (87.8 )% $ (15.30 ) $ 1.33     NM  
 
Average common shares:                                    
 Basic   44,265     45,715           44,971     45,638        
 Diluted   44,553     45,887           44,971     45,776        
 

6

 

 

 
SELECTED COMBINED PRINT AND ONLINE ADVERTISING REVENUE  
           
(Thousands,
 same property)		 13 Weeks
Ended 
Jun 29,
2008  		 3 Months
Ended 
Jun 30,
2007  		 %   39 Weeks
Ended 
Jun 29,
2008  		 9 Months
Ended
Jun 30,
2007  		 %
Retail $ 108,517   $ 111,983     (3.1 )% $ 336,537   $ 343,585     (2.1 )%
Classified:                                    
 Employment   23,331     31,732     (26.5 )   70,388     84,854     (17.0 )
 Automotive   16,243     18,497     (12.2 )   47,955     53,989     (11.2 )
 Real estate   14,609     19,283     (24.2 )   43,776     56,156     (22.0 )
 Other   19,428     19,365     0.3     53,693     53,235     0.9  
Total classified $ 73,611   $ 88,877     (17.2 ) $ 215,812   $ 248,234     (13.1 )%

REVENUE BY REGION  
         
(Thousands,
 same property)		 13 Weeks
 Ended 
Jun 29,
2008  		 3 Months
Ended 
Jun 30,
2007  		 % 39 Weeks
Ended 
Jun 29,
2008  		 9 Months
Ended
Jun 30,
2007  		 %
Midwest $ 154,589   $ 169,186     (8.6 )% $ 473,829   $ 510,563     (7.2 )%
Mountain West   48,532     51,636     (6.0 )   144,405     149,732     (3.6 )
West   32,628     37,134     (12.1 )   99,099     110,851     (10.6 )
East/Other   20,531     21,346     (3.8 )   66,174     66,225     (0.1 )
Total $ 256,280   $ 279,302     (8.2 )% $ 783,507   $ 837,371     (6.4 )%
DAILY NEWSPAPER ADVERTISING VOLUME  
         
(Thousands,    
 same property)		 13 Weeks
 Ended 
Jun 29,
2008  		 3 Months
Ended 
Jun 30,
2007  		 % 39 Weeks
Ended 
Jun 29,
2008  		 9 Months
Ended
Jun 30,
2007  		 %
 
Retail   3,182     3,286     (3.2 )%   9,671     9,975     (3.0 )%
National   143     163     (12.3 )   484     528     (8.3 )
Classified   3,775     4,104     (8.0 )   10,686     11,614     (8.0 )
Total   7,100     7,553     (6.0 )%   20,841     22,117     (5.8 )%

SELECTED BALANCE SHEET INFORMATION
     
(Thousands)
Jun 29,
 2008  		 Jun 30,
2007
 
Cash $ 4,654   $ 9,221  
Restricted cash and investments   122,310     107,310  
Debt (principal amount)   1,367,000     1,426,500  
Net debt   1,240,036     1,309,969  
 

7

 

 

 
SELECTED STATISTICAL INFORMATION
           
(Dollars in thousands) 13 Weeks
Ended 
Jun 29,
2008  		 3 Months
Ended 
Jun 30,
2007  		 % 39 Weeks
Ended 
Jun 29,
2008  		 9 Months
Ended
Jun 30,
2007  		 %
Capital expenditures $ 2,956   $ 7,913     (62.6 )% $ 13,796   $ 20,562     (32.9 )%
Same property newsprint
 volume (tonnes)		   37,123     41,392     (10.3 )   114,778     126,024     (8.9 )
Same property full-time
 equivalent employees		   7,628     8,020     (4.9 )   7,793     8,059     (3.3 )

FREE CASH FLOW(4)  
         
(Thousands)
13 Weeks
Ended 
Jun 29,
2008  		 3 Months
Ended 
Jun 30,
2007  		 39 Weeks
Ended 
Jun 29,
2008  		 9 Months
Ended
  Jun 30,
  2007  
Operating income (loss) $ 21,019   $ 54,348   $ (834,403 ) $ 157,897  
Depreciation and amortization   22,629     24,422     72,515     74,319  
Impairment charges   10,360     —     851,365     —  
Reduction in investment in TNI
 Partners		   3,000     —     93,384     —  
Stock compensation   1,166     1,703     4,290     5,667  
Cash interest expense   (17,122 )   (23,062 )   (58,986 )   (71,036 )
Financial income   1,386     2,491     4,702     5,522  
Cash income taxes   (5,170 )   (9,176 )   (26,295 )   (49,280 )
Minority interest   (113 )   (371 )   (709 )   (1,175 )
Capital expenditures   (2,956 )   (7,913 )   (13,796 )   (20,562 )
  $ 34,199   $ 42,442   $ 92,067   $ 101,352  
 

 

 

(1)

Adjusted net income and adjusted earnings per common share, which are defined as income available to common stockholders and earnings per common share adjusted to exclude unusual matters and those of a substantially non-recurring nature, are non-GAAP (Generally Accepted Accounting Principles) financial measures. Reconciliations of adjusted net income and adjusted earnings per common share to income (loss) available to common stockholders and earnings (loss) per common share are included in a table accompanying this release.

 

 

 

No non-GAAP financial measure should be considered as a substitute for any related GAAP financial measure. However, the company believes the use of non-GAAP financial measures provides meaningful supplemental information with which to evaluate its financial performance, or assist in forecasting and analyzing future periods. The company also believes such non-GAAP financial measures are alternative indicators of performance used by investors, lenders, rating agencies and financial analysts to estimate the value of a publishing business and its ability to meet debt service requirements.

(2)

Same property comparisons exclude acquisitions and divestitures made in the current and prior year. Same property revenue also excludes Lee's 50% ownership in Madison Newspapers, Inc. and TNI Partners, which are reported using the equity method of accounting. Same property comparisons also exclude corporate office costs.

 

(3)

Operating cash flow, which is defined as operating income before depreciation, amortization, impairment charges and equity in earnings of associated companies, is a non-GAAP financial measure. See (1) above. The company believes operating cash flow provides meaningful supplemental information because of its focus on results from operations before depreciation and amortization and earnings from equity investments. Reconciliations of operating cash flow to operating income (loss), the most directly comparable GAAP measure, are included in a table accompanying this release.

 

 

8

 

 

 

(4)

Free cash flow, which is defined as operating income, plus depreciation and amortization, impairment charges, stock compensation and financial income, minus financial expense (exclusive of non-cash amortization and accretion), cash income taxes, capital expenditures and minority interest, is a non-GAAP financial measure. See (1) above. The company believes free cash flow provides meaningful supplemental information because of its focus on results from operations after inclusion or exclusion of the several factors noted above. Reconciliations of free cash flow to operating income (loss), the most directly comparable GAAP measure, are included in a table accompanying this release.

(5)

There were no day exchanges between the 2008 and 2007 quarter or year-to-date periods.

 

 

(6)

Certain amounts as previously reported have been reclassified to conform with the current period presentation. The prior period has been restated for comparative purposes, and the reclassifications have no impact on earnings.

 

 

(7)

The company disclaims responsibility for updating information beyond the release date.

 

 

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release contains information that may be deemed forward-looking and that is based largely on the Company's current expectations and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties are changes in advertising demand, newsprint prices, energy costs, interest rates, labor costs, legislative and regulatory rulings and other results of operations or financial conditions, difficulties in integration of acquired businesses or maintaining employee and customer relationships, increased capital and other costs and other risks detailed from time to time in the Company’s publicly filed documents, including the Company Annual Report on Form 10-K for the year ended September 30, 2007. The words “may,” “will,” “would,” “could,” “believes,” “expects,” “anticipates,” “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 made as of the date of this release. The Company does not publicly undertake to update or revise its forward-looking statements.

 

Contact: dan.hayes@lee.net, (563) 383-2100

 

 

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