Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 27, 2022 | Apr. 30, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000058361 | |
Entity Registrant Name | LEE ENTERPRISES, INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-26 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 27, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-6227 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-0823980 | |
Entity Address, Address Line One | 4600 E. 53rd Street | |
Entity Address, City or Town | Davenport | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 52807 | |
City Area Code | 563 | |
Local Phone Number | 383-2100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,957,536 | |
Preferred Share Purchase Rights [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Share Purchase Rights | |
Trading Symbol | LEE | |
Security Exchange Name | NASDAQ | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | LEE | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 27, 2022 | Sep. 26, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 15,335 | $ 26,112 |
Accounts receivable and contract assets, net | 67,734 | 65,070 |
Inventories | 7,509 | 6,297 |
Prepaid and other current assets | 12,984 | 11,320 |
Total current assets | 103,562 | 108,799 |
Associated companies | 26,855 | 26,682 |
Other | 6,217 | 6,065 |
Total investments | 33,072 | 32,747 |
Land and improvements | 14,505 | 16,576 |
Buildings and improvements | 93,010 | 106,890 |
Equipment | 210,523 | 228,817 |
Construction in process | 6,401 | 2,813 |
Property, Plant and Equipment, Gross, Ending Balance | 324,439 | 355,096 |
Less accumulated depreciation | 246,257 | 271,830 |
Property and equipment, net | 78,182 | 83,266 |
Operating lease right-of-use assets | 59,721 | 65,682 |
Goodwill | 330,204 | 330,204 |
Other intangible assets, net | 145,568 | 156,671 |
Other | 13,117 | 13,632 |
Total assets | 795,401 | 843,551 |
Current liabilities: | ||
Current portion of lease liabilities | 8,765 | 8,612 |
Current maturities of long-term debt | 0 | 6,112 |
Accounts payable | 27,391 | 20,420 |
Compensation and other accrued liabilities | 41,551 | 45,076 |
Unearned revenue | 62,085 | 61,404 |
Total current liabilities | 139,792 | 141,624 |
Long-term debt, net of current maturities | 462,554 | 476,504 |
Operating lease liabilities | 51,558 | 57,683 |
Pension obligations | 951 | 22,444 |
Postretirement and postemployment benefit obligations | 11,472 | 11,008 |
Deferred income taxes | 38,397 | 40,295 |
Income taxes payable | 8,821 | 9,174 |
Other | 26,487 | 28,121 |
Total liabilities | 740,032 | 786,853 |
Stockholders' equity: | ||
Serial convertible preferred stock, no par value; authorized 500 shares; none issued | 0 | 0 |
Additional paid-in capital | 258,523 | 258,063 |
Accumulated deficit | (240,362) | (245,744) |
Accumulated other comprehensive income | 34,908 | 42,187 |
Total stockholders' equity | 53,129 | 54,565 |
Non-controlling interests | 2,240 | 2,133 |
Total equity | 55,369 | 56,698 |
Total liabilities and equity | 795,401 | 843,551 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common Stock | 60 | 59 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common Stock | 0 | 0 |
Pension Plan [Member] | ||
ASSETS | ||
Retirement plan assets, net | 13,971 | 35,855 |
Postretirement Health Coverage [Member] | ||
ASSETS | ||
Retirement plan assets, net | $ 18,004 | $ 16,695 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Mar. 27, 2022 | Sep. 26, 2021 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authoritzed (in shares) | 500 | 500 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 12,000 | 12,000 |
Common stock, shares issued (in shares) | 5,957 | 5,889 |
Common stock, shares outstanding (in shares) | 5,957 | 5,889 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 3,000 | 3,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | |
Operating revenue: | ||||
Total operating revenue | $ 190,014,000 | $ 192,430,000 | $ 392,296,000 | $ 404,248,000 |
Operating expenses: | ||||
Compensation | 83,513,000 | 83,154,000 | 168,207,000 | 167,317,000 |
Newsprint and ink | 7,068,000 | 7,179,000 | 14,712,000 | 15,171,000 |
Other operating expenses | 84,679,000 | 79,865,000 | 170,661,000 | 161,632,000 |
Depreciation and amortization | 8,951,000 | 12,517,000 | 18,627,000 | 22,958,000 |
Assets (gain) loss on sales, impairments and other, net | (152,000) | 1,474,000 | (12,426,000) | 6,696,000 |
Restructuring costs and other | 10,590,000 | 1,294,000 | 13,790,000 | 4,461,000 |
Total operating expenses | 194,649,000 | 185,483,000 | 373,571,000 | 378,235,000 |
Equity in earnings of associated companies | 1,407,000 | 1,471,000 | 3,161,000 | 3,213,000 |
Operating (expense) income | (3,228,000) | 8,418,000 | 21,886,000 | 29,226,000 |
Non-operating (expense) income: | ||||
Interest expense | (10,523,000) | (11,237,000) | (21,186,000) | (23,119,000) |
Curtailment gain | 0 | 0 | 1,027,000 | 23,830,000 |
Pension withdrawal cost | (2,335,000) | 0 | (2,335,000) | (12,310,000) |
Other, net | 6,248,000 | 1,640,000 | 9,320,000 | 3,908,000 |
Total non-operating (expense) income, net | (6,610,000) | (9,597,000) | (13,174,000) | (7,691,000) |
(Loss) Income before income taxes | (9,838,000) | (1,179,000) | 8,712,000 | 21,535,000 |
Income tax (benefit) expense | (3,144,000) | (571,000) | 2,207,000 | 5,740,000 |
Net (loss) income | (6,694,000) | (608,000) | 6,505,000 | 15,795,000 |
Net income attributable to non-controlling interests | (582,000) | (526,000) | (1,123,000) | (1,027,000) |
(Loss) Income attributable to Lee Enterprises, Incorporated | (7,276,000) | (1,134,000) | 5,382,000 | 14,768,000 |
Other comprehensive (loss) income, net of income taxes | (1,167,000) | 478,000 | (7,279,000) | 1,620,000 |
Comprehensive (loss) income attributable to Lee Enterprises, Incorporated | $ (8,443,000) | $ (656,000) | $ (1,897,000) | $ 16,388,000 |
Earnings per common share: | ||||
Basic: (in dollars per share) | $ (1.26) | $ (0.20) | $ 0.94 | $ 2.59 |
Diluted: (in dollars per share) | $ (1.26) | $ (0.20) | $ 0.92 | $ 2.55 |
Advertising and Marketing Services [Member] | ||||
Operating revenue: | ||||
Total operating revenue | $ 87,633,000 | $ 85,575,000 | $ 186,387,000 | $ 188,204,000 |
Subscription and Circulation [Member] | ||||
Operating revenue: | ||||
Total operating revenue | 87,348,000 | 89,777,000 | 174,867,000 | 181,080,000 |
Product and Service, Other [Member] | ||||
Operating revenue: | ||||
Total operating revenue | $ 15,033,000 | $ 17,078,000 | $ 31,042,000 | $ 34,964,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Retained Earnings [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Sep. 28, 2020 | $ (268,529) | $ 58 | $ 256,957 | $ (20,050) | $ (31,564) |
Shares issued (redeemed) | 0 | 1 | (55) | 0 | (54) |
Income attributable to Lee Enterprises, Incorporated | 15,902 | 0 | 0 | 0 | 15,902 |
Stock compensation | 0 | 0 | 220 | 220 | |
Other comprehensive loss | 0 | 0 | 0 | 1,347 | 1,347 |
Deferred income taxes, net | 0 | 0 | 0 | (205) | (205) |
Deferred income taxes, net | 0 | 0 | 0 | 205 | 205 |
Balance at Dec. 27, 2020 | (252,627) | 59 | 257,122 | (18,908) | (14,354) |
Shares issued (redeemed) | 0 | 0 | (8) | 0 | (8) |
Income attributable to Lee Enterprises, Incorporated | (1,134) | 0 | 0 | 0 | (1,134) |
Stock compensation | 0 | 0 | 214 | 0 | 214 |
Other comprehensive loss | 0 | 0 | 0 | 682 | 682 |
Deferred income taxes, net | 0 | 0 | 0 | 204 | 204 |
Deferred income taxes, net | 0 | 0 | 0 | (204) | (204) |
Balance at Mar. 28, 2021 | (253,761) | 59 | 257,328 | (18,430) | (14,804) |
Balance at Sep. 26, 2021 | (245,744) | 59 | 258,063 | 42,187 | 54,565 |
Shares issued (redeemed) | 0 | 1 | (386) | 0 | (385) |
Income attributable to Lee Enterprises, Incorporated | 12,658 | 0 | 0 | 0 | 12,658 |
Stock compensation | 0 | 0 | 186 | 186 | |
Other comprehensive loss | 0 | 0 | 0 | (8,174) | (8,174) |
Deferred income taxes, net | 0 | 0 | 0 | 2,062 | 2,062 |
Deferred income taxes, net | 0 | 0 | 0 | (2,062) | (2,062) |
Balance at Dec. 26, 2021 | (233,086) | 60 | 257,863 | 36,075 | 60,912 |
Balance at Sep. 26, 2021 | (245,744) | 59 | 258,063 | 42,187 | 54,565 |
Income attributable to Lee Enterprises, Incorporated | 5,382 | ||||
Balance at Mar. 27, 2022 | (240,362) | 60 | 258,523 | 34,908 | 53,129 |
Balance at Dec. 26, 2021 | (233,086) | 60 | 257,863 | 36,075 | 60,912 |
Shares issued (redeemed) | 0 | 0 | (3) | 0 | (3) |
Income attributable to Lee Enterprises, Incorporated | (7,276) | 0 | 0 | 0 | (7,276) |
Stock compensation | 0 | 0 | 663 | 0 | 663 |
Other comprehensive loss | 0 | 0 | 0 | (1,667) | (1,667) |
Deferred income taxes, net | 0 | 0 | 0 | (500) | (500) |
Deferred income taxes, net | 0 | 0 | 0 | 500 | 500 |
Balance at Mar. 27, 2022 | $ (240,362) | $ 60 | $ 258,523 | $ 34,908 | $ 53,129 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 27, 2022 | Mar. 28, 2021 | |
Cash provided by operating activities: | ||
Net income | $ (6,505) | $ (15,795) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 18,627 | 22,958 |
Curtailment gain | (1,027) | (23,830) |
Pension withdrawal cost | 2,335 | 12,310 |
Stock compensation expense | 699 | 434 |
Assets (gain) loss on sales, impairments and other, net | (12,426) | 6,696 |
Deferred income taxes | 664 | (319) |
Pension contributions | 0 | (965) |
Return of (Payments to collateralize) letters of credit | 151 | 1,686 |
Other, net | (1,011) | 62 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in receivables and contract assets | (3,060) | (6,786) |
(Increase) decrease in inventories and other | (1,033) | 782 |
Increase (decrease) in accounts payable and other accrued liabilities | 5,694 | 3,944 |
Decrease in pension and other postretirement and postemployment benefit obligations | (9,388) | (3,291) |
Change in income taxes payable | (3,686) | 4,214 |
Other | 3,650 | (5,563) |
Net cash (required for) provided by operating activities | (606) | 39,253 |
Cash provided by (required for) investing activities: | ||
Purchases of property and equipment | (4,570) | (2,927) |
Proceeds from sales of assets | 14,744 | 2,751 |
Distributions greater (less) than earnings of TNI and MNI | (102) | 555 |
Other, net | (192) | (78) |
Net cash provided by investing activities | 9,880 | 301 |
Cash provided by (required for) financing activities: | ||
Payments on long-term debt | 20,062 | 39,375 |
Common stock transactions, net | 11 | (159) |
Net cash required for financing activities | (20,051) | (39,534) |
Net (decrease) increase in cash and cash equivalents | (10,777) | 20 |
Cash and cash equivalents: | ||
Beginning of period | 26,112 | 33,733 |
End of period | $ 15,335 | $ 33,753 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 1 BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the “Company”) as of March 27, 2022 2021 10 The Company's fiscal year ends on the last Sunday in September. 2022 September 25, 2022 2021 September 26, 2021. 2022 2021 52 13 three six March 27, 2022, not References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “2022”, “2021” September. The Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries, as well as our 82.5% interest in INN Partners, L.C. (“TownNews.com”). Our 50% interest in TNI Partners ("TNI") and our 50% interest in Madison Newspapers, Inc. ("MNI") are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets. On March 16, 2020, |
Note 2 - Revenue
Note 2 - Revenue | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2 REVENUE The following table presents our revenue disaggregated by source: Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Operating revenue: Print 44,248 53,685 100,218 120,291 Digital 43,385 31,890 86,169 67,913 Advertising and marketing services revenue 87,633 85,575 186,387 188,204 Print 77,255 82,801 156,883 167,816 Digital 10,093 6,976 17,984 13,264 Subscription revenue 87,348 89,777 174,867 181,080 Print 10,374 12,240 21,759 25,301 Digital 4,659 4,838 9,283 9,663 Other revenue 15,033 17,078 31,042 34,964 Total operating revenue 190,014 192,430 392,296 404,248 Recognition principles: Total Digital Revenue in the prior year was reclassified to conform to the current year presentation. Total Digital Revenue is defined as digital advertising and marketing services revenue (including Amplified), digital-only subscription revenue and digital services revenue. Arrangements with multiple performance obligations: Contract Assets and Liabilities: twelve six March 27, 2022 September 26, 2021 Accounts receivable, excluding allowance for credit losses was $74,422,000 and $71,644,000 as of March 27, 2022 September 26, 2021, March 27, 2022 September 26, 2021, Sales commissions are expensed as incurred as the associated contractual periods are one one |
Note 3 - Investments in Associa
Note 3 - Investments in Associated Companies | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 3 INVESTMENTS IN ASSOCIATED COMPANIES TNI Partners In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Gannets Co. Inc.'s subsidiary Citizen Publishing Company (“Citizen”), is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen. Summarized results of TNI are as follows: Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Operating revenue 8,594 8,759 17,575 18,159 Operating expenses 6,409 6,424 12,873 13,429 Operating income 2,185 2,335 4,702 4,730 Company's 50 1,093 1,168 2,351 2,365 Equity in earnings of TNI 1,093 1,168 2,351 2,365 TNI makes periodic distributions of its earnings and for the three March 27, 2022 March 28, 2021, six March 27, 2022 March 28, 2021, Madison Newspapers, Inc. We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital platforms. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers. Summarized results of MNI are as follows: Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Operating revenue 11,561 11,024 23,756 22,946 Operating expenses, excluding restructuring costs, depreciation and amortization 10,462 10,237 21,296 20,667 Restructuring costs — — — 106 Depreciation and amortization 170 182 340 292 Operating income 929 605 2,120 1,881 Net income 627 605 1,620 1,694 Equity in earnings of MNI 314 303 810 847 MNI makes periodic distributions of its earnings and in the three March 27, 2022 March 28, 2021, six March 27, 2022 March 28, 2021, |
Note 4 - Goodwill and Other Int
Note 4 - Goodwill and Other Intangible Assets | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4 GOODWILL AND OTHER INTANGIBLE ASSETS Identified intangible assets consist of the following: March 27, September 26, (Thousands of Dollars) 2022 2021 Goodwill, end of period 330,204 330,204 Non-amortized intangible assets: Mastheads 39,849 39,672 Amortizable intangible assets: Customer and newspaper subscriber lists 574,451 774,242 Less accumulated amortization (468,732 ) (657,243 ) 105,719 116,999 Total intangibles, net 475,772 486,875 The weighted average amortization period for amortizable assets is 13 years. |
Note 5 - Debt
Note 5 - Debt | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5 DEBT The Company has debt consisting of a single 25-year term loan with BH Finance LLC, in an aggregate principal balance of $462,554,000 at a 9% annual rate and matures on March 16, 2045 ( At March 27, 2022, 2 During the three March 27, 2022 six March 27, 2022, March 27, 2022 no Warrants We entered into a Warrant Agreement dated March 31, 2014 ( March 31, 2022. The Warrant Agreement required the Warrants to be measured at fair value and included in warrants and other liabilities in our Consolidated Balance Sheets. The initial fair value of the Warrants was $16,930,000. We re-measure the fair value of the liability each reporting period using the Black-Scholes option pricing model. The change in value of $71,000 is reported as income in other, net non-operating income (expense). As of March 27, 2022, September 26, 2021, In connection with the issuance of the Warrants, we entered into a Registration Rights Agreement dated March 31, 2014 |
Note 6 - Pension, Postretiremen
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans | 6 Months Ended |
Mar. 27, 2022 | |
Other Postretirement Benefits Plan [Member] | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 6 PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS We have several defined benefit pension plans that together cover certain employees, including plans established under collective bargaining agreements. At the end of September 2021 two seven no March 27, 2022, During the quarter ended December 26, 2021, four four four six one second 2022. During the quarter ended December 27, 2020 one The net periodic pension and postretirement cost (benefit) components for our plans are as follows: PENSION PLANS Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Service cost for benefits earned during the period 287 633 743 1,266 Interest cost on projected benefit obligation 2,001 1,787 3,938 3,574 Expected return on plan assets (4,535 ) (4,672 ) (9,071 ) (9,344 ) Amortization of net loss (687 ) 1,005 (1,946 ) 2,009 Amortization of prior service benefit 212 (1 ) 212 (1 ) Curtailment gain — — (1,027 ) — Pension benefit (2,722 ) (1,248 ) (7,151 ) (2,496 ) POSTRETIREMENT MEDICAL PLANS Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Service cost for benefits earned during the period 27 240 54 450 Interest cost on projected benefit obligation 85 239 170 362 Expected return on plan assets (263 ) (252 ) (526 ) (504 ) Amortization of net gain (249 ) (172 ) (498 ) (344 ) Amortization of prior service benefit (162 ) (162 ) (324 ) (323 ) Curtailment gain — — — (23,830 ) Postretirement medical benefit (562 ) (107 ) (1,124 ) (24,189 ) In the six March 27, 2022, In the six March 28, 2021 no 2022 not 2022. Multiemployer Pension Plans The Company has effecuated withdrawals from several multiemployer plans. We record estimates of withdrawal liabilities as of the time the contracts agreeing to withdraw from those plans are ratified. As of March 27, 2022 September 26, 2021, |
Note 7 - Income Taxes
Note 7 - Income Taxes | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7 INCOME TAXES We recorded an income tax benefit of $3,144,000 related to a loss before taxes of $9,838,000 for the three March 27, 2022, six March 27, 2022. three March 28, 2021, six March 28, 2021. three six March 27, 2022 three six March 28, 2021 The primary differences between these rates and the U.S. federal statutory rate of 21% are due to the effect of state taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, and mark-to-market adjustments to value stock warrants. We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 not 2014. |
Note 8 - Earnings Per Common Sh
Note 8 - Earnings Per Common Share | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8 EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars and Shares, Except Per Share Data) 2022 2021 2022 2021 (Loss) income attributable to Lee Enterprises, Incorporated: (7,276 ) (1,134 ) 5,382 14,768 Weighted average common shares 5,955 5,877 5,919 5,861 Less weighted average restricted Common Stock (178 ) (156 ) (167 ) (155 ) Basic average common shares 5,777 5,721 5,752 5,706 Dilutive stock options and restricted Common Stock — — 107 75 Diluted average common shares 5,777 5,721 5,859 5,781 Earnings per common share: Basic (1.26 ) (0.20 ) 0.94 2.59 Diluted (1.26 ) (0.20 ) 0.92 2.55 For the three six March 27, 2022 March 28, 2021 , 600,000 shares were not because their inclusion would result in an anti-dilutive effect on per share amounts. Rights Agreement On November 24, 2021, November 24, 2021, December 6, 2021, one one one The Rights will initially trade with our Common Stock and will generally become exercisable only if any person or group, other than certain exempt persons, acquires beneficial ownership of 10% (or 20% in the case of certain passive investors) or more of our Common Stock outstanding. In the event the Rights become exercisable, each holder of a Right, other than the triggering person(s), will be entitled to purchase additional shares of our Common Stock at a 50% discount or the Company may one November 23, 2022, no The Rights Agreement applies equally to all current and future stockholders and is not may not |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingent Liabilities | 6 Months Ended |
Mar. 27, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9 COMMITMENTS AND CONTINGENT LIABILITIES Legal Proceedings We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not Subsequent Events Subsequent to March 27, 2022, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 27, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and its subsidiaries (the “Company”) as of March 27, 2022 2021 10 The Company's fiscal year ends on the last Sunday in September. 2022 September 25, 2022 2021 September 26, 2021. 2022 2021 52 13 three six March 27, 2022, not References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “2022”, “2021” September. The Consolidated Financial Statements include our accounts and those of our wholly owned subsidiaries, as well as our 82.5% interest in INN Partners, L.C. (“TownNews.com”). Our 50% interest in TNI Partners ("TNI") and our 50% interest in Madison Newspapers, Inc. ("MNI") are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets. On March 16, 2020, |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 6 Months Ended |
Mar. 27, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Operating revenue: Print 44,248 53,685 100,218 120,291 Digital 43,385 31,890 86,169 67,913 Advertising and marketing services revenue 87,633 85,575 186,387 188,204 Print 77,255 82,801 156,883 167,816 Digital 10,093 6,976 17,984 13,264 Subscription revenue 87,348 89,777 174,867 181,080 Print 10,374 12,240 21,759 25,301 Digital 4,659 4,838 9,283 9,663 Other revenue 15,033 17,078 31,042 34,964 Total operating revenue 190,014 192,430 392,296 404,248 |
Note 3 - Investments in Assoc_2
Note 3 - Investments in Associated Companies (Tables) | 6 Months Ended |
Mar. 27, 2022 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Operating revenue 8,594 8,759 17,575 18,159 Operating expenses 6,409 6,424 12,873 13,429 Operating income 2,185 2,335 4,702 4,730 Company's 50 1,093 1,168 2,351 2,365 Equity in earnings of TNI 1,093 1,168 2,351 2,365 Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Operating revenue 11,561 11,024 23,756 22,946 Operating expenses, excluding restructuring costs, depreciation and amortization 10,462 10,237 21,296 20,667 Restructuring costs — — — 106 Depreciation and amortization 170 182 340 292 Operating income 929 605 2,120 1,881 Net income 627 605 1,620 1,694 Equity in earnings of MNI 314 303 810 847 |
Note 4 - Goodwill and Other I_2
Note 4 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Mar. 27, 2022 | |
Notes Tables | |
Schedule of Intangible Assets [Table Text Block] | March 27, September 26, (Thousands of Dollars) 2022 2021 Goodwill, end of period 330,204 330,204 Non-amortized intangible assets: Mastheads 39,849 39,672 Amortizable intangible assets: Customer and newspaper subscriber lists 574,451 774,242 Less accumulated amortization (468,732 ) (657,243 ) 105,719 116,999 Total intangibles, net 475,772 486,875 |
Note 6 - Pension, Postretirem_2
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans (Tables) | 6 Months Ended |
Mar. 27, 2022 | |
Notes Tables | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | PENSION PLANS Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Service cost for benefits earned during the period 287 633 743 1,266 Interest cost on projected benefit obligation 2,001 1,787 3,938 3,574 Expected return on plan assets (4,535 ) (4,672 ) (9,071 ) (9,344 ) Amortization of net loss (687 ) 1,005 (1,946 ) 2,009 Amortization of prior service benefit 212 (1 ) 212 (1 ) Curtailment gain — — (1,027 ) — Pension benefit (2,722 ) (1,248 ) (7,151 ) (2,496 ) POSTRETIREMENT MEDICAL PLANS Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars) 2022 2021 2022 2021 Service cost for benefits earned during the period 27 240 54 450 Interest cost on projected benefit obligation 85 239 170 362 Expected return on plan assets (263 ) (252 ) (526 ) (504 ) Amortization of net gain (249 ) (172 ) (498 ) (344 ) Amortization of prior service benefit (162 ) (162 ) (324 ) (323 ) Curtailment gain — — — (23,830 ) Postretirement medical benefit (562 ) (107 ) (1,124 ) (24,189 ) |
Note 8 - Earnings Per Common _2
Note 8 - Earnings Per Common Share (Tables) | 6 Months Ended |
Mar. 27, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended March 27, March 28, March 27, March 28, (Thousands of Dollars and Shares, Except Per Share Data) 2022 2021 2022 2021 (Loss) income attributable to Lee Enterprises, Incorporated: (7,276 ) (1,134 ) 5,382 14,768 Weighted average common shares 5,955 5,877 5,919 5,861 Less weighted average restricted Common Stock (178 ) (156 ) (167 ) (155 ) Basic average common shares 5,777 5,721 5,752 5,706 Dilutive stock options and restricted Common Stock — — 107 75 Diluted average common shares 5,777 5,721 5,859 5,781 Earnings per common share: Basic (1.26 ) (0.20 ) 0.94 2.59 Diluted (1.26 ) (0.20 ) 0.92 2.55 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) - USD ($) | Mar. 16, 2020 | Mar. 27, 2022 | Mar. 28, 2021 |
BH Media Group, Inc. And The Buffalo News [Member] | |||
Payments to Acquire Businesses, Gross | $ 140,000,000 | ||
TNI Partners [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |
MNI [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
INN Partners, L.C. [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 82.50% |
Note 2 - Revenue (Details Textu
Note 2 - Revenue (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 27, 2022 | Sep. 26, 2021 | |
Contract with Customer, Liability, Revenue Recognized | $ 47,340,000 | |
Accounts Receivable, before Allowance for Credit Loss | 74,422,000 | $ 71,644,000 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 6,688,000 | $ 6,574,000 |
Note 2 - Revenue - Disaggregati
Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | |
Total operating revenue | $ 190,014 | $ 192,430 | $ 392,296 | $ 404,248 |
Advertising and Marketing Services [Member] | ||||
Total operating revenue | 87,633 | 85,575 | 186,387 | 188,204 |
Advertising and Marketing Services [Member] | Print [Member] | ||||
Total operating revenue | 44,248 | 53,685 | 100,218 | 120,291 |
Advertising and Marketing Services [Member] | Digital [Member] | ||||
Total operating revenue | 43,385 | 31,890 | 86,169 | 67,913 |
Subscription and Circulation [Member] | ||||
Total operating revenue | 87,348 | 89,777 | 174,867 | 181,080 |
Subscription and Circulation [Member] | Print [Member] | ||||
Total operating revenue | 77,255 | 82,801 | 156,883 | 167,816 |
Subscription and Circulation [Member] | Digital [Member] | ||||
Total operating revenue | 10,093 | 6,976 | 17,984 | 13,264 |
Product and Service, Other [Member] | ||||
Total operating revenue | 15,033 | 17,078 | 31,042 | 34,964 |
Product and Service, Other [Member] | Print [Member] | ||||
Total operating revenue | 10,374 | 12,240 | 21,759 | 25,301 |
Product and Service, Other [Member] | Digital [Member] | ||||
Total operating revenue | $ 4,659 | $ 4,838 | $ 9,283 | $ 9,663 |
Note 3 - Investments in Assoc_3
Note 3 - Investments in Associated Companies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | |
TNI Partners [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% | 50.00% | ||
TNI Partners [Member] | ||||
Proceeds from Equity Method Investment, Distribution | $ 1,401,000 | $ 1,561,000 | $ 2,259,000 | $ 2,617,000 |
MNI [Member] | ||||
Proceeds from Equity Method Investment, Distribution | $ 500,000 | $ 1,150,000 | $ 800,000 | $ 1,150,000 |
Note 3 - Investments in Assoc_4
Note 3 - Investments in Associated Companies - Summarized Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | |
Operating revenue | $ 190,014 | $ 192,430 | $ 392,296 | $ 404,248 |
Operating expenses | 194,649 | 185,483 | 373,571 | 378,235 |
Operating income | (3,228) | 8,418 | 21,886 | 29,226 |
Equity in earnings | 1,407 | 1,471 | 3,161 | 3,213 |
Restructuring costs | 10,590 | 1,294 | 13,790 | 4,461 |
Depreciation and amortization | 8,951 | 12,517 | 18,627 | 22,958 |
Net income | (6,694) | (608) | 6,505 | 15,795 |
TNI Partners [Member] | ||||
Operating revenue | 8,594 | 8,759 | 17,575 | 18,159 |
Operating expenses | 6,409 | 6,424 | 12,873 | 13,429 |
Operating income | 2,185 | 2,335 | 4,702 | 4,730 |
Company's 50% share of operating income | 1,093 | 1,168 | 2,351 | 2,365 |
Equity in earnings | 1,093 | 1,168 | 2,351 | 2,365 |
MNI [Member] | ||||
Operating revenue | 11,561 | 11,024 | 23,756 | 22,946 |
Operating expenses | 10,462 | 10,237 | 21,296 | 20,667 |
Operating income | 929 | 605 | 2,120 | 1,881 |
Equity in earnings | 314 | 303 | 810 | 847 |
Restructuring costs | 0 | 0 | 0 | 106 |
Depreciation and amortization | 170 | 182 | 340 | 292 |
Net income | $ 627 | $ 605 | $ 1,620 | $ 1,694 |
Note 3 - Investments in Assoc_5
Note 3 - Investments in Associated Companies - Summarized Financial Results (Details) (Parentheticals) | Mar. 27, 2022 | Mar. 28, 2021 |
TNI Partners [Member] | ||
Percentage of share | 50.00% | 50.00% |
Note 4 - Goodwill and Other I_3
Note 4 - Goodwill and Other Intangible Assets (Details Textual) | 3 Months Ended |
Mar. 27, 2022 | |
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 13 years |
Note 4 - Goodwill and Other I_4
Note 4 - Goodwill and Other Intangible Assets - Identified Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 27, 2022 | Sep. 26, 2021 |
Goodwill, balance | $ 330,204 | $ 330,204 |
Total intangibles, net | 475,772 | 486,875 |
Customer and Newspaper Subscriber Lists [Member] | ||
Amortizable intangible assets, gross | 574,451 | 774,242 |
Less accumulated amortization | (468,732) | (657,243) |
Finite-Lived Intangible Assets, Net, Ending Balance | 105,719 | 116,999 |
Mastheads [Member] | ||
Mastheads | $ 39,849 | $ 39,672 |
Note 5 - Debt (Details Textual)
Note 5 - Debt (Details Textual) - USD ($) | Mar. 16, 2020 | Mar. 27, 2022 | Dec. 26, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | Sep. 26, 2021 | Mar. 31, 2014 |
Repayments of Long-Term Debt, Total | $ 20,062,000 | $ 39,375,000 | |||||
Warrants Issued in Connection with Second Lien Term Loan [Member] | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 600,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 41.90 | ||||||
Warrants and Rights Outstanding | $ 0 | $ 0 | $ 71,000 | $ 16,930,000 | |||
Warrants Issued in Connection with Second Lien Term Loan [Member] | Nonoperating Income (Expense) [Member] | |||||||
Fair Value Adjustment of Warrants | 71,000 | ||||||
Credit Agreement [Member] | Secured Term Loan [Member] | BH Finance [Member] | |||||||
Debt Instrument, Term (Year) | 25 years | ||||||
Debt Instrument, Face Amount | $ 462,554,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | ||||||
Repayments of Long-Term Debt, Total | $ 0 | $ 20,062,000 |
Note 6 - Pension, Postretirem_3
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 27, 2022 | Dec. 26, 2021 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | Sep. 26, 2021 | |
Multiemployer Plans, Withdrawal Obligation | $ 25,253,000 | $ 25,253,000 | $ 23,471,000 | |||
Multiemployer Plans, Withdrawal Obligation, Period (Year) | 20 years | |||||
Postemployment Retirement Benefits [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 1,027,000 | 23,830,000 | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (6,507,000) | 23,830,000 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 1,027,000 | $ 23,830,000 | ||||
Pension Plan [Member] | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 0 | $ 0 | 1,027,000 | $ 0 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | $ 0 | 1,027,000 | 0 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0 | $ 965,000 | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 0 | $ 0 |
Note 6 - Pension, Postretirem_4
Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans - Net Periodic Cost (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | |
Amortization of prior service benefit | $ 212 | $ (1) | $ 212 | $ (1) |
Amortization of prior service benefit | 212 | (1) | 212 | (1) |
Pension Plan [Member] | ||||
Service cost for benefits earned during the period | 287 | 633 | 743 | 1,266 |
Interest cost on projected benefit obligation | 2,001 | 1,787 | 3,938 | 3,574 |
Expected return on plan assets | (4,535) | (4,672) | (9,071) | (9,344) |
Amortization of net loss | (687) | 1,005 | (1,946) | 2,009 |
Curtailment gain | 0 | 0 | (1,027) | 0 |
Pension benefit | (2,722) | (1,248) | (7,151) | (2,496) |
Postretirement Health Coverage [Member] | ||||
Service cost for benefits earned during the period | 27 | 240 | 54 | 450 |
Interest cost on projected benefit obligation | 85 | 239 | 170 | 362 |
Expected return on plan assets | (263) | (252) | (526) | (504) |
Amortization of net loss | (249) | (172) | (498) | (344) |
Amortization of prior service benefit | (162) | (162) | (324) | (323) |
Curtailment gain | 0 | 0 | 0 | (23,830) |
Pension benefit | (562) | (107) | (1,124) | (24,189) |
Amortization of prior service benefit | $ (162) | $ (162) | $ (324) | $ (323) |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 27, 2022 | Mar. 28, 2021 | Mar. 27, 2022 | Mar. 28, 2021 | |
Income Tax Expense (Benefit), Total | $ (3,144,000) | $ (571,000) | $ 2,207,000 | $ 5,740,000 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | $ 9,838,000 | $ 1,179,000 | $ 8,712,000 | $ 21,535,000 |
Effective Income Tax Rate Reconciliation, Percent, Total | 32.00% | 48.40% | 25.30% | 26.70% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Open Tax Year | 2015 2016 2017 2018 2019 2020 2021 |
Note 8 - Earnings Per Common _3
Note 8 - Earnings Per Common Share (Details Textual) $ / shares in Units, $ in Thousands | Nov. 24, 2021USD ($)$ / sharesshares | Mar. 27, 2022shares | Mar. 28, 2021shares | Mar. 27, 2022shares | Mar. 28, 2021shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 600,000 | 600,000 | 600,000 | 600,000 | |
Dividends Declared, Number of Preferred Share Purchase Right | 1 | ||||
Preferred Share Purchase Rights [Member] | |||||
Preferred Share Purchase Right, Terms of Exercisability, Ownership Percentage | 10.00% | ||||
Preferred Share Purchase Right, Terms of Exercisability, Passive Investors, Ownership Percentage | 20.00% | ||||
Preferred Share Purchase Right, Discount Rate for Additional Shares | 50.00% | ||||
Preferred Share Purchase Right, Number of Common Shares Issue in Lieu of Discount (in shares) | 1 | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Total | $ | $ 0 | ||||
Series B Participating Convertible Preferred Stock, Nonvoting, No Par Value [Member] | Preferred Share Purchase Rights [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right (in shares) | 0.001 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 120 |
Note 8 - Earnings Per Common _4
Note 8 - Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 27, 2022 | Dec. 26, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 27, 2022 | Mar. 28, 2021 | |
Income attributable to Lee Enterprises, Incorporated | $ (7,276) | $ 12,658 | $ (1,134) | $ 15,902 | $ 5,382 | $ 14,768 |
Weighted average common shares (in shares) | 5,955 | 5,877 | 5,919 | 5,861 | ||
Less weighted average restricted Common Stock (in shares) | (178) | (156) | (167) | (155) | ||
Basic average common shares (in shares) | 5,777 | 5,721 | 5,752 | 5,706 | ||
Dilutive stock options and restricted Common Stock (in shares) | 0 | 0 | 107 | 75 | ||
Diluted average common shares (in shares) | 5,777 | 5,721 | 5,859 | 5,781 | ||
Basic: (in dollars per share) | $ (1.26) | $ (0.20) | $ 0.94 | $ 2.59 | ||
Diluted: (in dollars per share) | $ (1.26) | $ (0.20) | $ 0.92 | $ 2.55 |
Note 9 - Commitments and Cont_2
Note 9 - Commitments and Contingent Liabilities (Details Textual) | Mar. 28, 2022USD ($) |
Subsequent Event [Member] | |
Severance Costs | $ 4,700,000 |