Lee Enterprises(LEE) - 2025 Q1 - Quarterly Report

Revenue Performance - Total operating revenue decreased by $11.1 million, or 7.1%, to$ 144.6 million in the 2025 Quarter compared to the 2024 Quarter [64]. - Digital subscription revenue increased by 10.8% to $21.6 million, while print subscription revenue decreased by 16.3% to$ 43.4 million [66]. - Digital-only subscribers grew by 5% to a total of 774,000, contributing to a total subscription revenue of $65.0 million, down 8.9% from the previous year [66]. - Digital advertising and marketing services revenue totaled$ 46.7 million, a slight increase of 0.6%, representing 70.2% of total advertising and marketing services revenue [65]. - Total digital revenue, including digital advertising, subscription, and services, reached $73.4 million, an increase of 3.5% and representing 50.8% of total operating revenue [68]. Operating Expenses and Losses - Total operating expenses were$ 149.0 million, a decrease of 0.2% compared to the 2024 Quarter, with compensation expenses rising by 1.0% [70]. - The company reported an operating loss of $3.4 million in the 2025 Quarter, compared to an operating income of$ 7.8 million in the 2024 Quarter [75]. - Net loss was $16.2 million, with diluted loss per share of$ 2.80, compared to net income of $1.2 million and diluted earnings per share of$ 0.12 in the previous year [82]. - Adjusted EBITDA for the three months ended December 29, 2024, was $7.609 million, a decrease of 59.3% from$ 18.649 million in the prior year [89]. - Operating expenses for the three months ended December 29, 2024, were $149.036 million, slightly down from$ 149.386 million in the same period of 2023 [89]. Cash Flow and Liquidity - Cash required by operating activities totaled $7.3 million in the 2025 Period, a decrease of$ 7.4 million compared to cash provided by operating activities of $0.1 million in the 2024 Period [92]. - Cash provided by investing activities increased to$ 3.9 million in the 2025 Period from $2.1 million in the 2024 Period, driven by proceeds from the sale of non-core real estate [94]. - The company expects capital expenditures to total approximately$ 10.0 million in 2025, funded by internally generated funds [95]. - The company's liquidity, consisting of cash on the balance sheet, totaled $6.1 million on December 29, 2024 [99]. - No cash was required for financing activities in the 2025 Period, compared to$ 1.4 million in the 2024 Period, primarily for debt reduction [97]. Interest and Debt Management - Interest expense increased by 1.5% to $10.3 million, with a weighted average cost of debt of 9% [77]. - The company experienced a decrease in operating results of$ 13.6 million, adjusted for non-working capital items, partially offset by a $6.2 million increase in working capital [92]. - The company anticipates that all interest and principal payments due in the next twelve months will be satisfied by existing cash and cash flows [99].