Lee Enterprises(US:LEE)2025-05-09 18:13Revenue Performance - Total operating revenue was $137.4 million in the 2025 Quarter, down $9.2 million, or 6.3%, compared to the 2024 Quarter[68]. - Total operating revenue for the six months ended March 30, 2025, was $281.9 million, down $20.3 million, or 6.7%, compared to the 2024 Period[91]. - Subscription revenue decreased to $129.9 million in the 2025 Period, a decline of 7.6%, despite a 14.2% growth in digital-only subscription revenue, which now totals 728,000[93]. - Advertising and marketing services revenue totaled $60.5 million in the 2025 Quarter, down 5.7% compared to the 2024 Quarter[69]. - Advertising and marketing services revenue totaled $127.1 million in the 2025 Period, down 5.9% compared to the 2024 Period, with digital advertising representing 71.4% of total revenue[92]. Digital Revenue Growth - Digital subscription revenue grew 17.4% to $23.8 million in the 2025 Quarter, with digital-only subscribers totaling 728,000[70]. - Total digital revenue reached $72.6 million in the 2025 Quarter, an increase of 2.5%, representing 52.8% of total operating revenue[72]. - Total digital revenue increased by 3.0% to $145.9 million in the 2025 Period, representing 51.8% of total operating revenue[95]. Operating Expenses - Total operating expenses decreased by 6.1% to $143.0 million in the 2025 Quarter, with significant reductions in newsprint and ink costs by 25.3%[74][75]. - Total operating expenses were $292.1 million in the 2025 Period, a decrease of 3.2% compared to the 2024 Period[97]. Net Loss and Financial Performance - Net loss for the 2025 Quarter was $12.0 million, with diluted loss per share at $2.07, compared to a net loss of $11.6 million and diluted loss per share of $2.06 in the 2024 Quarter[86]. - Net loss for the 2025 Period was $28.2 million, with diluted loss per share of $4.87, compared to a net loss of $10.4 million and diluted loss per share of $1.94 in the 2024 Period[110]. Cash Flow and Liquidity - Cash required for operating activities totaled $8.1 million in the 2025 Period, a decrease of $11.4 million compared to cash provided by operating activities of $3.3 million in the 2024 Period[121]. - Cash provided by investing activities totaled $3.2 million in the 2025 Period, compared to $0.2 million in the 2024 Period, including proceeds from the sale of non-core real estate[123]. - The company's liquidity totaled $4.7 million on March 30, 2025, with plans to reduce operating and capital spending to maintain sufficient liquidity[128]. Restructuring Costs - Restructuring costs increased by 57.4% to $6.5 million in the 2025 Quarter, primarily due to costs associated with recovering from a Cyber Incident[77]. - Restructuring costs increased by $3.3 million in the 2025 Period, primarily due to costs associated with recovering from the Cyber Incident and ongoing business transformation efforts[100]. Interest Expense - Interest expense decreased by 2.6% to $10.0 million in the 2025 Quarter, attributed to a lower average outstanding balance on the Term Loan[82]. Capital Expenditures - The company anticipates capital expenditures of up to $7.0 million in 2025 will be funded from internally generated funds[124].