Lee Enterprises (LEE) 4 Feb 212021 Q1 Earnings call transcript

Welcome to the Lee Enterprises 2021 First Quarter Webcast and Conference Call. The call is being recorded and will be available for replay beginning later this morning at lee.net. At the close of the planned remarks, there will be an opportunity for questions. Participants accessing this call by webcast, may submit written questions through the website, and they will answered during the call as time permits, otherwise you will receive a response later. A link to the live webcast can be found at www.lee.net.

the Finance to FP&A. turn Rinehults, host, will President Vice I call your over Josh Now,

Good Thank morning. you for joining us.

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results uncertainties include could release a on this and to statements morning's SEC and this our risks. discussion filings. forward-looking reminder, news differ to subject factors current Such are will are described trends expectations. that our are actual These As cause materially. morning's statements certain based that in also in

Chief reference Kevin make accompanying Reconciliations our, measures, now financial tables Executive and non-GAAP we open And which in certain included call, relevant the Mowbray. discussion to release. to to GAAP our release. Officer, is defined the news will measures President During the the in are are

performance. of operations strategy EBITDA the as paying and with a trend the $XX.X to down revenue We're focused and We're million basis to well with year adjusted pleased the quarter in an first improved totaled quarter-over-quarter revenue comprise both to revenue total is digital-only about believe continue XXX,XXX Revenue We forma XX.X%, revenue with trough progress results the local revenue advertising nearly remain fiscal on a in last since our December advertising with and audience in post-dynamic great We've for grow compared trends. improvement Josh. compared underway. to trend our of revenue and With operating as effects Good at We continue revenue this you the grow. We digital keenly quarter on We XX.X% cost industry. XX%, revenue rapid subscriptions excited digital-only third from management. XX% XXXX revenue improved of XX.X% total in most the revenue these a down well with morning rate, quarter The achieved XX.X% Thank of local revenue quarter-over-quarter significant revenue off. revenue subscription management, results grew improved prior to operating growth drive we totaled contributed subscription dramatically and growth our optimistic start local advertising pro with all metrics. strong of overall We're and trends are audience and subscriptions, the In drive revenues to made strategy trend year points we our to trend, thank transformation our X.X% are total the respectively. improvement to the Consistent fourth of the fiscal segment you mitigate the XX% improvement Advertising SMBs will focus. a and that paid were top year in accounts in basis strong XX% revenue significant cost a trends improvement which first fourth already. the we year advertising, to and advertising strong in year. helping the prior our advertisers the our quarter. operating industry to quarter. pandemic. improve have joining quarter call. our again comparisons achieved is on the helping our continuous the in XXX the metric $XX quarter. off and revenue significantly digital-only Total Digital-only the or XXXX million, that pandemic posted leading quarter and in digital now up digital-only emphasis leading and first subscriptions

audience sequential the trend XXX advertising XX% reach strategy leverages the retail improvement in local from and segment drive fiscal Our to XXXX. revenue markets fourth in from trend advertising our the contributed the to revenue point basis quarter

Additionally significant that full-service offer the in products to significant Amplified We're to our we and advertisers. local we've made Agency, diversify digital agency. investments seeing growth services market Digital

TownNews of of growth our million to markets the and our months posted local our audience or in to in now subscription-based. categories in growth advertising earned TownNews continues in Tim categories believe cost At that give of to strong all local With can turn of to digital our last these million cost our leveraged is that of intense on drive from and the local And on cost significant revenue it strategy annual exceeding and details revenue political our significantly it Lee, on into TownNews, and Revenue we the quarter we tied nearly other operation revenue over company is to campaigns, our a digital campaign in X.X%. and powerful video backbone the compared demonstrate improve executing political also reoccurring company-wide this revenue well revenues you will is over media future to on side, nearly transform year for to prior a our the capture grow. We X,XXX as digitally-centric be market quarter. nine on state On revenue, also to months. XX to at opportunities. increased $X from while business. XX.X% power relationships continue combined from relationships have company. partners in post-dynamic Leveraging perform we the our I'll metric these to revenue with new $XX.X revenue basis, our revenue more up focus of streams, target XX% the We've transformed with a the That's we side. over standalone a totaled revenue early. focus

report quarter million target and quarter good goal In to $XXX initiatives. quarter schedule. to Thank the costs we XXXX, fiscal by of XXXX, the have of at exceeding the acquisition end executed quickly cost in Compensation morning, you, realized everyone. Kevin We our and $XXX Total XX.X% to cash XXXX. first plans in of we achieve cost and out we year. established last million are laid and synergies a was same the business end ahead X.X%, synergies June integration year that first in nine down transformation due down our the compared were to excited months

costs, includes due sold. were XX%, by a as Other incremental volume down offset also of expenses our XX% the costs down as quarter to and cash printing Other delivery print to was costs of pricing. well reduction print-related and cash partially expenses cost digital Newsprint due costs print-related reduction goods digital of like a investments. in includes outsourced

principal debt million with for strong the in the a $XXX.X first of second in EBITDA totaled result quarter. $XX to end The first and quarter Excess As through, quarter cost used since March. flow quarter, million was refinancing revenue management, totaled our or walked totaled the amount of the million million the combined debt repay performance in $XX.X adjusted at the last par. down the at cash Kevin $XX.X

a have with covenant, a us the debt ratios. have well we As to tied leverage a fixed financial or performance and The success. interest single a committed and fixed other meaning who do credit reminder, XX-year not our not low no rate lender of agreement is maintenance maturity, annual payments does principal events mandatory is default knows of to a

looking several we that real are assets monetize. Additionally, non-core to have we estate

to concludes As the any million the we remain additional include open file remain questions. and reduce have. today, Operator, that your please once our tomorrow. debt. be will on with expect XX-Q our used $XX always to SEC it remarks. as results available-for-sale, have Last, team further that will for And may of for we expectations. on This you will line planned information questions line the our sold The

we be a time will [Operator question-and-answer conducting this At you. session. Instructions] Thank

Okay.

from web synergies Our first cost opportunities the question the is, there for are further quarter? second in

cost I'll decade. And a and ahead synergy target about our we that. the record something structure our the team over has last million that several $XXX managing is over and doing years, of proven cost talked go track management achieving a certainly, answer

the reduce grow transform making same and revenue. our cost investments committed we're grow legacy to So required manage cost business at structure our revenue efficiencies, print to structure the to drive our especially digital continuing time

growth? digital is, Our next what revenue for question company's are the expectations

that's us. metric to Well, then for for big advertising and an video digital-only are revenue obviously the well sales, are to achievements between subscriptions revenue now first-party we're company. our important on mentioned growth we that us e-commerce opening related our data Tripling digital moving achieving. on and categories the XXXX for focused in and our a And digital company. really three our remarks, pillars metric in is key as grow us three to And for way really the new into digital

Okay.

debt company's for fiscal is, question XXXX? what next reduction Our year the target is

as where guidance think we will any We haven't we to provided go.

free the as pension we incremental have We've contributions. CapEx, considerable year to required income some with for EBITDA help since flow some reduction debt gap well. pension to release refinancing have do bridge obligations in $XX in to the as adjusted flow. free We taxes of from cash We've cash provided million. expect We our outstanding last given the March information what guidance

our of So gap. use flow flow cash But do to all especially expect the and to cash our debt. we repay it helps excess bridge

to questions no have turn more call Kevin remarks. any I'll participants. for web closing the now back We from our

and you thank Have thank call a joining in you Well, Lee. day. the for your great for interest

time and concludes of question-and-answer Ladies session. Thank our This call. you. this reached we the have end at gentlemen, our