Lee Enterprises, Incorporated · NASDAQ:LEE
Lee Enterprises — Q1 FY2025 Earnings Presentation
18 slides from Lee Enterprises's earnings presentation, Feb 6, 2025
Slide 1: First Quarter FY2025 Earnings
FIRST QUARTER FY2025 EARNINGS FEBRUARY 6, 2025
Slide 2: Safe Harbor
SAFE HARBOR The information provided in this presentation may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or
Slide 3: Lee's Three Pillar Digital Growth Strategy
LEE’S THREE PILLAR DIGITAL GROWTH STRATEGY LEE IS RAPIDLY TRANSFORMING FROM A PRINT-CENTRIC TO A DIGITAL-CENTRIC COMPANY PILLAR 1 PILLAR 2 PILLAR 3 Expand our audience by Accelerate digital Diversify and expand providing compelling local subscription growth offerings content for local advertisers Le
Slide 4: Industry-Leading Digital Growth
INDUSTRY-LEADING DIGITAL GROWTH Digital Sub Revenue Digital Agency Revenue Total Digital Revenue Growth Leads Industry Growth Leads Industry Growing Significantly $86M LTM Digital Sub Revenue $102M LTM Amplified Digital® Agency $302M LTM Total Digital Revenue Industry-leading 30% YOY(1) LTM growth I
Slide 5: Digital Revenue Continues to Grow
DIGITAL REVENUE CONTINUES TO GROW % of Total % Variance to Q1 FY25 Q1 FY2025 Revenue Prior Year(1) Revenue Mix Digital Advertising $47M 32% +2% YOY Amplified Digital® Agency $24M 17% +14% YOY 49% 51% Digital-only Print Digital Subscription $22M 15% +14% YOY Digital Other $5M 3% +3% YOY Total Digital
Slide 6: AI Creates a New Economic Model
AI CREATES A NEW ECONOMIC MODEL PARTNERSHIPS DRIVE THE MODEL NEWS & MEDIA LANDSCAPE EVOLUTION GOOGLE & SOCIAL AI SEARCH - ANSWER AI APP NETWORKS 2020 2025 2028 LEE ADVERTISING AI PARTNERS & AUDIENCE NEW VALUE DRIVERS LLMs, GPTs, SLMs, PLATFORMS SEARCH ENGINE PERPLEXITY ANSWER ENGINE CONTENT PRORATA.
Slide 7: Lee Nears Sustainability from Digital Revenue
LEE NEARS SUSTAINABILITY FROM DIGITAL REVENUE GROSS MARGIN KEY HIGHLIGHTS Digital transformation Digital sustainability • Digital revenue replacing print revenue and growing at 17% Digital Margin SG&A FY24 Total Company Gross Margin CAGR since 2021 • Digital gross margin(1) growing at a 13% CAGR sin
Slide 8: First Quarter 2025 Results
FIRST QUARTER 2025 RESULTS Q1 Revenue Total Digital Revenue $73M, +5% YOY on a Same-store basis(1) Continued digital revenue • Digital subscription revenue $22M, +14%(1) growth • Digital advertising revenue $47M, +2%(1) • Amplified Digital® revenue $24M, +14%(1) Total Print Revenue $71M, -15%(1) Str
Slide 9: Strong Track Record of Sustainable Cost Management
STRONG TRACK RECORD OF SUSTAINABLE COST MANAGEMENT KEY TAKEAWAYS • Proficient in driving efficiencies • Current base of $187M of direct costs associated with our Total Cash Costs(1) legacy revenue streams that will be managed with associated revenue trends $1.0B • Ongoing initiatives aimed at optimi
Slide 10: Credit Agreement Represents Strategic Asset
CREDIT AGREEMENT REPRESENTS STRATEGIC ASSET • $130M debt reduction since refinancing in March 2020 Significant Gross Debt Reduction • Favorable credit agreement with Berkshire Hathaway • 25-year runway with no breakage costs or prepayment penalties $576M • Fixed annual interest rate, no financial pe
Slide 11: Long-Term Outlook: Digital Revenue
LONG-TERM OUTLOOK: DIGITAL REVENUE DIGITAL REVENUE GROWTH IS FUELED BY AMPLIFIED AND DIGITAL SUBSCRIPTION GROWTH $500M • Amplified Digital® Agency will drive digital marketing services $450M revenue growth $400M • Our owned & operated digital products provide a unique opportunity to grow high margin
Slide 12: 2025 Outlook
2025 OUTLOOK Key Metric 2025 Outlook Total Digital Revenue YOY growth in the range of 7% - 10% Adjusted EBITDA(1) YOY growth in the low-single digits (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix. 12
Slide 13: Appendix
EE ENTERPRISES
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION The Company uses non-GAAP financial performance measures to supplement the financial information presented on a U.S. GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not be considered i
Slide 15: Quarterly Revenue Composition
QUARTERLY REVENUE COMPOSITION (Millions of Dollars) Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 FY 2024 Q1 FY2025 Digital Advertising and Marketing Services 46.5 45.4 49.9 52.5 194.2 46.7 YoY % (1) -1.1% -0.2% 1.6% 7.5% 2.0% 1.7% Digital Only Subscription Revenue 19.5 20.3 20.7 23.9 84.3 21.6 YoY % (1)
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Adjusted EBITDA is a non-GAAP financial performance (Millions of Dollars) Q1 FY2025 measure that enhances financial statement users’ overall understanding of the operating performance of the Net loss (16.2) Company. The measure isolates unusual, infreque
Slide 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Q1 Q1 Cash Costs represent a non-GAAP financial performance (Millions of Dollars) measure of operating expenses which are measured on an FY2025 FY2024 accrual basis and settled in cash. This measure is useful to investors in understanding the components
Slide 18: Same-Store Non-GAAP Revenue Reconciliation
SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) Q1 Q1 $ % Q1 Q1 $ % (Millions of Dollars) (Millions of Dollars) FY2025 FY2024 Change Change FY2025 FY2024 Change Change Print Advertising Revenue 19.9 24.4 (4.6) -18.7% Print Other Revenue 7.9 8.5 (0.6) -7.1% Exited operations (0.0) (0.9) 0.9 NM Exited o