Lee Enterprises, Incorporated · NASDAQ:LEE
Lee Enterprises — Q2 FY2025 Earnings Presentation
20 slides from Lee Enterprises's earnings presentation, May 8, 2025
Slide 1: Second Quarter FY2025 Earnings
SECOND QUARTER FY2025 EARNINGS MAY 8, 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 $90M LTM Digital Sub Revenue $103M LTM Amplified Digital® Agency $303M LTM Total Digital Revenue Industry-leading 21% YOY growth, or 24%
Slide 5: Digital Revenue Continues to Grow
DIGITAL REVENUE CONTINUES TO GROW % of Total % Variance to % Variance to PY Q2 FY25 Revenue Prior Year Same-Store(1) Q2 FY2025 Digital Advertising Revenue Mix $44M 32% -3% YOY -2% YOY Amplified Digital® Agency $25M 18% +8% YOY +9% YOY 47% 53% Print Digital-only Digital Subscription $24M 17% +17% YOY
Slide 6: Lee Nears Sustainability from Digital Revenue
LEE NEARS SUSTAINABILITY FROM DIGITAL REVENUE GROSS MARGIN Digital transformation Digital sustainability KEY TAKEAWAYS Digital Margin SG&A FY24 Total Company Gross Margin • Digital revenue replacing print revenue and growing at 17% CAGR since 2021 • Digital subscription revenue and gross margin grow
Slide 7: Second Quarter 2025 Results
SECOND QUARTER 2025 RESULTS Q2 Revenue Total Operating Revenue $137M, -6% YOY, or -5% on a same-store basis(1) Continued digital revenue Total Digital Revenue $73M, +4% YOY(1) growth • Digital subscription $24M, +20%(1) • Digital advertising $44M, -2%(1) • Amplified Digital® agency $25M, +9%(1) Stro
Slide 8: Strong Track Record of Sustainable Cost Management
STRONG TRACK RECORD OF SUSTAINABLE COST MANAGEMENT KEY TAKEAWAYS • Proficient in driving efficiencies Total Cash Costs(1) • Current base of $187M of direct costs associated with our legacy revenue streams that will be managed with associated $1.0B revenue trends $705M $693M • Ongoing initiatives aim
Slide 9: Credit Agreement Represents Strategic Asset
CREDIT AGREEMENT REPRESENTS STRATEGIC ASSET • $123M 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 10: Updated Outlook
UPDATED OUTLOOK Key Metric Second Half FY25 Outlook Total Digital Revenue YOY growth in the low-single digits Adjusted EBITDA(1) YOY growth in the low-single digits (1) Adjusted EBITDA is a non-GAAP financial measure. See appendix. 10
Slide 11: Lee Enterprises
EE ENTERPRISES
Slide 12: 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 13: Quarterly Revenue Composition
QUARTERLY REVENUE COMPOSITION (Millions of Dollars) Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 FY 2024 Q1 FY2025 Q2 FY2025 Digital Advertising and Marketing Services 46.5 45.4 49.9 52.5 194.2 46.7 43.9 (1) YoY % -1.1% -0.2% 1.6% 7.5% 2.0% 1.7% -2.5% Digital Only Subscription Revenue 19.5 20.3 20.7 23.9
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Adjusted EBITDA is a non-GAAP financial performance (Millions of Dollars) Q2 FY2025 measure that enhances financial statement users’ overall understanding of the operating performance of the Net loss (12.0) Company. The measure isolates unusual, infreque
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Adjusted EBITDA is a non-GAAP financial performance (Millions of Dollars) FY2024 measure that enhances financial statement users’ overall understanding of the operating performance of the Net loss (23.6) Company. The measure isolates unusual, infrequent
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Q2 Q2 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 17: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Cash Costs represent a non-GAAP financial performance (Millions of Dollars) FY2024 FY2023 measure of operating expenses which are measured on an accrual basis and settled in cash. This measure is useful to investors in understanding the components of the
Slide 18: Same-Store Non-GAAP Revenue Reconciliation
SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) Q2 Q2 $ % Q2 Q2 $ % (Millions of Dollars) (Millions of Dollars) FY2025 FY2024 Change Change FY2025 FY2024 Change Change Print Advertising Revenue 16.5 18.7 (2.2) -11.8% Print Other Revenue 7.2 8.1 (0.9) -10.6% Exited operations (0.0) (0.6) 0.5 NM Exited
Slide 19: Same-Store Non-GAAP Revenue Reconciliation
SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) 1H 1H $ % 1H 1H $ % (Millions of Dollars) (Millions of Dollars) FY2025 FY2024 Change Change FY2025 FY2024 Change Change Print Advertising Revenue 36.4 43.2 (6.8) -15.7% Print Other Revenue 15.1 16.6 (1.5) -8.8% Exited operations (0.1) (1.5) 1.4 NM Exited
Slide 20: Same-Store Non-GAAP Revenue Reconciliation
SAME-STORE NON-GAAP REVENUE RECONCILIATION(1) $ % $ % (Millions of Dollars) FY2024 FY2023 (Millions of Dollars) FY2024 FY2023 Change Change Change Change Print Advertising Revenue 81.5 125.8 (44.3) -35.2% Print Other Revenue 33.3 39.5 (6.3) -15.8% Exited operations (0.9) (19.1) 18.2 NM Exited operat