Davenport-based Lee Enterprises, Inc. – owner of the QC Times and Daily Dispatch/Argus – has a new CEO, a new chief financial officer, several new board members and a new majority owner.
The initial financial results, however, look very much the same: declining revenues and negative earnings.
The company's second quarter results – a loss of $2.2 million – were an improvement from a year ago – a loss of $12.6 million.
But the smaller loss came from lower interest on Lee's $455-million debt and further cuts in compensation expenses (employees).
Revenues continue to decline, both from print and digital advertising and both print and digital subscriptions.
Total operating revenues for the quarter ended March 29 fell to $122 million, compared with $137 million for the same period last year, a decrease of 11 percent.
The decline in revenue was offset somewhat by $3.6 million from the company's insurance payment related to a cyber break-in last year and more than $2 million less in interest expense.
Florida billionaire David Hoffmann invested $50 million in the media company last December and installed several new board members.
Nathan Bekke, who had been serving as president and interim chief executive officer, was named president and chief executive officer of Lee April 24, and Josh Rinehults, who was serving as vice president, interim chief financial officer and treasurer, was promoted to vice president, chief financial officer and treasurer.
As a result of Hoffmann's investment, the interest rate on the debt held by BH Financial (a subsidiary of Berkshire Hathaway) was lowered to 5 percent from 9 percent. The move will save Lee an estimated $18 million per year over the five-year term of the agreement.
Lee owns some 70 other newspapers and online news sites, including those in St. Louis, Omaha, Buffalo, Richmond, Tucson, Lincoln and Madison.
CLICK HERE to download the company's full financial filing with the Securities and Exchange Commission (SEC)>
