Quad City Times

Lee Enterprises, Inc. – owner of the Quad City Times and Daily Dispatch-Argus newspapers – lost $12.6 million in its second quarter and reported it obtained waivers to avoid having to make payments in April and March on its $453-million loan.

The Davenport-based company operates some 70 newspapers and online news sites including the St. Louis Post-Dispatch, Buffalo News and Omaha World-Herald.

For the quarter ended March 30, Lee reported a loss of $12.6 million, or $2.07 per share, compared to a loss of $12.3 million, $2.06 per share, for the same period a year ago.

Lee Enterprises – owner of the Quad City Times, Dispatch/Argus and 70+ other news publications and web sites – reported first quarter earnings of $1.2 million, a 32 percent decrease from the same period a year ago.

Lee executives again boasted of its growth in digital subscriptions (up 58 percent from the first quarter of 2022), but overall subscription revenue fell 10.5 percent compared with the same period last year.

"Our first quarter results demonstrate our confidence in Lee's digital transformation," Kevin Mowbray, Lee's President and Chief Executive Officer, stated in its earnings news release issued Feb. 1. "We are on a clear path to becoming sustainable solely from the revenue and cash flow from our digital products."

While the company has been pushing aggressively to move print subscribers to digital subscribers, the overall impact has been a steady decrease in total operating revenues.

A 15 percent increase in digital revenue plus a 15 percent decrease in operating expenses led to a $2.1-million profit for Lee Enterprises, Inc. in the third quarter ended June 25.

Lee, headquartered in Davenport, owns more than 70 newspapers and online news sites including the Quad City Times and Daily Dispatch/Argus.

Amid a steep fall-off in earnings, forced unpaid furloughs across its 77 news properties, significant staff cuts and a continued stock price decline, top Lee Enterprise, Inc. executives received increased compensation packages from 7 to 62 percent during 2022.

The executive compensation detailed in the company's proxy to shareholders, shows President and CEO Kenneth Mowbray's total compensation went up 7.2 percent to $2.33 million. Vice President and Chief Financial Officer Timothy Millage had his compensation upped 33 percent to $1.05 million. Operating Vice President and Vice President - Audience Strategy Nathan E. Bekke's compensation package increase 62 percent to $1.12 million.

And, past CEO Mary E. Junck, who serves as executive chair of the board of directors, received a $30,000 hike in her compensation to $430,000 ($250,000 in fees paid in cash and $180,000 in stock awards).

For the company's fiscal year ended Sept. 25, 2022, Lee lost 35 cents per share compared with a gain of $3.98 per share for the previous fiscal year.