The Quad City Times Sunday and weekday newspaper circulation continued to decline in 2013, but at a slower rate than in the past five years.
Circulation numbers are the basis for determining advertising rates and newspapers across the country have seen subscriptions fall dramatically over the past 15 years as digital delivery of news and information has proliferated via the Internet.
The Times Sunday circulation fell 2.5 percent in 2013 from the previous 12 months and the average weekday circulation declined 3 percent, according to figures included in the company's 2013 annual report sent shareholders in advance of the company's annual meeting Feb. 19.
Lee Enterprises – owner of the Times – reported overall weekday circulation among its 46 daily newspapers declined 3.5 percent while its Sunday "circulation units" increased 7.4 percent "as a result of an increase in branded editions."
The boost in Lee's Sunday "circulation" numbers came primarily in the company's St. Louis market where it reported a more than 50 percent increase in circulation units – from 299,227 to 461,259 – by using "branded editions" now allowed by the Alliance for Audited Media (formerly the Audit Bureau of Circulation).
Branded editions are separate publications of the newspaper that have a different name but maintain a consistent identity, according to the alliance web site.
To qualify as a branded edition, the audit group says the publication must: publish at least weekly; represent itself as a newspaper, not as a magazine or a newsletter; contain editorial content or requested by the consumer; publish on the same paper-stock as the member publication; and be identified as “An edition of ” the member name.
In its first quarter, ended Dec. 29, 2013, Lee reported net income of $12.1 million, a drop of 18 percent compared with the first quarter last year when the company had earnings of $14.7 million.
The decline reflected a 4 percent drop in operating revenue and more than $20 million in interest on the company's long-term debt, which stood at $833 million at the end of 2013.
Among the items on the agenda for the annual meeting is management's request to issue 300,000 shares of common stock which would be given to non-employee directors of the company over the next three to four years.
The eight non-employee directors of the company currently receive an annual grant of 10,000 shares of Lee stock each year. The award is capped on the fair market value of shares awarded equal to the annual cash retainer, which is being raised in 2014 to $50,000.
According to the company proxy, the increase in the retainer from $40,000 to $50,0000 was the first time it has been increased since 2006. Non-employee directors must hold their annual stock grants for a minimum of 10 years, unless the director retires, resigns or dies while holding the position.
The non-employee directors also receive $2,000 for each board meeting attended and $1,000 for each board or committee telephonic meeting, and those who serve as chairmen of board committees also receive additional stipends.
The non-employee directors and their compensation (fees earned and value of stock awards) in 2013 were: Richard R. Cole ($73,917); Nancy S. Donovan ($73,000); Leonard J. Elmore ($70,000); Brent Magid ($70,000); William E. Mayer ($90,167); Herbert W. Moloney III ($86,833); Andrew E. Newman ($90,000); Mark B. Vittert ($80,083).
