LEE ENTERPRISES, Inc

LEE ENTERPRISES, Inc Annual Review - 2023 Performance Snapshot

Hey investor! Let’s cut through the noise and see how Lee Enterprises really did this year. Imagine we’re catching up at your kitchen table – no jargon, just the essentials.

---

1. The Business in a Nutshell

Lee runs local newspapers and digital advertising tools, helping businesses reach communities. Think hometown news + online ads. This year, they doubled down on digital (websites, apps) while managing declining print operations.

---

2. Money Talk: Growth or Slowdown?

• Digital Growth: Their bright spot! Added 100,000+ digital subscribers (people paying for online news).
• Print Decline: Print ads and subscriptions kept shrinking – faster than expected.
• Overall: A slow-motion pivot. Digital gains are real but still playing catch-up with print losses.

---

3. Wins vs. Challenges

✅ What Worked:

• Launched a new ad tool for small businesses.
• Reduced debt (paid down millions this year, though specifics weren’t shared).

⚠️ What Struggled:

• Rising costs for paper and delivery squeezed profits.
• Competing with Google/Meta for ad dollars remains tough.

---

4. Financial Health Check

• Debt: They’re paying it down steadily, but the exact remaining amount wasn’t disclosed. Not in crisis mode.
• Cash Flow: Enough to fund basics and some digital investments.
• Audit Costs: Spent $1.18 million on financial reviews (down 24% from last year).

---

5. The Big Risks

• Print Freefall: If digital growth stalls, declining print revenue could hurt.
• Recession Risk: Small businesses (their main ad customers) might cut spending in a downturn.
• Tech Giants: Google and Meta still dominate digital ads – Lee’s niche is local, but scale matters.

---

6. Competitor Check

• Local News Peers: Lee’s doing better than most traditional newspaper companies.
• Tech Titans: Still David vs. Goliath, but Lee’s hyper-local focus gives it a fighting chance.

---

7. Leadership & Strategy

• New Hire: Added a “Digital Growth Officer” (yes, that’s real!).
• Plan: Sell off underperforming print assets, go all-in on digital ads and subscriptions.

---

8. What’s Next for 2024?

• Goal: Grow digital revenue by 10-15%.
• Watch For: More cost-cutting in print operations and potential acquisitions of smaller digital companies.

---

9. Why This Matters to Investors

• Opportunity: Local news trust is high, and small businesses need affordable ad tools.
• Wildcard: Potential laws forcing Google/Meta to pay for news content – this could boost Lee’s revenue.

---

The Transparency Note

Lee’s report lacked specifics on exact revenue figures and debt details. While common in early-stage turnarounds, it’s worth noting for investors who prefer full visibility.

---

TL;DR – Should You Consider Investing?

• 👍 Potential Upside: Digital growth is real, debt is manageable, and local news has staying power.
• 👎 Risks: Print decline isn’t stopping, and competing with tech giants is brutal.
• Verdict: A speculative play. If you believe in local journalism’s survival and Lee’s digital execution, watch closely. If they hit their 10-15% digital growth target in 2024, it could signal a turnaround. Otherwise, proceed with caution.

Your Next Move: Track their quarterly digital subscriber numbers and debt levels. If digital growth accelerates while print losses stabilize, the story gets interesting. If not, it’s a risky bet.

Questions? Let’s chat more over coffee! ☕️