Lee Enterprises Provides Business Update

Outlines Actions Taken in Response to COVID-19

Receives Notice from NYSE

DAVENPORT, Iowa, May 18, 2020 (GLOBE NEWSWIRE) -- Lee Enterprises, Incorporated (NYSE: LEE) (“Lee” or the “Company”) today provided a business update, including actions taken in response to the COVID-19 pandemic, and announced that the Company has received a letter from the New York Stock Exchange (NYSE) indicating that the Company is not compliant with certain listing standards.

Kevin Mowbray, President and Chief Executive Officer, said, “We have taken swift business and operational actions in the face of the unprecedented COVID-19 pandemic, with a focus – above all else – on protecting the health and safety of our employees, readers and communities. Like other local media companies, we expect our advertising revenue to be significantly impacted by the ongoing pandemic and we have taken aggressive actions to manage the near-term economic impact to our company. Notably, Lee has a solid liquidity position, including approximately $31 million in cash on our balance sheet as of the end of March and an attractive debt structure, 25-year maturity with no fixed mandatory principal payments and no leverage or financial performance covenants, as a result of the refinancing we completed earlier in the year with Berkshire Hathaway, now our sole lender.”

Mowbray continued, “The size and engagement of our audience during this time underscores the vital role we play in the communities where we operate. We are focused on continuing to deliver outstanding local news coverage that our readers trust and maintaining strong partnerships with our advertisers, keeping communities informed and engaged. We are grateful to our dedicated employees for being there when it matters most and reacting with incredible resiliency and creativity to deliver their best work under difficult circumstances.”

Business Update

Lee’s business performance has been adversely affected by the COVID-19 pandemic, including a decline in advertising revenue related to the economic downturn and limited economic activity in local markets due to government mandated shutdowns. However, the Company noted that approximately 43% of its revenue is subscription based, including subscription revenue and revenue at TownNews. These categories have been significantly less affected by COVID-19 to date than advertising revenue. Additionally, approximately 47% of Lee’s advertising revenue is from local retailers, while the Company has limited exposure to hardest hit advertising areas, with only approximately 12% of ad revenue from national retail and 4% from programmatic.