DAVENPORT, Iowa (AP) -- -
Lee Enterprises Inc., publisher of the St. Louis Post-Dispatch and dozens of other newspapers, reported $24.5 million quarterly loss Thursday, hurt by write-offs on the book value of its assets and a persistent advertising slump.
The results sent shares tumbling 32 cents, or 17 percent, to $1.60 in premarket trading. The Davenport, Iowa company's fiscal third-quarter loss amounted to 55 cents per share, compared with a profit $2.8 million, or 6 cents per share, a year earlier. Excluding a $39.7 million impairment charge and other one-time items, Lee would have earned 12 cents per share.
Revenue dropped 20.5 percent to $203.8 million, as the recession and competition from the Internet cut ad sales by 24 percent. In a statement, CEO Mary Junck said management is "continuing to position Lee so it will emerge strong when the recession ends," cutting operating expenses for the quarter by 22 percent and paying off $18 million in debt.
She added that "while overall business remains sluggish ... our publishers are reporting cautious optimism from an increasing number of local advertisers."
The results sent shares tumbling 32 cents, or 17 percent, to $1.60 in premarket trading. The Davenport, Iowa company's fiscal third-quarter loss amounted to 55 cents per share, compared with a profit $2.8 million, or 6 cents per share, a year earlier. Excluding a $39.7 million impairment charge and other one-time items, Lee would have earned 12 cents per share.
Revenue dropped 20.5 percent to $203.8 million, as the recession and competition from the Internet cut ad sales by 24 percent. In a statement, CEO Mary Junck said management is "continuing to position Lee so it will emerge strong when the recession ends," cutting operating expenses for the quarter by 22 percent and paying off $18 million in debt.
She added that "while overall business remains sluggish ... our publishers are reporting cautious optimism from an increasing number of local advertisers."
