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Lee loses $26.6 million for quarter

Tue, 17 Apr 2012 17:17:46 CDT
By: Charlie Schlenker

The parent company of the Pantagraph newspaper in Bloomington continues to cut expenses faster than revenue is declining. That's according to the most recent financial statements from Lee Enterprises. The Iowa based company reduced operating expenses by more than 6% for the quarter as operating revenue fell by 3.6%. Lee reported a second quarter loss in its budget year of $26.6 million compared to a loss of about $1.5 million a year ago. Much of the recent red ink comes from expenses associated with refinancing and bankruptcy. In fact, Lee's cash flow increased more than nine percent. Lee has 7.5% fewer workers than it did at the same time last year. Despite the loss of 54 cents per share, CEO Mary Junck says revenue trends are encouraging as the company continues to try to transform itself. Digital revenue is up substantially even as print revenue continues to decline, though the digital portion of the company revenue stream is still only a small piece of the overall pie.

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