Group 1 - Abbott Cooper PLLC is investigating potential breaches of fiduciary duty by the Board of Directors of Lee Enterprises, Incorporated on behalf of the company's stockholders [1] - The investigation focuses on whether the Lee Enterprises Board of Directors has fulfilled its fiduciary obligations to stockholders, including its duty of loyalty [1] Group 2 - Stockholders of Lee Enterprises who are interested in the investigation or their legal rights are encouraged to contact Abbott Cooper PLLC at no cost or obligation [2] - Abbott Cooper PLLC operates on a contingency fee basis, meaning there is no cost to stockholders unless a recovery is obtained [2]

Financial Performance - Total operating revenue for the three months ended December 28, 2025, was $130.1 million, a decrease of 10.0% compared to $144.6 million for the same period in 2024[92]. - Net loss for the quarter was $5.1 million, a significant improvement from a net loss of $16.2 million in the same quarter of the previous year, reflecting a 68.4% reduction[94]. - Adjusted EBITDA for the quarter was $12.3 million, representing a 61% increase compared to the previous year, driven by effective cost management[94]. - Cash provided by operating activities totaled $4.5 million for the three months ended December 28, 2025, compared to cash used of $7.3 million in the same period in 2024, an increase of $11.8 million[127]. - Cash Costs for the three months ended December 28, 2025, were $121.2 million, down from $138.6 million in the same period in 2024, a decrease of 12.6%[125]. - The company anticipates continued improvement in operating results into future quarters following a significant milestone in cyber recovery[132]. Revenue Breakdown - Digital revenue totaled $70.3 million, representing 54.1% of total operating revenue, with digital-only subscription revenue growing 5.3% year-over-year to $22.7 million[92][104]. - Digital advertising and marketing services revenue totaled $42.8 million, down 8.4% year-over-year, but represented 71.3% of total advertising and marketing services revenue[103]. Expenses and Cost Management - Total operating expenses were $125.9 million, down 15.5% from $149.0 million in the prior year, primarily due to cost reduction measures[93][108]. - Compensation expenses decreased by 18.0% to $49.4 million, reflecting reductions in full-time employees due to ongoing business transformation efforts[109]. Capital and Liquidity - Cash on the balance sheet totaled $12.6 million, while total debt, net of cash, was $443 million[95]. - The company issued 16,000,000 shares of common stock in a private placement, raising approximately $50.0 million for working capital and corporate purposes[86]. - The company plans to issue 15,384,615 shares at $3.25 per share in a private placement, expected to raise approximately $50.0 million before expenses[130]. - The company's liquidity totaled $12.6 million as of December 28, 2025, excluding future cash flows from operations[130]. Tax and Non-Operating Income - The company recorded an income tax expense of $0.9 million, or (21.4)% of pretax loss, for the three months ended December 28, 2025, compared to $3.2 million, or (25.0)%, for the same period in 2024[117]. - Non-operating income and expense decreased by $0.2 million, or 2.3%, primarily due to an increase in pension and OPEB related benefits[115]. Debt and Interest - The weighted average cost of debt was 9% at the end of both the three months ended December 28, 2025, and December 29, 2024[115].

PresentationI would now like to turn the call over to your host, Jared Marks, Vice President, Finance. Please go ahead.Welcome to the Lee Enterprises 2026 First Quarter Webcast and Conference Call. The call is being recorded and will be available for replay at investors.lee.net. [Operator Instructions] A link to the live webcast can be found at investors.lee.net.Jared MarksVice President of Corporate Finance; Assistant Secretary and Assistant Treasurer Thank you, and good morning, everyone. We appreciate yo ...

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 61% year-over-year to $12 million, driven by consistent execution and disciplined cost management [3][10] - Total cash costs declined by $17 million over the prior year, contributing to improved operating efficiency [11][12] - Adjusted EBITDA margin improved to 9.4% from 5.3% in the prior year [12] Business Line Data and Key Metrics Changes - Digital subscription revenue reached $23 million from 609,000 digital-only subscribers, reflecting a 5% growth [10] - Total digital revenue for Q1 was over $70 million, representing over 54% of total revenue, with digital sources accounting for 71% of total advertising revenue [11][15] - Digital revenue mix improved by 330 basis points year-over-year [11] Market Data and Key Metrics Changes - Company operates in 72 markets across the U.S., providing high-quality local news and advertising [8] - Digital subscription revenue has grown significantly, more than doubling that of the nearest competitor over the past three years [14] Company Strategy and Development Direction - The company is focused on a three-pillar digital growth strategy, transitioning to a digital-first company [3][4] - A $50 million equity investment was completed to strengthen the balance sheet and improve liquidity, with plans for future deleveraging [3][5] - The goal is to reach $450 million in digital revenue by 2030, with a trajectory towards approximately 90% digital revenue by fiscal 2030 [4][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit Adjusted EBITDA growth for fiscal 2026, supported by strong first-quarter results [19] - The amended credit agreement is expected to generate approximately $18 million in annual interest savings, enhancing financial flexibility [17][18] - The company aims to continue building on digital revenue growth while managing declining legacy revenue streams [16] Other Important Information - A strategic partnership with Hudl was announced, aimed at enhancing local sports coverage and community engagement [20][21] - The company has identified $26 million in non-core assets for potential monetization to contribute to future debt reduction [18] Q&A Session Summary - No questions were received from web participants during the Q&A session [22][23]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 61% year-over-year to $12 million, driven by consistent execution and disciplined cost management [3][10] - Total cash costs declined by $17 million over the prior year, contributing to improved operating efficiency [11] - Adjusted EBITDA margin improved to 9.4% from 5.3% in the prior year [12] Business Line Data and Key Metrics Changes - Digital subscription revenue reached $23 million from 609,000 digital-only subscribers, reflecting a 5% growth [10] - Total digital revenue for Q1 was over $70 million, representing over 54% of total revenue, with a 330 basis points year-over-year improvement in digital revenue mix [11] - Revenue from the Amplified Digital Agency grew at a 5% annual rate over the last three years, indicating strong digital advertising growth [14][15] Market Data and Key Metrics Changes - The company operates in 72 markets across the U.S., positioning itself as a leading provider of local news and advertising [8] - Digital revenue is projected to reach approximately 90% of total revenue by fiscal 2030, reflecting a significant shift from print to digital [15][16] Company Strategy and Development Direction - The company is focused on a three-pillar digital growth strategy, emphasizing digital subscription growth and digital advertising [4][5] - A recent $50 million equity investment has strengthened the balance sheet and improved liquidity, allowing for future investments in digital transformation [3][6] - The company aims to enhance operational efficiency while reducing legacy costs, positioning itself for sustainable long-term growth [17] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the outlook for fiscal 2026, expecting mid-single digits Adjusted EBITDA growth [19] - The partnership with Hudl is expected to enhance local sports coverage and community engagement, aligning with the company's mission [20] - Management expressed confidence in the company's ability to achieve long-term sustainability through digital revenue growth and effective cost management [16][24] Other Important Information - The company has identified $26 million in non-core assets for potential monetization, contributing to future debt reduction [18] - The termination of the defined benefit pension plan has eliminated future cost uncertainties [18] Q&A Session Summary - No questions were received from web participants during the Q&A session [22][23]

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 61% year-over-year to $12 million, driven by consistent execution and disciplined cost management [3][10] - Total cash costs declined by $17 million over the prior year, reflecting improved operating efficiency [11][12] - Adjusted EBITDA margin improved to 9.4% from 5.3% in the prior year [12] Business Line Data and Key Metrics Changes - Digital subscription revenue reached $23 million from 609,000 digital-only subscribers, with a 5% growth fueled by engagement and pricing optimization [10] - Total digital revenue for Q1 was over $70 million, representing over 54% of total revenue, with a digital revenue mix improvement of 330 basis points year-over-year [11] - Revenue from the Amplified Digital Agency grew at a 5% annual rate over the last three years, indicating strong digital advertising growth [14] Market Data and Key Metrics Changes - The company operates in 72 markets across the U.S., providing high-quality local news and advertising [8] - Digital revenue is projected to reach approximately 90% by fiscal 2030, reflecting a significant shift from print to digital [14][15] Company Strategy and Development Direction - The company is focused on a three-pillar digital growth strategy, emphasizing digital subscription growth and digital advertising [4][8] - A recent $50 million equity investment strengthens the balance sheet and improves liquidity, supporting future digital transformation projects [3][5] - The amended credit agreement reduces the interest rate on outstanding debt from 9% to 5%, expected to generate approximately $18 million in annual interest savings [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit Adjusted EBITDA growth for fiscal 2026, supported by strong first-quarter results [18] - The partnership with Hudl aims to enhance local sports coverage and community engagement, aligning with the company's mission [18][19] Other Important Information - The company has identified $26 million in non-core assets for potential monetization, contributing to future debt reduction [17] - The termination of the defined benefit pension plan eliminates future cost uncertainty [17] Q&A Session Summary - No questions were received from web participants during the Q&A session [21]

Core Insights - The company has strengthened its balance sheet and capital structure, positioning itself for long-term value creation for shareholders through a recent $50 million private placement of common stock at $3.25 per share [1][4][25] - The company aims to reach a digital revenue target of $450 million by 2030, having generated nearly $300 million in digital revenue over the past twelve months [2][14] - The recent equity investment and amended credit agreement will significantly reduce the interest rate on outstanding debt from 9% to 5%, resulting in approximately $18 million in annual interest savings [5][6][17] Financial Performance - In the first quarter of fiscal 2026, adjusted EBITDA grew by 61% year-over-year to $12 million, driven by effective cost management and operational efficiency [4][9][10] - Digital-only subscription revenue reached $23 million, with a 5% growth attributed to enhanced engagement and pricing strategies [9][10] - Total digital revenue for the quarter was over $70 million, representing more than 54% of total revenue, with a 330 basis point improvement in the digital revenue mix year-over-year [10][12] Strategic Initiatives - The company is focused on a three-pillar digital growth strategy that emphasizes local content, digital subscription growth, and a robust digital advertising business [3][14] - A new strategic partnership with Huddl aims to enhance local sports coverage and community engagement through video content [20][21] - The company has identified $26 million in non-core assets for potential monetization to further support debt reduction efforts [18] Future Outlook - The company reaffirms its outlook for mid-single-digit adjusted EBITDA growth for fiscal 2026, supported by strong first-quarter results [19] - The trajectory towards achieving 90% digital revenue by fiscal 2030 is expected to create a sustainable business model less reliant on print products [14][15] - Continued focus on reducing legacy costs and enhancing operational efficiency remains a priority to drive long-term shareholder value [16][25]

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FIRST QUARTER FY2026 EARNINGS FEBRUARY 10, 2026 SAFE HARBOR The information provided in this presentation may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "aims", "anticipates," "plans," "expects," "intends," "will," "potential," "hope" and similar expressions ...

Core Insights - Lee Enterprises reported a significant growth in Adjusted EBITDA of $5 million, representing a 61% year-over-year increase, positioning the company favorably for fiscal 2026 [1][3] - The company secured a $50 million equity investment, enhancing its financial stability and supporting its digital transformation efforts [3][4] - The interest rate on outstanding debt was reduced from 9% to 5%, expected to save approximately $18 million annually, totaling up to $90 million over five years [3][6] Financial Performance - For the first quarter ended December 28, 2025, total operating revenue was $130 million, with digital revenue accounting for $70 million, or 54% of total revenue [5][15] - Digital-only subscription revenue reached $23 million, up 5% year-over-year, with a total of 609,000 digital-only subscribers [5][15] - Operating expenses totaled $126 million, reflecting a 16% decrease compared to the previous year, while cash costs decreased by 13% to $121 million [5][17] Debt and Capital Structure - The company has $455 million of debt outstanding, with favorable terms including a 25-year maturity and no fixed principal payments [6][10] - The recent $50 million private placement of common stock led to amendments in the credit agreement, significantly lowering the interest rate on the term loan [6][19] - The company anticipates a net loss of $5 million for the quarter, but Adjusted EBITDA was reported at $12 million, an increase of $5 million from the prior year [5][13] Strategic Outlook - The company aims for mid-single-digit Adjusted EBITDA growth year-over-year for fiscal 2026, supported by its Three Pillar Digital Growth Strategy [4][5] - The focus remains on building durable, recurring revenue streams while managing costs associated with legacy revenue [3][4] - The company expects to receive additional reimbursements from its insurance carrier related to a previous cyber event, which will further support financial performance [3][5]