Attached files
file | filename |
---|---|
8-K - FORM 8-K - LEE ENTERPRISES, Inc | postconfirmation8-k.htm |
UNITED STATES BANKRUPTCY COURT | ||||
DISTRICT OF DELAWARE | ||||
In re: Lee Enterprises, Incorporated, et al | Case No. 11-13918 | |||
Debtors | Reporting Period: | December 26, 2011 - March 25, 2012 | ||
POST CONFIRMATION QUARTERLY OPERATING REPORT | ||||
File with Court and submit copy to United States Trustee within 20 days after end of month | ||||
Submit copy of report to any official committee appointed in the case. | ||||
Affidavit/ | ||||
REQUIRED DOCUMENTS | Form No. | Document Attached | Explanation Attached | Supplement Attached |
Schedule of Cash Receipts and Disbursements (1) | QOR-1 | X | ||
Bank Reconciliation (or copies of debtor's bank reconciliations) | QOR-1a | X | ||
Statement of Operations (1) | QOR-2 | X | ||
Balance Sheet (1) | QOR-3 | X | ||
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents | ||||
are true and correct to the best of my knowledge and belief. | ||||
Signature of Debtor | Date | |||
Signature of Joint Debtor | Date | |||
/s/ Bradley D. Junker | April 20, 2012 | |||
Signature of Authorized Individual* | Date | |||
Bradley D. Junker | Asst. Secretary/Asst. Treasurer | |||
Printed Name of Authorized Individual | Title of Authorized Individual | |||
*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor | ||||
is a partnership; a manager or member if debtor is a limited liability company. | ||||
(1) The information contained in MOR-1, MOR-2 and MOR-3 is not considered final by the debtors and may change between now and the | ||||
date of our March 10Q SEC filing which is May 4, 2012. |
Lee Enterprises Incorporated | ||||||||||||||||||||
Schedule of Cash Receipts and Disbursements (QOR-1) | ||||||||||||||||||||
December 26, 2011 - March 25, 2012 | ||||||||||||||||||||
Total | Lee Enterprises, Incorporated | K. Falls Basin Publishing, Inc. | INN Partners, L.C. | Accudata, Inc. | Journal-Star Printing Co. | Lee Publications, Inc. | Lee Consolidated Holdings Co. | Lee Procurement Solutions Co. | Sioux City Newspapers, Inc. | STL Distribution Services LLC | St. Louis Post-Dispatch LLC | |||||||||
Cash as of December 26, 2011 | 31,428,000 | |||||||||||||||||||
Receipts | ||||||||||||||||||||
Accounts Receivable | 200,330,380 | |||||||||||||||||||
Loans and Advances | — | |||||||||||||||||||
Sale of Assets | 3,579,701 | |||||||||||||||||||
Dividends | 800,000 | |||||||||||||||||||
Transfers (from DIP accounts) | — | |||||||||||||||||||
Total Receipts | 204,710,081 | |||||||||||||||||||
Disbursements | ||||||||||||||||||||
Net Payroll | 42,939,736 | 17,478,853 | 887,879 | 2,629,629 | 8,678,471 | 1,065,500 | 841,252 | 603,639 | 5,770,134 | |||||||||||
Payroll Taxes | 16,384,683 | 16,384,683 | ||||||||||||||||||
Employee Benefits | 14,690,924 | 14,690,924 | ||||||||||||||||||
US Bank Credit Card Transactions | 2,823,282 | 1,246,738 | 88,658 | 187,715 | 492,112 | 43,021 | 78,096 | 16,901 | 93,989 | |||||||||||
Comdata Credit Card Transactions | 2,087,177 | 908,987 | 263,039 | 95,357 | 393,615 | 12,516 | 30,629 | 26,604 | 147,806 | |||||||||||
Newsprint | 15,549,040 | 4,066,338 | 859,629 | 4,049,641 | 415,352 | 389,258 | 5,053,613 | |||||||||||||
Debt Payments | 30,365,000 | 20,010,000 | ||||||||||||||||||
Interest Payments | 11,731,458 | 8,285,104 | ||||||||||||||||||
Reorganization Fees | 13,089,348 | 11,496,597 | ||||||||||||||||||
Other | 56,822,435 | 23,040,733 | 807,736 | 2,127,354 | 11,356,030 | 972,987 | 1,010,691 | 3,284,871 | 8,053,544 | |||||||||||
206,483,081 | 117,608,956 | — | 2,047,311 | — | 5,899,684 | 24,969,870 | 2,509,374 | — | 2,349,926 | 3,932,016 | 19,119,087 | |||||||||
Net Cash Flow | (1,773,000 | ) | ||||||||||||||||||
Cash as of March 25, 2012 | 29,655,000 |
Lee Enterprises Incorporated | ||||||||||||||||||||
Schedule of Cash Receipts and Disbursements (QOR-1) | ||||||||||||||||||||
December 26, 2011 - March 25, 2012 | ||||||||||||||||||||
Fairgrove LLC | Pulitzer Network Systems LLC | Suburban Journals of Greater St. Louis LLC | Pulitzer Inc. | Pulitzer Technologies Inc. | Pulitzer Newspapers Inc. | Flagstaff Publishing Co. | Hanford Sentinel, Inc. | Kauai Publishing Co. | NIPC, Inc. | Santa Maria Times, Inc. | Ynez Corporation | Pulitzer Utah Newspapers, Inc. | ||||||||
Cash as of December 26, 2011 | ||||||||||||||||||||
Receipts | ||||||||||||||||||||
Accounts Receivable | ||||||||||||||||||||
Loans and Advances | ||||||||||||||||||||
Sale of Assets | ||||||||||||||||||||
Dividends | ||||||||||||||||||||
Transfers (from DIP accounts) | ||||||||||||||||||||
Total Receipts | ||||||||||||||||||||
Disbursements | ||||||||||||||||||||
Net Payroll | 112,258 | 709,721 | 578,783 | 346,164 | 419,043 | 249,266 | 539,673 | |||||||||||||
Payroll Taxes | ||||||||||||||||||||
Employee Benefits | ||||||||||||||||||||
US Bank Credit Card Transactions | 10,047 | 344,093 | 54,396 | 21,884 | 5,217 | 12,314 | ||||||||||||||
Comdata Credit Card Transactions | 12,111 | 30,613 | 62,617 | 9,295 | 6,445 | 18,050 | ||||||||||||||
Newsprint | 79,346 | 115,856 | 44,032 | 134,652 | ||||||||||||||||
Debt Payments | 10,355,000 | |||||||||||||||||||
Interest Payments | 3,446,354 | |||||||||||||||||||
Reorganization Fees | 1,592,751 | |||||||||||||||||||
Other | 755,231 | 923,919 | 871,885 | 314,541 | 325,990 | 384,434 | 513,629 | |||||||||||||
— | 112,258 | 1,487,110 | 16,318,023 | — | 1,825,374 | 857,063 | 892,068 | 689,395 | — | 1,218,318 | — | — | ||||||||
Net Cash Flow | ||||||||||||||||||||
Cash as of March 25, 2012 |
Lee Enterprises Incorporated | ||||||||||||||
Schedule of Cash Receipts and Disbursements (QOR-1) | ||||||||||||||
December 26, 2011 - March 25, 2012 | ||||||||||||||
Napa Valley Publishing Co. | Northern Lakes Publishing Co. | Pantagraph Publishing Co. | Southwestern Oregon Publishing Co. | Pulitzer Missouri Newspapers, Inc. | SHTP LLC | HomeChoice, LLC | NVPC LLC | NLPC LLC | HSTAR LLC | SOPC LLC | ||||
Cash as of December 26, 2011 | ||||||||||||||
Receipts | ||||||||||||||
Accounts Receivable | ||||||||||||||
Loans and Advances | ||||||||||||||
Sale of Assets | ||||||||||||||
Dividends | ||||||||||||||
Transfers (from DIP accounts) | ||||||||||||||
Total Receipts | ||||||||||||||
Disbursements | ||||||||||||||
Net Payroll | 501,803 | 1,067,762 | 285,604 | 174,301 | ||||||||||
Payroll Taxes | ||||||||||||||
Employee Benefits | ||||||||||||||
US Bank Credit Card Transactions | 9,082 | 70,102 | 33,361 | 15,556 | ||||||||||
Comdata Credit Card Transactions | 10,145 | 16,518 | 38,745 | 4,086 | ||||||||||
Newsprint | 114,410 | 157,948 | 68,965 | |||||||||||
Debt Payments | ||||||||||||||
Interest Payments | ||||||||||||||
Reorganization Fees | ||||||||||||||
Other | 519,025 | 1,175,347 | 190,013 | 194,475 | ||||||||||
1,154,466 | — | 2,487,676 | 616,688 | 388,418 | — | — | — | — | — | — | ||||
Net Cash Flow | ||||||||||||||
Cash as of March 25, 2012 |
Lee Enterprises, Incorporated, et al |
Case No. 11-13918 |
Bank Reconciliation QOR-1a |
Quarterly Period Ended March 25, 2012 |
The above debtors declare for this report that all bank reconciliations have been completed. |
Lee Enterprises, Incorporated, et al | |||||||||||||||||||||
Case No. 11-13918 | |||||||||||||||||||||
Statement of Operations (QOR-2) | |||||||||||||||||||||
Quarter Ended March 25, 2012 | |||||||||||||||||||||
CURRENT QUARTER | YEAR TO DATE | ||||||||||||||||||||
(Thousands, Except Per Share Data) | Prior | % D - Actual | Prior | % D - Actual | |||||||||||||||||
Actual | Plan | Year | Plan | PY | Actual | Plan | Year | Plan | PY | ||||||||||||
Operating Revenue: | |||||||||||||||||||||
Retail | 63,407 | 65,303 | 67,512 | (2.9 | ) | (6.1 | ) | 147,398 | 150,410 | 159,003 | (2.0 | ) | (7.3 | ) | |||||||
Classified | 29,589 | 31,276 | 32,193 | (5.4 | ) | (8.1 | ) | 59,730 | 63,362 | 65,880 | (5.7 | ) | (9.3 | ) | |||||||
Digital | 15,704 | 17,306 | 14,288 | (9.3 | ) | 9.9 | 31,906 | 34,516 | 28,963 | (7.6 | ) | 10.2 | |||||||||
National | 5,879 | 6,257 | 6,758 | (6.0 | ) | (13.0 | ) | 15,330 | 14,064 | 15,761 | 9.0 | (2.7 | ) | ||||||||
Niche publications | 2,921 | 3,301 | 3,302 | (11.5 | ) | (11.5 | ) | 5,636 | 6,144 | 6,214 | (8.3 | ) | (9.3 | ) | |||||||
Total advertising revenue | 117,500 | 123,443 | 124,053 | (4.8 | ) | (5.3 | ) | 260,000 | 268,496 | 275,821 | (3.2 | ) | (5.7 | ) | |||||||
Circulation | 44,878 | 45,107 | 44,821 | (0.5 | ) | 0.1 | 91,574 | 90,948 | 90,298 | 0.7 | 1.4 | ||||||||||
Commercial print | 3,066 | 3,027 | 2,891 | 1.3 | 6.1 | 6,207 | 5,967 | 5,943 | 4.0 | 4.4 | |||||||||||
Digital services and other | 6,814 | 7,096 | 6,961 | (4.0 | ) | (2.1 | ) | 14,038 | 14,067 | 14,331 | (0.2 | ) | (2.0 | ) | |||||||
Total revenue | 172,258 | 178,673 | 178,726 | (3.6 | ) | (3.6 | ) | 371,819 | 379,478 | 386,393 | (2.0 | ) | (3.8 | ) | |||||||
Operating Expenses: | |||||||||||||||||||||
Compensation | 72,524 | 75,367 | 76,529 | (3.8 | ) | (5.2 | ) | 146,101 | 149,127 | 154,549 | (2.0 | ) | (5.5 | ) | |||||||
Newsprint and ink | 13,077 | 14,173 | 14,849 | (7.7 | ) | (11.9 | ) | 27,937 | 29,082 | 30,523 | (3.9 | ) | (8.5 | ) | |||||||
Other operating expenses | 54,011 | 54,941 | 57,476 | (1.7 | ) | (6.0 | ) | 111,253 | 110,879 | 117,144 | 0.3 | (5.0 | ) | ||||||||
Total cash costs excluding special items | 139,612 | 144,481 | 148,854 | (3.4 | ) | (6.2 | ) | 285,291 | 289,088 | 302,216 | (1.3 | ) | (5.6 | ) | |||||||
Operating cash flow excluding special items | 32,646 | 34,192 | 29,872 | (4.5 | ) | 9.3 | 86,528 | 90,390 | 84,177 | (4.3 | ) | 2.8 | |||||||||
Workforce adjustments | 542 | 118 | 443 | NM | 22.3 | 880 | 202 | 635 | NM | 38.6 | |||||||||||
Total cash costs | 140,154 | 144,599 | 149,297 | (3.1 | ) | (6.1 | ) | 286,171 | 289,290 | 302,851 | (1.1 | ) | (5.5 | ) | |||||||
Operating cash flow | 32,104 | 34,074 | 29,429 | (5.8 | ) | 9.1 | 85,648 | 90,188 | 83,542 | (5.0 | ) | 2.5 | |||||||||
Margin | 18.6 | % | 19.1 | % | 16.5 | % | 23 | % | 23.8 | % | 21.6 | % | |||||||||
Margin, excluding special items | 19 | % | 19.1 | % | 16.7 | % | 23.3 | % | 23.8 | % | 21.8 | % | |||||||||
Depreciation | 6,126 | 6,157 | 7,293 | (0.5 | ) | (16.0 | ) | 12,362 | 12,307 | 13,816 | 0.4 | (10.5 | ) | ||||||||
Amortization of intangible assets | 10,920 | 10,868 | 11,201 | 0.5 | (2.5 | ) | 21,844 | 21,739 | 22,484 | 0.5 | (2.8 | ) | |||||||||
Curtailment gains | — | — | 1,991 | NM | NM | — | — | 12,163 | NM | NM | |||||||||||
Operating income before equity investments | 15,058 | 17,049 | 12,926 | (11.7 | ) | 16.5 | 51,442 | 56,142 | 59,405 | (8.4 | ) | (13.4 | ) | ||||||||
Equity in earnings of associated companies: | |||||||||||||||||||||
Madison Newspapers, Inc. | 445 | 550 | 447 | (19.1 | ) | (0.4 | ) | 1,687 | 1,850 | 1,688 | (8.8 | ) | NM | ||||||||
MNI workforce adjustments | 5 | — | (34 | ) | NM | NM | (8 | ) | — | (40 | ) | NM | (79.0 | ) | |||||||
TNI Partners | 1,161 | 1,161 | 1,039 | NM | 11.7 | 2,891 | 2,317 | 2,927 | 24.8 | (1.2 | ) | ||||||||||
TNI amortization | (181 | ) | (181 | ) | (304 | ) | NM | (40.5 | ) | (361 | ) | (361 | ) | (607 | ) | NM | (40.5 | ) | |||
TNI workforce adjustments | — | — | — | NM | NM | 32 | — | (116 | ) | NM | NM | ||||||||||
Operating income | 16,488 | 18,579 | 14,074 | (11.3 | ) | 17.2 | 55,683 | 59,948 | 63,257 | (7.1 | ) | (12.0 | ) | ||||||||
Margin | 9.6 | % | 10.4 | % | 7.9 | % | 15 | % | 15.8 | % | 16.4 | % | |||||||||
Margin, excluding special items | 9.9 | % | 10.5 | % | 7 | % | 15.2 | % | 15.9 | % | 13.4 | % | |||||||||
Nonoperating income (expenses) net: | |||||||||||||||||||||
Financial income | 54 | 52 | 18 | 3.8 | NM | 109 | 108 | 77 | 0.9 | 41.6 | |||||||||||
Financial expense | (20,312 | ) | (19,330 | ) | (13,140 | ) | 5.1 | 54.6 | (33,064 | ) | (32,082 | ) | (26,578 | ) | 3.1 | 24.4 | |||||
Debt financing costs | (715 | ) | — | (1,895 | ) | NM | (62.3 | ) | (2,739 | ) | (2,024 | ) | (3,861 | ) | 35.3 | (29.1 | ) | ||||
Other, net | — | — | (231 | ) | NM | NM | — | — | (684 | ) | NM | NM | |||||||||
(20,973 | ) | (19,278 | ) | (15,248 | ) | 8.8 | 37.5 | (35,694 | ) | (33,998 | ) | (31,046 | ) | 5.0 | 15.0 | ||||||
Income (loss) before reorganization costs and income taxes | (4,485 | ) | (699 | ) | (1,174 | ) | NM | NM | 19,989 | 25,950 | 32,211 | (23.0 | ) | (37.9 | ) | ||||||
Reorganization costs | 36,626 | 57,780 | — | (36.6 | ) | NM | 37,867 | 59,021 | — | (35.8 | ) | NM | |||||||||
Income (loss) before income taxes | (41,111 | ) | (58,479 | ) | (1,174 | ) | (29.7 | ) | NM | (17,878 | ) | (33,071 | ) | 32,211 | (45.9 | ) | NM | ||||
Income tax expense (benefit) excluding special items | (719 | ) | (252 | ) | (570 | ) | NM | 26.1 | 9,142 | 8,737 | 9,920 | 4.6 | (7.8 | ) | |||||||
Income tax expense (benefit) from special items | (13,850 | ) | (22,204 | ) | 845 | (37.6 | ) | NM | (15,101 | ) | (21,436 | ) | 4,762 | (29.6 | ) | NM | |||||
Effective tax rate | 35.4 | % | 38.4 | % | (23.4%) | 33.3 | % | 38.4 | % | 45.6 | % | ||||||||||
Effective tax rate, excluding special items | 22.2 | % | 43.4 | % | 71.9 | % | 38.8 | % | 31 | % | 40.2 | % | |||||||||
Net income (loss) | (26,542 | ) | (36,023 | ) | (1,449 | ) | (26.3 | ) | NM | (11,919 | ) | (20,372 | ) | 17,529 | (41.5 | ) | NM | ||||
Net income attributable to non-controlling interests | (83 | ) | (106 | ) | (23 | ) | (21.7 | ) | NM | (153 | ) | (185 | ) | (58 | ) | (17.3 | ) | NM | |||
Income (loss) attributable to Lee Enterprises, Incorporated | (26,625 | ) | (36,129 | ) | (1,472 | ) | (26.3 | ) | NM | (12,072 | ) | (20,557 | ) | 17,471 | (41.3 | ) | NM | ||||
Diluted earnings (loss) per common share: | (0.54 | ) | (0.69 | ) | (0.03 | ) | (21.7 | ) | NM | (0.26 | ) | (0.4 | ) | 0.39 | (35.0 | ) | NM | ||||
Diluted Average Common Shares | 49,552 | 52,000 | 44,855 | (4.7 | ) | 10.5 | 47,242 | 52,000 | 44,768 | (9.2 | ) | 5.5 |
Lee Enterprises, Incorporated, et al | |||||||
Case No. 11-13918 | |||||||
Balance Sheet (QOR-3) | |||||||
Quarter Ended March 25, 2012 | |||||||
March | September | ||||||
(Thousands) | 2012 | 2011 | 2011 | ||||
Current Assets: | |||||||
Cash and cash equivalents | 29,655 | 24,897 | 23,555 | ||||
Accounts receivable, net | 64,667 | 68,901 | 71,024 | ||||
Income taxes receivable | — | 1,335 | |||||
Receivable from associated company | |||||||
Inventories | 8,164 | 10,428 | 7,388 | ||||
Deferred tax assets | 967 | 2,687 | 967 | ||||
Prepaid expenses and other current | 6,286 | 9,703 | 19,553 | ||||
Total current assets | 109,739 | 116,616 | 123,822 | ||||
Investments: | |||||||
Associated companies | 42,992 | 57,891 | 44,057 | ||||
Restricted cash & investments | — | 5,101 | 4,972 | ||||
Capital Times | 3,876 | 3,876 | 3,876 | ||||
Rabbi trust | 768 | 535 | 568 | ||||
Sandler | 2,764 | 2,764 | 2,764 | ||||
Other | 1,991 | 2,095 | 1,991 | ||||
52,391 | 72,262 | 58,228 | |||||
Property and Equipment : | |||||||
Land and improvements | 27,017 | 27,411 | 27,017 | ||||
Buildings and improvements | 191,905 | 192,988 | 191,250 | ||||
Equipment | 312,889 | 318,056 | 319,978 | ||||
531,811 | 538,455 | 538,245 | |||||
Less accumulated depreciation | 329,162 | 316,319 | 326,205 | ||||
202,649 | 222,136 | 212,040 | |||||
Intangible and Other Assets: | |||||||
Goodwill | 247,271 | 433,552 | 247,271 | ||||
Other intangible assets | 473,665 | 535,656 | 495,509 | ||||
Postretirement assets | 16,042 | 11,214 | 14,934 | ||||
Loan costs | — | 8,155 | 4,514 | ||||
Other | 2,530 | 2,305 | 1,930 | ||||
739,508 | 990,882 | 764,158 | |||||
Total assets | 1,104,287 | 1,401,896 | 1,158,248 | ||||
Current Liabilities: | |||||||
Current maturities of long-term debt | 12,400 | 92,000 | 994,550 | ||||
Accounts payable | 31,659 | 23,966 | 27,740 | ||||
Compensation and other accruals | 39,333 | 36,362 | 35,437 | ||||
Income taxes payable | 8,440 | 363 | — | ||||
Unearned income | 38,559 | 38,305 | 36,512 | ||||
Total current liabilities | 130,391 | 190,996 | 1,094,239 | ||||
First lien term loan | 664,500 | — | — | ||||
Second lien term loan | 175,000 | — | — | ||||
Pulitzer notes | 113,600 | 135,000 | — | ||||
Lien Discounts | (21,823 | ) | |||||
A Term Loan | — | 524,335 | — | ||||
Revolving credit facility | — | 274,425 | — | ||||
Unamortized fair value adjustment | — | 564 | — | ||||
931,277 | 934,324 | — | |||||
Pension obligations | 69,778 | 53,952 | 73,518 | ||||
Postretirement & post employment benefit obligations | 6,509 | 5,962 | 6,104 | ||||
Deferred Items: | |||||||
Retirement and compensation | 1,803 | 2,072 | 1,485 | ||||
Income taxes | 50,129 | 112,275 | 66,204 | ||||
51,932 | 114,347 | 67,689 | |||||
Income taxes payable | 9,016 | 12,244 | 8,588 | ||||
Other | 7,880 | 12,417 | 9,004 | ||||
Liabilities subject to compromise | — | — | — | ||||
Equity (Deficit): | |||||||
Stockholders' Equity (Deficit): | |||||||
Capital Stock: | |||||||
Common | 517 | 89,730 | 89,915 | ||||
Class B common | — | — | — | ||||
Additional paid-in capital | 240,355 | 140,452 | 140,887 | ||||
Accumulated deficit | (338,132 | ) | (161,722 | ) | (326,062 | ) | |
Accumulated other comprehensive income | (5,782 | ) | 8,862 | (6,086 | ) | ||
Total stockholders' equity (deficit) | (103,042 | ) | 77,322 | (101,346 | ) | ||
Non-controlling interests | 546 | 332 | 452 | ||||
Total equity (deficit) | (102,496 | ) | 77,654 | (100,894 | ) | ||
Total liabilities and equity (deficit) | 1,104,287 | 1,401,896 | 1,158,248 |