Thanks for the post. With most media companies (Newscorp, Gannett, Tribune, Scripps) spinning off their newspaper properties as stand alone companies with little or no debt, it might make sense for some consolidations in the industry to allow for further cost reductions particularly since their focus will be strictly on the newspaper business. Will LEE be a target? Maybe not now, but as they continue to whittle down their debt and maintain their operating cash flow, they will become more attractive to other potential buyers. Management did send the signal to others that they would entertain offers through these statements.
I also liked management giving direction on payment of the debt. After they finish paying off the Pulitzer notes (which should be done this year), they will start to pay off the higher interest rate 2nd Lien debt. Smart move. This will help lower interest being paid which can then be used for further debt reductions.
This news was certainly welcome. Wingspan has purchased for some of the same reasons I continue to hold shares. The strong cash flow and management's continued focus on debt repayment as they grow the digital part of the business. If your time horizon is long term (3-5 years), this stock is likely a 3-4 bagger.
In what should have been LEE's best quarter of the year, they only turned a profit of $0.18/share ($0.22/share ex items). Very disappointing results IMO. The revenues continues to slide. When is the BOD going to finally realize Mary just cannot get the job done. She needs to retire so some new blood can take over the leadership and finally get revenues moving in a positive direction.