DAVENPORT, Iowa - Lee Enterprises, Incorporated (NASDAQ:LEE), a major provider of local news and information, announced on Thursday the appointment of two new members to its board of directors. Madeline McIntosh and Jon Miller, both recognized for their extensive experience in digital media and business transformations, have been named independent directors, filling vacancies left by retiring board members.
Madeline McIntosh, a digital pioneer and former CEO of Penguin Random House US, has recently launched Authors Equity, Inc, a publishing company focused on redefining the relationship with authors through profit sharing and collaboration. Her appointment comes as Lee Enterprises seeks to accelerate its digital transformation. McIntosh's past recognitions include being listed on Forbes' 2021 "50 Over 50: Vision" and receiving the UJA's 2022 Publishing Titan Award.
Jon Miller brings a wealth of experience from his tenure as chairman and CEO of AOL, Inc., where he oversaw the world's largest digital news site, and from his leadership roles at News Corp (NASDAQ:NWSA) Digital Media Group and USA Interactive (now IAC). Currently, he is a partner at venture capital firm Advancit Capital and has served on the boards of numerous influential media companies.
Lee Enterprises' Chairman Mary Junck expressed enthusiasm for the new appointments, highlighting the valuable insights and foresight McIntosh and Miller will contribute to the company's ongoing digital initiatives. Junck emphasized the company's commitment to providing high-quality local news and information in innovative ways.
Both McIntosh and Miller have expressed their honor and excitement to join Lee Enterprises, recognizing the company's rich journalistic history and its potential for growth in the digital era. Their expertise is expected to support Lee's mission of serving engaged readers with quality local news across the United States.
Lee Enterprises operates a substantial subscription and advertising platform, with a portfolio that includes daily newspapers, digital products, and nearly 350 weekly and specialty publications across 73 markets in 26 states. The company's notable markets encompass cities such as St. Louis, MO; Buffalo, NY; Omaha, NE; and Tucson, AZ.
The information regarding the board appointments is based on a press release statement from Lee Enterprises.
In other recent news, Lee Enterprises has reported strong second-quarter results, demonstrating a successful ongoing shift towards a digital-centric business model. The company's focus on expanding digital audiences, subscriptions, and advertising has led to robust growth in digital revenue, which now constitutes 40% of total revenue. Despite a decline in print revenue, effective cost management strategies resulted in a 16% reduction in cash costs year-over-year in Q2, with significant savings from managing the print product portfolio.
These developments have set Lee Enterprises on a path to generate substantial digital revenue, targeting over $450 million in the next five years. The company has also set a long-term leverage target of 2.5x. Fiscal year 2024 projected digital revenue is between $310 million and $330 million, indicating a 70% growth rate over the previous year.
Lee Enterprises' digital transformation efforts are expected to increase profitability and reduce volatility in operating performance. The company's digital marketing agency, Amplified Digital, has achieved an 8% revenue growth over the last 12 months. Despite the decline in print revenue impacting overall revenue, the company's digital gains and cost savings have offset these losses.
InvestingPro Insights
Lee Enterprises, Incorporated (NASDAQ:LEE) has been making headlines with its recent board appointments, aimed at bolstering the company's digital transformation. As investors consider the implications of these strategic moves, it's worth examining key financial metrics and insights from InvestingPro to provide a clearer picture of the company's current standing.
InvestingPro Data reveals a market capitalization of $63.58 million, indicating the size and scale of Lee Enterprises in the marketplace. Despite the challenges faced in the media industry, the company's gross profit margin remains robust at 59.87% for the last twelve months as of Q2 2024, showcasing its ability to maintain profitability in its operations.
However, the data also indicates areas of concern, such as the revenue decline of -14.36% during the same period, reflecting the company's struggles in a rapidly changing media landscape. Additionally, the stock's poor performance over the last month, with a -15.37% return, aligns with broader concerns about the company's immediate financial health.
InvestingPro Tips suggest that Lee Enterprises operates with a significant debt burden, which could impact its financial flexibility and growth potential. On a more positive note, analysts predict the company will be profitable this year, which could signal a turnaround from previous challenges.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, which can provide further insights into Lee's financial health and stock performance. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips. With the company's next earnings date slated for August 1, 2024, investors will be keenly watching to see if the new board members' expertise can translate into tangible results for Lee Enterprises.
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