Lee Enterprises Falls Below NYSE Standards

 

ST. LOUIS, MO (January 2, 2009) – Lee Enterprises Inc., the parent company of the St. Louis Post-Dispatch and 48 other daily newspapers, filed its annual report this week at about the same time the New York Stock Exchange warned the company that it may be delisted.

Auditors KPMG said it has "substantial doubt" about Lee's "ability to continue as a going concern." Lee has $306 million in debt that is due in April, and it does not have the cash to both pay the debt and meet 2009 operating costs.

Lee's stock has been below $1 a share since the end of November, and closed at $0.41 Wednesday before the market's New Year's holiday break.

The NYSE warned Lee that the company's current market cap of $18.5 million is nearing non-compliance with rules that require the market cap to average at lease $25 million for 30 straight days.

Lee told the NYSE that within 10 days it will notify the exchange of its plans to return to compliance.

In its annual report Lee said that it has lost $880 million in a year, and the advertising downturn contributed to an 8 percent fall in revenue that amounts to a little over $1 billion.

Lee Enterprises Inc. is based in Davenport, IA. The company also owns the Lincoln Journal Start in Nebraska, the Wisconsin State Journal in Madison, WI, and the Quad-City Times in Davenport.

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