What changed in LEE ENTERPRISES, Inc's 10-K — 2022 vs 2023
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Paragraph-level year-over-year comparison of LEE ENTERPRISES, Inc's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.
+162 added−186 removedSource: 10-K (2023-12-08) vs 10-K (2023-02-27)
Top changes in LEE ENTERPRISES, Inc's 2023 10-K
162 paragraphs added · 186 removed · 138 edited across 5 sections
- Item 7. Management's Discussion & Analysis+72 / −81 · 63 edited
- Item 1. Business+48 / −55 · 44 edited
- Item 1A. Risk Factors+36 / −44 · 25 edited
- Item 5. Market for Registrant's Common Equity+4 / −4 · 4 edited
- Item 2. Properties+2 / −2 · 2 edited
Item 1. Business
Business — how the company describes what it does
44 edited+4 added−11 removed12 unchanged
Item 1. Business
Business — how the company describes what it does
44 edited+4 added−11 removed12 unchanged
2022 filing
2023 filing
Biggest changeLouis, MO 104,199 126,756 3,981 36,773 Buffalo News (2) buffalonews.com Buffalo, NY 56,120 84,370 2,874 14,978 Omaha World Herald (2) omaha.com Omaha, NE 71,372 78,940 1,611 21,411 Richmond Times-Dispatch (1) richmond.com Richmond, VA 57,695 61,757 1,561 14,063 Wisconsin State Journal (1)(4) madison.com Madison, WI 52,474 55,162 2,107 14,284 Arizona Daily Star (5)(1) azstarnet.com Tucson, AZ 39,997 47,348 1,482 6,930 The Times (2) nwitimes.com Munster, Valparaiso, and Crown Point, IN 37,852 46,810 1,346 23,761 Lincoln Journal Star (1) journalstar.com Lincoln, NE 38,097 40,663 1,431 15,802 Tulsa World (1) tulsaworld.com Tulsa, OK 34,657 38,290 1,615 11,437 Winston Salem Journal (2) journalnow.com Winston-Salem, NC 25,300 27,291 964 7,430 Roanoke Times roanoke.com Roanoke, VA 24,889 25,794 852 6,640 Billings Gazette billingsgazette.com Billings, MT 24,119 24,656 988 11,072 The Press of Atlantic City pressofatlanticcity.com Atlantic City, NJ 19,943 23,381 863 7,393 The Pantagraph pantagraph.com Bloomington, IL 19,751 20,712 632 8,971 Missoulian missoulian.com Missoula, MT 19,211 20,374 505 5,626 Greensboro News-Record greensboro.com Greensboro, NC 17,667 19,548 762 4,644 Quad-City Times qctimes.com Davenport, IA 17,449 19,467 686 6,512 The Courier wcfcourier.com Waterloo and Cedar Falls, IA 14,493 17,448 419 3,988 The Post-Star poststar.com Glens Falls, NY 16,423 17,201 452 5,740 Freelance-Star fredericksburg.com Fredericksburg, VA 15,825 17,176 554 4,974 La Crosse Tribune lacrossetribune.com La Crosse, WI 14,151 15,323 494 5,078 Dispatch-Argus qconline.com Moline, IL 13,522 14,323 269 3,521 Napa Valley Register napavalleyregister.com Napa, CA 13,993 13,938 374 3,385 Casper Star-Tribune trib.com Casper, WY 12,609 13,391 369 2,942 Sioux City Journal siouxcityjournal.com Sioux City, IA 15,071 13,189 426 3,294 Waco Tribune-Herald wacotrib.com Waco, TX 12,222 13,020 548 3,843 Kenosha News kenoshanews.com Kenosha, WI 12,241 13,015 833 6,391 Independent Record helenair.com Helena, MT 12,728 12,817 372 4,522 Charlottesville Daily Progress dailyprogress.com Charlottesville, VA 11,107 11,621 330 2,685 5 Table of Contents Average Units (1) 2022 Monthly Average ('000s) (6)(7) Newspaper Primary Website Location Daily (3) Sunday (3) Unique Visitors Page Views The Daily News tdn.com Longview, WA 14,876 11,016 217 1,980 Lynchburg News & Advance newsadvance.com Lynchburg, VA 9,788 10,822 407 2,941 The Citizen auburnpub.com Auburn, NY 9,999 10,530 298 3,038 Montana Standard mtstandard.com Butte, MT 10,100 9,962 291 3,384 Bristol Herald Courier heraldcourier.com Bristol,VA 9,727 9,851 297 2,040 The Times-News magicvalley.com Twin Falls, ID 10,651 9,586 239 2,257 Dothan Eagle dothaneagle.com Dothan, AL 9,148 9,538 298 1,648 Grand Island Independent theindependent.com Grand Island, NE 8,851 9,508 302 2,768 Globe Gazette globegazette.com Mason City, IA 7,617 8,415 252 2,315 Corvallis Gazette-Times gazettetimes.com Corvallis, OR 11,240 8,306 — — Statesville Record & Landmark statesville.com Statesville, NC 13,748 7,886 183 1,212 Bryan-College Station Eagle theeagle.com Bryan, TX 7,444 7,610 329 2,168 Arizona Daily Sun azdailysun.com Flagstaff, AZ 7,712 7,354 248 1,620 The Times and Democrat thetandd.com Orangeburg, SC 7,485 7,007 299 2,350 Florence Morning News scnow.com Florence, SC 6,691 6,848 234 1,453 Albany Democrat-Herald democratherald.com Albany, OR 4,039 6,757 363 3,391 Martinsville Bulletin martinsvillebulletin.com Martinsville, VA 5,517 5,887 155 1,129 Opelika Auburn News oanow.com Opelika, AL 5,468 5,548 339 2,392 Scottsbluff Star-Herald starherald.com Scottsbluff, NE 5,548 5,541 169 1,244 Hickory Daily Record hickoryrecord.com Hickory, NC 4,806 5,303 328 2,766 Danville Register & Bee godanriver.com Danville, VA 4,298 4,982 162 1,232 The News Herald morganton.com Morganton, NC 4,204 4,597 186 1,426 North Platte Telegraph nptelegraph.com North Platte, NE 4,220 4,207 138 876 Culpeper Star-Exponent starexponent.com Culpeper, VA 2,986 2,917 160 730 The Daily Nonpareil nonpareilonline.com Council Bluffs, IA 2,662 2,776 148 1,018 Winona Daily News winonadailynews.com Winona, MN 2,664 2,712 110 898 The McDowell News mcdowellnews.com Marion, NC 2,257 2,351 120 555 Ravalli Republic ravallinews.com Hamilton, MT 2,413 2,330 94 464 The News Virginian newsvirginian.com Waynesboro, VA 2,122 2,241 77 475 Daily Citizen wiscnews.com/bdc Beaver Dam, WI 2,663 — — — Portage Daily Register wiscnews.com/pdr Portage, WI 1,406 — — — Baraboo News Republic wiscnews.com/bnr Baraboo, WI 1,313 — — — Muscatine Journal muscatinejournal.com Muscatine, IA 2,050 — 100 642 Columbus Telegram columbustelegram.com Columbus, NE 4,314 — 151 1,107 Fremont Tribune fremonttribune.com Fremont, NE 3,587 — 145 1,033 Beatrice Daily Sun beatricedailysun.com Beatrice, NE 3,230 — 88 622 6 Table of Contents Average Units (1) 2022 Monthly Average ('000s) (6)(7) Newspaper Primary Website Location Daily (3) Sunday (3) Unique Visitors Page Views Herald & Review herald-review.com Decatur, IL 10,499 — 379 3,862 Journal Gazette & Times-Courier jg-tc.com Mattoon/Charleston, IL 4,393 — 222 1,743 The Chippewa Herald chippewa.com Chippewa Falls, WI 2,028 — 123 807 Rapid City Journal rapidcityjournal.com Rapid City, SD 15,366 — 409 4,532 The Southern Illinoisan thesouthern.com Carbondale, IL 7,220 — 274 1,840 The Sentinel cumberlink.com Carlisle, PA 6,150 — 226 2,013 Daily Journal dailyjournalonline.com Park Hills, MO 4,335 — 195 1,524 York News-Times yorknewstimes.com York, NE 2,678 — 114 664 The Journal Times journaltimes.com Racine, WI 1,996 — 511 6,180 The Bismarck Tribune bismarcktribune.com Bismarck, ND 23,047 — 439 5,638 Elko Daily Free Press elkodaily.com Elko, NV 5,899 — 226 2,111 (1) Source: AAM: September 20 Quarterly Executive Summary Data Report, unless otherwise noted.
Biggest changeLouis, MO 99,618 109,407 3,614 30,232 Buffalo News (2) buffalonews.com Buffalo, NY 69,842 89,694 2,325 21,830 Omaha World Herald (1) omaha.com Omaha, NE 58,514 63,319 1,520 19,512 Wisconsin State Journal (1)(4) madison.com Madison, WI 49,140 51,450 1,698 19,380 Richmond Times-Dispatch (1) richmond.com Richmond, VA 48,807 52,218 1,305 14,151 The Times (1) nwitimes.com Munster, Valparaiso, and Crown Point, IN 42,413 43,416 1,100 17,262 Arizona Daily Star (5) (1) azstarnet.com Tucson, AZ 39,500 45,848 1,368 13,339 Tulsa World (1) tulsaworld.com Tulsa, OK 33,565 36,484 1,210 9,965 Billings Gazette billingsgazette.com Billings, MT 26,418 28,541 862 8,624 Lincoln Journal Star (1) journalstar.com Lincoln, NE 24,985 36,977 1,108 12,566 Quad-City Times qctimes.com Davenport, IA 22,116 23,685 657 5,634 The Bismarck Tribune bismarcktribune.com Bismarck, ND 22,006 408 4,990 4 Table of Contents Average Units (5) 2023 Monthly Average ('000s) (6)(7) Newspaper Primary Website Location Daily (3) Sunday (3) Unique Visitors Page Views Winston Salem Journal (1) journalnow.com Winston-Salem, NC 19,674 20,548 693 6,081 Roanoke Times roanoke.com Roanoke, VA 19,657 22,103 679 5,409 La Crosse Tribune lacrossetribune.com La Crosse, WI 18,837 — 443 4,362 The Press of Atlantic City pressofatlanticcity.com Atlantic City, NJ 18,294 — 726 6,631 The Pantagraph pantagraph.com Bloomington, IL 16,930 17,870 526 7,038 Missoulian missoulian.com Missoula, MT 16,652 — 413 4,647 The Post-Star poststar.com Glens Falls, NY 15,866 — 434 4,606 Rapid City Journal rapidcityjournal.com Rapid City, SD 15,557 — 321 3,618 Greensboro News-Record greensboro.com Greensboro, NC 15,151 16,725 578 3,741 The Journal Times journaltimes.com Racine, WI 14,749 15,915 405 4,274 Freelance-Star fredericksburg.com Fredericksburg, VA 14,362 15,376 398 3,844 Independent Record helenair.com Helena, MT 14,083 — 316 4,063 Napa Valley Register napavalleyregister.com Napa, CA 13,561 — 343 3,094 Dispatch-Argus qconline.com Moline, IL 13,039 13,618 226 3,131 Kenosha News kenoshanews.com Kenosha, WI 12,907 13,684 656 4,878 Waco Tribune-Herald wacotrib.com Waco, TX 11,566 — 442 3,245 The Citizen auburnpub.com Auburn, NY 10,498 — 389 2,955 The Courier wcfcourier.com Waterloo and Cedar Falls, IA 10,342 — 386 3,510 Charlottesville Daily Progress dailyprogress.com Charlottesville, VA 10,326 — 435 2,886 Sioux City Journal siouxcityjournal.com Sioux City, IA 10,208 — 346 2,962 Montana Standard mtstandard.com Butte, MT 9,837 — 216 2,794 The Times-News magicvalley.com Twin Falls, ID 9,270 — 200 1,743 The Daily News tdn.com Longview, WA 9,141 — 206 1,851 Herald & Review herald-review.com Decatur, IL 9,128 — 284 3,074 Lynchburg News & Advance newsadvance.com Lynchburg, VA 9,085 — 299 2,317 The Times and Democrat thetandd.com Orangeburg, SC 8,551 — 290 1,889 Hickory Daily Record hickoryrecord.com Hickory, NC 8,237 — 285 2,110 Grand Island Independent theindependent.com Grand Island, NE 8,063 — 228 2,497 Dothan Eagle dothaneagle.com Dothan, AL 7,667 — 198 1,243 Bristol Herald Courier heraldcourier.com Bristol,VA 7,385 — 222 1,798 Casper Star-Tribune trib.com Casper, WY 7,213 9,149 299 2,360 Corvallis Gazette-Times gazettetimes.com Corvallis, OR 7,020 — 143 1,697 Elko Daily Free Press elkodaily.com Elko, NV 6,776 — 171 1,552 Bryan-College Station Eagle theeagle.com Bryan, TX 6,682 — 262 1,851 5 Table of Contents Average Units (5) 2023 Monthly Average ('000s) (6)(7) Newspaper Primary Website Location Daily (3) Sunday (3) Unique Visitors Page Views The Sentinel cumberlink.com Carlisle, PA 6,477 — 189 1,578 Globe Gazette globegazette.com Mason City, IA 6,382 — 218 1,978 The Southern Illinoisan thesouthern.com Carbondale, IL 6,289 — 190 1,253 Albany Democrat-Herald democratherald.com Albany, OR 6,243 — 160 1,318 Scottsbluff Star-Herald starherald.com Scottsbluff, NE 5,690 — 134 947 Daily Citizen wiscnews.com/bdc Beaver Dam, WI 5,372 — — — Opelika Auburn News oanow.com Opelika, AL 5,202 — 217 1,765 The News Herald morganton.com Morganton, NC 4,800 — 165 1,061 Florence Morning News scnow.com Florence, SC 4,787 — 195 1,263 Kearney Hub kearneyhub.com Kearney, NE 4,718 — — — Martinsville Bulletin martinsvillebulletin.com Martinsville, VA 4,704 — 130 966 Portage Daily Register wiscnews.com/pdr Portage, WI 4,437 — — — Baraboo News Republic wiscnews.com/bnr Baraboo, WI 4,435 — — — Statesville Record & Landmark statesville.com Statesville, NC 3,999 — 201 993 The Daily Nonpareil nonpareilonline.com Council Bluffs, IA 3,944 — 126 875 Journal Gazette & Times-Courier jg-tc.com Mattoon/Charleston, IL 3,849 — 302 2,023 Danville Register & Bee godanriver.com Danville, VA 3,659 — 125 945 North Platte Telegraph nptelegraph.com North Platte, NE 3,355 — 105 747 Columbus Telegram columbustelegram.com Columbus, NE 3,068 — 126 919 Fremont Tribune fremonttribune.com Fremont, NE 2,984 — 155 934 The News Virginian newsvirginian.com Waynesboro, VA 2,875 — 90 433 Culpeper Star-Exponent starexponent.com Culpeper, VA 2,738 — 120 559 York News-Times yorknewstimes.com York, NE 2,700 — 74 514 Beatrice Daily Sun beatricedailysun.com Beatrice, NE 2,455 — 72 541 The McDowell News mcdowellnews.com Marion, NC 2,214 — 112 468 The Chippewa Herald chippewa.com Chippewa Falls, WI 2,009 — 100 673 Winona Daily News winonadailynews.com Winona, MN 1,927 — 81 690 Muscatine Journal muscatinejournal.com Muscatine, IA 1833 — 228 1020 Ravalli Republic ravallinews.com Hamilton, MT 707 — 64 353 (1) Source: AAM: September 2023 Quarterly Executive Summary Data Report, unaudited (2) Source: AAM: March 2023 Quarterly Executive Summary Data Report, unaudited More recent data is not available (3) Not all newspapers are published Monday through Saturday or have a Sunday edition (4) Owned by MNI (5) Owned by Star Publishing and published through TNI (6) Source: Company statistics.
Our vast array of rapidly growing digital products, our large, digitally adept salesforce and Amplified, our full service digital agency, creates a powerful opportunity to gain scale both in and outside of our local markets. • Our local sales forces are larger than any local competitor, and we believe they are the most highly trained and proficient sales force in our markets. • We have strong relationships with businesses in our markets and offer a wide array of products to deliver our advertisers' message.
Our vast array of rapidly growing digital products, our large, digitally-adept salesforce and Amplified, our full service digital agency, create a powerful opportunity to gain scale both in and outside of our local markets. • Our local sales forces are larger than any local competitor, and we believe they are the most highly trained and proficient sales force in our markets. • We have strong relationships with businesses in our markets and offer a wide array of products to deliver our advertisers' message.
Our full access subscriptions include access to all of our content on multiple platforms; including our print products delivered or made available to consumers, websites, smartphone and tablet applications, and e-editions with pricing varying significantly by market and by frequency. Consistent with general publishing industry trends, print subscription volumes declined in 2022. We experienced rapid growth of our digital-only subscriptions.
Our full access subscriptions include access to all of our content on multiple platforms; including our print products delivered or made available to consumers, websites, smartphone and tablet applications, and e-editions with pricing varying significantly by market and by frequency. Consistent with general publishing industry trends, print subscription volumes declined in 2023. We experienced rapid growth of our digital-only subscriptions.
Aligning with that commitment, our Three Pillar Digital Growth Strategy is focused on the following: Expand digital audiences by transforming the presentation of local news and information. We seek to maintain our position as the leading provider of news and information by providing best-in-class digital experiences to improve consumer engagement and grow our audiences.
Aligning with that commitment, our Three Pillar Digital Growth Strategy is focused on the following: Expand digital audiences by transforming the presentation of local news and information. We seek to maintain our dominant market position as the leading provider of news and information by providing best-in-class digital experiences to improve consumer engagement and grow our audiences.
Among such risks, trends and other uncertainties, which in some instances are beyond our control, are: • We may be required to indemnify the previous owners of the BH Media Newspaper Business or Buffalo News for unknown legal and other matters that may arise; • Our ability to manage declining print revenue; • The impact and duration of adverse conditions in certain aspects of the economy affecting our business; • Change in advertising and subscription demand; • Changes in technology that impact our ability to deliver digital advertising; • Potential changes in newsprint, other commodities and energy costs; • Interest rates; • Labor costs; • Significant cyber security breaches or failure of our information technology systems; • Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions; • Our ability to maintain employee and customer relationships; • Our ability to manage increased capital costs; • Our ability to maintain our listing status on NASDAQ; • Competition; and • Other risks detailed from time to time in our publicly filed documents, including this Annual Report and particularly in "Risk Factors", Part I, Item 1A herein.
Among such risks, trends and other uncertainties, which in some instances are beyond our control, are: • We may be required to indemnify the previous owners of the BH Media Newspaper Business or Buffalo News for unknown legal and other matters that may arise; • Our ability to manage declining print revenue; • The impact and duration of adverse conditions in certain aspects of the economy affecting our business; • Change in advertising and subscription demand; • Changes in technology that impact our ability to deliver digital advertising; 7 Table of Contents • Potential changes in newsprint, other commodities and energy costs; • Interest rates; • Labor costs; • Significant cyber-security breaches or failure of our information technology systems; • Our ability to achieve planned expense reductions and realize the expected benefit of our acquisitions; • Our ability to maintain employee and customer relationships; • Our ability to manage increased capital costs; • Our ability to maintain our listing status on the Nasdaq Global Select Market ("NASDAQ"); • Competition; and • Other risks detailed from time to time in our publicly filed documents, including this Annual Report and particularly in "Risk Factors", Part I, Item 1A herein.
(7) Excludes Agri-Media sites NEWSPRINT The raw material of newspapers, and our other print publications, is newsprint. We purchase newsprint from U.S. and Canadian producers. We believe we will continue to receive a supply of newsprint adequate for our needs and consider our relationships with newsprint producers to be good.
(7) Excludes Agri-Media sites 6 Table of Contents NEWSPRINT The raw material of newspapers, and our other print publications, is newsprint. We purchase newsprint from U.S. and Canadian producers. We believe we will continue to receive a supply of newsprint adequate for our needs and consider our relationships with newsprint producers to be good.
Growing our digital revenue streams as the print revenues mature will have a favorable impact on the environment as our production hubs will consume less energy, we will consume less newsprint, and there will be less environmental impact from our distribution channels that largely operate on fossil-fuel powered transportation. Diversify and expand offerings for local advertisers.
Growing our digital revenue 3 Table of Contents streams as the print revenues mature will have a favorable impact on the environment as our production hubs will consume less energy, we will consume less newsprint, and there will be less environmental impact from our distribution channels that largely operate on fossil-fuel powered transportation. Diversify and expand offerings for local advertisers.
("MNI") in Madison, WI, publish the following daily newspapers and maintain the following primary digital sites: Average Units (1) 2022 Monthly Average ('000s) (6)(7) Newspaper Primary Website Location Daily (3) Sunday (3) Unique Visitors Page Views St. Louis Post-Dispatch (2) stltoday.com St.
("MNI") in Madison, WI, publish the following daily newspapers and maintain the following primary digital sites: Average Units (5) 2023 Monthly Average ('000s) (6)(7) Newspaper Primary Website Location Daily (3) Sunday (3) Unique Visitors Page Views St. Louis Post-Dispatch (1) stltoday.com St.
For the quantitative impacts of these fluctuations, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk”, included herein. EMPLOYEES AND HUMAN CAPITAL RESOURCES We believe the foundation of our business is the people and employees who carry out the various tactics that support our business strategy.
For the quantitative impacts of these fluctuations, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk”, included herein. EMPLOYEES AND HUMAN CAPITAL RESOURCES We believe the foundation of our business is the people and employees who support our business strategy.
In 2023, we believe we can grow revenue at BLOX Digital through modest market share gains in our core markets, increasing our average revenue per customer. 4 Table of Contents DAILY NEWSPAPERS AND MARKETS The Company, including our investments in TNI Partners ("TNI") in Tucson, AZ and Madison Newspapers, Inc.
In 2024, we believe we can grow revenue at BLOX Digital through modest market share gains in our core markets, increasing our average revenue per customer. DAILY NEWSPAPERS AND MARKETS The Company, including our investments in TNI Partners ("TNI") in Tucson, AZ and Madison Newspapers, Inc.
In addition, BLOX Digital services nearly 2,000 daily customers, including legacy media publications, universities, television stations and niche publications. • Including intercompany revenue generated from our markets, revenue at BLOX Digital grew almost 14% in 2022 and totaled $31 million. • With strong product offerings, investments in video and streaming technology and diversifying the customer base into broadcast, BLOX Digital is positioned to continue to be a key component to our growth strategy.
In addition, BLOX Digital services nearly 2,000 daily customers, including legacy media publications, universities, television stations and niche publications. • Including intercompany revenue generated from our markets, revenue at BLOX Digital grew 13.2% in 2023 and totaled $35 million. 2 Table of Contents • With strong product offerings, investments in video and streaming technology and diversifying the customer base into broadcast, BLOX Digital is positioned to continue to be a key component of our growth strategy.
Using these techniques, we expect digital-only subscribers to continue to grow substantially, reaching more than 900,000 digital-only subscribers by 2026. We believe our digital transformation will have a favorable impact on the environment. A key component to our digital growth strategy is to accelerate the pace of digital subscriber growth.
Using these techniques, we expect digital-only subscribers to continue to grow substantially, reaching more than 1.2 million digital-only subscribers by 2028. We believe our digital transformation will have a favorable impact on the environment. A key component of our digital growth strategy is to accelerate the pace of digital subscriber growth.
Revenue at BLOX Digital, including intercompany revenue, totaled $31 million in 2022, and has achieved a compound annual growth rate of 10.6% over the last ten years. We generate revenue primarily through advertising and marketing services, subscriptions to our digital and print products, and digital services, primarily through our majority-owned subsidiary, BLOX DIgital.
Revenue at BLOX Digital, including intercompany revenue, totaled $35 million in 2023, and has achieved a compound annual growth rate of 11.0% over the last ten years. We generate revenue primarily through advertising and marketing services, subscriptions to our digital and print products, and digital services, primarily through our majority-owned subsidiary, BLOX Digital.
Revenue from digital only subscribers totaled more than $40 million in 2022, up 42% over 2021. • Amplified Digital ® ("Amplified"), our digital marketing services agency, offers a full suite of digital marketing solutions to local advertisers.
Revenue from digital-only subscribers totaled more than $60 million in 2023, up 51% over 2022. • Amplified Digital ® ("Amplified"), our digital marketing services agency, offers a full suite of digital marketing solutions to local advertisers.
Subscription Revenue - In 2022, subscription revenue of $353.6 million comprised 45% of our total operating revenue. Subscription revenue is earned primarily from selling subscriptions to our content through our full access subscriptions, digital-only subscriptions and single copy sales.
Subscription Revenue - In 2023, subscription revenue of $313.3 million comprised 45.3% of our total operating revenue. Subscription revenue is earned primarily from selling subscriptions to our content through our full access subscriptions, digital-only subscriptions and single copy sales.
The number of competitors in any given market varies; however all of the forms of competition noted above exist to some degree in all of our markets. STRATEGIC INITIATIVES We are committed to a strategy that transforms Lee into a vibrant, digitally-centric business with recurring, sustainable digital revenue.
The number of competitors in any given market varies; however all of the forms of competition noted above exist to some degree in all of our markets. STRATEGIC INITIATIVES We are committed to a strategy that transforms Lee into a sustainable and growing digital business.
ITEM 1. BUSINESS Lee Enterprises, Incorporated, together with its subsidiaries, (“Lee”, “the Company”, “we”, “our” or “us”) is a digital-first subscription platform providing local markets with valuable, high quality, trusted, intensely local news, information, advertising and marketing services. We are a rapidly growing digital subscription platform with more than 530,000 digital subscribers serving 77 mid-sized local communities in 26 states.
ITEM 1. BUSINESS Lee Enterprises, Incorporated, together with its subsidiaries (“Lee”, “the Company”, “we”, “our” or “us”), is a digital-first subscription business providing local markets with valuable, high quality, trusted, intensely local news, information, advertising and marketing services. We inform consumers in 75 mid-sized local communities in 26 states with a rapidly growing digital subscription platform including 721,000 digital subscribers.
Full-time equivalent employees in 2022 totaled approximately 4,064 of which 722 are represented by unions. We consider our relationships with our employees to be good. We are committed to an equitable and inclusive workplace that also reflects the diversity of our local readers and communities in which we serve.
Full-time equivalent employees in 2023 totaled approximately 3,171 of which 527 are represented by unions. We consider our relationships with our employees to be good. We are committed to creating an equitable and inclusive workplace that also reflects the diversity of our local readers and communities in which we serve.
BLOX Digitals represents a powerful opportunity for us to drive additional digital revenue through their SaaS content platform. In 2022, revenue at BLOX Digital, including intercompany revenue, totaled $31 million and since 2011 the compounded annual growth rate of BLOX Digital revenue has been 11%.
BLOX Digitals represents a powerful opportunity for us to drive additional digital revenue through their SaaS content platform. In 2023, revenue at BLOX Digital, including intracompany revenue, totaled $35 million and since 2013 the compounded annual growth rate of BLOX Digital revenue has been 11.0%.
In 2022, total digital revenues, which includes digital advertising and marketing services revenues, digital-only subscription revenues, and digital services revenues, were $240 million, or 31% of our total revenues. We aim to grow our business through three main categories: subscriptions to our product offerings, advertising and marketing solutions to local advertisers, and digital services to a diverse set of customers.
In 2023, total digital revenues, which include digital advertising and marketing services revenues, digital-only subscription revenues, and digital services revenues, were $273.2 million, or 39.5% of our total revenues. We aim to grow our business through three main categories: subscriptions to our product offerings, advertising and marketing solutions to local advertisers, and digital services to a diverse set of customers.
Revenue at Amplified totaled almost $76 million in 2022, up 83% over 2021. • BLOX Digital (formerly known as TownNews), our software as a service (SaaS) content platform, is one of the largest web-hosting and content management SaaS providers in North America.
Revenue at Amplified totaled more than $91.2 million in 2023 up 20% over 2022. • BLOX Digital (formerly known as TownNews), our software as a service (SaaS) content platform, is one of the largest web-hosting and content management SaaS providers in North America.
According to eMarketer, local advertising spending is expected to reach nearly $115 billion in 2023.
According to eMarketer, local advertising spending is expected to reach nearly $150 billion in 2024.
A major focus in 2022 was investing in the top digital talent to carry out our Three Pillar Digital Growth Strategy and position us to achieve our long-term growth targets At September 25, 2022, we had approximately 4,365 employees, including approximately 788 part-time employees, exclusive of TNI and MNI.
A major focus in 2023 was investing in top digital talent to carry out our Three Pillar Digital Growth Strategy and position us to achieve our long-term growth targets At September 24, 2023, we had 3,342 employees, including 510 part-time employees, exclusive of TNI and MNI.
In 2023, our primary digital-only subscriber acquisition tactics include: • Converting our significant organic traffic through on-platform promotion, paywalls, and dynamic meters; • Continuously improving our subscriber experience; and • Brand marketing campaigns to raise awareness to the desirability of our content.
Our primary digital-only subscriber acquisition tactics include: • Investing in relevant, trusted, and intensely local news and information that connects and engages our local communities; • Brand marketing campaigns to raise awareness to the desirability of our content; • Continuously improving our subscriber experience; and • Converting our significant organic traffic through on-platform promotion, paywalls, and dynamic meters.
Digital-only subscriptions include access to our content on our digital platforms. At the end of the fiscal year, we had 532,000 digital-only subscribers, up 32% compared to 2021, with revenue totaling $40 million, or up 42% compared to 2021. Growing our digital-only subscribers and digital-only revenue remains a top strategic priority in 2023.
Digital-only subscriptions include access to our content on our digital platforms. At the end of the fiscal year, we had over 721,000 digital-only subscribers, up 35.6% compared to 2022, with revenue totaling $60 million, or up 51% compared to 2022. Growing our digital-only subscribers and digital-only revenue remains a top strategic priority in 2024.
A variety of pricing strategies are also used, including discounted introductory periods and sales, to encourage trial and habituation before transitioning to the full price rate. 2 Table of Contents Digital Services Revenue – In 2022, digital services revenue of $18 million comprised 2.3% of our total operating revenue.
A variety of pricing strategies are also used, including discounted introductory periods and sales, to encourage trial and habituation before transitioning to the full price rate. Digital Services Revenue – In 2023, digital services revenue of $19.4 million comprised 2.8% of our total operating revenue. In 2023, almost all of our digital services revenue is from BLOX Digital.
Expand digital subscription base and revenue. We are the fastest growing digital subscription platform in local media. Digital-only subscriber growth continued at a rapid pace in 2022, offsetting the declines in our 3 Table of Contents traditional full access (print and digital) subscribers.
Expand digital subscription base and revenue. We are the fastest growing local media digital subscription business. Digital-only subscriber growth continued at a rapid pace in 2023, offsetting the declines in our traditional full access (print and digital) subscribers. Our digital audiences are comprised of full access subscribers, digital-only subscribers and non-subscribers who access our sites subject to our paywalls.
We continue to demonstrate our commitment to diversity, equity, and inclusion by assessing our hiring practices, extending our hiring reach, providing skill-building opportunities on diverse storytelling, and developing business strategies that include historically marginalized communities.
We continue to demonstrate our commitment to diversity, equity and inclusion by assessing our hiring practices, extending our hiring reach, providing skill-building opportunities on diverse storytelling, and developing business strategies that include historically marginalized communities. These efforts and initiatives will help us reach our goal of a more diverse workforce at all levels of our company.
Louis Post-Dispatch and The Buffalo News , to non-daily newspapers with news websites and digital platforms serving smaller communities. We have made talent and technology investments to improve user experience, content, data visualization, and marketing to align with the shift in spending habits to digital products by both consumers and advertisers.
We have made investments in talent and technology to improve user experience, content, data visualization and marketing to align with the shift in spending habits by both consumers and advertisers toward digital products.
Our salesforce deploys an omni-channel sales approach that leverages the auction-based ad buying that is widely adopted by all major digital advertising channels, and tailors advertising and marketing solutions based on the size, scale, and needs of the advertiser.
Our sales force deploys an omni-channel sales approach that leverages the auction-based ad buying that is widely adopted by all major digital advertising channels, and tailors advertising and marketing solutions based on the size, scale, and needs of the advertiser. We collaborate with Google and other ad tech companies to provide key metrics and analytics to measure campaign effectiveness.
Execution of this strategy is expected to transform Lee into a vibrant, digitally centric company. • Our digital subscription platforms are the fastest growing digital subscription platforms in local media. At the end of 2022, we had more than 530,000 subscribers to our digital platforms, up 32% over 2021.
Execution of this strategy is expected to transform Lee into a growing and sustainable local media organization. • Our digital subscription platforms are the fastest growing digital subscription platforms in local media. At the end of 2023, we had 721,000 subscribers to our digital platforms, up 35.6% over 2022.
Through Amplified we create sophisticated digital campaigns on our owned and operated sites and on third-party sites that give advertisers the ability to target their message to reach their desired audiences. We collaborate with Google and other ad tech companies to provide key metrics and analytics to measure campaign effectiveness.
Through Amplified we create sophisticated digital campaigns on our owned and operated sites and on third-party sites that give advertisers the ability to target their message to reach their desired audiences.
At www.lee.net, one may access a wide variety of information, including news releases, SEC filings, financial statistics, annual reports, investor presentations, governance documents, newspaper profiles and digital links.
The Audit Committee approves all services to be provided by our independent registered public accounting firm and its affiliates. At www.lee.net, one may access a wide variety of information, including news releases, SEC filings, financial statistics, annual reports, investor presentations, governance documents, newspaper profiles and digital links.
Currently, our Board of Directors has affirmatively determined that eight of its nine members are independent, including all members of the Board's Audit, Executive Compensation, and Nominating and Corporate Governance committees. The Audit Committee approves all services to be provided by our independent registered public accounting firm and its affiliates.
CORPORATE GOVERNANCE AND PUBLIC INFORMATION We have a long history of sound corporate governance practices. Currently, our Board of Directors has affirmatively determined that eight of its nine members are independent, including all members of the Board's Audit, Executive Compensation, and Nominating and Corporate Governance committees.
Our print and digital products competed with other forms of media including national media providers and amateur content creators, as well as other news and information outlets for subscription spend. The market for local digital marketing solutions is highly competitive and evolving allowing opportunities for new competitors to enter the market.
We compete with other media and digital companies for advertising and marketing spend. Our print and digital products competed with other forms of media including national media providers and amateur content creators, as well as other news and information outlets for subscription spend.
Our operations also provide printing and distribution of third-party publications. On March 16, 2020, we completed the acquisition of BH Media Group, Inc. ("BH Media") and The Buffalo News, Inc. ("Buffalo News"), adding 31 local media operations and nearly doubling our audience size and total operating revenue.
On March 16, 2020, we completed the acquisition of BH Media Group, Inc. ("BH Media") and The Buffalo News, Inc. ("Buffalo News"), adding 31 local media operations and nearly doubling our audience size and total operating revenue. See Note 1 — Significant Accounting Policies, in the Consolidated Financial Statements for more information on the acquisition.
Our acquisition and retention tactics are focused on growing our digital subscription base by using data and analytics to direct our huge addressable market of 34 million unique visitors toward obtaining a digital subscription.
More than 53% of our full access subscribers have activated their digital access, and digital-only subscribers increased 35.6% in 2023, reaching over 721,000 digital-only subscribers. Our acquisition and retention tactics are focused on growing our digital subscription base by using data and analytics to direct our huge addressable market of 31 million unique visitors toward obtaining a digital subscription.
There are three main categories of digital advertising and marketing services revenue: digital media, digital classified and digital marketing services. • Digital media represents all display advertising delivered on our owned and operated digital products. • Digital classified represents digital advertising revenue associated with our classified partnerships including auto, employment, real estate, legal and obituaries. • Digital marketing services represents a full suite of marketing services provided through Amplified, including targeted display, video, OTT, custom content, web development, social media management, search, events, email marketing and other tactics.
There are four categories of advertising revenue: • Advertising on our owned and operated digital products; 1 Table of Contents • Digital marketing services through Amplified, including targeted display, video, OTT, custom content, web development, social media management, search, events, email marketing and other tactics; • Display advertising in daily and non-daily print publications; and • Preprinted advertising inserted in our daily and non-daily print publications.
Amplified competes with other digital marketing solutions agencies as well as other media companies who have a similar strategy for digital marketing solutions.
The market for local digital marketing solutions is highly competitive and evolving allowing opportunities for new competitors to enter the market. Amplified competes with other digital marketing solutions agencies as well as other media companies which have a similar strategy for digital marketing solutions.
Our core strategy aims to grow digital audiences and engagement through continuous improvements to subscriber experience, while offering a full suite of omni-channel advertising and marketing solutions local advertisers desire. Our product portfolio includes digital subscription platforms, daily, weekly and monthly newspapers and niche publications, all delivering original local news and information.
Our core strategy aims to grow audiences and engagement through creating, collecting, and distributing trusted local news and information, continuous improvements to subscriber experience, and offering a full suite of omni-channel advertising and marketing to more than 30,000 local advertisers.
Our products offer print and digital editions, and our content and advertising is available in real time through our websites and mobile apps. We operate in predominately mid-sized communities with products ranging from large daily newspapers and associated digital products, such as the St.
We operate in predominately mid-sized communities with products ranging from large daily newspapers and associated digital products, such as the St. Louis Post-Dispatch and The Buffalo News , to non-daily newspapers with news websites and digital platforms serving smaller communities.
We aim to achieve this by delivering relevant, useful, and engaging content to the consumer using a multi-media approach with a heavy emphasis on video and audio. In 2023, we plan to continuously improve the user experience with our digital products through targeted investments in top talent aimed at investigative journalism.
We aim to achieve this by delivering relevant, useful, and engaging content to the consumer using a multi-media approach, including video and audio.
Other Revenue - In 2022, Other Revenue of $60.9 million comprised 8% of total operating revenue. Excluding digital services revenue, other revenue is comprised mainly of commercial printing and delivery of third party products and until March 16, 2020 revenue from a Management Agreement between BH Media and the Company dated June 26, 2018 ("Management Agreement").
Other Revenue - In 2023, Other Revenue of $58.9 million comprised 8.5% of total operating revenue. Excluding digital services revenue, other revenue is comprised mainly of commercial printing and delivery of third-party products. In 2023, other revenue excluding digital services of $19.4 million, comprised 5.7% of our total operating revenue, compared to $18.0 million and 5.5% in 2022.
Amplified remains a key strategic priority for us in 2023 as we expect it to fuel growth of our digital advertising and marketing services.
Digital advertising and marketing services remain a key strategic priority for us in 2024. Our advertising teams deploy an omni-channel sales approach that leverages our owned and operated products with Amplified to offer a full suite of digital advertising and marketing services.
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See Note 3 — Acquisitions, in the Consolidated Financial Statements for more information on the acquisition. 1 Table of Contents Advertising and Marketing Services - In 2022, advertising and marketing services revenue of $366.4 million comprised 47% of total operating revenue.
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Our product portfolio includes digital subscription platforms, daily, weekly and monthly newspapers and niche products, all delivering original local news and information as well as national and international news. Our products offer digital and print editions, and our content and advertising is available in real time through our websites and mobile apps.
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There are two primary categories of print advertising revenue: local and national. • Local advertising takes the form of display advertising in daily and non-daily publications and preprinted advertising inserted in the publication. • National advertising is revenue earned from the sale of print display advertising space, or from preprint advertising inserted in the publication, from national accounts that do not have a local retailer representing the account in the market.
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Advertising and Marketing Services - In 2023, advertising and marketing services revenue of $319.0 million comprised 46.2% of total operating revenue. Advertising and marketing services are primarily sold to local, regional, and nationwide businesses.
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Amplified remains a key strategic priority for us in 2023. Our sales force deploys an omni-channel sales approach that leverages the auction-based ad buying that is widely adopted by all major digital advertising channels, and tailors advertising and marketing solutions based on the size, scale, and needs of the advertiser.
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Through our nationally scaled sales force, proprietary ad tech, and sophisticated reporting and analytics, we believe we are well positioned to solve advertising solutions for our advertisers. Through our AI-driven media planning process, we present our advertisers with targeted, integrated solutions that help them reach their intended audiences.
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Our primary digital-only subscriber acquisition tactics include: • Converting our significant organic traffic through on-platform promotion, paywalls, and dynamic meters; • Continuously improving our subscriber experience; and • Brand marketing campaigns to raise awareness to the desirability of our content.
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In 2024, we plan to continuously improve the user experience with our digital products through targeted investments in top talent aimed at improving the mobile version of our digital products and leveraging the information we have to improve subscriber retention.
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In 2022, almost all of our digital services revenue is from BLOX Digital.
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In 2022, other revenue excluding digital services of $18 million, comprised 5.5% of our total operating revenue, compared to $19 million and 6.1% in 2021. We compete with other media and digital companies for advertising and marketing spend.
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Our digital audiences are comprised of full access subscribers, digital-only subscribers and non-subscribers who access our sites subject to our paywalls. More than 53% of our full access subscribers have activated their digital access, and digital-only subscribers increased 32% in 2022, reaching 532,000 digital-only subscribers.
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Through Amplified we create sophisticated digital campaigns on our owned and operated sites and on third-party sites that give advertisers the ability to target their message to reach their desired audiences. We collaborate with Google and other ad tech companies to provide key metrics and analytics to measure campaign effectiveness.
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More recent data is not available. (2) Source: AAM: March 2022 Quarterly Executive Summary Data Report, unless otherwise noted. More recent data is not available (3) Not all newspapers are published Monday through Saturday or have a Sunday edition (4) Owned by MNI (5) Owned by Star Publishing and published through TNI (6) Source: Company statistics.
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In 2021, we hired a Director of News and Talent Development who is charged with improving diversity in our newsrooms and hiring practices that promote a more complete and inclusive news coverage of the communities in which we serve.
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These efforts and initiatives will help us reach our goal of a more diverse workforce at all levels of our company. 7 Table of Contents CORPORATE GOVERNANCE AND PUBLIC INFORMATION We have a long history of sound corporate governance practices.
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
25 edited+11 added−19 removed53 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
25 edited+11 added−19 removed53 unchanged
2022 filing
2023 filing
Biggest changeThe demand for advertising is sensitive to the overall level of economic strength, both in the markets in which we operate and nationally. Also, the decline in the financial or economic conditions of our advertisers could alter discretionary spending by advertisers.
Biggest changeA significant portion of our revenue is derived from advertising and a decline in the financial or economic conditions of our advertisers could alter discretionary spending by those advertisers. Our publications' and websites' advertisers are primarily retail businesses, which have been challenged in recent years by increased competition from online retailers.
As the use of the internet and mobile devices has increased, we have lost some classified advertising and subscribers to online advertising businesses and our free Internet sites that contain abbreviated versions of our publications. Some of our current and potential competitors have greater financial and other resources than we do.
As the use of the internet and mobile devices has increased, we have lost some classified advertising and subscribers to online advertising businesses and free Internet sites that contain abbreviated versions of our publications. Some of our current and potential competitors have greater financial and other resources than we do.
In addition, if we are unable to remediate the material weaknesses, are otherwise unable to maintain effective internal control over financial reporting, or additional material weaknesses or significant deficiencies in our internal control over financial reporting are discovered or occur in the future, our ability to record, process and report financial information accurately, and to prepare financial statements within required time periods could be adversely affected, which, in addition to loss of investor confidence and a negative affect on the value of our common stock, could subject the Company to sanctions or investigations by the SEC, Nasdaq, or other regulatory authorities requiring additional financial and management resources to address.
In addition, if we are unable to remediate the material weakness, are otherwise unable to maintain effective internal control over financial reporting, or additional material weaknesses or significant deficiencies in our internal control over financial reporting are discovered or occur in the future, our ability to record, process and report financial information accurately, and to prepare financial statements within required time periods could be adversely affected, which, in addition to loss of investor confidence and a negative affect on the value of our common stock, could subject the Company to sanctions or investigations by the SEC, NASDAQ, or other regulatory authorities requiring additional financial and management resources to address.
While certain actions have been taken and planned to remediate and address the material weaknesses and enhance our internal control over financial reporting, we cannot be certain such remedial measures will be successful or otherwise sufficient to address the material weaknesses.
While certain actions have been taken and planned to remediate and address the material weaknesses and enhance our internal control over financial reporting, we cannot be certain such remedial measures will be successful or otherwise sufficient to address the material weakness.
Currently, a primary source of revenue is from advertising and marketing services, which accounts for 47% of our revenue. Subscription revenue accounts for 45% of our revenue. The media publishing industry has experienced rapid evolution in consumer demands and expectations due to advances in technology, which have led to a proliferation of delivery methods for news and information.
Currently, a primary source of revenue is from advertising and marketing services, which accounts for 46% of our revenue. Subscription revenue accounts for 45% of our revenue. The media publishing industry has experienced rapid evolution in consumer demands and expectations due to advances in technology, which have led to a proliferation of delivery methods for news and information.
For further information on goodwill and intangible assets, see Note 6 — Goodwill and other intangible assets. 10 Table of Contents Attracting and Retaining Highly Qualified Personnel is Difficult and Costly, but the Failure to Do So Could Negatively Affect Our Operations.
For further information on goodwill and intangible assets, see Note 4 — Goodwill and other intangible assets. 10 Table of Contents Attracting and retaining highly qualified personnel is difficult and costly, but the failure to do so Could negatively affect our operations.
As a result of any such breaches, customers or users may assert claims of liability against us and these activities may subject us to legal claims, adversely 14 Table of Contents impact our reputation, and interfere with our ability to provide our products and services, all of which may have an adverse effect on our business, financial condition and results of operations.
As a result of any such breaches, customers or users may assert claims of liability against us and these activities may subject us to legal claims, adversely impact our reputation, and interfere with our ability to provide our products and services, all of which may have an adverse effect on our business, financial condition and results of operations.
Additionally, we depend on the security of our third-party service providers. Unauthorized use of or inappropriate access to our, or our third-party service providers’ networks, computer systems and services could potentially jeopardize the security of confidential information, including payment card (credit or debit) information, of our customers.
Additionally, we depend on the security of our third-party service providers. Unauthorized use of or 13 Table of Contents inappropriate access to our, or our third-party service providers’ networks, computer systems and services could potentially jeopardize the security of confidential information, including payment card (credit or debit) information, of our customers.
We have identified three material weaknesses in our internal control over financial reporting, which could result in loss of investor confidence in the Company and a negative impact on the value of our common stock.
We have identified a material weakness in our internal control over financial reporting, which could result in loss of investor confidence in the Company and a negative impact on the value of our common stock.
Compliance with Section 404 may 9 Table of Contents require us to incur substantial accounting expenses and expend significant management efforts. Our testing has revealed and in the future may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses.
Compliance with Section 404 may require us to incur substantial accounting expenses and expend significant management efforts. Our testing has revealed and in the future may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses.
We contributed to various multiemployer defined benefit pension plans during 2022 under the terms of collective-bargaining agreements (“CBAs”). For plans that are in critical status, benefit reductions may apply/or we could be required to make additional contributions.
We contributed to various multiemployer defined benefit pension plans during 2023 under the terms of collective-bargaining agreements (“CBAs”). For plans that are in critical status, benefit reductions may apply or we could be required to make additional contributions. 14 Table of Contents
We expect increases in these costs in the near-term from various factors, including increases in the cost of raw materials, energy, labor, transportation, and distribution, which can be attributed to inflation and other adverse factors on the economy.
We expect increases in these costs in the near-term from various factors, including increases in the cost of raw materials, energy, labor, transportation, and distribution, due to inflation and other adverse factors on the economy.
For ease of review, the risk factors generally have been grouped into categories, but many of the risks described in a given category relate to multiple categories. Risks Related to our Business and Operations Our advertising revenues may decline due to weakness in the brick-and-mortar retail sector. A significant portion of our revenue is derived from advertising.
For ease of review, the risk factors generally have been grouped into categories, but many of the risks described in a given category relate to multiple categories. Risks Related to our Business and Operations Our advertising revenues may decline due to weakness in the retail sector.
In the past, these and other similar conditions have resulted in, and could lead to a tightening of credit and capital markets, lower levels of liquidity, lower consumer and business spending due to wavering of consumer confidence, unemployment, declines in real estate values, and other adverse economic conditions.
In the past, these and other similar conditions and events have resulted in, and could lead to a tightening of credit and capital markets, lower levels of liquidity, lower consumer and business spending, unemployment, declines in real estate values, increases in employee-related costs, and other adverse economic conditions.
For additional information, see Item 9A, "Controls and Procedures," below. Until remediated, the material weaknesses could adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner, which could negatively affect investor confidence in the Company and, in turn, the value of our common stock.
Until remediated, the material weakness could adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner, which could negatively affect investor confidence in the Company and, in turn, the value of our common stock.
The value of our intangible assets may become further impaired, depending upon future operating results. At September 25, 2022, the carrying value of our goodwill was $329.5 million, the carrying value of mastheads was $26.3 million, and the carrying value of our amortizable intangible assets was $95.0 million.
The value of our intangible assets may become further impaired, depending upon future operating results. At September 24, 2023, the carrying value of our goodwill was $329.5 million, the carrying value of mastheads was $18.7 million, and the carrying value of our amortizable intangible assets was $76.3 million.
Pension plans were in a net underfunded position of $0.4 million at September 25, 2022, compared to an over funded position of $13.4 million at September 26, 2021. Our pension and postretirement plans invest in a variety of equity and debt securities.
Pension plans were in a net overfunded position of $10.3 million at September 24, 2023 compared to an underfunded position of $0.4 million at September 25, 2022. Our pension and postretirement plans invest in a variety of equity and debt securities.
Uncertainty and adverse changes in the general economic conditions of markets in which we participate and increases in costs of raw materials, energy, labor and other factors may negatively affect our business.
Uncertainty and adverse changes in the general economic conditions of markets in which we participate and increases in costs of raw materials, energy, labor and other factors may negatively affect our business. Our business and the companies with which we do business are subject risks and uncertainties caused by factors beyond our control.
Our ability to make scheduled payments depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, competitive, legislative, regulatory, and other factors beyond our control.
Currently, the Term Note has an aggregate principal outstanding amount of $455.7 million. Our ability to make scheduled payments depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, competitive, legislative, regulatory, and other factors beyond our control.
As a public company, we are required to maintain effective internal controls for financial reporting and disclosure controls and procedures. In particular, Section 404 of the Sarbanes-Oxley Act requires us to perform system and process evaluations and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting.
In particular, Section 404 of the Sarbanes-Oxley Act requires us to perform system 9 Table of Contents and process evaluations and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting.
We compete for audiences and advertising revenue with newspapers and other media such as the internet, magazines, broadcast, cable and satellite television, radio, direct mail, outdoor billboards and yellow pages.
We compete for audiences and advertising revenue with newspapers and other media such as web-based digital platforms (e.g., Alphabet, Amazon, Meta, TikTok etc.), magazines, broadcast, cable and satellite television, radio, direct mail, and billboards.
Certain segments of the economy have been challenged in recent years, particularly in the brick-and-mortar retail sector, and total advertising revenues have declined as a result. Advertising revenues may worsen if advertisers reduce their budgets, shift their spending priorities, are forced to consolidate, or cease operations.
This trend has reduced and may continue to reduce advertising revenue from the brick-and-mortar retail sector. Specifically, advertising revenues may worsen if advertisers reduce their budgets, shift their spending priorities, are forced to consolidate, or cease operations.
If we fail to compete effectively with competing newspapers and other media, our results of operations may be materially adversely affected. Risks Related to Takeover Attempts Alden ’ s unsolicited proposal to acquire us diverted management ’ s attention and resources, caused us to incur substantial costs, and such actions have an adverse effect on our business.
If we fail to compete effectively with competing newspapers and other media, our results of operations may be materially adversely affected. Risks Related to Our Indebtedness Our Indebtedness could materially and adversely affect our business or financial condition.
We cannot assure investors we would be able to take any of these alternative actions, such actions would be permitted under the terms of the Credit Agreement, and, even if successful,, that such actions would permit us to meet our scheduled debt service obligations 13 Table of Contents If we cannot make scheduled payments on our debt, the subsequent default proceedings under the Credit Agreement could lead to all principal and interest becoming due and payable.
We cannot assure investors we would be able to take any of these alternative actions, such actions would be permitted under the terms of the Credit Agreement, and, even if successful,, that such actions would permit us to meet our scheduled debt service obligations In addition, the 2020 Refinancing terms impose operating and financial restrictions, including restrictions on incurring additional indebtedness, creating certain liens, making certain investments or acquisitions, issuing dividends, repurchasing shares of Company stock, and engaging in other capital transactions.
Management assessed the effectiveness of our internal control over financial reporting as of September 25, 2022, and concluded we did not maintain effective internal control over financial reporting. Specifically, management identified three material weaknesses, including controls related to user access of our systems, information used by us in performing internal controls, and deferred taxes related to business combinations.
Management assessed the effectiveness of our internal control over financial reporting as of September 24, 2023, and concluded we did not maintain effective internal control over financial reporting.
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The U.S. markets have weakened recently and are experiencing uncertainty and volatility due to higher inflation, increased interest rates, the war in Ukraine, the ongoing recovery from the COVID-19 pandemic, and other geopolitical events.
Added
Such factors include economic pressures related to high inflation, rising interest rates, economic weakness or recession, as well as geopolitical and public health events such as the wars in Ukraine and Israel, pandemics, and workforce expectations.
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On November 22, 2021, we received an unsolicited proposal from Alden Global Capital, LLC (with its affiliates, “Alden”) to acquire the Company for $24.00 per share in cash (the “Unsolicited Proposal”).
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As a public company, we are required to maintain effective internal controls for financial reporting and disclosure controls and procedures.
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On December 9, 2021, we announced that our Board of Directors, in consultation with its independent financial and legal advisors, unanimously determined to reject the Unsolicited Proposal, as it significantly undervalued the Company and was not in the best interests of the Company and its stockholders.
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Management did not design and implement controls to assess the reliability of certain internally generated information, or evaluate information received from certain third-party service providers, that are relevant to certain revenue recognized in the Company’s consolidated financial statements. For additional information, see Item 9A, "Controls and Procedures," below.
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The events surrounding the Unsolicited Proposal and related circumstances and our response have required, and may continue to require, significant time and attention by management and our Board of Directors and have required us, and may continue to require us, to incur significant legal and advisory fees and expenses.
Added
Our current indebtedness, and any future debt incurred, could have significant consequences on our future operations, including making it more difficult to satisfy our debt obligations and meet our operational goals. Our entire outstanding indebtedness is encompassed in a 25-year term loan ("Term Loan") with BH Finance LLC, a Nebraska limited liability company affiliated with Berkshire Hathaway, Inc.
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Further, actions taken by Alden or other third parties as a result of the Unsolicited Proposal, including a proxy contest, and litigation by adverse parties, could disrupt our business, distract us from efforts to improve our business, cause us to incur substantial additional expense, create perceived uncertainties among current and potential employees, customers, clients, suppliers, and other constituencies as to our future direction as a consequence thereof that may result in lost sales or other business arrangements and the loss of potential business opportunities, and make it more difficult to attract and retain qualified personnel and business partners.
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("BH Finance"), which was part of a broader comprehensive refinancing of all of our then-outstanding debt, including a Credit Agreement, dated January 29, 2020 (collectively, the "2020 Refinancing").
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Actions that our Board of Directors have taken, and may take in the future, in response to any offer or other related actions by Alden or other third parties, including the Unsolicited Proposal and Alden’s purported notice of nominations in connection with our 2022 annual meeting of stockholders (which our Board of Directors determined was invalid for failing to comply with requirements of our by-laws), or any other offer or proposal may result in litigation against us.
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At its inception, the aggregate principal amount and applicable interest rate of the Term Loan was $576.0 million and 9% annual rate, respectively, the proceeds of which were used to refinance our then-outstanding debt and fund the acquisition of BH Media and Buffalo News. The Term Loan is collateralized by all Company assets.
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In the event Alden or other third parties initiate litigation against us, these actions could harm our business and have a material adverse effect on our results of operations. We also believe the future trading price of our Common Stock could be subject to wide price fluctuations based on uncertainty associated with the Unsolicited Proposal and any future offer.
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A failure to satisfy out debt service obligations on the Term Loan could give rise to default. Moreover, these restrictions limit our flexibility in planning for or reacting to changes in our business, the economy, in general, and the economies in which we operate, which, in turn increases our vulnerability to adverse financial consequences related to such changes.
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Risks Related to our Acquisitions of BH Media and Buffalo News On March 16, 2020, the Company completed the purchase of certain assets and the assumption of certain liabilities of the newspaper and related community publications business of BH Media and the purchase of all of the issued and outstanding capital stock of Buffalo News (collectively, the “Transactions”).
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A failure to satisfy our debt service obligations on the Term Loan could give rise to default and, in turn, the right of our lender to accelerate our indebtedness, making all principal and interest becoming due and payable. 12 Table of Contents Certain actions, including our ability to incur additional indebtedness, require the consent of our lenders and note holders which, if not provided, would limit our ability to take advantage of future opportunities.
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Under the terms of the Asset and Stock Purchase Agreement, dated January 29, 2020, with Berkshire Hathaway, Inc. (“Berkshire”), and BH Media (the “Purchase Agreement”), the aggregate purchase price for the Transactions was $140 million, which excluded $12 million in cash at closing of the Transactions.
Added
The terms of the 2020 Refinancing, limit our ability to take certain actions without requisite lender approval and modification of the loan agreements. These limitations include restrictions on incurring additional indebtedness, creating certain liens, making certain investments or acquisitions, issuing dividends, repurchasing shares of Company stock, and engaging in other capital transactions.
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BH Finance, LLC (“BH Finance”), an affiliate 12 Table of Contents of Berkshire, financed the Purchase Agreement through a Credit Agreement, dated January 29, 2020 (the “Credit Agreement”). The Company borrowed $576 million from BH Finance under the Credit Agreement in order to finance the Transactions and refinance its outstanding indebtedness.
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While we have an established relationship with BH Finance, whose priorities and interests are familiar to us, there is no assurance BH Finance will approve or consent to our activities, even if the activities are in the best interests of our stockholders.
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We may not achieve the intended benefits of the BH Media and Buffalo News acquisition. We completed the BH Media and Buffalo News acquisition in March 2020, and there can be no assurance that we will be able to realize the expected benefits of the transaction.
Added
If we are unable to secure the required consent of BH Finance, our ability to take advantage of future opportunities, including acquisition or financing opportunities, could be restricted.
Removed
There are many challenges associated with integrating a material acquisition, such as our acquisition of BH Media and Buffalo News, including the integration of executive and other employee teams with historically different cultures and priorities; the coordination of personnel located across multiple geographic locations; retaining key management and other employees; consolidating corporate and administrative infrastructures and eliminating duplicative operations; the diversion of management’s attention from ongoing business concerns; retaining existing business and operational relationships, including customers, suppliers and other counterparties, and attracting new business and operational relationships; unanticipated issues in integrating information technology, communications and other systems; as well as unforeseen expenses associated with the acquisition.
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These and other challenges could result in unanticipated operational challenges and the failure to realize anticipated synergies in the expected timeframe or at all.
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If we fail to realize anticipated synergies in the amount and within the timeframe expected, our actual financial condition and results of operations may differ materially from the illustrative unaudited financial information disclosed in connection with the acquisition, which was based on various assumptions and estimates that may prove to be incorrect.
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Such illustrative unaudited financial information did not constitute management’s projections of future financial performance or results of operations; however, any material variance from such illustrative unaudited financial information could result in negative investor reactions that materially and adversely affect the market price of our Common Stock.
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Our actual financial condition and results of operations may differ materially even if synergies are realized, due to macroeconomic factors or a variety of other risks to our business that are independent of the acquisition. Our future results will suffer if we do not effectively manage our expanded operations.
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With the completion of the BH Media acquisition, the size of our business increased significantly. Our continued success depends, in part, upon our ability to manage this expanded business, which poses substantial challenges for management, including challenges related to the management and monitoring of new operations and associated increased costs and complexity.
Removed
We cannot assure that we will be successful or that we will realize the expected operating efficiencies, cost savings, and other benefits from the combination that we currently anticipate.
Removed
Risks Related to Liquidity and Capital We may not be able to generate sufficient cash to service all our debt and may be forced to take other actions to satisfy our obligations under our debt, which may not be successful.
Item 2. Properties
Properties — owned and leased real estate
2 edited+0 added−0 removed0 unchanged
Item 2. Properties
Properties — owned and leased real estate
2 edited+0 added−0 removed0 unchanged
2022 filing
2023 filing
Biggest changeOur newspapers and other publications have formal or informal backup arrangements for printing in the event of a disruption in production capability. 15 Table of Contents
Biggest changeOur newspapers and other publications have formal or informal backup arrangements for printing in the event of a disruption in production capability.
ITEM 2. PROPERTIES Our executive offices are located in leased facilities at 4600 E. 53 rd Street, Davenport, Iowa. The initial lease term expires August 1, 2029. We have 23 print sites which print most of our dailies with the exception of 13 that are printed at third-party printers.
ITEM 2. PROPERTIES Our executive offices are located in leased facilities at 4600 E. 53 rd Street, Davenport, Iowa. The initial lease term expires August 1, 2029. We have 19 print sites which print most of our dailies with the exception of 10 that are printed at third-party printers.
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
4 edited+0 added−0 removed1 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
4 edited+0 added−0 removed1 unchanged
2022 filing
2023 filing
Biggest changeITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our Common Stock is listed on the NASDAQ. At November 30, 2022, we had 5,655 registered holders of record of our Common Stock. Our Credit Agreement restricts us from paying dividends on our Common Stock.
Biggest changeITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our Common Stock is listed on NASDAQ. At November 30, 2023, we had 4,116 registered holders of record of our Common Stock. Our Credit Agreement restricts us from paying dividends on our Common Stock.
This restriction does not apply to dividends issued with the Company's Equity Interests or from the proceeds of a sale of the Company's Equity Interest. See Note 7 — Debt, of the Notes to Consolidated Financial Statements, included herein.
This restriction does not apply to dividends issued with the Company's Equity Interests or from the proceeds of a sale of the Company's Equity Interest. See Note 5 — Debt, of the Notes to Consolidated Financial Statements, included herein.
Copyright© 2022 Standard & Poor's, a division of S&P Global. All rights reserved. 16 Table of Contents
Copyright© 2023 Standard & Poor's, a division of S&P Global. All rights reserved. 16 Table of Contents
PERFORMANCE PRESENTATION The following graph compares the percentage change in the cumulative total return of the Company, the Standard & Poor's 500 Stock Index, and a peer group index, in each case for the five years ended September 25, 2022 (with September 24, 2017, as the measurement point).
PERFORMANCE PRESENTATION The following graph compares the percentage change in the cumulative total return of the Company, the Standard & Poor's 500 Stock Index, and a peer group index, in each case for the five years ended September 24, 2023 (with September 24, 2018, as the measurement point).
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
63 edited+9 added−18 removed31 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
63 edited+9 added−18 removed31 unchanged
2022 filing
2023 filing
Biggest changeThe acquisition was funded by a 25-year term loan with BH Finance, in an aggregate principal amount of $576,000,000 at a 9% annual rate (referred to herein as "Credit Agreement" and "Term Loan"), as part of a broader comprehensive refinancing of all of our then outstanding debt. • In the 13 weeks ended March 2020, we disposed of substantially all of the assets of certain of our smaller properties, including four daily newspapers and related print and digital publications, for an aggregate sales price of $3,950,000. 19 Table of Contents OPERATIONS Operating results, as reported in the Consolidated Financial Statements, are summarized below: (Thousands of Dollars, Except Per Common Share Data) 2022 2021 Percent Change 2020 Percent Change Operating revenue: Print advertising revenue 184,963 227,892 (18.8) % 183,164 24.4 % Digital advertising revenue 181,465 141,391 28.3 % 106,491 32.8 % Advertising and marketing services revenue 366,428 369,283 (0.8) % 289,655 27.5 % Print subscription revenue 313,504 329,484 (4.9) % 230,949 42.7 % Digital subscription revenue 40,120 28,229 42.1 % 37,336 (24.4) % Subscription revenue 353,624 357,713 (1.1) % 268,285 33.3 % Print other revenue 42,962 48,656 (11.7) % 39,632 22.8 % Digital other revenue 17,955 18,997 (5.5) % 20,432 (7.0) % Other revenue 60,917 67,653 (10.0) % 60,064 12.6 % Total operating revenue 780,969 794,649 (1.7) % 618,004 28.6 % Operating expenses: Compensation 317,789 330,896 (4.0) % 243,023 36.2 % Newsprint and ink 30,101 29,775 1.1 % 24,243 22.8 % Other operating expenses 344,905 325,597 5.9 % 259,382 25.5 % Depreciation and amortization 36,544 42,841 (14.7) % 36,133 18.6 % Assets loss (gain) on sales, impairments and other 9,716 8,214 18.3 % (5,403) NM Restructuring costs and other 22,720 7,182 216.3 % 13,751 (47.8) % Total operating expenses 761,775 744,505 2.3 % 571,129 30.4 % Equity in earnings of associated companies 5,657 6,412 (11.8) % 3,403 88.4 % Operating income 24,851 56,556 (56.1) % 50,278 12.5 % Non-operating income (expense): Interest expense (41,770) (44,773) (6.7) % (47,743) (6.2) % Debt financing and administrative costs — — NM (11,966) NM Curtailment gain 1,027 23,830 (95.7) % — NM Pension withdrawal cost (2,335) (12,862) (81.8) % — NM Pension and OPEB related benefit (cost) and other, net 19,022 9,296 104.6 % 12,274 (24.3) % Total non-operating expense, net (24,056) (24,509) (1.8) % (47,435) (48.3) % Income before income taxes 795 32,047 (97.5) % 2,843 NM Income tax (benefit) expense 698 7,255 (90.4) % 2,973 NM Net Income (loss) 97 24,792 (99.6) % (130) NM Earnings (loss) per common share: Basic (0.35) 3.98 NM (0.35) NM Diluted (0.35) 3.90 NM (0.35) NM We acquired or disposed of certain properties in each of 2022, 2021 and 2020. 20 Table of Contents OPERATING REVENUE Revenue Comparison 2022-2021 Total operating revenue totaled $781.0 million in 2022, down $13.7 million, or 1.7%, compared to 2021.
Biggest changeIMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS See Note 1 to the Consolidated Financial Statements for a description of new accounting standards issued and/or adopted in the year ended September 24, 2023. 18 Table of Contents OPERATIONS Operating results, as reported in the Consolidated Financial Statements, are summarized below: (Thousands of Dollars, Except Per Common Share Data) 2023 2022 Percent Change 2021 Percent Change Operating revenue: Print advertising revenue 125,804 184,963 (32.0) % 227,892 (18.8) % Digital advertising revenue 193,173 181,465 6.5 % 141,391 28.3 % Advertising and marketing services revenue 318,977 366,428 (12.9) % 369,283 (0.8) % Print subscription revenue 252,591 313,504 (19.4) % 329,484 (4.9) % Digital subscription revenue 60,700 40,120 51.3 % 28,229 42.1 % Subscription revenue 313,291 353,624 (11.4) % 357,713 (1.1) % Print other revenue 39,508 42,962 (8.0) % 48,656 (11.7) % Digital other revenue 19,362 17,955 7.8 % 18,997 (5.5) % Other revenue 58,870 60,917 (3.4) % 67,653 (10.0) % Total operating revenue 691,138 780,969 (11.5) % 794,649 (1.7) % Operating expenses: Compensation 266,907 317,789 (16.0) % 330,896 (4.0) % Newsprint and ink 25,346 30,101 (15.8) % 29,775 1.1 % Other operating expenses 323,067 344,905 (6.3) % 325,597 5.9 % Depreciation and amortization 30,621 36,544 (16.2) % 42,841 (14.7) % Assets loss (gain) on sales, impairments and other 1,882 9,716 (80.6) % 8,214 NM Restructuring costs and other 12,673 22,720 (44.2) % 7,182 216.3 % Total operating expenses 660,496 761,775 (13.3) % 744,505 2.3 % Equity in earnings of associated companies 6,527 5,657 15.4 % 6,412 (11.8) % Operating income 37,169 24,851 49.6 % 56,556 (56.1) % Non-operating income (expense): Interest expense (41,471) (41,770) (0.7) % (44,773) (6.7) % Curtailment gain — 1,027 (100.0) % 23,830 NM Pension withdrawal cost (1,200) (2,335) (48.6) % (12,862) NM Pension and OPEB related benefit (cost) and other, net 2,420 19,022 (87.3) % 9,296 104.6 % Total non-operating expense, net (40,251) (24,056) 67.3 % (24,509) (1.8) % (Loss) income before income taxes (3,082) 795 (487.7) % 32,047 NM Income tax (benefit) expense (349) 698 (150.0) % 7,255 (90.4) % Net (loss) income (2,733) 97 (2917.4) % 24,792 NM Earnings (loss) per common share: Basic (0.90) (0.35) 156.5 % 3.98 NM Diluted (0.90) (0.35) 156.5 % 3.90 NM We acquired or disposed of certain properties in each of 2023, 2022 and 2021. 19 Table of Contents OPERATING REVENUE Revenue Comparison 2023 - 2022 Total operating revenue totaled $691.1 million in 2023, down $89.8 million, or 11.5%, compared to 2022.
NON-OPERATING INCOME AND EXPENSES Non-operating Income and Expense Comparison 2022-2021 Interest expense decreased $3.0 million, or 6.7%, to $41.8 million in 2022 due to lower debt balances. Our weighted average cost of debt, excluding amortization of debt financing cost, was 9.0% in 2022 and 2021.
Non-operating Income and Expense Comparison 2022-2021 Interest expense decreased $3.0 million, or 6.7%, to $41.8 million in 2022 due to lower debt balances. Our weighted average cost of debt, excluding amortization of debt financing cost, was 9.0% in 2022 and 2021.
See Note 7 of the Notes to the Consolidated Financial Statements, included herein. (2) Interest expense includes an estimate of interest expense for the Term Note, until its maturity in March 2045. Interest expense under the Term Note is estimated using the 9.0% contractual rate applied to the outstanding balance as reduced by future contractual maturities of such debt.
See Note 5 of the Notes to the Consolidated Financial Statements, included herein. (2) Interest expense includes an estimate of interest expense for the Term Note, until its maturity in March 2045. Interest expense under the Term Note is estimated using the 9.0% contractual rate applied to the outstanding balance as reduced by future contractual maturities of such debt.
See Note 7 of the Notes to Consolidated Financial Statements, included herein. The table above excludes future cash requirements for pension, postretirement and postemployment obligations. The periods in which these obligations will be settled in cash are not readily determinable and are subject to numerous future events and assumptions.
See Note 5 of the Notes to Consolidated Financial Statements, included herein. The table above excludes future cash requirements for pension, postretirement and postemployment obligations. The periods in which these obligations will be settled in cash are not readily determinable and are subject to numerous future events and assumptions.
Excluding payments required from the Company's future excess cash flow (as defined in Note 7), the only required principal payments include payments from net cash proceeds from asset sales (as defined in the Credit Agreement) and payments upon certain instances of change in control. Current maturities of long-term debt are from excess cash flows.
Excluding payments required from the Company's future excess cash flow (as defined in Note 5), the only required principal payments include payments from net cash proceeds from asset sales (as defined in the Credit Agreement) and payments upon certain instances of change in control. Current maturities of long-term debt are from excess cash flows.
We account for our pension, postretirement and postemployment plans in accordance with the applicable accounting guidance, which requires us to include the funded status of our pension plans in our balance sheets 17 Table of Contents and to recognize, as a component of other comprehensive income (loss), the gains or losses that arise during the period but are not recognized in pension expense.
We account for our pension, postretirement and postemployment plans in accordance with the applicable accounting guidance, which requires us to include the funded status of our pension plans in our balance sheets and to recognize, as a component of other comprehensive income (loss), the gains or losses that arise during the period but are not recognized in pension expense.
The largest components are costs associated with printing and distribution of our printed products, digital investments, digital cost of goods sold and facility expenses. The increase is attributable to increases in investments to fund our digital growth strategy partially offset by lower delivery and other print-related costs due to lower volumes of our print products.
The largest components are costs associated 21 Table of Contents with printing and distribution of our printed products, digital investments, digital cost of goods sold and facility expenses. The increase is attributable to increases in investments to fund our digital growth strategy partially offset by lower delivery and other print-related costs due to lower volumes of our print products.
Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.
Adjusted EBITDA is defined as net income (loss), plus non-operating expenses, income tax expense, depreciation and amortization, assets loss (gain) on sales, impairments 23 Table of Contents and other, restructuring costs and other, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI.
The Company froze future benefits for an additional four of the defined benefit plans. The freeze of future benefits resulted in a non-cash curtailment gain of $1.0 million related to the four plans.
The Company froze future benefits for four of the defined benefit plans. The freeze of future benefits resulted in a non-cash curtailment gain of $1.0 million related to the four plans.
In this report, we present Adjusted EBITDA and cash costs, which are non-GAAP financial performance measures that exclude from our reported GAAP results the impact of certain items consisting primarily of 24 Table of Contents restructuring charges and non-cash charges.
In this report, we present Adjusted EBITDA and cash costs, which are non-GAAP financial performance measures that exclude from our reported GAAP results the impact of certain items consisting primarily of restructuring charges and non-cash charges.
As more fully discussed in Note 7 of the Notes to the Consolidated Financial Statements, included herein, we recorded a liability for the Warrants, issued in connection with the Warrant Agreement. We re-measured the liability to fair value each reporting period, with changes reported in other non-operating income (expenses).
As more fully discussed in Note 5 of the Notes to the Consolidated Financial Statements, included herein, we recorded a liability for the Warrants, issued in connection with the Warrant Agreement in previous years. We re-measured the liability to fair value each reporting period, with changes reported in other non-operating income (expenses).
Other revenue, which primarily consist of digital services revenue from BLOX Digital and commercial printing revenue totaled $60.9 million, a 10.0% decrease compared to 2021. Digital services revenue totaled $17.9 million in 2022, a 5.4% decrease compared to 2021. Commercial printing revenue totaled $21.5 million in 2022, a 14.4% decline from 2021.
Other revenue, which primarily consist of digital services revenue from BLOX Digital and commercial printing revenue totaled $60.9 million, a 10.0% decrease compared to 2021. Digital services revenue totaled $17.9 million in 2022, a 5.4% decrease compared to 2021.
Included in other non-operating income and expense is income related to our defined benefit pension plans and other post-employment benefit plans, which totaled $20.5 million and $33.3 million in 2022 and 2021, respectively. We recognized a non-cash curtailment gain of $23.8 million and a reduction in our benefit obligation in 2021 by eliminating post-retirement medical coverage for certain employees.
Included in other non-operating income and expense is income related to our defined benefit pension plans and other postemployment benefit plans, which totaled $20.5 million and $33.3 million in 2022 and 2021, respectively. We recognized a non-cash curtailment gain of $23.8 million and a reduction in our benefit obligation in 2021 by eliminating postretirement medical coverage for certain employees.
Due to the fluctuation in the price of our Common Stock and changes in interest rates, the estimated fair value of the warrant liability can change each period. We recorded non-operating income of $0.3 million and $0.8 million in 2021 and 2020 respectively, due to the change in fair value of the Warrants.
Due to the fluctuation in the price of our Common Stock and changes in interest rates, the estimated fair value of the warrant liability can change each period. We recorded non-operating income of $0.1 million and $0.3 million in 2022 and 2021 respectively, due to the change in fair value of the Warrants.
A 50 basis point change in expected rate of return of assets results would result in an increase to pension and postretirement and postemployment benefits expense of $1,137,000. Income Taxes We are subject to income taxes in the U.S. and record our tax provision for the anticipated tax consequences in our reported results of operations.
A 50-basis point decrease in expected rate of return of assets results would result in an increase to pension and postretirement and postemployment benefits expense of $1.1 million. Income Taxes We are subject to income taxes in the U.S. and record our tax provision for the anticipated tax consequences in our reported results of operations.
The non-cash settlement gain of $4,245,000 is recorded in Pension and OPEB related benefit (cost) and other, net. As more fully discussed in Note 7 of the Notes to the Consolidated Financial Statements, included herein, we recorded a liability for the Warrants, issued in connection with the Warrant Agreement in previous years.
The non-cash settlement gain of $4.2 million is recorded in Pension and OPEB related benefit (cost) and other, net. As more fully discussed in Note 5 of the Notes to the Consolidated Financial Statements, included herein, we recorded a liability for the Warrants, issued in connection with the Warrant Agreement in previous years.
The decrease was primarily driven by a decrease in operating results of $25,412,000 (defined as net income (loss) adjusted for non-working capital items) and a decrease in cash from working capital of $21,237,000, primarily related to unfavorable changes in accounts receivable and income taxes payable, partially offset by favorable changes in accounts payable and pension and postretirement obligations.
The decrease was primarily driven by a decrease in operating results of $25.4 million (defined as net income (loss) adjusted for non-working capital items) and a decrease in cash from working capital of $21.2 million, primarily related to unfavorable changes in accounts receivable and income taxes payable, partially offset by favorable changes in accounts payable and pension and postretirement obligations.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion includes comments and analysis relating to our results of operations and financial condition as of and for the year ended September 25, 2022, and for fiscal years 2021 and 2020.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion includes comments and analysis relating to our results of operations and financial condition as of and for the year ended September 24, 2023, and for fiscal years 2022 and 2021.
See Item 7A, “Commodities”, included herein, for further discussion and analysis of the impact of newsprint on our business. Other operating expenses increased $66.2 million in 2021, or a 25.5% increase compared to 2020. Other operating expenses include all operating costs not considered to be compensation, newsprint and ink, depreciation and amortization, or restructuring costs and other.
See Item 7A, “Commodities”, included herein, for further discussion and analysis of the impact of newsprint on our business. Other operating expenses increased $19.3 million in 2022, or a 5.9% increase compared to 2021. Other operating expenses include all operating costs not considered to be compensation, newsprint and ink, depreciation and amortization, or restructuring costs and other.
We expect all interest and principal payments due in the next twelve months will be satisfied by existing cash and our cash flows, which will allow us to maintain an adequate level of liquidity. At September 25, 2022, the principal amount of our outstanding debt totals $462.6 million.
We expect all interest and principal payments due in the next twelve months will be satisfied by existing cash and our cash flows, which will allow us to maintain an adequate level of liquidity. At September 24, 2023, the principal amount of our outstanding debt totals $455.7 million.
We recognized pension withdrawal costs in 2021 of $12.9 million in connection with the withdrawal from pension plans that covered certain employees. The withdrawal liabilities will be paid over the next 20 years.
We recognized pension withdrawal costs in 2023 and 2021 of $1.2 million and $12.9 million, respectively, in connection with the withdrawal from pension plans that covered certain employees. No withdrawal costs were recognized in 2022. The withdrawal liabilities will be paid over the next 20 years.
The 2020 Refinancing as defined in Note 7, significantly extended our debt maturity profile with final maturity of our debt in 2045. SEASONALITY Our largest source of advertising and marketing services revenue, retail advertising, is seasonal and tends to fluctuate with retail sales in markets served. Historically, retail advertising is higher in the December and June quarters.
The 2020 Refinancing as defined in Note 5, significantly extended our debt maturity profile with final maturity of our debt in 2045. 25 Table of Contents SEASONALITY Our largest source of advertising and marketing services revenue, retail advertising, is seasonal and tends to fluctuate with retail sales in markets served.
Revenue at BLOX Digital, including intercompany revenue, totaled $30,906,000, an increase of 13.6%, due to increased market share and increases in average revenue per user due to additional value added service offerings.
Revenue at BLOX Digital, including intercompany revenue, totaled $35.0 million, an increase of 13.2%, due to increased market share and increases in average revenue per user due to additional value-added service offerings.
In 2022, we used an expected return of assets assumption of 5.0% for both our pension plan assets and our postretirement and postemployment benefit plan assets. A 50 basis point change in discount rates would result in an increase to pension and postretirement and postemployment benefits liabilities of $12,100,000.
In 2023, we used an expected return of assets assumption of 5.0% for both our pension plan assets and our postretirement and postemployment benefit plan assets. A 50-basis point decrease in discount rates would result in an increase to pension and postretirement and postemployment benefits liabilities of $10.6 million.
There are no other scheduled mandatory principal payments required under the Credit Agreement. Liquidity Our liquidity, consisting of cash on the balance sheet, totals $16.2 million at September 25, 2022. This liquidity amount excludes any future cash flows from operations.
There are no other scheduled mandatory principal payments required under the Credit Agreement. Liquidity Our liquidity, consisting of cash on the balance sheet, totaled $14.5 million at September 24, 2023. This liquidity amount excludes any future cash flows from operations.
Newsprint and ink costs increased $0.3 million in 2022, or a 1.1% increase compared to 2021. This increase was attributable to higher newsprint prices offset by a declines in newsprint volumes. See Item 7A, “Commodities”, included herein, for further discussion and analysis of the impact of newsprint on our business.
Newsprint and ink costs decreased $4.8 million in 2023, or a 15.8% decrease compared to 2022. This decrease was attributable to declines in newsprint volumes partially offset by higher newsprint prices. See Item 7A, “Commodities”, included herein, for further discussion and analysis of the impact of newsprint on our business.
Tables reconciling Adjusted EBITDA to net income and Cash Costs to operating expenses, the most directly comparable measure under GAAP, are set forth below under the caption "Reconciliation of Non-GAAP Financial Measures". 25 Table of Contents RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) The table below reconciles the non-GAAP financial performance measure of Adjusted EBITDA to net income, the most directly comparable GAAP measure: (Thousands of Dollars) 2022 2021 2020 Net Income (loss) 97 24,792 (130) Adjusted to exclude Income tax expense 698 7,255 2,973 Non-operating expenses, net 24,056 24,509 47,435 Equity in earnings of TNI and MNI (5,657) (6,412) (3,403) Assets loss (gain) on sales, impairments and other 9,716 8,214 (5,403) Depreciation and amortization 36,544 42,841 36,133 Restructuring costs and other 22,720 7,182 13,751 Stock compensation 1,337 854 1,051 Add: Ownership share of TNI and MNI EBITDA (50%) 6,541 7,317 4,764 Adjusted EBITDA 96,052 116,552 97,171 The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable GAAP measure: (Thousands of Dollars) 2022 2021 2020 Operating expenses 761,775 744,505 571,129 Adjustments Depreciation and amortization 36,544 42,841 36,133 Assets loss (gain) on sales, impairments and other, net 9,716 8,214 (5,403) Restructuring costs and other 22,720 7,182 13,751 Cash Costs 692,795 686,268 526,648 LIQUIDITY AND CAPITAL RESOURCES Our operations have historically generated strong positive cash flow, and are expected to continue providing sufficient liquidity, together with cash on hand, to meet our future cash requirements, which primarily relate to operating expenses, interest expense and capital expenditures.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) The table below reconciles the non-GAAP financial performance measure of Adjusted EBITDA to net income, the most directly comparable GAAP measure: (Thousands of Dollars) 2023 2022 2021 Net (loss) income (2,733) 97 24,792 Adjusted to exclude Income tax (benefit) expense (349) 698 7,255 Non-operating expenses, net 40,251 24,056 24,509 Equity in earnings of TNI and MNI (6,527) (5,657) (6,412) Assets loss (gain) on sales, impairments and other, net 1,882 9,716 8,214 Depreciation and amortization 30,621 36,544 42,841 Restructuring costs and other 12,673 22,720 7,182 Stock compensation 1,806 1,337 854 Add: Ownership share of TNI and MNI EBITDA (50%) 7,604 6,541 7,317 Adjusted EBITDA 85,228 96,052 116,552 The table below reconciles the non-GAAP financial performance measure of Cash Costs to Operating expenses, the most directly comparable GAAP measure: (Thousands of Dollars) 2023 2022 2021 Operating expenses 660,496 761,775 744,505 Adjustments Depreciation and amortization 30,621 36,544 42,841 Assets (gain) loss on sales, impairments and other, net 1,882 9,716 8,214 Restructuring costs and other 12,673 22,720 7,182 Cash Costs 615,320 692,795 686,268 24 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Our operations have historically generated positive cash flow, and are expected to continue providing sufficient liquidity, together with cash on hand, to meet our future cash requirements, which primarily relate to operating expenses, interest expense and capital expenditures.
Impairment losses in 2021 totaled $1.0 million for mastheads. Assets loss (gain) on sales are part the Company's ongoing real estate and non-core asset monetization. They totaled a net gain of $12.3 million in 2022 and a net loss of $7.2 million in 2021. Operating Expense Comparison 2021-2020 Total operating expenses were $744.5 million, a 30.4% increase compared to 2020.
Impairment losses in 2021 totaled $1.0 million for mastheads. Assets loss (gain) on sales are part the Company's ongoing real estate and non-core asset monetization. They totaled a net gain of $12.3 million in 2022 and a net loss of $7.2 million in 2021.
Management's judgments and estimates of future operating results in determining the intangibles fair values are consistently applied to each underlying business in determining the fair value of each intangible asset. In 2022, 2021, and 2020, we recognized impairment charges of $13,503,000, $787,000, and $972,000, respectively.
Management's judgments and estimates of future operating results in determining the intangibles fair values are consistently applied to each underlying business in determining the fair value of each intangible asset. In 2023, 2022, and 2021, we recognized impairment charges of $7.7 million, $14.2 million, and $0.8 million, respectively.
Other operating expenses increased $19.3 million in 2022, or a 5.9% increase compared to 2021. Other operating expenses include all operating costs not considered to be compensation, newsprint and ink, depreciation and amortization, or restructuring costs and other.
Other operating expenses decreased $21.8 million in 2023, or a 6.3% decrease compared to 2022. Other operating expenses include all operating costs not considered to be compensation, newsprint and ink, depreciation and amortization, or restructuring costs and other.
Total digital revenue including digital advertising revenue, digital-only subscription revenue and digital services revenue totaled $239.5 million in 2022, a 27.0% increase over 2021 and represented 30.7% of our total operating revenue in 2022, compared to 23.7% in 2021. Revenue Comparison 2021-2020 Total operating revenue was $794.6 million in 2021, up $176.6 million, or 28.6%, compared to 2020.
Total digital revenue including digital advertising revenue, digital-only subscription revenue and digital services revenue totaled $239.5 million in 2022, a 27.0% increase over 2021, and represented 30.7% of our total operating revenue in 2022, compared to 23.7% in 2021. OPERATING EXPENSES Operating Expense Comparison 2023-2022 Total operating expenses were $660.5 million, a 13.3% decrease compared to 2022.
During September of 2022, the Company, as sponsor of the Lee Enterprises Incorporated Pension Plan (the "Plan") executed an agreement pursuant to which the Plan used a portion of its assets to purchase annuities from an insurance company (the "Insurer") and thereby assumed $85,622,000 of the Plan's liabilities in exchange for $81,377,000 of Plan assets.
Additionally, the Company merged the six frozen plans into one defined benefit plan effective in the second quarter of fiscal 2022. 22 Table of Contents During September of 2022, the Company, as sponsor of the Lee Enterprises Incorporated Pension Plan (the "Plan") executed an agreement pursuant to which the Plan used a portion of its assets to purchase annuities from an insurance company (the "Insurer") and thereby assumed $85.6 million of the Plan's liabilities in exchange for $81.4 million of Plan assets.
The Company’s discount rate utilized in the analysis has ranged from 9.50% to 11.50% in different years depending on market conditions. Increasing the discount rate by 100 basis points would result in an additional $257,000 of impairment. The Company has had various revenue forecasts utilized in the analysis over different years.
Increasing the discount rate by 100 basis points would result in an additional $1.2 million of impairment. The Company has had various revenue forecasts utilized in the analysis over different years.
Cash Costs were $692.8 million, a 1.0% increase compared to 2021. Compensation expense decreased $13.1 million in 2022, or a 4.0% decrease compared to 2021. The decrease is attributable to reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent.
Cash Costs (a non-GAAP financial measure discussed below) were $615.3 million, a 11.2% decrease compared to 2022. Compensation expense decreased $50.9 million in 2023, or a 16.0% decrease compared to 2022. The decrease is attributable to reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent.
Pension, Postretirement and Postemployment Benefit Plans We, along with our subsidiaries, have various defined benefit retirement plans, postretirement plans and postemployment plans, under which substantially all of the benefits have been frozen in previous years.
For information related to the Company's Goodwill impairment analysis, refer to Note 4 to the Consolidated Financial Statements. 17 Table of Contents Pension, Postretirement and Postemployment Benefit Plans We, along with our subsidiaries, have various defined benefit retirement plans, postretirement plans and postemployment plans, under which substantially all of the benefits have been frozen in previous years.
Only one of our mastheads has a fair value that has headroom under 20% over their carrying value and could experience immaterial impairment in the future if we do not achieve our revenue projections. Our amortizable intangible assets consist mainly of customer relationships including subscriber lists and advertiser relationships. These asset values are amortized systematically over their estimated useful lives.
Only one of our mastheads has a fair value that is 20% over its carrying value, therefore our mastheads could experience impairment in the future if we do not achieve our revenue projections. As of September 24, 2023 the masthead carrying value is $18.7 million. Our amortizable intangible assets consist mainly of customer relationships including subscriber lists and advertiser relationships.
In connect with the freeze the Company provided certain plan enhancements that resulted in an increase to our net pension liability 23 Table of Contents and a decrease to Accumulated Other Comprehensive income of $6.1 million. Additionally, the Company merged the six frozen plans into one defined benefit plan effective in the second quarter of fiscal 2022.
In connection with the freeze, the Company provided certain plan enhancements that resulted in an increase to our net pension liability and a decrease to Accumulated Other Comprehensive income of $6.1 million.
The increase was primarily driven by an increase in operating results of $48,590,000 (defined as net income (loss) adjusted for non-working capital items) offset by a decrease in cash from working capital of $48,381,000, primarily related to unfavorable changes in accounts receivable and income taxes payable, partially offset by favorable changes in accounts payable and pension and postretirement obligations. 26 Table of Contents Investing Activities Cash required for investing activities totaled $6,337,000 in 2022 and $2,278,000 in 2021.
The decrease was primarily driven by a decrease in operating results of $18.2 million (defined as net income (loss) adjusted for non-working capital items) and partially offset by an increase in cash from working capital of $12.3 million, primarily related to favorable changes in accounts receivable and inventories, offset by unfavorable changes in unearned revenue, accrued interest, and pension and postretirement obligations.
A substantial amount of our deferred income tax liabilities will not result in future cash payments. See Note 14 of the Notes to the Consolidated Financial Statements, included herein.
We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. A substantial amount of our deferred income tax liabilities will not result in future cash payments. See Note 12 of the Notes to the Consolidated Financial Statements, included herein.
Commercial printing revenue totaled $25.1 million in 2021, a 6.4% decrease on a pro forma basis. Revenue at BLOX Digital, including intercompany revenue, totaled $27.2 million, an increase of 8.6%, due to increased market share and increases in average revenue per user due to additional value added service offerings.
Commercial printing revenue totaled $21.5 million in 2022, a 14.4% decline from 2021. 20 Table of Contents Revenue at BLOX Digital, including intercompany revenue, totaled $30,906,000, an increase of 13.6%, due to increased market share and increases in average revenue per user due to additional value-added service offerings.
A summary of our cash flows is included in the narrative below. Operating Activities Cash provided by operating activities totaled $3,429,000 in 2022 compared to $50,078,000 in 2021, a decrease of $46,649,000.
A summary of our cash flows is included in the narrative below. Operating Activities Cash required for operating activities totaled $2.5 million in 2023 compared to cash provided by operating activities of $3.4 million in 2022, a decrease of $6.0 million.
Advertising and marketing services revenue is lowest in the March quarter. INFLATION Price increases (or decreases) for our products are implemented when deemed appropriate by us.
Historically, retail advertising is higher in the December and June quarters. Advertising and marketing services revenue is lowest in the March quarter. INFLATION Price increases (or decreases) for our products are implemented when deemed appropriate by us. We continuously evaluate price increases, productivity improvements, sourcing efficiencies and other cost reductions to mitigate the impact of inflation.
We recorded non-operating income of $0.1 million and $0.3 million in 2022 and 2021 respectively, due to the change in fair value of the Warrants. Non-operating Income and Expense Comparison 2021-2020 Interest expense decreased $3.0 million, or 6.2%, to $44.8 million in 2021 due to lower debt balances.
We recorded non-operating income of $0.1 million and $0.3 million in 2022 and 2021 respectively, due to the change in fair value of the Warrants. INCOME TAX EXPENSES In 2023, we recorded income tax benefit of $0.3 million, or 11.3% of pretax loss and in 2022, we recorded an income tax expense of $0.7 million, or 87.8% of pretax income.
The decrease in net income is predominately due to cycling one-time non-cash benefits in 2021. In 2020, net loss was $0.1 million. Diluted loss per share was $0.35 per share in 2022 compared to diluted earnings per share of $3.90 per share in 2021. In 2020, losses per share were $0.35 per share.
NET INCOME AND EARNINGS PER SHARE Net loss was $2.7 million in 2023 compared to net income of $0.1 million in 2022. In 2021, net income was $24.8 million. Losses per share was $0.90 per share in 2023 compared to losses per share of $0.35 per share in 2022. In 2021, diluted earnings per share were $3.90 per share.
Digital advertising and marketing services represented 38.3% of 2021 total advertising and marketing services revenue compared to 36.8% in 2020. The increase in digital advertising is due to growth at Amplified, our full service digital marketing service. Revenue at Amplified increased 42.6% in 2021 totaling $41.6 million. Subscription revenue totaled $357.7 million in 2021, or up 33.3%, compared to 2020.
Digital advertising and marketing services revenue totaled $193.2 million in 2023, up 6.5% compared to 2022. Digital advertising and marketing services revenue represented 60.6% of 2023 total advertising and marketing services revenue compared to 49.5% in 2022. The increase in digital advertising is due to growth at Amplified, our full service digital marketing service.
See Note 14 of the Notes to the Consolidated Financial Statements, included herein, for a discussion of the difference between the expected federal income tax rate and the actual tax rates. NET INCOME AND EARNINGS PER SHARE Net income was $0.1 million in 2022 compared to net income of $24.8 million in 2021.
In 2021, we recorded an income tax expense of $7.3 million, or 22.6% of pre-tax income. See Note 12 of the Notes to the Consolidated Financial Statements, included herein, for a discussion of the difference between the expected federal income tax rate and the actual tax rates.
See Notes 9 and 10 of the Notes to the Consolidated Financial Statements, included herein. The contractual obligations above exclude unrecognized tax benefits to be recorded in accordance with FASB ASC Topic 740, Income Taxes . We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters.
See Notes 7 and 8 of the Notes to the Consolidated Financial Statements, included herein. The contractual obligations above exclude unrecognized tax benefits to be recorded in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 740, Income Taxes .
In 2021, we recognized $190,000 of impairment on intangible assets subject to amortization. There were no indicators of impairment on intangible assets subject to amortization in 2022 or 2020. Our quantitative impairment analysis includes several inputs that are considered estimates, these include royalty rates, discount rates, five-year revenue forecast, and long term growth rates.
Our quantitative impairment analysis includes several inputs that are considered estimates, these include royalty rates, discount rates, five-year revenue forecast, and long term growth rates. All of these estimates are subject to uncertainty as future results may or may not be achieved.
Proceeds from sales of assets totaled $4,616,000 and $21,710,000 in 2021 and 2020, respectively. We anticipate that funds necessary for capital expenditures, which are expected to be $12,000,000 in 2023, and other requirements, will be available from internally generated funds.
We anticipate that funds necessary for capital expenditures, which are expected to be $10.0 million in 2024, and other requirements, will be available from internally generated funds. Financing Activities Cash required for financing activities totaled $7.1 million in 2023 and $19.7 million in 2022 and $55.4 million in 2021.
Total digital revenue including digital advertising revenue, digital-only subscription revenue and digital services revenue totaled $188.6 million in 2021, and represented 23.7% of our total operating revenue in 2021, compared to 23.4% in 2020. OPERATING EXPENSES Operating Expense Comparison 2022-2021 Total operating expenses were $761.8 million, a 2.3% increase compared to 2021.
Total digital revenue including digital advertising revenue, digital-only subscription revenue and digital services revenue totaled $273.2 million in 2023, a 14.1% increase over 2022, and represented 39.5% of our total operating revenue in 2023, compared to 30.7% in 2022. Revenue Comparison 2022-2021 Total operating revenue totaled $781.0 million in 2022, down $13.7 million, or 1.7%, compared to 2021.
Intangible assets subject to amortization are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The carrying amount of each asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of such asset group.
The carrying amount of each asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of such asset group. In 2021, we recognized $0.2 million of impairment on intangible assets subject to amortization. There were no indicators of impairment on intangible assets subject to amortization in 2023 or 2022.
Capital spending totaled $7,536,000 and $7,479,000 in 2022 and 2021, respectively. Proceeds from sales of assets totaled $14,835,000 and $4,616,000 in 2022 and 2021, respectively. Cash required for investing activities totaled $2,278,000 in 2021 and $118,176,000 in 2020. 2020 included $130,985,000 in spending related to the Transactions. Capital spending totaled $7,479,000 and $8,096,000 in 2021 and 2020, respectively.
Cash provided by investing activities totaled $6.3 million in 2022 and cash required for investing activities totaled $2.3 million in 2021. Capital spending totaled $7.5 million in 2022 and 2021, respectively. Proceeds from sales of assets totaled $14.8 million and $4.6 million in 2022 and 2021, respectively.
The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print editions, partially offset by increases in investments to fund our digital growth strategy. Restructuring costs and other totaled $7.2 million and $13.8 million in 2021 and 2020, respectively.
The largest components are costs associated with printing and distribution of our printed products, digital investments, digital cost of goods sold and facility expenses. The decrease is attributable to other print-related costs due to lower volumes of our print products partially offset by increases in investments to fund our digital growth strategy.
Other revenue, which primarily consist of digital services revenue from BLOX Digital, commercial printing revenue and until March 16, 2020, revenue from the Management Agreement, totaled $67.6 million, a 12.6% increase compared to 2020. Other revenue from the Transactions totaled $49.4 million and $16.3 million in 2021 and 2020, respectively.
Other revenue, which primarily consist of digital services revenue from BLOX Digital and commercial printing revenue totaled $58.9 million, a 3.4% decrease compared to 2022. Digital services revenue totaled $19.4 million in 2023, a 7.8% increase compared to 2022. Commercial printing revenue totaled $20.1 million in 2023, a 6.2% decline from 2022.
Assets losses and gains are part the Company's ongoing real estate and non-core asset monetization. Equity In Equity Investments Equity in earnings of TNI and MNI decreased $0.8 million in 2022, or 11.8%, compared to 2021. Equity in earnings of TNI and MNI increased $3.0 million in 2021 compared to 2020.
Equity In Equity Investments Equity in earnings of TNI and MNI increased $0.9 million in 2023, or 15.4%, compared to 2022. Equity in earnings of TNI and MNI decreased $0.8 million in 2022 compared to 2021.
Increases in both are due to the acquired assets from the Transactions. Assets loss (gain) on sales, impairments and other was a net expense of $8.2 million in 2021 compared to a net gain of $5.4 million in 2020. Impairment in 2021 and 2020 totaled $1.0 million and $1.0 million, respectively.
Amortization expense decreased $3.2 million, or 14.3%, in 2023. Assets loss (gain) on sales, impairments and other was a net loss of $1.9 million in 2023 compared to a net loss of $9.7 million in 2022. Impairment losses in 2023 totaled $7.7 million for mastheads.
The decline is due to the secular downward trend in print advertising. Print advertising revenue from the Transactions totaled $195.7 million and $81.3 million, in 2021 and 2020, respectively. Digital advertising and marketing services totaled $141.4 million in 2021, up 32.8% compared to 2020.
Advertising and marketing services revenue totaled $319.0 million in 2023, down $47.5 million, or 12.9% compared to 2022. Print advertising revenues were $125.8 million in 2023, down $59.2 million, or 32.0% compared to 2022. The decline is due to the secular downward trend in print advertising.
Cash provided by operating activities totaled $50,078,000 in 2021 compared to $49,869,000 in 2020, an increase of $209,000.
Cash provided by operating activities totaled $3.4 million in 2022 compared to $50.1 million in 2021, a decrease of $46.6 million.
We continuously evaluate price increases, productivity improvements, sourcing efficiencies and other cost reductions to mitigate the impact of inflation. 27 Table of Contents CONTRACTUAL OBLIGATIONS The following table summarizes our significant contractual obligations at September 25, 2022: (Thousands of Dollars) Payments (or Commitments) Due (Years) Nature of Obligation Total Less Than 1 1-3 3-5 More Than 5 Debt (Principal Amount) (1) 462,554 — — — 462,554 Interest expense (2) 936,673 41,630 124,890 124,890 645,263 Operating lease obligations 71,144 12,921 22,501 16,923 18,799 Withdrawal liabilities 27,305 1,564 3,127 3,127 19,487 Capital expenditure commitments 3,872 3,872 — — — 1,501,548 59,987 150,518 144,940 1,146,103 (1) Maturities of long-term debt are limited to mandatory payments.
CONTRACTUAL OBLIGATIONS The following table summarizes our significant contractual obligations at September 24, 2023: (Thousands of Dollars) Payments (or Commitments) Due (Years) Nature of Obligation Total Less Than 1 1-3 3-5 More Than 5 Debt (Principal Amount) (1) 455,741 — — — 455,741 Interest expense (2) 881,859 41,017 123,050 123,050 594,742 Operating lease obligations 57,142 12,179 20,329 14,025 10,609 Withdrawal liabilities 27,305 1,564 3,127 3,127 19,487 Capital expenditure commitments 3,707 3,707 — — — 1,425,754 58,467 146,506 140,202 1,080,579 (1) Maturities of long-term debt are presented based on mandatory payments.
All of these estimates are subject to uncertainty as future results may or may not be achieved. The royalty rates utilized range from 0% to 1.5%, a 50 basis point decrease in royalty rates would result in an additional $6,992,000 of impairment.
In 2023, the royalty rates utilized range from 0% to 1.0%; a 50-basis point decrease in royalty rates would result in an additional $9.3 million of impairment. The Company’s discount rate utilized in the analysis has ranged from 10.5% in 2021 to 13.0% 2023, depending on market conditions.
Included in other non-operating income and expense is income related to our defined benefit pension plans and other post-employment benefit plans, which totaled $33.3 million and $3.8 million in 2021 and 2020, respectively. We recognized a non-cash curtailment gain of $23.8 million and a reduction in our benefit obligation in 2021 by eliminating post-retirement medical coverage for certain employees.
Included in other non-operating income and expense is income related to our defined benefit pension plans and other postemployment benefit plans, which totaled $1.2 million and $20.5 million in 2023 and 2022, respectively.
Subscription revenue from the Transactions totaled $203.1 million and $106.5 million, in 2021 and 2020, respectively. Subscription revenue on a pro forma basis was up 0.5%. The growth in subscription revenue is due to growth in selective price increases on our full access subscriptions and in digital-only subscribers and digital-only revenue which were up 65% and 26%, respectively.
The decrease was partially offset by growth in selective price increases on our full access subscriptions and in digital-only subscribers and digital-only revenue which were up 35.6% and 51.0%, respectively. As of September 2023, we had over 721,000 digital-only subscribers compared to 532,000 in 2022.
Financing Activities Cash required for financing activities totaled $19,693,000 in 2022 and $55,421,000 in 2021, while cash provided by financing activities totaled $93,395,000 in 2020. Debt reduction accounted for the majority of the usage of funds in 2022 and 2020, while proceeds from the Transactions accounted for the funds provided in the 2020 period.
Debt reduction accounted for the majority of the usage of funds in 2023, 2022 and 2021, respectively.
Removed
Business Combinations Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date, with respect to tangible and intangible assets acquired and liabilities assumed.
Added
These asset values are amortized systematically over their estimated useful lives. Intangible assets subject to amortization are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
Removed
We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those acquired intangible assets.
Added
Revenue at Amplified increased 20.3% in 2023 totaling $91.2 million. Subscription revenue totaled $313.3 million in 2023, or down 11.4%, compared to 2022. The change in subscription revenue is due to decline in full access volume, consistent with historical and industry trends.
Removed
The Company prepares its initial estimates of the fair values of intangible assets utilizing the multi-period excess earnings method for customer-related intangible assets and the relief from royalty method for indefinite lived 18 Table of Contents masthead assets.
Added
Restructuring costs and other totaled $12.7 million and $22.7 million in 2023 and 2022, respectively. Restructuring costs and other in 2023 are predominately severance. Restructuring costs and other in 2022 include severance costs, litigation expenses, restructuring expenses, and advisor expenses associated with the unsolicited offer in November 2021. Depreciation expense decreased $2.8 million, or 19.2%, in 2023.
Removed
Examples of critical estimates in valuing certain of the intangible assets and goodwill we have acquired include but are not limited to: • future expected cash flows from subscription, advertising and commercial print relationships and related assumptions about future revenue growth and customer retention; • discount rates; and • royalty rates used to value acquired mastheads.
Added
Impairment losses in 2022 totaled $13.5 million for mastheads, $7.8 million for leases, and $0.7 million for the disposal of a non-core business, respectively. Assets loss (gain) on sales are part the Company's ongoing real estate and non-core asset monetization. They totaled a net gain of $6.0 million in 2023 and a net gain of $12.3 million in 2022.
Removed
Additional information regarding our accounting for business combinations can be found in Note 1 - Significant Accounting Policies in the Consolidated Financial Statements. IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS See Note 1 to the Consolidated Financial Statements for a description of new accounting standards issued and/or adopted in the year ended September 25, 2022.
Added
Operating Expense Comparison 2022-2021 Total operating expenses were $761.8 million, a 2.3% increase compared to 2021. Cash Costs were $692.8 million, a 1.0% increase compared to 2021. Compensation expense decreased $13.1 million in 2022, or a 4.0% decrease compared to 2021.
Removed
CERTAIN MATTERS AFFECTING CURRENT AND FUTURE OPERATING RESULTS The following items affect period-over-period comparisons from 2022 to 2020 and will continue to affect period-over-period comparisons for future results. Acquisitions and Divestitures • In March 2020, we completed the acquisition of BH Media and Buffalo News for a purchase price of $140,000,000.
Added
The decrease is attributable to reductions in FTEs due to continued business transformation efforts, partially offset by investments in digital talent. Newsprint and ink costs increased $0.3 million in 2022, or a 1.1% increase compared to 2021. This increase was attributable to higher newsprint prices offset by a decline in newsprint volumes.
Removed
Total operating revenue from the Transactions totaled $403.6 million and $203.0 million, in 2021 and 2020, respectively. Total operating revenue on a pro forma basis was down 3.3% compared to 2020. Advertising and marketing services revenue totaled $369.3 million in 2021, up 27.5% compared to 2020.
Added
NON-OPERATING INCOME AND EXPENSES Non-operating Income and Expense Comparison 2023-2022 Interest expense decreased $0.3 million, or 0.7%, to $41.5 million in 2023 due to lower debt balances. Our weighted average cost of debt, excluding amortization of debt financing cost, was 9.0% in 2023 and 2022.
Removed
Advertising and marketing services revenue from the Transactions totaled $170.7 million and $82.3 million, in 2021 and 2020, respectively. Total Advertising and marketing services revenue on a pro forma basis was down 6.0%. Print advertising revenues were $227.9 million in 2021, down 12.9% compared to 2020 on a pro forma basis.
Added
Tables reconciling Adjusted EBITDA to net income and Cash Costs to operating expenses, the most directly comparable measure under GAAP, are set forth below under the caption "Reconciliation of Non-GAAP Financial Measures".
Removed
The increases were partially offset by a decline in full access volume, 21 Table of Contents consistent with historical and industry trends. As of September 2021, we had 402,000 digital-only subscribers compared to 244,000 in 2020.
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