Boston, MA, 03/06/2014 – Lee Enterprises, Incorporated (NYSE:LEE) has a plan. Everyone knows how media companies are grappling with industry dynamics and how it can sometimes be very challenging dealing with dynamics in the news business. Yet, LEE believes that its worst days may have well passed and what it is setting itself up for is success. But again, as we all know, talk is cheap unless there is something solid to back it.
Lee Enterprises, Incorporated (NYSE:LEE) has a market cap of $278.47 million. The company functions in the media business where it provides local news and information as well as advertising in various markets. LEE runs more than 47 daily newspapers and almost 300 weekly newspapers. As if that is not enough, the company owns and operates several specialty publications. Yet, the company has had its highs and lows in business – mostly lows in the past three years.
Financial issues became so intense for Lee Enterprises, Incorporated (NYSE:LEE) that the company filed for Chapter 11 bankruptcy in 2011. The financial problem with the company came from decline in revenue from advertisement. However, it was able to emerge from the financial doldrums in early 2012. And the company is no longer dwelling in the past. What is there is that the management is on record as saying that 2014 will mark a solid start for LEE.
How they are going to do it
At an annual stakeholder meeting recently, Lee Enterprises, Incorporated (NYSE:LEE) executives issued cost outlook and how the company hopes to attain its growth goal. Trimming cost ranks high among the priority areas that the management wants to address or is already addressing. With media revolution sweeping across the world, some traditional media strategies no longer offer the benefits they used to. That means that new strategies – more so cost cutting – need to be devised in order to ensure business sustainability.
Away from weighing on cost, Lee Enterprises, Incorporated (NYSE:LEE) management has its eyes also set on debt reduction. The company is working on refinancing agreements to help it trim is expensive debts.
So then, if these areas and many others are addressed, it will be easy for
Lee Enterprises, Incorporated (NYSE:LEE) to emerge strongly once again for investors to see the benefits. It thus means that investors should keep an eye here to see what comes of the plans announced.