Lee Enterprises Board Rejects Proposal From Alden; Q4 Profit Rises

(RTTNews) - Lee Enterprises, Incorporated (LEE) said its Board has unanimously rejected the unsolicited, nonbinding proposal from Alden Global Capital, LLC to purchase the company for $24.00 per share in cash. Lee's Board determined that Alden's proposal grossly undervalues the company and is not in the best interests of the company and its shareholders.

Lee also announced that it has recorded continued operating revenue and adjusted EBITDA growth in its fourth quarter driven by 37% growth in digital revenue, 65% growth in digital-only subscriptions and 71% growth in revenues from Amplified, the company's full-service digital marketing agency.

Fourth-quarter net profit was $4.79 million compared to a loss of $1.78 million, prior year. Profit per share was $0.75 compared to profit of $0.10. Adjusted EBITDA increased to $25.77 million from $25.37 million.

Revenue increased to $193.91 million from $191.77 million, a year ago. Subscription revenue was $87.8 million, a 1.6% decrease from last year.

Shares of Lee Enterprises were up 8% in pre-market trade on Thursday.