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DAVENPORT, IA – Lee Enterprises , Inc. (NASDAQ:LEE), a major player in the newspaper publishing industry, announced the results of its annual shareholder meeting held on Thursday. According to InvestingPro data, the company faces significant financial challenges, with a market capitalization of $58 million and a concerning debt burden of $481 million. Shareholders voted on several key issues, including the election of directors, executive compensation, and amendments to the company’s long-term incentive plan.
At the meeting, shareholders re-elected Mary E. Junck, Herbert W. Moloney III, and Kevin D. Mowbray as directors, each for a three-year term expiring in 2028. The votes for the directors were as follows: Junck received 2,595,334 votes for, 987,711 against, and 3,078 abstentions; Moloney garnered 2,626,441 votes for, 955,566 against, and 4,116 abstentions; and Mowbray had 2,654,436 votes for, 928,131 against, and 3,556 abstentions. All results included 1,353,637 broker non-votes.
The compensation of the named executive officers, as disclosed in the company’s proxy statement, was approved in a non-binding "Say-On-Pay" vote, with 2,628,357 votes for, 949,247 against, and 8,519 abstentions.
Additionally, shareholders approved the First Amendment to the 2020 Long-Term Incentive Plan, with 1,916,811 votes for, 1,660,861 against, and 8,451 abstentions, and 1,353,637 broker non-votes.
Furthermore, the appointment of BDO USA, P.C. as the company’s independent registered public accounting firm for the fiscal year ending September 28, 2025, was ratified with 3,854,928 votes for, 1,059,646 against, and 25,186 abstentions.
The voting results reflect the shareholders’ support for the company’s executive leadership and strategic direction. The approval of the amended incentive plan suggests a commitment to aligning the interests of the company’s leadership with its long-term performance and goals. Recent InvestingPro analysis reveals the company’s financial health score is rated as WEAK, with the stock down 16% in the past week and 37% year-to-date. InvestingPro subscribers have access to 10 additional key insights about LEE’s financial position and future prospects.
This news is based on a recent SEC filing by Lee Enterprises, providing a transparent view of the company’s governance and shareholder relations. With revenue of $600 million in the last twelve months and a gross profit margin of 58%, the company faces ongoing challenges, including rapid cash burn and short-term obligations exceeding liquid assets. For a comprehensive analysis of LEE’s financial position and future prospects, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Lee Enterprises reported a significant earnings miss for Q3 2024, with an earnings per share (EPS) of -$1.69, falling short of the forecasted $0.65. This unexpected shortfall has raised concerns among investors, despite a notable 70% annual growth in digital revenue. The company also announced a cybersecurity breach that disrupted operations, affecting the distribution of print publications and limiting online operations. Lee Enterprises has activated its incident response team and is conducting a forensic investigation to determine the extent of the breach. The financial impact of this incident is still being assessed, but it is anticipated to materially affect the company’s financial condition. In addition, the company has reduced its debt to $453 million, a decrease of $123 million since March 2020. Analysts from Sidoti and Company have noted the company’s progress in digital transformation, with digital revenue now surpassing print revenue. However, challenges remain, particularly in managing costs and achieving digital transformation goals amidst declining print revenue.
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