Friday, September 16, 2022
Lee Enterprises, Incorporated provides local news, information, and advertising primarily in midsize markets in the United States. It publishes 49 daily newspapers, as well as offers 300 weekly newspapers and specialty publications in 23 states. The company also provides online advertising and services; and online infrastructure and online publishing services for approximately 1,500 daily and weekly newspapers and shoppers. In addition, it offers commercial printing services. The company has a strategic alliance with Yahoo!, Inc. to provide its classified employment advertising customer base the opportunity to post job listings and other employment products on Yahoo!�s HotJobs national platform. Lee Enterprises, Incorporated was founded in 1890 and is based in Davenport, Iowa.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
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Transferring pension liabilities. The company announced in its latest 8-K that it has agreed to purchase annuities from an insurance company with a portion of its pension plan assets, whereby it will transfer roughly $86 million in pension liabilities off the balance sheet.
A cleaner balance sheet. We view this development favorably, as it is a move to de-risk the balance sheet. Notably, the pension plan, which was already overfunded by roughly $1 million, is expected to increase the over funded amount by several million. The pension obligations are expected to decrease as interest rates rise, but this move de-risks the company from funding should interest rates fall.
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