LEE ENTERPRISES Inc
For the period ended Mar 24, 2024. Filed May 3, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 24, 2024 · Filed May 3, 2024
LEE$6.59-5.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2023-12-24; filed 2024-02-02.
0001628280-24-003010
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsItem Controls and ProceduresCurrent report: 10-Q
Period ended 2024-03-24; filed 2024-05-03.
0001628280-24-020172
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 94 current paragraphs.
40 unchanged; 23 reworded; 18 added; 13 removed; 0 previous and 13 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Current report
Total operating revenue was $146.6 million in the 2024 Quarter, down $24.1 million, or 14.1%, compared to the 2023 Quarter.
Current report
Equity in earnings of TNI and MNI increased $0.5 million in the 2024 Quarter.
Current report
Restructuring costs and other increased $0.4 million, or 12.0%, compared to the 2023 Quarter. The increase is primarily driven from closing down outsourced production facilities, ongoing business transformation efforts, and severance. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, and advisor expenses.
Current report
Assets loss (gain) on sales, impairments and other, was a net loss of $7.6 million in the 2024 Quarter compared to a net gain of $0.8 million in the 2023 Quarter. Assets loss (gain) on sales, impairments and other in the 2024 Quarter were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets.
Current report
Income Tax Benefit
Current report
Net loss and Loss Per Share
Current report
Six Months Ended March 24, 2024
Current report
Operating results are summarized below.
Current report
Operating Revenue
Current report
Total operating revenue was $302.2 million in the 2024 Period, down $53.6 million, or 15.1%, compared to the 2023 Period.
Current report
Equity in earnings of TNI and MNI increased $0.4 million in the 2024 Period.
Current report
Operating Expenses
Current report
Non-operating Income and Expense
Current report
Income Tax Benefit
Current report
We recorded an income tax benefit of $2.6 million, or 19.9% of pretax loss in the 2024 Period. In the 2023 Period, we recognized an income tax benefit of $1.6 million, or 31.5% of pretax loss.
Current report
Net loss and Loss Per Share
Current report
Net loss was $10.4 million and diluted loss per share were $1.94 for the 2024 Period compared to net loss of $3.5 million and diluted losses per share of $0.82 for the 2023 Period. The change reflects the various items discussed above.
Removed paragraphs (13)
Previous report
Total operating revenue was $155.7 million in the 2024 Quarter, down $29.5 million, or 15.9%, compared to the prior year.
Previous report
Equity in earnings of TNI and MNI decreased 0.1 in the 2024 Quarter.
Previous report
Income Tax Expense
Previous report
Net Income and Earnings Per Share
Previous report
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Previous report
As of September 24, 2023, under the supervision and with the participation of our senior management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on that evaluation the Company has concluded that, because the material weakness in the Company's internal control that existed as of September 24, 2023 and have not been remediated by the end of the period covered by this report, our disclosure controls and procedures were not effective.
Previous report
The material weakness identified by the Company is described below:
Previous report
•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.
Previous report
Management is committed to remediating the material weakness that has been identified and maintaining an effective system of disclosure controls and procedures. During fiscal 2023, management executed certain actions steps to remediate the material weakness, including:
Previous report
•Established a project team to review, evaluate and remediate the material weakness in internal controls over financial reporting. The Company's recently expanded Corporate Compliance function is leading management's efforts related to effective control design, documentation and implementation, as well as remediate ineffective controls.
Previous report
•Enhanced the design of internal controls around evaluating data provided by third-parties, which included the initial implementation of a new revenue IT system.
Previous report
Management will continue to execute the remediation steps outlined above until the material weakness is remediated. The material weakness will not be considered remediated until the remediated and/or newly implemented internal controls operate for a sufficient period of time and management has concluded, through testing, that these internal controls are operating effectively. We are working to have the material weakness remediated as soon as possible.
Reworded paragraphs (23)
Previous wording
Lee Enterprises, Incorporated, together with its subsidiaries, 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 73 mid-sized local communities in 26 states with a rapidly growing digital subscription platform including 735,000 digital subscribers. 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.
Current wording
Lee Enterprises, Incorporated, together with its subsidiaries, 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 73 mid-sized local communities in 26 states with a rapidly growing digital subscription platform including 745,000 digital subscribers. 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.
Previous wording
•Diversify and expand offerings for advertisers through our vast array of rapidly growing digital products, our large digitally adapt sales force, and Amplified, our full-service digital agency.
Current wording
•Diversify and expand offerings for advertisers through our vast array of rapidly growing digital products, our large digitally adept sales force, and Amplified, our full-service digital agency.
Previous wording
Advertising and marketing services revenue totaled $70.9 million in the 2024 Quarter, down 20.9% compared to the 2023 Quarter. Print advertising revenues were $24.4 million in the 2024 Quarter, down 41.6% compared to the 2023 Quarter due to continued secular declines in demand for print advertising and a reduced product portfolio through sales and elimination of products that do not met profitability standards. Digital advertising and marketing services totaled $46.5 million in the 2024 Quarter, down 2.7% compared to the 2023 Quarter. Digital advertising and marketing services represented 65.5% of the 2024 Quarter total advertising and marketing services revenue, compared to 53.3% in the same period last year.
Current wording
Advertising and marketing services revenue totaled $64.1 million in the 2024 Quarter, down 17.5% compared to the 2023 Quarter. Print advertising revenues were $18.7 million in the 2024 Quarter, down 40.4% compared to the 2023 Quarter due to continued secular declines in demand for print advertising and a reduced product portfolio through sales and elimination of products that do not meet profitability standards. Digital advertising and marketing services totaled $45.4 million in the 2024 Quarter, down 1.9% compared to the 2023 Quarter. Digital advertising and marketing services represented 70.8% of the 2024 Quarter total advertising and marketing services revenue, compared to 59.5% in the same period last year.
Previous wording
Subscription revenue totaled $71.3 million in the 2024 Quarter, down 10.5% compared to the 2023 Quarter. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, growth in digital-only subscribers and price increases on digital subscriptions. Digital-only subscribers grew 30.4% since the 2023 Quarter and now total 735,000, and revenue from digital-only subscribers totaled $19.5 million, up 57.9% compared to the 2023 Quarter.
Current wording
Subscription revenue totaled $69.2 million in the 2024 Quarter, down 11.9% compared to the 2023 Quarter. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, growth in digital-only subscribers and price increases on digital subscriptions. Digital-only subscribers grew 25% since the 2023 Quarter and now total 745,000. Digital-only subscription revenue grew 44.8% compared to the 2023 Quarter.
Previous wording
Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $2.4 million, or 15.1%, in the 2024 Quarter compared to the 2023 Quarter. Digital services revenue totaled $5.0 million in the 2024 Quarter, a 4.9% increase compared to the 2023 Quarter. Commercial printing revenue totaled $4.5 million in the 2024 Quarter, a 16.7% decrease compared to the 2023 Quarter, primarily driven by reduction in print volumes from our partners.
Current wording
Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $1.2 million, or 8.4%, in the 2024 Quarter compared to the 2023 Quarter. Digital services revenue totaled $5.1 million in the 2024 Quarter, a 7.7% increase compared to the 2023 Quarter. Commercial printing revenue totaled $4.1 million in the 2024 Quarter, a 13.7% decrease compared to the 2023 Quarter, primarily driven by reduction in print volumes from our partners.
Previous wording
Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $70.9 million in the 2024 Quarter, an increase of 9.4% over the 2023 Quarter, and represented 45.5% of our total operating revenue in the 2024 Quarter.
Current wording
Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $70.8 million in the 2024 Quarter, an increase of 8.9% over the 2023 Quarter, and represented 48.3% of our total operating revenue in the 2024 Quarter.
Previous wording
Total operating expenses were $149.4 million in the 2024 Quarter, a 14.9% decrease compared to the 2023 Quarter. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 17.9% in the 2024 Quarter.
Current wording
Total operating expenses were $152.3 million in the 2024 Quarter, a 9.6% decrease compared to the 2023 Quarter. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 15.6% in the 2024 Quarter.
Previous wording
Compensation expense decreased $15.8 million in the 2024 Quarter, or 20.9%, compared to the 2023 Quarter from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent.
Current wording
Compensation expense decreased $12.0 million in the 2024 Quarter, or 17.5%, compared to the 2023 Quarter from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent.
Previous wording
Newsprint and ink costs decreased $2.6 in the 2024 Quarter, or 34.8%, compared to the 2023 Quarter. The decrease is attributable to declines in newsprint volumes.
Current wording
Newsprint and ink costs decreased $2.3 million in the 2024 Quarter, or 35.6%, compared to the 2023 Quarter. The decrease is attributable to declines in newsprint volumes.
Previous wording
Other operating expenses decreased $12.0 in the 2024 Quarter, or 13.8%, compared to the 2023 Quarter. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially increases in investments to fund our digital growth strategy partially offset by
Current wording
Other operating expenses decreased $10.3 million in the 2024 Quarter, or 12.4%, compared to the 2023 Quarter. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially increases in investments to fund our digital growth strategy partially offset by investments to fund our digital growth strategy.
Previous wording
Depreciation and amortization expense decreased $0.6 million, or 7.5%, in the 2024 Quarter. The decrease in both is attributable to assets becoming fully depreciated or amortized.
Current wording
Depreciation and amortization expense decreased $0.4 million, or 5.7%, in the 2024 Quarter. The decrease in both is attributable to assets becoming fully depreciated or amortized.
Previous wording
The factors noted above resulted in an operating income of $7.8 million in the 2024 Quarter compared to operating income of $11.2 million in the 2023 Quarter.
Current wording
The factors noted above resulted in an operating loss of $4.6 million in the 2024 Quarter compared to operating income of $2.9 million in the 2023 Quarter.
Previous wording
We recorded an income tax expense of $0.2 million, or 16.7% of pretax income in the 2024 Quarter. In the 2023 Quarter, we recognized an income tax expense of $0.4 million, or 19.4% of pretax income.
Current wording
We recorded an income tax benefit of $2.8 million, or 19.6% of pretax loss in the 2024 Quarter. In the 2023 Quarter, we recognized an income tax benefit of $2.1 million, or 27.8% of pretax loss.
Previous wording
Net income was $1.2 million and diluted earnings per share were $0.12 for the 2024 Quarter compared to net income of $1.8 million and diluted earnings per share of $0.19 for the 2023 Quarter. The change reflects the various items discussed above.
Current wording
Net loss was $11.6 million and diluted loss per share were $2.06 for the 2024 Quarter compared to net loss of $5.4 million and diluted losses per share of $1.01 for the 2023 Quarter. The change reflects the various items discussed above.
Previous wording
Restructuring costs and other totaled $4.3 million and $0.6 million in the 2024 Quarter and 2023 Quarter, respectively. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, and advisor expenses. Restructuring costs in the 2024 and 2023 Quarter's are predominately severance related to our ongoing business transformation.
Current wording
Restructuring costs and other increased $4.1 million in the 2024 Period, or 93.6%, compared to the 2023 Period, respectively. The increase is primarily driven from closing down outsourced production facilities, ongoing business transformation efforts, and severance. Restructuring costs and other include severance costs, litigation expenses, restructuring expenses, and advisor expenses.
Previous wording
Assets gain on sales, impairments and other, was a net gain of $1.5 million in the 2024 Quarter compared to a net gain of $2.6 million in the 2023 Quarter. Assets gain on sales, impairments and other in the 2024 Quarter and in the 2023 Quarter were the result of the disposition of non-core assets, including real estate.
Current wording
Assets loss (gain) on sales, impairments and other, was a net loss of $6.1 million in the 2024 Period compared to a net gain of $3.4 million in the 2023 Period. Assets loss (gain) on sales, impairments and other in the 2024 Period were primarily due to non-cash charges of $7.6 million that were recorded to reduce the carrying value of mastheads, which are non-amortized intangible assets. The 2023 Period were the result of the disposition of non-core assets, including real estate.
Previous wording
Interest expense decreased $0.3 million, or 2.7%, to $10.1 million in the 2024 Quarter, compared to the same period last year. The decrease was due to a lower outstanding balance on our Term Loan. Our weighted average cost of debt was 9.0% at the end of the 2024 Quarter and 2023 Quarter.
Current wording
Interest expense decreased $0.6 million, or 2.7%, to $20.3 million in the 2024 Period, compared to the same period last year. The decrease was due to a lower outstanding balance on our Term Loan. Our weighted average cost of debt was 9.0% at the end of the 2024 Period and 2023 Period.
Previous wording
Other non-operating income and expense consists of benefits associated with our pension and other postretirement plans and the fair value adjustment of our Warrants. We recorded $3.9 million periodic pension and other postretirement benefits in the 2024 Quarter compared to $0.3 million in the 2023 Quarter. The increase was a result of recognized a non-cash curtailment gain of $1.2 million in the 2023 Quarter as a result of outsourcing certain postemployment defined benefit plan functions. Additionally, during the Quarter, the Company completed a voluntary lump sum payment of future benefits to terminated vested participants. The offer was accepted by 522 participants representing $22.6 million in plan liabilities. As a result of the offer, a non-cash settlement gain of $2.4 million was recorded in Curtailment/Settlement gain on the Consolidated Statements of Income and Comprehensive Income. Both assets and liabilities of the plan were reduced by $22.6 million.
Current wording
Other non-operating income and expense consists of benefits associated with our pension and other postretirement plans. We recorded $4.3 million of periodic pension and other postretirement benefits in the 2024 Period compared to $0.6 million in the 2023 Period. The increase was attributable due to the Company recognizing a non-cash curtailment gain of $1.2 million in the 2024 Period as a result of outsourcing certain postemployment defined benefit plan functions. Additionally, during the 2024 Period, the Company completed a voluntary lump sum payment of future benefits to terminated vested participants. The offer was accepted by 522 participants, representing a $22.6 million pension plan liability. As a result of the offer, a non-cash settlement gain of $2.4 million was recorded in Curtailment/Settlement gain on the Consolidated Statements of Income and Comprehensive Income. Both assets and liabilities of the plan were reduced by $22.6 million.
Previous wording
Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users' overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent, or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. 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.
Current wording
EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. 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.
Previous wording
Cash provided by operating activities totaled $0.1 million in 2024 compared to cash required for operating activities of $2.2 million in 2023, an increase of $2.3 million. The increase was driven by an increase in working capital of $3.7 million, primarily related to favorable change in accounts receivable and accounts payable, partially offset by a decrease in operating results of $1.5 million (defined as net income (loss) adjusted for non-working capital items).
Current wording
Cash provided by operating activities totaled $3.3 million in 2024 Period compared to cash provided by operating activities of $1.0 million in 2023 Period, an increase of $2.3 million. The increase was driven by an increase in working capital of $1.2 million, primarily related to favorable change in accounts receivable partially offset by a decrease in operating results of $1.0 million (defined as net loss adjusted for non-working capital items).
Previous wording
Cash provided by investing activities totaled $2.1 million in the 2024 Period compared to cash provided by investing activities of $4.5 million in the 2023 Period. 2024 and 2023 included $3.1 million and $4.1 million, respectively, in proceeds from the sale of assets as the Company divested non-core real estate.
Current wording
Cash provided by investing activities totaled $0.2 million in the 2024 Period compared to cash provided by investing activities of $4.6 million in the 2023 Period. 2024 Period and 2023 Period included $3.2 million and $5.3 million, respectively, in proceeds from the sale of assets as the Company divested non-core real estate.
Previous wording
Cash required for financing activities totaled $1.4 million in the 2024 Period compared to $0.2 million in the 2023 Period. Debt reduction accounted for nearly all the usage of funds in 2024.
Current wording
Cash required for financing activities totaled $1.9 million in the 2024 Period compared to $2.8 million in the 2023 Period. Debt reduction accounted for nearly all the usage of funds in both periods.
Previous wording
Our liquidity, consisting of cash on the balance sheet, totaled $15.4 million on December 24, 2023. This liquidity amount excludes any future cash flows from operations. 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.
Current wording
Our liquidity, consisting of cash on the balance sheet, totaled $16.1 million on March 24, 2024. This liquidity amount excludes any future cash flows from operations. 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.
Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
Non-operating income and expense decreased by $0.4 million, or 3.6%. The decrease is primarily driven by a decrease in Interest expense of $0.3 million, or 2.7%, to $10.2 million in the 2024 Quarter, compared to the same Quarter last year. The decrease was due to a lower outstanding balance on our Term Loan. Our weighted average cost of debt was 9% at the end of the 2024 Quarter and 2023 Quarter.
Current report — wording carried from elsewhere
References to the “2024 Period” refer to the six months ended March 24, 2024. Similarly, references to the “2023 Period” refer to the six months ended March 26, 2023.
Current report — wording carried from elsewhere
Advertising and marketing services revenue totaled $135.0 million in the 2024 Period, down 19.3% compared to the 2023 Period. Print advertising revenues were $43.2 million in the 2024 Period, down 41.1% compared to the 2023 Period due to continued secular declines in demand for print advertising and a reduced product portfolio through sales and elimination of products that do not met profitability standards. Digital advertising and marketing services totaled $91.8 million in the 2024 Period, down 2.3% compared to the 2023 Period. Digital advertising and marketing services represented 68.0% of the 2024 Period total advertising and marketing services revenue, compared to 56.2% during the 2023 Period.
Current report — wording carried from elsewhere
Subscription revenue totaled $140.6 million in the 2024 Period, down 11.2% compared to the 2023 Period. Decline in full access volume, consistent with historical and industry trends were partially offset by selective increases on our full access subscriptions, growth in digital-only subscribers and price increases on digital subscriptions. Digital-only subscribers grew 25% since the 2023 Period and now total 745,000. Digital-only subscription revenue grew 50.9% compared to the 2023 Period.
Current report — wording carried from elsewhere
Other revenue, which primarily consists of commercial printing revenue and digital services from BLOX Digital, decreased $3.6 million, or 11.9%, in the 2024 Period compared to the 2023 Period. Digital services revenue totaled $10.1 million in the 2024 Period, a 6.3% increase compared to the 2023 Period. Commercial printing revenue totaled $8.7 million in the 2024 Period, a 15.3% decrease compared to the 2023 Period, primarily driven by reduction in print volumes from our partners.
Current report — wording carried from elsewhere
Total digital revenue including digital advertising revenue, digital subscription revenue and digital services revenue totaled $141.7 million in the 2024 Period, an increase of 9.1% over the 2023 Period, and represented 46.9% of our total operating revenue in the 2024 Period.
Current report — wording carried from elsewhere
Total operating expenses were $301.7 million in the 2024 Period, a 12.3% decrease compared to the 2023 Period. Cash Costs, a non-GAAP financial measure used to summarize certain operating expense (see reconciliation of Non-GAAP financial measures below), were down 16.8% in the 2024 Period.
Current report — wording carried from elsewhere
Compensation expense decreased $27.8 million in the 2024 Period, or 19.3%, compared to the 2023 Period from reductions in full time employees ("FTEs") due to continued business transformation efforts, partially offset by investments in digital talent.
Current report — wording carried from elsewhere
Newsprint and ink costs decreased $4.9 million in the 2024 Period, or 35.2%, compared to the 2023 Period. The decrease is attributable to declines in newsprint volumes.
Current report — wording carried from elsewhere
Other operating expenses decreased $22.3 million in the 2024 Period, or 13.2%, compared to the 2023 Period. Other operating expenses include all operating costs not considered to be compensation, newsprint, depreciation and amortization, or restructuring costs and assets loss (gain) on sales, impairments, and other, net. The largest components are costs associated with printing and distribution of our printed products, digital cost of goods sold and facility expenses. The decrease is attributable to lower delivery and other print-related costs due to lower volumes of our print edition, partially increases in investments to fund our digital growth strategy partially offset by investments to fund our digital growth strategy.
Current report — wording carried from elsewhere
Depreciation and amortization expense decreased $1.0 million in the 2024 Period, or 6.6%, compared to the 2023 Period. The decrease in both is attributable to assets becoming fully depreciated or amortized.
Current report — wording carried from elsewhere
The factors noted above resulted in an operating income of $3.3 million in the 2024 Period compared to operating income of $14.0 million in the 2023 Period.
Current report — wording carried from elsewhere
Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users' overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent, or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one-time transactions. Adjusted