Lee Enterprises, Incorporated (NYSE:LEE) Q4 2019 Earnings Conference Call - Preliminary Transcript

Dec 12, 2019 • 10:00 am ET

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Lee Enterprises, Incorporated (NYSE:LEE) Q4 2019 Earnings Conference Call - Preliminary Transcript

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Q & A
Executive
Jamie Seratt

Thank you, Tim. Our first question from the web. If our revolver matures on December 28, 2019, what's the plan for extending it?

Executive
Kevin Mowbray

So we actually have extended that there was a release, 8-K filed in November we've extended our runway 12 month on the revolver and that revolver matures in December of 2020.

Executive
Jamie Seratt

What involvement if any, will we haven't Facebook's recently announced Facebook Live news tab that promises to some publishers?

Executive
Unidentified Speaker

We have involved in the testing three of our markets. It's too early to know the outcome of this

Executive
Jamie Seratt

Our next question will Lee be able to complete a debt refinancing deal by March 2022?

Executive
Timothy Millage

So we talked a lot about our plans to look at an opportunistic refinancing in, we're still -- still looking at options we've laid out our objectives of looking to reduce our cost of capital. In recent, some of the companies that we have today. Moving things that we've talked about in our remarks is we do have a cost up down in March of '15 that we're looking to consider. So we're still evaluating all of our options in the meantime, our focus is to continue to reduce our leverage. It could be (inaudible).

Executive
Jamie Seratt

Our next question, please provide further color on the $6 million of restructuring costs in the quarter and the $3.8 million related to withdrawals from multi-employer pension plans.

Executive
Kevin Mowbray

So I'll adjust $3.8 million withdrawals because that's the biggest piece of the $6 million. So we have a number of multi-employer pension plans that we have disclosed in our SEC filings and there's a lot of risk associated with those plans and one of the things we're doing to mitigate those that risk is effective withdraw from those plans and we did that with one of the plan creating a liability of $3.8 million and the way that works is, we paid that liability over a period of 20 years given the lies around multi-employer plan.

The rest of the restructuring cost of credit plan the severance costs due to our business transformation projects.

Executive
Jamie Seratt

Our next question, given that the December quarter is nearly over. Can you comment on debt pay down in bond buybacks in the December quarter?

Executive
Kevin Mowbray

Yes, so far we've reduced debt about $7 million in the first quarter. We do expect our first quarter of this year to be similar to what we've done historically in this quarter. So we are not done yet with the quarter, but right now we're at $7 million. And all of the buyback that effected this quarter have been at or under par.

Executive
Jamie Seratt

And with that, we have no more questions from the web. I'll turn it back to our -- to Kevin for closing remarks.

Executive
Kevin Mowbray

Thank you for joining us on today's call. We appreciate your time and interest in Lee. Thank you again for being on the call.