Lee's disappointing results and 2022 guidance continue to demonstrate the need for a new strategy and new leadership that prioritizes readers and local journalism. When Lee acquired the Berkshire newspapers in February 2020, they guided towards Pro-Forma Revenue of ~$922mm and Pro-Forma Adj. EBITDA of ~$171mm. The Lee Board is now guiding to a Fiscal Year 22 Adj. EBITDA of $95-98mm. Not only is Fiscal Year 22 Adj. EBITDA a miss of ~$74mm, down a whopping 43% vs. the February 2020 Plan, but Lee’s standalone Adj. EBITDA excluding the Berkshire acquisition is also ~$17mm or 15% below Lee's Adj. EBITDA prior to the Berkshire acquisition of $113.5mm. Just as concerning is Lee’s LTM Revenue performance of $785mm which is down ~$137mm or ~15% vs. the February 2020 Plan.

Up until the Berkshire acquisition, Lee was proud of their industry leading operating margins between 21-24%, and shamed the rest of the industry for their 11.6% margins as referenced in their presentation at Lee’s 2020 Annual Meeting of Stockholders. Now after the inept integration of the Berkshire newspapers, they are distracting shareholders and spinning their awful operating performance as compared to how they operated and performed pre-Berkshire acquisition. Clearly the board of Lee has overseen an extremely disappointing integration of the Berkshire acquisition that continue to demonstrate the need for a new strategy and new leadership focused on results rather than the board enriching themselves.

Note: Adj. EBITDA of ~$171mm calculated as $158.7mm of pre-synergies EBITDA plus $20mm of cost synergies less $8mm annual lease payment related to Berkshire transaction, as shown in the February 2020 Plan.

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