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LEE ENTERPRISES Lee Enterprises Reports Second Quarter Results May 6 , 2021 Digital only subscribers grew 58 % and total 309,000 Adjusted EBITDA ( 1 ) totaled $ 24 million , up modestly over the prior year Debt , net of cash , totals $ 465 million , down $ 25 million in the quarter DAVENPORT , Iowa , May 06 , 2021 ( GLOBE NEWSWIRE ) -- Lee Enterprises , Incorporated ( NASDAQ : LEE ) , a leading provider of high quality , trusted , local news , information and a major platform for advertising in 77 markets , today reported second quarter fiscal 2021 financial results ( 2 ) for the period ended March 28 , 2021. On a GAAP basis , total operating revenue was $ 192.4 million and net loss totaled $ 0.6 million in the second quarter . " I am extremely proud of Lee's performance , driven by our passionate and dedicated employees , our loyal audience and communities , and our three pillar digital growth strategy . Our second quarter results reflect that performance as they exceeded our goals and expectations , " said Kevin Mowbray , President and Chief Executive Officer . " Annualized recurring revenue has grown to almost 50 % of our total operating revenue and totaled $ 95 million in the quarter . I am also excited to return to Adjusted EBITDA growth in the second quarter , with Adjusted EBITDA of $ 24.1 million in the quarter . Growth in Adjusted EBITDA was attributed to improving year - over - year revenue trends with total operating revenue down 8.1 % in the second quarter on a pro forma basis , or a 280bps improvement compared to the first quarter 2021 trends . The improvement in revenue performance and growth of Adjusted EBITDA in the quarter give us the confidence that we have the right team , the right digital growth strategy in place and are focused on execution to achieve our digital transformation , " Mowbray added . " We have made significant progress on our digital transformation , " said Mowbray . " Total digital revenue was $ 59.5 million in the quarter , up 29.7 % , due to the significant growth in digital - only subscription revenue as well as continued strong performance at TownNews . Revenue from our full - service digital marketing services agency , Amplified , grew by 26.3 % as we continue to expand our in - house capabilities sophisticated campaigns for SMBs as well as large regional and national accounts . We are also seeing exciting growth in video revenue , which totaled $ 1.8 million in the quarter , as we better monetize our sponsorship and branded content , " Mowbray added . than " We had strong year - over - year growth in subscription revenue - up 1.8 % - driven by 57.6 % growth in digital only subscribers which now total more 309,000 at the end of the quarter making us the fastest growing digital subscription platform in local media . We also saw strong full access performance with increases in average rates as well as an improvement in churn rates . Digital services revenue , which is predominantly Town News , increased 4.7 % in the quarter , " Mowbray added . " While we are investing in our digital transformation , we continue to be diligent in managing our cost structure and we have strengthened our balance sheet , " said Tim Millage , Vice President , Chief Financial Officer and Treasurer . “ Total Cash Costs ( 1 ) were down 9.1 % in the second quarter and since the acquisition we have realized $ 110 million in cost synergies . Strong top line execution combined with cost containment measures have driven a substantial amount of free cash flow and allowed us to reduce the principal amount of debt by more than $ 77.1 million the last three quarters . The principal amount of debt at the end of the second quarter totaled $ 498.9 million , down $ 24.6 million in the second quarter , " Millage added . SECOND QUARTER HIGHLIGHTS • Total operating revenue was $ 192.4 million compared to $ 121.4 million in the same quarter last year , reflecting the acquisition of BH Media and Buffalo News ( 5 ) . On a pro forma basis , total operating revenue was down 8.1 % to the same quarter last year . • Subscription revenue totaled $ 89.8 million , a 1.8 % increase compared to the prior year on a pro forma basis . Digital - only subscriptions at the end of the quarter totaled 309,000 , or up 57.6 % compared to the same period last year . • Our audiences remain strong in both print and digital due to our focus on relevant news in our local markets . Monthly average page views totaled 472 million , a 5.6 % increase compared to the prior year , and monthly average unique visitors totaled 56 million . • Total advertising and marketing services revenue was $ 85.6 million , a 16.3 % decrease compared to the same quarter last year on a pro forma basis . Advertising revenue trends improved sequentially 370 bps compared to first quarter 2021 trends . • Revenue at Town News , our SaaS content platform , increased 8.8 % in the second quarter and revenue over the last twelve months totaled $ 26.1 million . • Total digital revenue , including digital advertising , digital subscription and digital services revenue , was $ 59.5 million and represented 30.9 % of our operating revenue . Total digital revenue increased 29.7 % in the quarter on a pro forma basis . • Operating expenses totaled $ 185.5 million and Cash Costs on a pro forma basis were down 9.1 % . Since the acquisition in