MASON CITY – The owner of the Globe Gazette – Lee Enterprises – bragged about using thinner paper to report the news and other tricks designed to stay in business under crushing debt of over $548 million.
In a statement released this month for its fourth quarter financials, Chief Executive Officer Kevin Mowbray described a number of gimmicks to help keep the newspapers owned by Lee Enterprises – including the Globe Gazette newspaper in Mason City – afloat. The report talks about workforce adjustments, decreases in employee compensation, reduction in staffing levels and full-time employees, lower basis weight newsprint, and more.
Mowbray said digital revenue is increasing, but “a soft print advertising environment contributed to overall revenue declines. Fourth quarter total revenue was down 6.8%, a performance very close to last quarter and better than the trend from earlier in the year. Total revenue was down 7.1% in fiscal year 2017.”
As of September 24, 2017, the principal amount of debt owed by Lee Enterprises was $548.4 million, the company’s Chief Financial Officer, Ron Mayo, said. Lee claims to be working to reduce its debt, but perhaps at the steep cost of a rapidly-deteriorating product that fewer and fewer people are interested in.
Other ‘highlights’ of the financial report connected to the Globe Gazette via Lee Enterprises seem to be:
– Total digital revenue was up just 3.8% from last year.
– Total advertising and marketing services revenue decreased 10.2% in the quarter
– Subscription revenue increased 0.6% in the current year quarter due to price increases
– Cash costs, excluding workforce adjustments and other, decreased 8.8%. Compensation decreased 9.6%, primarily as a result of a reduction in staffing levels
– A decrease in the average number of full-time equivalent employees of 8.5%
– Newsprint and ink expense decreased 16.2%, due to lower volumes from unit declines and using lower basis weight newsprint
A former Globe Gazette employee said it’s incredible that the newspaper remains open for business.
“I stopped in the office recently, and it was dark, dreary, the lights flickered,” the former Globe worker said. “The blue wallpaper appeared faded and soiled; I spotted cobwebs. I think I saw a mouse scurry under one of the many vacant desks. The employees were less-than enthusiastic and didn’t care much about making a sale. In my opinion, the place is on its last legs. I agree with Mowbray; its only prayer to remain in business is to cut loose all the dead weight in the newsroom and replace them with interns and freelancers, immediately, who will likely do a better job anyway for slightly less money.”