This weekend Lee Enterprises (NYSE: Lee) reported its quarterly and fiscal year financials for the period ended September 25, 2016. Lee, which provides news, information and advertising in 50 U.S. markets in 22 states, posted quarterly earnings of $0.7 million, or $0.01 per diluted common share. Earnings for the same period last year totaled $10.1 million, or $0.18 per diluted common share.

For the fiscal year, Lee earnings were $36.0 million, or $0.64 per diluted common share, compared to $24.3 million, or $0.43 per diluted common share, for the prior year.

“In 2016, our enterprises ranked among industry leaders in revenue and operating performance,” said Kevin Mowbray, president and chief executive officer. “We continued to aggressively transform the business. We reduced debt by more than $23.1 million in the fourth quarter and $108.7 million in the fiscal year.”

Lee Enterprises markets include:

Other highlights include:

• Total operating revenue decreased 5.1 percent to $614.4 million for the quarter and 5.3 percent for the fiscal year.
• Total digital revenue, including digital advertising and digital services, was $25.9 million, a 6.7 percent increase year-over-year, driven by TownNews.com.
• Digital advertising revenue rose 4.4 percent for Q4 and 5.6 percent for the fiscal year.
• Mobile advertising revenue, including digital advertising, increased 25.1 percent in Q4.
• Total advertising and marketing services revenue decreased 10.8 percent in Q4 and 9.4 percent for the fiscal year.
• Subscription revenue grew 2.4 percent in Q4 through strategic marketing and pricing strategies.
• Subscription revenue for the fiscal year was relatively flat.
• Average daily newspaper circulation, including digital subscribers, totaled 0.8 million for the 13 weeks ended Sept. 25, 2016. Sunday circulation totaled 1.2 million.
• Adjusted EBITDA was $37.2 million for Q4 and $153.8 million for the fiscal year.
• Operating expenses for Q4 were down 4.2 percent.
• Debt was reduced $23.1 million for the quarter and $108.7 million for the fiscal year.

“Research in our larger markets shows we continue to reach nearly three-quarters of all adults in the market through the combination of digital audience growth and strong print newspaper readership,” the company said in an earnings release.

Lee stock dropped on Monday, December 12, 2016, the first business day following the release of the Q4 and fiscal year end financials. Stock closed at $3.35 per share on Friday, December 9, 2016. It closed at $3.00 on Monday, December 12, 2016, a 10.4 percent drop.

Insider Take:

Like so many other news outlets, Lee Enterprises is trying to strike the right balance between circulation, subscriptions and advertising revenue. Subscriptions are up slightly for the quarter, while daily circulation is down from 0.9 million and Sunday circulation was down from 1.3 million for the quarter ended June 26, 2016.

Of all the revenue categories, only three showed increases – subscriptions, digital services and other. In spite of that, the company ended Q4 with earnings of $0.7 million and the year with earnings of $36.0 million, a sizable increase year over year.

Lee will continue to tweak its products and services, continuing its transformation and focus on its strengths in 2017.