Lee Enterprises Inc (LEE) 2023 Q4 法說會逐字稿

Welcome to the Lee Enterprises is 2023 fourth quarter income. This call is being recorded and will be available for replay investors. lee.net. at this time, all participants are in a listen only mode close of the plan remarks. There will be an opportunity participants accessing this call by may submit written questions through the website and they be answered during the call as time permits. Otherwise you will receive a response later. A link to the live webcast can be found Investors.lee.net.

歡迎來到Lee Enterprises 2023年第四季營收。本次電話會議正在錄音，投資人可以重播。李網。此時，所有參與者都處於僅聽模式結束計畫發言。參加此電話會議的參與者將有機會透過網站提交書面問題，並在時間允許的情況下在電話會議期間得到回應。否則您稍後會收到回覆。網路直播的連結可以在 Investors.lee.net 上找到。

Now now I will turn the call over to your host, Josh Rinehults, Vice President Finance. Please go ahead.

現在我將電話轉給主持人、財務副總裁 Josh Rinehults。請繼續。

Good morning, and thank you for joining us. And in addition to myself, Speaking on this morning's call are Kevin Mowbray, President and Chief Executive Officer, and Tim Millage, Vice President, Chief Financial Officer and Treasurer. Also with us today and available for questions is Nathan Bekke, Vice President, Audience strategy. Earlier today, we issued a news release with preliminary results for our fourth fiscal quarter of 2023. It is available at lee.net as well as at major financial websites Please also refer to our earnings presentation found at investors.lee.net. that includes supplemental information.

早安，感謝您加入我們。除了我本人之外，在今天早上的電話會議上發言的還有總裁兼執行長 Kevin Mowbray 和副總裁、財務長兼財務主管 Tim Millage。今天也與我們一起回答問題的還有受眾策略副總裁 Nathan Bekke。今天早些時候，我們發布了一份新聞稿，其中包含2023 年第四財季的初步業績。新聞稿可在lee.net 以及主要金融網站上查看。另請參閱我們在Investors.lee.net上找到的收益報告。其中包括補充資訊。

As a reminder, this morning's discussion will include forward-looking statements based on our current expectations. These statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially. Such factors are described in this morning's news release and also in our SEC filings.

提醒一下，今天上午的討論將包括基於我們目前預期的前瞻性陳述。這些陳述受到某些風險、趨勢和不確定性的影響，可能導致實際結果有重大差異。這些因素在今天早上的新聞稿和我們向美國證券交易委員會提交的文件中都有描述。

During the call, we refer to certain non-GAAP financial measures, including adjusted EBITDA, cash cost and same-store revenues, which are defined in our news release. We will also refer to digit to digital direct costs, which is defined in the earnings presentation for each of these non-GAAP measures. Reconciliations to the relevant GAAP measures are included in tables accompanying the release and now to open the discussion is our President and Chief Executive Officer, Kevin Mowbray.

在電話會議中，我們提到了某些非公認會計準則財務指標，包括調整後的 EBITDA、現金成本和同店收入，這些指標在我們的新聞稿中進行了定義。我們也將數字直接成本稱為數字直接成本，該成本在每項非公認會計原則衡量指標的收益報告中定義。相關 GAAP 措施的調整包含在新聞稿隨附的表格中，現在由我們的總裁兼執行長 Kevin Mowbray 開始討論。

Good morning, everyone, and thank you for joining us and excited to share with you all of the many reasons why we're optimistic about the future of Lee will begin this morning with an overview of our fiscal year 2023 of our results, including our industry-leading digital performance we'll also provide an update to our digital transformation strategy.

大家早安，感謝您加入我們，很高興與您分享我們對 Lee 的未來持樂觀態度的所有原因。今天早上，我們將概述 2023 財年的業績，包括我們的業績行業領先的數位性能，我們還將提供數位轉型策略的更新。

And given the strong execution of the three pillars, I'm excited to share increases to our long term outlook for wind team delivered another strong quarter with continued execution on our three pillar digital growth strategy. And I'm very encouraged at the pace by which we are transforming leading into a vibrant digitally centric company.

鑑於三大支柱的強勁執行力，我很高興與大家分享我們對風電團隊長期前景的展望，他們透過繼續執行我們的三大支柱數位成長策略，再次實現了強勁的季度業績。我對我們將領導力轉變為一家充滿活力的以數位為中心的公司的速度感到非常鼓舞。

Our fourth quarter results helped us to achieve all of our full year guidance. Our ability to exceed expectations and produce industry-leading results in this challenging environment demonstrates the success of our strategy, the resiliency of our business model support these investment thesis and increases our conviction in achieving our long-term goals.

我們的第四季業績幫助我們實現了所有全年指導目標。我們在這個充滿挑戰的環境中超越預期並取得行業領先成果的能力證明了我們策略的成功，我們業務模式的彈性支持了這些投資論點，並增強了我們實現長期目標的信心。

We grew digital-only subscribers 36% for the year, leading us to substantially exceeded our initial guidance with 721,000 digital subscribers by the end of the fiscal year. And we're also encouraged that we grew average rates for our digital-only subscriptions driving Q4 digital subscription revenue up 68% year over year and up 51% for the full year. On the advertising side, outside digital grew revenue, 11% in the fourth quarter and 20% for the full year, with revenue totaling $91 million for the fiscal year, pacing well ahead of other digital marketing solutions in the industry.

今年我們的純數位訂閱用戶成長了 36%，這使得我們在本財年結束時數位訂閱用戶數量達到了 721,000 名，大大超出了最初的預期。我們也感到鼓舞的是，我們純數位訂閱的平均費率有所提高，推動第四季數位訂閱收入年增 68%，全年成長 51%。廣告方面，外部數位營收成長，第四季成長 11%，全年成長 20%，本財年營收總計 9,100 萬美元，遠遠領先業界其他數位行銷解決方案。

These strong performances in digital revenue are pushing us down the path of driving recurring, profitable digital revenue, which bolsters our confidence in achieving our long-term goals. We faced significant macroeconomic headwinds this year, the soft advertising environment across the industry and an uncertain market for subscription products with consumers.

數位收入的強勁表現正在推動我們走上推動經常性、獲利性數位收入的道路，這增強了我們實現長期目標的信心。今年我們面臨著巨大的宏觀經濟逆風、整個產業的廣告環境疲軟以及消費者訂閱產品市場的不確定性。

Our print revenue streams were negatively impacted as revenue trends worsened this team took quick and decisive action by eliminating more than $100 million in cost reductions this year. This accelerated growth in digital revenue, combined with solid cost management resulted in achieving our full year adjusted EBITDA guidance. The solid performance is a testament to the fact we have the right team and the right strategy in place, and I'll pass it to Tim for more detail on our fourth quarter results.

由於收入趨勢惡化，我們的印刷收入流受到了負面影響，該團隊今年採取了迅速而果斷的行動，削減了超過 1 億美元的成本。數位收入的加速成長，加上紮實的成本管理，實現了我們全年調整後 EBITDA 的指導。穩健的業績證明了我們擁有合適的團隊和正確的策略，我會將其傳遞給蒂姆以獲取有關我們第四季度業績的更多詳細資訊。

Thank you, Kevin, and good morning, everyone. Total operating revenue was $164 million in the fourth quarter. Digital revenue growth continued at a strong pace, with total digital revenue up 14%, driven by 68% growth in digital subscription revenue and 11% growth at Amplified Digital As Kevin previously mentioned, cash costs were down 17% in the fourth quarter as a result of our responses earlier in the year to address the soft revenue environment, combined with cost actions related to our digital transformation.

謝謝你，凱文，大家早安。第四季總營業收入為 1.64 億美元。數位收入持續強勁成長，在數位訂閱收入成長 68% 和 Amplified Digital 成長 11% 的推動下，數位總收入成長 14% 正如 Kevin 之前提到的，第四季度現金成本下降了 17%，這是我們今年早期為解決軟收入環境而採取的應對措施以及與數位轉型相關的成本行動的結果。

Finally, adjusted EBITDA totaled $30 million in the fourth quarter in line with prior year and a 29% sequential improvement to third quarter adjusted EBITDA. Despite all the challenges faced this year, our rapid digital growth and strong cost management gives us momentum heading into fiscal 2024.

最後，第四季調整後 EBITDA 總額為 3,000 萬美元，與去年同期持平，比第三季調整後 EBITDA 季增 29%。儘管今年面臨所有挑戰，但我們快速的數位成長和強大的成本管理為我們進入 2024 財年提供了動力。

Let me spend a few minutes walking through the execution of our cost actions as we took significant action in 2023. As we previously mentioned, the headwinds faced this past year accelerated declines of print revenue and as a result, we executed more than $100 million of cost actions with a focus on cost tied to our print business. The majority of our cost actions were permanent and giving the timing of the actions will have a $50 million saving in [20] fiscal year 2024 from the actions we took last year.

讓我花幾分鐘時間回顧一下我們在2023 年採取的重大行動中成本行動的執行情況。正如我們之前提到的，去年面臨的不利因素加速了印刷收入的下降，因此，我們執行了超過1 億美元的成本行動。成本行動，重點是與我們的印刷業務相關的成本。我們大部分的成本行動都是永久性的，考慮到這些行動的時間安排，我們將在 2024 財年 [20] 比去年採取的行動節省 5000 萬美元。

In addition, we also executed temporary actions totaling $13 million of one-time savings in FY 23. While the team remains steadfast in managing costs associated with our print revenue streams, we continue to focus on driving recurring sustainable digital revenue growth for the future and are committed to making the necessary incremental investments, the investments we made in new talent and technology and the increased digital cost of goods sold totaled $25 million. These costs will have a short term impact on our margin profile, what are expected to drive these digital transformation.

此外，我們還在23 財年執行了總計1,300 萬美元的一次性節省措施。雖然團隊仍然堅定地管理與印刷收入流相關的成本，但我們將繼續專注於推動未來的經常性可持續數位收入成長，我們致力於進行必要的增量投資，我們在新人才和技術方面的投資以及增加的銷售商品的數字成本總計達 2500 萬美元。這些成本將對我們的利潤狀況產生短期影響，預計將推動這些數位轉型。

Moving to Slide 7. We continue to strengthen our balance sheet. The principal amount of debt at the end of fourth quarter was $456 million, a reduction of $120 million since March of [2023]. As a reminder, our credit agreement with Berkshire, our sole lender has favorable terms that are incredibly important for us as we execute our strategy it allows us the ability to make the necessary investments in talent and technology to fuel our recurring sustainable revenue growth.

轉向投影片 7。我們繼續強化我們的資產負債表。第四季末的債務本金為 4.56 億美元，自 [2023]3 月以來減少了 1.2 億美元。提醒一下，我們與唯一貸款人伯克希爾哈撒韋的信貸協議具有優惠條款，這對我們執行戰略非常重要，它使我們能夠對人才和技術進行必要的投資，以推動我們經常性的可持續收入增長。

The agreement was executed in 2020 and has a fixed interest rate and a 25 year maturity. These favorable terms have been incredibly helpful in a rising rate environment that we have seen over the last few years in 2023, we made no pension contributions as our pensions are overfunded in the aggregate.

該協議於2020年簽署，固定利率，期限為25年。這些優惠條款在我們過去幾年看到的 2023 年利率上升的環境中非常有幫助，我們沒有繳納退休金，因為我們的退休金總體上資金過剩。

Finally, we continue to identify opportunities to monetize our non-core assets, which facilitate accelerated debt repayment. We closed $12 million of asset sales this fiscal year. And we've identified an additional $50 million of non-core assets to monetize, which are in various stages of the sale process. As a reminder, with solid execution of our three pillar digital growth strategy as well as our commitment to improving our balance sheet. Our goal is to achieve our long-term target leverage of under 2.5 times.

最後，我們繼續尋找將非核心資產貨幣化的機會，這有助於加速債務償還。本財年我們完成了 1,200 萬美元的資產出售。我們還確定了另外 5000 萬美元的非核心資產可供貨幣化，這些資產正處於銷售過程的各個階段。提醒一下，我們堅定地執行了我們的三大支柱數位成長策略以及我們對改善資產負債表的承諾。我們的目標是實現槓桿率低於2.5倍的長期目標。

And with that, I will turn it back to Kevin.

說到這裡，我會把它轉回給凱文。

Based on our three pillar digital growth strategy and scaling our digital transformation is the foundation of our investment thesis. We're focused on expanding our digital audiences, growing our digital subscriber base and revenue and diversifying and expanding our offerings for local and regional advertisers.

基於我們的三大支柱數位成長策略和擴大數位轉型是我們投資論文的基礎。我們專注於擴大我們的數位受眾，增加我們的數位用戶群和收入，以及多樣化和擴大我們為本地和區域廣告商提供的產品。

As we complete fiscal year 2023 and enter into fiscal year 2024. We'd like to provide updated long-term targets on the key metrics for the Company, including expecting our three pillar digital growth strategy to drive more than $450 million of recurring sustainable digital revenue. In fact, with that level of performance, which is sustainable and vibrant from revenues and cash flows from only our digital products in five years.

隨著 2023 財年結束並進入 2024 財年。我們希望為公司的關鍵指標提供最新的長期目標，包括預計我們的三大支柱數位成長策略將推動超過 4.5 億美元的經常性永續數位成長收入。事實上，憑藉這種水平的業績，五年內僅來自我們的數位產品的收入和現金流是可持續且充滿活力的。

That's an incredibly important point is the goal of our three pillar digital growth strategy plays out. It continues to be the fastest-growing digital subscription platform in local media by a significant margin.

這是非常重要的一點，我們的三大支柱數位成長策略的目標得以實現。它仍然是本地媒體中成長最快的數位訂閱平台，且遙遙領先。

Our fourth quarter digital results led the industry for the 16th consecutive quarter. That's four years of industry-leading digital subscriber growth. We now have center and 21,000 digital subscribers, which represents an impressive 43% compound annual growth rate for the last three years. This best-in-class performance gives us even more confidence in achieving our long-term goals, which we'll cover in more detail momentarily.

我們第四季的數位業績連續 16 個季度領先於該行業。這是四年來領先業界的數位用戶成長。我們現在擁有中心用戶和 21,000 名數位用戶，過去三年複合年增長率高達 43%，令人印象深刻。這種一流的性能讓我們更有信心實現我們的長期目標，我們將立即更詳細地介紹這些目標。

And finally, digital led the industry with an impressive 20% year-over-year growth. Despite the soft advertising environment, revenue outside digital now totals over $91 million and has grown a staggering 50% annually for the last three years, far outpacing others within the industry, fueled by these industry leading metrics, total digital revenue achieved our guidance that we set last year while growing 14% year-over-year and continued to expand our digital revenue.

最後，數位化以令人印象深刻的 20% 年成長引領產業。儘管廣告環境疲軟，但數位以外的收入目前總計超過9,100 萬美元，並且在過去三年中每年增長50%，遠遠超過行業內的其他收入，在這些行業領先指標的推動下，數位總收入實現了我們的指導去年設定的目標，年增 14%，並繼續擴大我們的數位收入。

On the next slide, significant growth, our digital revenue from our three pillar digital growth strategy has transformed the composition of these revenue over the last few years when we first launched our three pillar digital growth strategy. Digital revenue represented only 21% of our total operating revenue. And today, total digital revenue represents 44% of our revenue.

在下一張投影片中，當我們首次推出三大支柱數位成長策略時，我們的三大支柱數位成長策略帶來的數位收入顯著成長，改變了過去幾年這些收入的組成。數位收入僅占我們總營業收入的 21%。如今，數位總收入占我們收入的 44%。

We expect to reach the revenue inflection point in FY 24 as more than 50% of our revenue will be from digital sources and through continued strong execution of our strategy. We expect by [2024], a more than two thirds of our revenue will be digital, allowing for more consistent overall top line revenue performance. Our industry-leading growth in both digital subscriptions and digital marketing solutions will continue to drive the to this point.

我們預計將在 24 財年達到收入拐點，因為我們超過 50% 的收入將來自數位來源並透過持續強有力地執行我們的策略。我們預計到 2024 年，我們三分之二以上的收入將來自數位化，從而實現更一致的整體營收表現。我們在數位訂閱和數位行銷解決方案方面領先業界的成長將繼續推動這一點。

The tremendous progress we've made on our digital transformation continues to reinforce. We have the right strategy and the right team in place. Our three pillar digital growth strategy and guiding our digital transformation is the foundation of our investment thesis doing so allow us to increase our shareholder value through continued debt reduction and look for expansion.

我們在數位轉型方面取得的巨大進展持續加強。我們擁有正確的策略和合適的團隊。我們的三大支柱數位成長策略和指導我們的數位轉型是我們投資理論的基礎，這樣做使我們能夠透過持續削減債務和尋求擴張來增加股東價值。

Slide 14 provides a long-term outlook of our digital subscriptions and associated revenue acceleration in subscription revenue growth over the past few years is driven by the investment thesis we've made in top talent in the areas of content, branding and consumer marketing.

幻燈片 14 提供了我們數位訂閱的長期前景，以及過去幾年訂閱收入成長的相關收入加速，這是由我們對內容、品牌和消費者行銷領域頂尖人才的投資理論所推動的。

These investments are producing strong results through engaging local content, effective branding campaigns and KPI. driven marketing campaigns, and we expect the results to continue to push forward with these investment and actions, we expect to achieve $150 million of recurring digital subscription revenue by fiscal 2028, fueled by 1.2 million digital subscribers.

這些投資透過本地內容、有效的品牌行銷活動和 KPI 產生了強勁的成果。驅動的行銷活動，並且我們預計這些投資和行動將繼續推動結果，預計到 2028 財年，在 120 萬數位訂閱者的推動下，將實現 1.5 億美元的經常性數位訂閱收入。

Turning to Slide 15. Our third pillar focuses on diversifying and expanding our offerings for advertisers through both amplified and our owned and operated digital products with advanced data-driven ad tech, specialized category expertise, scalable custom video content and profitable first-party data access amplified as a strong partner for local or regional businesses looking to drive growth, and we continue to see a significant growth runway as we execute that strategy.

轉向幻燈片15。我們的第三個支柱側重於透過放大的、我們擁有和運營的數位產品以及先進的數據驅動廣告技術、專業類別專業知識、可擴展的自訂視訊內容和有利可圖的第一方數據訪問，為廣告商提供多樣化和擴展的產品作為尋求推動增長的當地或區域企業的強大合作夥伴，我們在執行該戰略時繼續看到顯著的增長跑道。

While amplified is the growth engine for top line advertising revenue, our massive owned and operated digital audiences, fuel high margin digital advertising revenue, our owned and operated properties attract massive audiences who were offering more video inventory and branded content opportunities to boost digital advertising revenue. Overall, we're confident in our advertising outlook because our team is intensely focused on growing and high-margin digital advertising revenue.

雖然放大是頂線廣告收入的成長引擎，但我們擁有和經營的大量數位受眾推動了高利潤的數位廣告收入，我們擁有和經營的資產吸引了大量受眾，他們提供了更多影片庫存和品牌內容機會，以提高數位廣告收入。總體而言，我們對廣告前景充滿信心，因為我們的團隊專注於不斷增長和高利潤的數位廣告收入。

And now I'll turn it back to Tim to close out.

現在我將把它轉回給蒂姆來結束。

Thanks, Kevin, our digital transformation is well underway, and we wanted to take the opportunity to provide an updated look at the performance of our digital business as we aim to become sustainable and vibrant from the revenue and cash flow from our digital businesses only. We are not only focused on growing top line revenue, but also maximizing the margin profile of our digital revenue streams. These businesses are growing at a rapid clip.

謝謝凱文，我們的數位轉型正在順利進行，我們希望藉此機會提供對我們數位業務績效的最新了解，因為我們的目標是僅透過數位業務的收入和現金流實現永續發展和充滿活力。我們不僅專注於增加收入，而且還最大限度地提高數位收入流的利潤率。這些業務正在快速成長。

Kevin spent some time this morning talking about the industry leading revenue performance, giving us confidence to increase our long term outlook. Direct margin tied to our digital businesses was [72%] in FY 23 totaling [$197 million]. We expect these exceptional margin profile to remain high as we scale the business indirect operating expenses outside of our direct costs to fulfill are predominantly fixed.

今天早上凱文花了一些時間談論行業領先的收入表現，讓我們有信心提高我們的長期前景。 23 財年，與我們的數位業務相關的直接利潤為 [72%]，總計 [1.97 億美元]。我們預計，隨著我們擴大業務規模，除了要履行的直接成本主要是固定的之外，間接營運費用將保持在較高的水平。

Achieving our long-term digital revenue outlook and maintaining our digital direct margins allows us to generate direct margin sufficient to offset the direct margin of our print businesses. Said differently, we are on a clear path to being sustainable and vibrant from the revenue and cash flow from our digital products only that as the goal of our transformation and our pathway is clear and looking more near term, Slide 17 provides a look at our fiscal year FY 24 outlook.

實現我們的長期數位收入前景並維持我們的數位直接利潤率使我們能夠產生足以抵消印刷業務直接利潤率的直接利潤率。換句話說，我們正走在一條清晰的道路上，透過我們的數位產品的收入和現金流實現可持續和充滿活力，只是因為我們的轉型目標和我們的道路是明確的，並且著眼於更近期的目標，幻燈片17 提供了我們的24 財年展望。

We expect adjusted EBITDA to be in the range of $83 million to $90 million. It's worth noting our cost actions have grown adjusted EBITDA in the second half of fiscal 23 and these actions are expected to provide a significant benefit heading into [2024]. For total, digital revenue is expected to be in the range of $310 million to $330 million and digital-only subscribers are expected to total 771,000. And now I will turn it back over to Kevin to wrap up.

我們預計調整後的 EBITDA 將在 8,300 萬美元至 9,000 萬美元之間。值得注意的是，我們的成本行動在 23 財年下半年增加了調整後的 EBITDA，這些行動預計將在 [2024] 之前帶來顯著的效益。總體而言，數位收入預計將在 3.1 億至 3.3 億美元之間，純數位訂戶預計將達到 771,000 人。現在我將把它轉回給凱文來總結。

Thanks Tim. and to wrap up, I'd like to thank the entire Lear team for their efforts in driving our transformation as we move through our transformation and achieve our long-term goals. We expect to drive significant value for our shareholders through converting debt to equity through a repositioning and lead as a digital-first company.

謝謝蒂姆。最後，我要感謝整個李爾團隊在我們轉型並實現長期目標的過程中為推動我們的轉型所做的努力。我們希望透過重新定位和引領數位優先公司，將債務轉為股權，為股東帶來巨大價值。

Under the guidance of oversight of our Board of Directors, the leadership team's continued execution of our growth strategy, sets the stage for significant long-term value creation. We have the right stores, the right team and the right strategy to create long-term value for our readers, users, advertisers and shareholders.

在董事會的監督指導下，領導團隊持續執行我們的成長策略，為顯著的長期價值創造奠定了基礎。我們擁有合適的商店、合適的團隊和正確的策略，為我們的讀者、用戶、廣告商和股東創造長期價值。

This concludes our remarks. The team will remain on the line for any questions you may have. Operator, please open the line for questions.

我們的發言到此結束。如果您有任何疑問，我們的團隊將保持在線。接線員，請開通提問線。

Queue at this time, we will be conducting a question and answer session. As a reminder, if you are accessing this call by You may submit type questions on your screen. Those questions will be answered during the call as time permits. One moment, please while we poll for it.

此時排隊，我們將進行問答環節。提醒一下，如果您透過以下方式存取此通話，您可以在螢幕上提交類型問題。這些問題將在時間允許的情況下在通話中得到解答。請稍等，我們進行投票。

Yes, first question comes from [Daniel Harriman with Sidoti], your line.

是的，第一個問題來自[丹尼爾·哈里曼和西多蒂]，你的台詞。

And so no Kevin, Tim, good morning and congrats on the fabulous fiscal year. And I have a few questions for you. And I'm going to start on the print side, if that's okay. And I know that we're in the early stages of your fiscal 24.

凱文，提姆，早安，恭喜您度過了精彩的財年。我有幾個問題想問你。如果可以的話，我將從印刷方面開始。我知道我們正處於 24 財年的早期階段。

But can you just give us a little bit of an idea as to the trajectory of print decline, both for the for the year and also thus far into the quarter from a print subscriber perspective and also an advertising perspective similarly on the TAM, you had talked about $50 million in non-core assets that you had identified. And I'm just wondering if that those proceeds will be earmarked for debt reduction.

但是，您能否從紙質訂戶的角度以及類似 TAM 的廣告角度向我們介紹一下今年以及本季度紙質下降的軌跡？談到了您已確定的 5000 萬美元非核心資產。我只是想知道這些收益是否將專門用於減少債務。

Great. Thanks for the question and appreciate that. So first of all, your first question with respect to our forecast for [2024] for you certainly in 23, we did make some some product changes on the advertising side that did take down revenues and some of the same chart, same store trends are quite a bit different than the as-reported trends. And looking at the same-store trend at this point, we are looking at similar trends in 2024 on the print side than what we saw in 2023. And that's consistent with what we're seeing so far in the first quarter.

偉大的。感謝您的提問並對此表示讚賞。首先，你的第一個問題是關於我們對 2024 年 23 年的預測，我們確實在廣告方面做了一些產品更改，這確實降低了收入，並且一些相同的圖表、同一商店的趨勢是與報道的趨勢有很大不同。從目前的同店趨勢來看，我們看到 2024 年印刷的趨勢與 2023 年類似。這與我們在第一季迄今看到的情況一致。

With respect to your question on the non-core assets, you're right, all of those would be earmarked. Any free cash flow we have from that would be earmarked towards debt reduction. And that's just a way for us to accelerate some of the deleveraging that we have.

關於你提到的非核心資產問題，你說得對，所有這些都將被指定。我們從中獲得的任何自由現金流都將專門用於減少債務。這只是我們加速去槓桿化的一種方式。

Please stand by for them for the next question comes from Michael Kupinski with NOBLE Capital Markets. Your line is open. Thank you. Now, we will pull some questions from the webcast Josh, please go ahead.

請等待他們的下一個問題來自 NOBLE Capital Markets 的 Michael Kupinski。您的線路已開通。謝謝。現在，我們將從網路廣播喬許那裡提出一些問題，請繼續。

Our first question is the guidance for digital subscription unit growth for fiscal year 24 as a reduction from the fiscal year 23 growth. What is driving that slowdown.

我們的第一個問題是第 24 財年數位訂閱單位成長的指導，該成長比第 23 財年的成長減少。是什麼導致了經濟放緩。

So as you saw in 2023, we outpaced our guidance by a significant margin for our digital subscribers. And as we've said for the last several years, that our goals for digital subscription is really the revenue component of it and some quarters and some years we're going to be outpacing on the unit growth some quarters, some years will be outpacing on the rate growth.

因此，正如您在 2023 年看到的那樣，我們的數位訂閱者數量大幅超出了我們的指導值。正如我們過去幾年所說，我們的數位訂閱目標實際上是其收入組成部分，某些季度和某些年份我們的單位成長速度將超過某些季度、某些年份。關於成長率。

And we saw tremendous growth in rates in 2023, and that led to the big lift in revenue throughout the back half of 2023 specifically in that. So we feel good about the guidance that we have with [771,000], and it still puts us on our path and it's reaching 1.2 million subscribers over the next five years.

我們看到 2023 年費率出現了巨大增長，這導致 2023 年下半年收入大幅增長，特別是在這一點上。因此，我們對 [771,000] 的指導感到滿意，它仍然讓我們走在我們的道路上，並且在未來五年內將達到 120 萬訂戶。

That concludes the questions on the web. I'll turn it back to Kevin for any closing remarks.

網路上的問題就到此結束了。我會將其轉回凱文以供結束語。

We'll thank you for joining us today. As I mentioned earlier, we remain keenly focused on transforming our business model for the long-term benefit of our shareholders, our employees, our readers and our advertisers. We appreciate your time and your interest in Lee. Thank you again.

我們將感謝您今天加入我們。正如我之前提到的，我們仍然熱衷於改變我們的商業模式，以實現股東、員工、讀者和廣告商的長期利益。我們感謝您的寶貴時間以及您對 Lee 的興趣。再次感謝你。

Thank you. Ladies and gentlemen, at this time we have reached the end of our question-and-answer session. This concludes.

謝謝。女士們、先生們，現在我們的問答環節已經結束了。至此結束。