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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended March 31, 2004

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-6227

LEE ENTERPRISES, INCORPORATED
(Exact name of Registrant as specified in its Charter)

Delaware                                                      42-0823980
       (State or other jurisdiction of               (I.R.S. Employer Identification No.)
incorporation or organization)                                                                     

201 N. Harrison Street, Suite 600, Davenport, Iowa  52801
(Address of principal executive offices)


(563) 383-2100
(Registrant’s telephone number, including area code)

  Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

  Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [x] No [ ]

  As of March 31, 2004, 36,415,720 shares of Common Stock and 8,564,916 shares of Class B Common Stock of the Registrant were outstanding.

                                                               LEE ENTERPRISES, INCORPORATED

TABLE OF CONTENTS
 PAGE
PART I   FINANCIAL INFORMATION        

 
    Item 1.  Financial Statements 

 
      Consolidated Statements of Income -  1  
      Three months and six months ended March 31,
2004 and 2003		 

 
     Consolidated Balance Sheets -  2  
     March 31, 2004 and September 30, 2003 

 
     Consolidated Statements of Cash Flows -  3  
      Six months ended March 31, 2004 and 2003 

 
     Notes to Consolidated Financial Statements  4  

 
   Item 2.  Management's Discussion and Analysis of  6  
     Financial Condition and Results of Operations 

 
    Item 3.  Quantitative and Qualitative Disclosures About  14  
      Market Risk 

 
    Item 4.  Controls and Procedures  15  


 


PART II		  OTHER INFORMATION 

 
     Item 5.  Submission of Matters to a Vote of Security
     Holders  15  
    
Item 6.		  Exhibits and Reports on Form 8-K  16  

 


SIGNATURES		        16  

 


EXHIBITS		  31  Rule 13a-14(a)/15d-14(a) Certifications   

 
     32  Section 1350 Certifications   

PART I    FINANCIAL INFORMATION

Item 1. Financial Statements

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

          Three Months Ended                 Six Months Ended
March 31 March 31
(Thousands, except per common share data)       2004  2003  2004  2003

Operating revenue:		     
   Advertising      $ 116,483   $ 109,260   $ 245,552   $ 232,996  
   Circulation       32,529    32,391    65,509    65,254  
   Other       11,332    10,639    22,267    21,334  
       160,344    152,290    333,328    319,584  
Operating expenses:     
   Compensation       68,974    66,239    137,358    133,492  
   Newsprint and ink       14,542    13,131    30,222    27,360  
   Depreciation       5,062    4,741    9,622    9,079  
   Amortization of intangible assets       6,909    6,697    13,665    13,452  
   Other operating expenses       38,056    35,877    76,074    72,925  
       133,543    126,685    266,941    256,308  
Operating income, before equity in net     
  income of associated companies       26,801    25,605    66,387    63,276  
Equity in net income of associated companies       1,589    1,553    3,881    3,771  
Operating income       28,390    27,158    70,268    67,047  
Nonoperating income (expense), net:     
   Financial income       267    203    565    543  
   Financial expense       (3,398 )  (4,270 )  (6,934 )  (8,960 )
   Other, net       (266 )  (43 )  (294 )  (387 )
       (3,397 )  (4,110 )  (6,663 )  (8,804 )
Income from continuing operations before income taxes       24,993    23,048    63,605    58,243  
Income tax expense       8,721    8,446    22,936    21,288  
Income from continuing operations       16,272    14,602    40,669    36,955  
Discontinued operations:     
   Loss from discontinued operations, net of income tax  
     effect       (231 )  22    (149 )  146  
   Loss on disposition, net of income tax effect       (227 )  -       (227 )  (19 )
       (458 )  22    (376 )  127  
Net income      $ 15,814   $ 14,624   $ 40,293   $ 37,082  

Earnings per common share:		     
   Basic:     
     Continuing operations      $0.36 $0.33   $0.91 $0.84
     Discontinued operations      $(0.01 ) $-      $(0.01 ) $-   
Net income      $ 0.35   $ 0.33   $ 0.90   $ 0.84  

   Diluted:		     
     Continuing operations      $0.36 $0.33   $0.90 $0.83
     Discontinued operations      $(0.01 ) $-      $(0.01 ) $-   
Net income      $ 0.35   $ 0.33   $ 0.90   $ 0.84  

Dividends per common share		      $0.18 $0.17   $0.36 $0.34

The accompanying Notes are an integral part of the Consolidated Financial Statements.

1

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED BALANCE SHEETS
(Unaudited)

         March 31    September 30
(Thousands, Except Per Common Share Data)        2004         2003          
ASSETS  
Current assets:     
   Cash and cash equivalents      $ 14,289   $ 11,064  
   Accounts receivable, net       58,135    58,050  
   Receivable from associated companies       -       1,500  
   Inventories       10,070    9,413  
   Assets of discontinued operations       -       25,203  
   Other       7,796    8,979  
Total current assets       90,290    114,209  
Investments       29,560    29,472  
Property and equipment, net       197,891    198,117  
Goodwill       620,090    606,411  
Other intangible assets       467,303    469,484  
Other       3,386    3,684  
      $ 1,408,520   $ 1,421,377  

LIABILITIES AND STOCKHOLDERS' EQUITY		  
Current liabilities:  
   Notes payable and current maturities of long-term debt      $ 11,600   $ 36,600  
   Accounts payable       19,745    19,790  
   Compensation and other accrued liabilities       30,627    33,007  
   Income taxes payable       8,804    16,553  
   Dividends payable       5,922    -     
   Liabilities of discontinued operations       -       8,675  
   Unearned revenue       29,560    27,291  
Total current liabilities       106,258    141,916  
Long-term debt, net of current maturities       252,000    268,600  
Deferred items       212,667    207,884  
Other       580    821  
       571,505    619,221  
Stockholders' equity:     
   Serial convertible preferred stock, no par value;       -       -     
      authorized 500 shares: none issued     
   Common Stock, $2 par value; authorized 60,000       72,832    70,994  
      shares; issued and outstanding:     
         March 31, 2004 36,416 shares;     
         September 30, 2003 35,497 shares     
   Class B Common Stock, $2 par value; authorized        17,130    18,248  
      30,000 shares; issued and outstanding:  
         March 31, 2004 8,565 shares;  
         September 30, 2003 9,124 shares  
   Additional paid-in capital       91,626    78,697  
   Unearned compensation       (5,347 )  (2,457 )
   Retained earnings       660,774    636,674  
       837,015    802,156  
      $ 1,408,520   $ 1,421,377  

The accompanying Notes are an integral part of the Consolidated Financial Statements.

2

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Six Months Ended <