You for joining us. In addition to myself, speaking on this morning's call are Kevin Mowbray, president and chief executive officer and Tim Milledge, Vice President, Chief Financial Officer and Treasurer. Earlier today, we shared a news release with preliminary results for our second fiscal quarter of twenty twenty five. It is available at lee.net. As well as major financial websites. Please also refer to our earnings presentation found at investors.lee.net. Which includes supplemental information.

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 in our SEC filings. During the call, we refer to certain non GAAP financial measures. Reconciliations to the relevant GAAP measures are included in the tables accompanying the release. And now, to open the discussion with our President and Chief Executive Officer, Kevin Mobrin. Thanks, Jared, and good morning, everyone. I'd like to start by expressing my appreciation for the entire Lee team. The past quarter has been a testament to the resilience focus, innovation of our team. Our company experienced a significant cyber event by malicious actor in February. The attack impacted all operations causing significant disruption Our dedicated employees worked around the clock to get our operations up and running again, I'm also grateful to our advertisers and subscribers. For their patience during this difficult time. While the cybersecurity incident hamstruck our overall financial performance in the quarter, I'm proud of how the team navigated the challenges and remain focused on executing our strategy.

As we are now fully recovered from the cyber incident. We remain committed to our digital transformation and we're confident in our ability to drive sustainable growth and deliver long term value to our shareholders. As a reminder, our three pillar digital growth strategy is expected to result in $450,000,000 of digital revenue by 2028. The strength of our core digital business is built on a solid foundation of our $3.00 3,000,000 of digital revenue annually. And our new innovative suite of AI products is expected to accelerate our pace in achieving our long term target. I'll share more on our AI advancements, in a bit. Lee continues to consistently outpace our industry peers in several important measures of digital growth. Both digital subscriptions, and digital agency revenue growth.

Digital subscription revenue grew 40% annually over the last three years, nearly doubling the nearest industry competitor. On the advertising side, Amplified Digital agency revenue growth has significantly outpaced our nearest competitor growing 18% annually or the past three years. Total digital revenue was $3.00 3,000,000 on the trailing twelve month basis, including 103,000,000 within AMP by Digital Agency. Well on our way to achieving our long term target. Our second quarter digital revenue grew 4% year over year on a same store basis, Digital subscription revenue continued to lead the way, growing 20% year over year on a same store basis. Our car digital business is diverse, robust, and growing. And the innovative products that we launched in our second quarter puts us in a position accelerate our digital revenue growth, in the near term. In March, we launched our suite of AI products designed to provide local businesses with the tools they need to thrive in a competitive environment. This innovative offering comes from Amplified Digital Agency and leverages cutting edge artificial intelligence technology. The first product offering in this innovative product suite is called AI enablement. And AI empowered advertising and automation solution that generates high quality content for businesses.

AI enablement product is aimed to prepare local businesses for the AI transformation of the advertising model. We've also announced additional add on tools that are available, AI social, and SmartSites.ai. We're extremely thrilled to be able to offer these innovative products to our advertisers and we'd be happy to share more on our ad product suites. On future calls. Next, I'll pass the call over to Tim. Thank you, Kevin. Digital revenue has grown more than 17% annually since fiscal year twenty twenty one. And that has translated to comparable annual growth in digital gross margin. Replacing our print revenue with growing and profitable digital revenue. Will help us achieve long term sustainability and we're nearing that point. Speaking to the quarter's operating results, total operating revenue in the second quarter was 137,000,000 which represented an improvement in trend from our first quarter. The trend improvement was muted by the cyber incident which had a significant impact on our quarterly operating results. Advertising revenue trends were impacted as our product portfolio was limited in February and early March. Subscription revenue was affected as single copy products were not available for a short period of time, and our normal process for activating new digital subscribers was hampered significantly impacting Unix in the quarter.

Despite the incident, total digital revenue continued to show growth over the prior year, up 4% led by digital subscription revenue growth of 20% and revenue growth at Amplify Digital of 9%. It's still early days for us in our journey as we're building our AI library. However, we expect them to help drive profitable and recurring digital revenue growth in the second half of the fiscal year Moving over to the cost side, Lee has a successful track record of effective cost management and thoughtfully investing in strategies that fuel long term growth. Following up on our last call, we executed approximately $40,000,000 in annualized cost reductions in the second quarter aimed at driving margin in our revenue stream and lowering costs. With an emphasis on print. Operating expenses in the second quarter were impacted by the cyber incident, which included $2,000,000 of restoration costs. Many of these costs are subject to reimbursement by your insurance carrier and claims process remains ongoing. In addition to tightening our operating spending, we have also lowered the anticipated capital and restructuring spending. Top line trends improvement, combined with these changes, are expected to drive significant improvement in free cash flow in the back half of the the year.

Over to the balance sheet, Our credit agreement with Berkshire Hathaway includes favorable terms, which include a twenty year runway, a fixed interest rate, and no financial performance covenant. These better than market trends allow us to stay laser focused on executing our strategy. The cyber incident also had an on our balance sheet, as it hampered our ability to bill and collect from our customers, and it limited our ability to pay vendors. While technical recovery is complete, there are some lingering impacts on our balance sheet as we aim to improve working capital by reducing both accounts receivable and outstanding accounts payable throughout the remainder of the fiscal year. In response to the cyber incident, in an effort to provide short term liquidity, virtual waste payments, of the company's interest and basic rent payments for March, April, and May. The waived payments were added to the principal amount due under the credit agreement. This is an example of how our credit agreement benefited us in the wake of the cyber incident. Despite the temporary addition to our principal debt balance, we have made considerable progress paying down debt in recent years and remain committed to reducing debt going forward.

We continue to identify opportunities to minimize our not to monetize our non core assets which improves liquidity and facilitates debt repayment. Year to date, through the second quarter, we closed over $6,000,000 in asset sales, and we have an additional $25,000,000 to monetize. Dollars 8,000,000 of that is slated to close this fiscal year. The monetization of these non core assets will provide a source of liquidity in 2025 and beyond Despite first half results lagging expectations, we expect to build upon is the digital revenue growth achieved in the first half of the fiscal year, our core digital business led by digital subscription is expected to continue to grow rapidly as the value of our high quality local news is second to none. We also anticipate our new AI revenue stream gaining momentum as we finish the fiscal year, With that, our updated outlook reflects improved total digital revenue growth trends in the second half of the fiscal year. While the first half adjusted EBITDA was not where we'd like it to be, our updated outlook reflects year over year growth in the second half. And with that, I will turn it back to Kevin for closing comments.

I'd like to reiterate my gratitude to the entire lead team for navigating the challenges in the quarter and the progress made on our digital transformation. We're paving the way for Lee to lead the industry in this era of AI driven transformation. This concludes our remarks.

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

Thank you.

At this time, we will be conducting a question and answer session. As a reminder, if you are accessing this call by webcast, you may submit typed questions on your screen. Those questions will be answered during the call as time permits. One moment, please. While we poll for questions.

I'll now read our first question from the web. Net loss totaled $12,000,000 in the the quarter and free cash flow was minimal. Does that include the interest deferral? When does we expect to be free cash flow positive?

It's a good question with respect to the net loss in the quarter, that certainly includes the expense associated with our debt. Even though the payments were waived. With respect to free cash flow, the company has made significant changes in our cost structure, both from an operating expense standpoint, as well as capital and restructuring As a result of those changes and the total digital revenue outlook that we provided, we do expect free cash flow positive or to be positive in the second half of fiscal year twenty twenty five. That concludes the question and answer session. Turn it back to Kevin for any other closing remarks.

Well, I'd like to thank everybody for joining the call this morning.

Our focus remains on transforming our business with a long term benefit of our shareholders, our employees, our readers, and our advertisers. We appreciate your time and your family Thank you again. Goodbye.