ACME Communications Announces First Quarter 2001 Results; Continued Strong Ratings Gains Across Developing Stations.Business/Entertainment Editors SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--May 3, 2001 ACME Communications ACME Communications (NASDAQ: ACME) is a television broadcasting company that owns seven television stations. Six stations are CW Television Network affiliates. The seventh, part of a duopoly in Albuquerque, New Mexico, is a MyNetworkTV affiliate. , Inc. (Nasdaq:ACME), the nation's third largest affiliate group of the WB Television Network, today announced financial results for the first quarter ended March 31, 2001. ACME's net revenues for the quarter increased 2% over the first quarter of 2000 to $16.5 million. Broadcast cash flow decreased 19% to $2.9 million and adjusted earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The decline in broadcast cash flow results for the first quarter reflects slower revenue growth coupled with the Company's continued investment in programming, staffing and sales related costs which drove an increase in total station operating costs operating costs npl → gastos mpl operacionales for the quarter of 7%. Commenting on the quarter's results, Jamie Kellner Jamie Kellner is an American television executive. He was chairman and chief executive officer of Turner Broadcasting System, Inc., a division of Time Warner which includes TBS, TNT, and Cartoon Network. , ACME's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "The television broadcasting business continues to be adversely impacted by an overall soft economy and slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but not actually used to store useful information. 2. (jargon) slack demand from advertisers, and our station group has not been immune to this depressed environment. However, despite the fact that total television advertising revenues were down in most of our nine markets, we were able to increase revenue at eight of our ten stations and we are confident that we grew our market share of advertising dollars at most of our stations. "In the February 2001 ratings period, every one of our developing stations posted outstanding ratings growth, with an average 46% increase in the 5:00 p.m. to midnight timeframe among adults 18-49 years old. In addition, our sign-on to sign-off household viewership view·er·ship n. The people who watch a television program or motion picture: a largely male viewership. at these growing stations increased 21% compared to the year earlier sweeps period. These ratings and circulation gains demonstrate that we continue to position our station portfolio to take even greater shares away from our competitors when the advertising market begins to recover and to position us for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth." 2001 Outlook ACME believes that the adverse economic conditions that began affecting the advertising marketplace in the fall of 2000 have continued into the second quarter of 2001. The Company currently expects its 2001 second quarter revenue to finish within a range of flat to down 5% compared to the first quarter of 2000, which would result in a decrease in second quarter broadcast cash flow of 16-22%. In addition to the reduced revenue caused by a weak advertising environment, the expected broadcast cash flow decline reflects the impact of continued investments in programming, promotion and sales efforts at the Company's developing stations. For the second quarter and the full year, the Company expects operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to grow in the ranges of 6-8% and 8-10%, respectively. Due to limited visibility, the Company is refraining from providing annual revenue guidance at this point. First Quarter Conference Call Senior management of ACME will hold a conference call to discuss its first quarter results on Thursday, May 3, 2001, at 2:00 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The telephone number for the conference call is (973) 633-6740. A replay will be available through May 7th by dialing (877) 519-4471 (U.S.), (973) 341-3080 (International), reservation code 2573011. In addition, the Company will provide a live webcast of the call on the Company's web site at www.acmecommunications.com. A replay will also be available on the website for approximately one week. About ACME Communications ACME Communications, Inc. owns and operates ten television stations serving markets covering 5.4% of the nation's television households, making the Company the third largest affiliate group of The WB Television Network. The Company's stations are: KPLR-TV, St. Louis, MO; KWBP-TV, Portland, OR; KUWB-TV, Salt Lake City, UT; KWBQ-TV and KASY-TV, Albuquerque-Santa Fe, NM; WBDT-TV, Dayton, OH; WBXX-TV, Knoxville, TN; WIWB-TV, Green Bay-Appleton, WI; WBUI-TV, Champaign-Springfield-Decatur, IL; WTVK-TV, Ft. Myers-Naples, FL. All of the Company's stations, except KASY-TV, a UPN UPN User Principal Name (Microsoft Windows 2000) UPN United Paramount Network UPN Unión del Pueblo Navarro (Navarrese People Union) UPN Umgekehrte Polnische Notation affiliate, are WB Network affiliates. In addition to the ten stations currently owned and operated, the Company has entered into agreements with third parties to acquire construction permits to build new stations in Portland, Oregon (a second station in that market for ACME), Richmond, VA, Flint flint, mineral flint, variety of quartz that commonly occurs in rounded nodules and whose crystal structure is not visible to the naked eye. Flint is dark gray, smoky brown, or black in color; pale gray flint is called chert. , MI and Lexington, KY when and if granted by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. . ACME's shares are traded on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol: ACME. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : The matters discussed in this press release include forward-looking statements. In addition, when used in this press release, the words "will," "believe," "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including (but not limited to) the impact of changes in national and regional economies, including advertising demand, pricing fluctuations in local and national advertising, volatility in programming costs, the inability to secure Federal Communications Commission approval for construction permits, the possibility of borrowing limitations under our credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and the other risk factors set forth in the Company's Form S-1 Registration Statement filed with the Securities and Exchange Commission (the "SEC") on September 29, 1999, pursuant to the Securities Act of 1933 and in the Company's 2000 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC on March 30, 2001. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
ACME Communications, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
For the Three Months Ended
March 31,
2000 2001
(In thousands)
Net revenues $ 16,218 $ 16,481
Operating expenses:
Station operating expenses 12,655 13,585
Depreciation and amortization 5,444 5,223
Corporate expenses 908 965
Equity-based compensation 132 132
Operating loss (2,921) (3,424)
Other income (expenses):
Interest income 297 430
Interest expense (6,356) (7,144)
Other expense (1) (49)
Loss before income taxes (8,981) (10,187)
Income tax benefit 2,791 3,295
Net loss $ (6,190) $ (6,892)
Net loss per share, basic and
diluted $ (0.37) $ (0.41)
Basic and diluted weighted average
common shares outstanding 16,750,000 16,750,000
Selected Financial Data (unaudited):
(Unaudited)
Amortization of program rights $ 2,949 $ 3,515
Adjusted program payments $ 2,935 $ 3,522
Broadcast cash flow (1) $ 3,577 $ 2,889
Adjusted EBITDA (2) $ 2,669 $ 1,924
Balance Sheet Data at March 31, 2001:
Cash $ 33,021
Total debt (3) $240,498
Total debt, net of cash $207,477
(1) Broadcast cash flow is defined as operating income, plus
depreciation and amortization, program amortization, non-cash equity
based compensation, LMA fees and corporate expenses, less program
payments -- the latter as adjusted to reflect reductions for impaired
or expired rights in connection with acquisitions.
(2) Adjusted EBITDA is defined as broadcast cash flow less
corporate expenses.
(3) Total debt includes the Company's 10 7/8% Senior Discount
Notes, 12% Senior Secured Notes and its capital lease obligations.
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