ACME Communications Announces First Quarter 2002 Results; Overall Revenues Grow 2%; Developing Stations Grow Revenue 10%.Business 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 2, 2002 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 quarter ended March 31, 2002. ACME's net revenues for the quarter increased 2% over the first quarter of 2001 to $16.8 million. Broadcast cash flow decreased 27% to $2.1 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.
SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142, as further described below. 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 8% increase in total station operating costs operating costs npl → gastos mpl operacionales over the first quarter of 2001. 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, "During the first quarter of 2002, we began to see the first signs in a long time of improving advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase demand. While we were adversely affected by the large advertiser draw to the Winter Olympics, we were pleased with the fact that our nine developing stations, in the aggregate, were able to garner a 10% increase in year-over-year revenues as they continue to increase their shares of ad revenue in their local markets." "In the February 2002 ratings period, despite being up against both the Super Bowl and the Olympics, our ten stations increased their aggregate net weekly 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. by 11%. These gains are clear indications that we are continuing to successfully implement our strategy of building middle market stations primarily affiliated with the WB Network and aimed at the nation's younger demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. . Our ratings strength and our continued investment in the development of our station group positions us to benefit from the advertising market recovery, which has continued into the second quarter." Statement of Financial Accounting Standards No. 142 The Company adopted the provisions of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " (SFAS 142) effective January 1, 2002. Under SFAS 142, the Company will no longer amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. goodwill or intangible assets. There was no write-down for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of these assets required as a result of the adoption of SFAS 142. Prior to January 1, 2002, the Company recorded deferred tax liabilities relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the difference in the book basis and tax basis of goodwill and intangibles. The reversals of those deferred tax liabilities were utilized to support the realization of deferred tax assets (primarily consisting of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. ) and the corresponding deferred tax benefits recorded by the Company. As a result of the adoption of SFAS 142, those deferred tax liabilities will no longer reverse on a scheduled basis and can no longer be utilized to support the realization of deferred tax assets. Accordingly, the Company recorded a one-time, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. totaling $28.4 million to deferred income tax expense to establish a valuation allowance against its deferred tax assets. The adoption of SFAS 142 has no impact on the Company's cash flows. Second Quarter 2002 Outlook While visibility remains limited, we believe that economic conditions and related advertising demand are showing signs of improvement and that this recovery has continued into the second quarter of 2002. The Company currently expects its same-station second quarter 2002 revenue to finish 6-8% above our second quarter 2001 net revenue. Compared to the second quarter 2001, we expect station operating expenes to increase by 10-12% and broadcast cash flow to decline 4-8%. First Quarter Conference Call Senior management of ACME will hold a conference call to discuss its first quarter results on Thursday, May 2, 2002, at 11:00 a.m. 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 3237925. In addition, the Company will provide a live web cast 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. The Company also operates station WHPN, a UPN affiliate serving the Madison, WI, marketplace, under a local marketing agreement in connection with its pending purchase of that station. 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 "believe," "continue," "expects," and "will" 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 close the Madison acquisition, the inability to secure 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. 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 potential pre-emptions of regular programming for national news events 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 2001 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 April 1, 2002. 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,
-----------------------------
2001 2002
-----------------------------
Net revenues $ 16,481 $ 16,847
Operating expenses:
Station operating expenses 13,585 14,660
Depreciation and amortization 5,223 1,171
Corporate 965 898
Equity-based compensation 132 115
------------- -------------
Operating income (loss) (3,424) 3
Other income (expenses):
Interest income 430 73
Interest expense (7,144) (7,748)
Other expense (49) (49)
------------- -------------
Loss before income taxes (10,187) (7,721)
Income tax benefit (expense) 3,295 (29,237)
------------- -------------
Net loss $ (6,892) $ (36,958)
============= =============
Net loss per share, basic and diluted $ (0.41) $ (2.21)
============= =============
Basic and diluted weighted average
common shares outstanding 16,750,000 16,750,000
============= =============
Transitional disclosures required by the adoption of Statement
of Financial Accounting Standard No. 142:
Reported net loss $ (6,892) $ (36,958)
Add back:
Goodwill amortization 1,598 -
Broadcast licenses amortization 2,504 -
Income tax expense (1,011) -
------------- -------------
Adjusted net loss $ (3,801) $ (36,958)
============= =============
Basic and Diluted loss per share:
Reported net loss $ (0.41) $ (2.21)
Goodwill amortization 0.09 -
Broadcast licenses amortization 0.15 -
Income tax expense (0.06) -
------------- -------------
Adjusted net loss $ (0.23) $ (2.21)
============= =============
For the Three Months Ended
March 31,
-----------------------------
2001 2002
-----------------------------
(unaudited)
Selected Financial Data:
Amortization of program rights $ 3,515 $ 4,064
Adjusted program payments $ 3,522 $ 4,132
Broadcast cash flow (1) $ 2,889 $ 2,119
Adjusted EBITDA (2) $ 1,924 $ 1,221
Balance Sheet Data: December 31, March 31,
2001 2002
------------- -------------
(unaudited)
Cash (3) $ 17,275 $ 12,688
Total debt (4) $ 250,150 $ 254,595
Total debt, net of cash and
restricted cash $ 231,134 $ 239,032
(1) Broadcast cash flow is defined as operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , plus depreciation and amortization, program amortization, non-cash equity based compensation, LMA LMA left mentoanterior (position of fetus). 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) Cash excludes cash restricted as collateral under capital lease facilities of $1.7 million and $2.9 million at December 31, 2001, and March 31, 2002, respectively. (4) 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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