ACME Communications Announces Fourth Quarter and Full-Year 2002 Results; Fourth Quarter Net Revenues Increase 38% and Negative EBITDA Improves 38% Compared to 2001 Levels.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)--Feb. 14, 2003 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACME), one of the nation's largest affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. groups of The WB Television Network, today announced financial results for the fourth quarter ended December December: see month. 31, 2002. On December 30, 2002, the Company announced that it had reached agreements to sell its television stations in St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. (KPLR-TV KPLR-TV, channel 11, is a television station in St. Louis, Missouri. KPLR is owned by the Tribune Company, and is an affiliate of the CW Television Network. The station's studios are located in Maryland Heights, Missouri, in North St. ) and Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. (KWBP-TV) to Tribune Company The Tribune Company (NYSE: TRB) is a large American multimedia corporation based in Chicago, Illinois. It is the nation's second-largest newspaper publisher, responsible for the Chicago Tribune, Los Angeles Times, Newsday, Hartford Courant for $275 million in an all-cash transaction. The Company expects the sale of the stations to close by the end of March 2003. As a result of these transactions, "Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. " accounting has been adopted in the financial statements for all periods presented in this press release and the results from operations of KPLR-TV and KWBP-TV, net of related income taxes, have been reclassified from income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and reflected as income from discontinued operations. Fourth Quarter 2002 Results ACME's net revenues for the fourth quarter increased 38% from the fourth quarter of 2001 to $10.3 million from $7.4 million in the fourth quarter of 2001, while station 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. increased 21% to $10.2 million from $8.5 million in the fourth quarter of 2001. The Company's negative broadcast cash flow (BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter ) for the quarter was significantly reduced to $36,000 from $1.0 million in the fourth quarter of 2001 and negative EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was reduced to $1.2 million from $2.0 million in the fourth quarter of 2001. The increased revenue, and reduced negative BCF and negative EBITDA levels for the fourth quarter reflect a combination of stronger advertising demand and ratings-driven increased market shares at our stations compared to the year earlier period. Results for the fourth quarter of 2002 included operations from WBUW-TV, Madison Madison, cities, United States Madison. 1 City (1990 pop. 12,006), seat of Jefferson co., SE Ind., on the Ohio River; settled c.1806, inc. 1838. It is a port of entry and a tobacco marketing center. , WI, from November November: see month. 1, 2002. Excluding WBUW-TV, the Company's fourth quarter 2002 same station revenue increased 35% and same station operating expenses increased 17% on higher programming and sales related costs. The Company's loss, before taxes, from continuing operations for the fourth quarter was reduced from $12.1 million in 2001 to $10.1 million in 2002 as a result of the narrowing of negative EBITDA and the reduction in amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. (as a result of the adoption of SFAS SFAS Statement of Financial Accounting Standards 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), partially offset by increased interest expense. The Company's tax expense during the fourth quarter was $708,000 resulting primarily from the impact of the adoption of SFAS No. 142 compared to a deferred tax benefit of $3.7 million in the fourth quarter of 2001. The Company's income from discontinued operations for the fourth quarter was $2.2 million compared to $371,000 for the fourth quarter of 2001. This increased income relates primarily to the reduction in amortization of intangibles (as a result of the adoption of SFAS No. 142) and increased broadcast flow, net of expenses related to the sale of these stations incurred in the fourth quarter. The Company's resulting net loss for the fourth quarter of 2002 was $7.2 million compared to a net loss of $8.0 million in the fourth quarter of 2001. Full-Year Results For the twelve-month period ended December 31, 2002, ACME's net revenues increased 30% to $36.0 million compared to $27.8 million for calendar 2001, and station operating expenses increased 20% to $36.9 million compared to $30.8 million in calendar 2001. Negative broadcast cash flow for the twelve-month period ended December 31, 2002 improved to $1.3 million compared to $3.4 million in calendar 2001, and similarly, negative EBITDA improved to $5.3 million from $7.2 million in calendar 2001. On a same station basis, excluding the results of WBUW-TV, the Company's full-year 2002 same station revenue increased 29% and same station operating expenses increased 19%. Our same station revenue increases reflects stronger advertising demand in our markets and higher viewing shares at virtually all of our stations, while the increase in station expenses primarily reflect higher programming costs due to syndicated programming additions and the September September: see month. 2002 launch of "The Daily Buzz 1. buzz - Of a program, to run with no indication of progress and perhaps without guarantee of ever finishing; especially said of programs thought to be executing a tight loop of code. " morning news show along with increases in our sales related costs. Our loss from continuing operations, before taxes, for the twelve-month period ended December 31, 2002 was $40.1 million compared to $44.7 million for the corresponding twelve-month period of 2001 on lower negative EBITDA, reduced amortization expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the implementation of SFAS No. 142 as of January January: see month. 1, 2002, net of increased interest expense. Tax expense for 2002 was $24.3 million compared to a benefit of $14.3 million for calendar 2001. The tax expense for 2002 relates primarily to the impact of the adoption of SFAS No. 142 on January 1, 2002 as compared to a tax benefit recorded in 2001. The Company's income from discontinued operations for the twelve months ended December 31, 2002 was $8.4 million compared to $2.5 million for calendar 2001. This increased income relates primarily to a reduction in amortization of intangibles (as a result of the adoption of SFAS No. 142), net of a reduction in the related tax benefit. Broadcast cash flow from discontinued operations was $17.1 million for both calendar 2002 and 2001. The Company's resulting net loss for calendar 2002 was $56.0 million compared to a net loss of $27.8 million in calendar 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, "We are very pleased with our top-line performance, especially given the fact that we did not benefit directly from any political spending during the quarter. Given the 42% increase in 5 p.m. - midnight ratings among adults aged 18-49 that our continuing stations delivered in last November's sweeps and the continued gains in our metered markets thus far in the February February: see month. sweeps, we remain confident that our developing group of stations will increase our share of the broadcast revenues in the markets in which we operate. While there remains short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. uncertainty due to the possibility of conflict with Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. and the potential consequences to the nation's economy and advertising demand, we believe we will be able to generate market-leading growth in both revenues and broadcast cash flow over the coming year." First Quarter 2003 Outlook Although the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. uncertainties make it difficult to predict underlying 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 in the coming months and quarters, we believe that economic conditions and related advertising demand in our markets during the first quarter of 2003 will show modest growth compared to the first quarter of 2002. However, due to ACME's continued ratings and market share gains, we expect to considerably outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. our markets. Including the results of our latest acquisition, WBUW-TV, we currently expect first quarter 2003 net revenue to finish 30-35% (28-32% on a same station basis) above first quarter 2002 net revenue. We expect our first quarter station operating expenses to increase 22-24% (18-20% on a same station basis) over the prior year comparable quarter, resulting in a narrowing of the $1.0 million negative broadcast cash flow generated in the first quarter of 2002. Fourth Quarter 2002 Conference Call Senior management of the Company will host a conference call to discuss its fourth quarter results today at 10:00 a.m. Eastern Time. To access the conference call, please dial (973) 582-2706 ten minutes prior to the start time. The conference call will also be available via live webcast on the Company's website, www.acmecommunications.com. If you cannot listen to the conference call at its scheduled time In rallying, the Scheduled Time of any crew is the time, calculated at the beginning of the event, that they should arrive at any given control. It is different from Due Time in that Due Time is dynamic, ie it can change throughout the event as competitors drop time; whereas , there will be a replay available through Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 21, 2003, which can be accessed by dialing (877) 519-4471 (U.S.), (973) 341-3080 (Int'l), passcode 3715010. The webcast will also be archived on the Company's website for two weeks. About ACME Communications Following the sale of KPLR and KWBP, ACME Communications, Inc. will own and operate nine television stations serving markets covering 3.7% of the nation's television households, making the Company the fourth largest affiliate group of The WB Television Network. In addition to KPLR and KWBP, the Company's stations are: KUWB-TV, Salt Lake City, UT; KWBQ-TV and KASY-TV KASY-TV is a television station in Albuquerque, New Mexico. It is an affiliate for the Fox Entertainment Group owned My Network TV television network, and broadcasts on channel 50. , Albuquerque-Santa Fe, NM; WBDT-TV, Dayton Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , OH; WBXX-TV WBXX-TV (East Tennessee's CW) is the CW affiliate in the Knoxville, Tennessee television market. Licensed to Crossville, Tennessee, the station serves the East Tennessee region, broadcasting from offices in Knoxville. , Knoxville Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. , TN; WIWB-TV, Green Bay-Appleton, WI; WTVK-TV, Ft. Myers-Naples, FL; WBUI-TV, Champaign-Springfield-Decatur, IL and WBUW-TV, Madison, WI. 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. 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 "outlook," "should," "believe," "will," "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 Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in programming costs, the inability to close the sale of our St. Louis and Portland stations, 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 , the inability to make interest payments on the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , potential pre-emptions of regular programming for national news events and the other risk factors set forth 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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 share and per share data)
For the For the
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Net revenues $10,263 $7,445 $36,006 $27,793
Operating expenses:
Station operating
expenses 10,188 8,450 36,936 30,846
Depreciation and
amortization 1,017 2,810 3,981 9,730
Corporate expenses 1,174 922 3,984 3,769
Equity-based
compensation 66 83 267 335
LMA fees (29) 0 45 0
----------- ----------- ----------- -----------
Operating loss (2,153) (4,820) (9,207) (16,887)
Other income (expenses):
Interest income 19 90 125 921
Interest expense (7,973) (7,318) (30,859) (28,625)
Other expense (38) (16) (153) (73)
----------- ----------- ----------- -----------
Loss before income
taxes (10,145) (12,064) (40,094) (44,664)
Income tax benefit
(expense) 708 3,719 (24,277) 14,307
----------- ----------- ----------- -----------
Loss from continuing
operations (9,437) (8,344) (64,370) (30,356)
Income from
discontinued
operations, net of
taxes 2,201 371 8,394 2,507
----------- ----------- ----------- -----------
Net loss $(7,236) $(7,973) $(55,976) $(27,849)
=========== =========== =========== ===========
Income (loss) per
share:
Continuing
operations $(0.56) $(0.50) $(3.84) $(1.81)
Discontinued
operations 0.13 0.02 0.50 0.15
----------- ----------- ----------- -----------
Net loss per
share, basic
and diluted $(0.43) $(0.48) $(3.34) $(1.66)
=========== =========== =========== ===========
Basic and diluted
weighted average
common shares
outstanding 16,750,000 16,750,000 16,750,000 16,750,000
=========== =========== =========== ===========
Transitional disclosures required by the adoption of Statement of
Financial Accounting Standard No. 142:
For the For the
(In thousands, except Three Months Ended Year Ended
per share data) December 31, December 31,
----------------------- -----------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Reported net loss $(7,236) $(7,973) $(55,976) $(27,849)
Add back:
Goodwill
amortization - 1,597 - 6,388
Broadcast
licenses
amortization - 2,513 - 10,036
Income tax
expense - (961) - (3,836)
----------- ----------- ----------- -----------
Adjusted
net loss $(7,236) $(4,824) $(55,976) $(15,261)
=========== =========== =========== ===========
Basic and Diluted
loss per share:
Add back:
Reported net
loss $(0.43) $(0.48) $(3.34) $(1.66)
Goodwill
amortization - 0.10 - 0.38
Broadcast
licenses
amortization - 0.15 - 0.60
Income tax
expense - (0.06) - (0.23)
----------- ----------- ----------- -----------
Adjusted
net loss $(0.43) $(0.29) $(3.34) $(0.91)
=========== =========== =========== ===========
Three Months ended Year ended
December 31, December 31,
----------------------- -----------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Broadcast cash flow
and EBITDA (1):
Operating loss $(2,153) $(4,820) $(9,207) $(16,887)
Add back:
Equity-based
compensation 66 83 267 335
Depreciation
and amortization 1,017 2,810 3,981 9,730
LMA fees (29) --- 45 ---
Amortization of
program rights 2,504 2,226 9,109 7,529
Corporate
expenses 1,174 922 3,984 3,769
Adjusted
program
payments (1) (2,615) (2,259) (9,459) (7,882)
----------- ----------- ----------- -----------
Broadcast
cash flow (36) (1,038) (1,280) (3,406)
Less:
Corporate
expenses 1,174 922 3,984 3,769
----------- ----------- ----------- -----------
EBITDA $(1,210) $(1,960) $(5,264) $(7,175)
Broadcast cash flow
margin (1) -0.3% -13.9% -3.6% -12.3%
EBITDA margin (1) -11.8% -26.3% -14.6% -25.8%
Balance Sheet Data: December 31, December 31,
2002 2001
----------- -----------
Cash (2) $1,860 $17,275
Total debt (3) $275,001 $250,150
Total debt, net of cash and
restricted cash $270,231 $231,134
(1) We define:
-- broadcast cash flow as operating income, plus equity-based
compensation, depreciation and amortization, LMA fees,
amortization of program rights, and corporate expenses, less
program payments -- the latter as adjusted to reflect
reductions for liabilities relating to expired rights or rights
which have been written-off in connection with acquisitions;
-- EBITDA as broadcast cash flow less corporate expenses;
-- broadcast cash flow margin is broadcast cash flow as a
percentage of net revenues; and
-- EBITDA margin is EBITDA as a percentage of net revenues.
We have included broadcast cash flow, broadcast cash flow margin,
EBITDA and EBITDA margin data because management believes that
these measures are useful to an investor to evaluate our ability
to service debt and to assess the earning ability of our stations'
operations. However, you should not consider these items in
isolation or as substitutes for net income, cash flows from
operating activities or other statement of operations or cash
flows data prepared in accordance with generally accepted
accounting principles. These measures are not necessarily
comparable to similarly titled measures employed by other
companies.
(2) Cash excludes cash restricted as collateral under capital lease
facilities of $2.9 million and $1.7 million at December 31, 2002
and December 31, 2001, respectively.
(3) Total debt includes the Company's 10 7/8% Senior Discount Notes,
12% Senior Secured Notes, notes payable under its revolving credit
facility and its capital lease obligations.
ACME Communications, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
For the Three Months Ended
--------------------------------------
March 31, June 30, September 30,
2002 2002 2002
------------ ------------ ------------
Net revenues $7,487 $9,240 $9,017
Operating expenses:
Station operating expenses 8,373 9,222 9,154
Depreciation and
amortization 963 1,002 999
Corporate expenses 898 1,028 884
Equity-based compensation 66 67 66
LMA fees --- 4 70
------------ ------------ ------------
Operating loss (2,813) (2,083) (2,156)
Other income (expenses):
Interest income 71 8 27
Interest expense (7,586) (7,578) (7,723)
Other expense (16) (68) (31)
------------ ------------ ------------
Loss before income taxes (10,345) (9,721) (9,883)
Income tax benefit (expense) (28,188) 909 2,294
------------ ------------ ------------
Loss from continuing
operations (38,532) (8,812) (7,589)
Income from discontinued
operations, net of taxes 1,574 2,450 2,169
------------ ------------ ------------
Net loss $(36,958) $(6,362) $(5,420)
============ ============ ============
Income (loss) per
share:
Continuing
operations $(2.30) $(0.53) $(0.45)
Discontinued
operations 0.09 0.15 0.13
------------ ------------ ------------
Net loss per
share, basic
and diluted $(2.21) $(0.38) $(0.32)
============ ============ ============
Basic and diluted weighted
average common shares
outstanding 16,750,000 16,750,000 16,750,000
============ ============ ============
Transitional disclosures required by the adoption of Statement of
Financial Accounting Standard No. 142:
For the Three Months Ended
--------------------------------------
(In thousands, except per March 31, June 30, September 30,
share data) 2002 2002 2002
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Reported net loss $(36,958) $(6,362) $(5,420)
Add back:
Goodwill amortization - - -
Broadcast licenses
amortization - - -
Income tax expense - - -
------------ ------------ ------------
Adjusted net loss $(36,958) $(6,362) $(5,420)
============ ============ ============
Basic and Diluted loss per
share:
Reported net loss $(2.21) $(0.38) $(0.32)
Add back:
Goodwill amortization - - -
Broadcast licenses
amortization - - -
Income tax expense - - -
------------ ------------ ------------
Adjusted net loss $(2.21) $(0.38) $(0.32)
============ ============ ============
For the Three Months Ended
--------------------------------------
Broadcast cash flow and March 31, June 30, September 30,
EBITDA: 2002 2002 2002
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Operating loss $(2,813) $(2,083) $(2,156)
Add back:
Equity-based
compensation 66 67 66
Depreciation and
amortization 963 1,002 999
LMA fees --- 4 70
Amortization of program
rights 2,146 2,152 2,307
Corporate expenses 898 1,028 884
Adjusted program
payments (2,265) (2,230) (2,349)
------------ ------------ ------------
Broadcast cash
flow (1,005) (60) (179)
Less:
Corporate expenses 898 1,028 884
------------ ------------ ------------
EBITDA $(1,903) $(1,088) $(1,063)
Broadcast cash flow margin -13.4% -0.6% -2.0%
EBITDA margin -25.4% -11.8% -11.8%
ACME Communications, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
For the Three Months Ended
--------------------------------------
March 31, June 30, September 30,
2001 2001 2001
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Net revenues $6,440 $7,154 $6,754
Operating expenses:
Station operating expenses 7,308 7,968 7,120
Depreciation and
amortization 2,299 2,290 2,332
Corporate expenses 965 1,046 836
Equity-based compensation 83 84 83
LMA fees --- --- ---
------------ ------------ ------------
Operating loss (4,215) (4,234) (3,617)
Other income (expenses):
Interest income 387 241 203
Interest expense (7,002) (7,154) (7,151)
Other expense (15) (24) (18)
------------ ------------ ------------
Loss before income taxes (10,846) (11,171) (10,583)
Income tax benefit 3,558 3,610 3,420
------------ ------------ ------------
Loss from continuing
operations (7,287) (7,561) (7,163)
Income from discontinued
operations, net of taxes 395 1,310 430
------------ ------------ ------------
Net loss $(6,892) $(6,251) $(6,733)
============ ============ ============
Income (loss) per
share:
Continuing
operations $(0.44) $(0.45) $(0.43)
Discontinued
operations $0.03 $0.08 $0.03
------------ ------------ ------------
Net loss per
share, basic
and diluted $(0.41) $(0.37) $(0.40)
============ ============ ============
Basic and diluted weighted
average common shares
outstanding 16,750,000 16,750,000 16,750,000
============ ============ ============
Transitional disclosures required by the adoption of Statement of
Financial Accounting Standard No. 142:
For the Three Months Ended
--------------------------------------
(In thousands, except per March 31, June 30, September 30,
share data) 2001 2001 2001
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Reported net loss $(6,892) $(6,251) $(6,733)
Add back:
Goodwill amortization 1,598 1,616 1,577
Broadcast licenses
amortization 2,504 2,490 2,529
Income tax expense (1,011) (898) (966)
------------ ------------ ------------
Adjusted net loss $(3,801) $(3,043) $(3,593)
============ ============ ============
Basic and Diluted loss per
share:
Reported net loss $(0.41) $(0.37) $(0.40)
Add back:
Goodwill amortization 0.09 0.10 0.09
Broadcast licenses
amortization 0.15 0.15 0.15
Income tax expense (0.06) (0.06) (0.05)
------------ ------------ ------------
Adjusted net loss $(0.23) $(0.18) $(0.21)
============ ============ ============
For the Three Months Ended
--------------------------------------
Broadcast cash flow and March 31, June 30, September 30,
EBITDA: 2001 2001 2001
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Operating loss $(4,215) $(4,234) $(3,617)
Add back:
Equity-based
compensation 83 84 83
Depreciation and
amortization 2,299 2,290 2,332
LMA fees --- --- ---
Amortization of program
rights 1,776 1,909 1,618
Corporate expenses 965 1,046 836
Adjusted program
payments (1,828) (1,976) (1,819)
------------ ------------ ------------
Broadcast cash
flow (920) (881) (567)
Less:
Corporate expenses 965 1,046 836
------------ ------------ ------------
EBITDA $(1,885) $(1,927) $(1,403)
Broadcast cash flow margin -14.3% -12.3% -8.4%
EBITDA margin -29.3% -26.9% -20.8%
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