The company, in the process of selling all its stations, posts a net loss for the third quarter of $432,000 compared to a $390,000 net loss for the third quarter of 2010.
QUARTERLY REPORT
Acme 3Q TV Station Revenue Falls 9%
Acme Communications on Friday announced its financial results for the third quarter ended Sept. 30.
In May, Acme completed the sale of three of its stations: WBXX Knoxville, Tenn.; WBDT Dayton, Ohio; and WCWF Green Bay-Appleton, Wis. (formerly WIWB). Accordingly, the results of those stations are treated as discontinued operations for all periods presented. Continuing operations now consist of the company’s KWBQ (CW)-KASY (MNT) Albuquerque-Santa Fe, N.M., WBUW (CW) Madison, Wis., and its Daily Buzz production entity in Orlando, Fla.
Net revenues from continuing operations decreased 8% to $3.5 million for the quarter, compared to $3.8 million in the third quarter of 2010, driven by decreased Daily Buzz revenues and a 9% decline in the revenues of the company’s three TV stations.
Total operating costs decreased 18% to $3.9 million for the third quarter compared to $4.8 million for the third quarter of 2010, primarily on lower depreciation and amortization expense and last year’s third quarter loss on the sale of the company’s tower in Madison, Wis.
Station cash-based operating expenses increased 4% to $2.1 million compared to the third quarter of 2010 principally on higher ratings service costs. Resulting continuing operations broadcast cash flow for the quarter decreased to negative $20,000 compared to broadcast cash flow of $375,000 for the third quarter of 2010. Adjusted EBITDA from continuing operations was negative $327,000 compared to EBITDA of negative $119,000 for the third quarter of 2010 on decreased broadcast cash flow.
The company’s net loss for the third quarter of 2011 was $432,000 compared to a $390,000 net loss for the third quarter of 2010.
BRAND CONNECTIONS
Commenting on the quarter’s results, Doug Gealy, Acme’s president-CEO, said: “Unfortunately, adverse market conditions in the third quarter resulted in decreased advertising demand at our stations and at the Daily Buzz. We continue to be focused on our exit strategy of liquidating our remaining assets while maximizing shareholder value in the process.”
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