A 14% drop in advertising at the group’s two remaining stations was offset somewhat by increased revenue from it’s The Daily Buzz show.
Acme Communications Inc. today announced its financial results for the fourth quarter and full year ended Dec. 31, 2011. Net revenues from continuing operations decreased 3% to $3.4 million for the fourth quarter compared to net revenues of $3.5 million in the fourth quarter of 2010, driven by a 14% decline in the revenues of Acme’s two continuing stations offset, however, by increased revenues at its syndicated lifestyle TV program The Daily Buzz.
In May of 2011, Acme completed the sale of three of its stations: WBXX Knoxville, Tenn.; WBDT Dayton, Ohio; and WCWF (formerly WIWB) Green Bay-Appleton, Wis. Also, as previously announced, Byrne Acquisition Group LLC had entered into a definite agreement for the purchase of its WBUW Madison, Wis., and the sale was consummated on Feb. 21, 2012. Accordingly, the results of those stations are treated as discontinued operations for all periods presented.
Continuing operations now consists of KWBQ and KASY Albuquerque-Santa Fe, N.M., along with full-power satellite station in Roswell (KRWB), and The Daily Buzz LLC.
Total operating costs decreased 41% to $3.1 million for the fourth quarter compared to $5.2 million for the fourth quarter of 2010.
Station cash-based operating expenses, excluding the impact of its litigation reserve and reversal, decreased 7% to $1.7 million compared to the fourth quarter of 2010 principally on lower sales and sales commission expenses.
Resulting continuing operations broadcast cash flow for the quarter decreased to $286,000 compared to broadcast cash flow of $298,000 for the fourth quarter of 2010. Adjusted EBITDA from continuing operations improved to negative $81,000 compared to EBITDA of negative $231,000 for the fourth quarter of 2010 on lower corporate expenses.
The company’s income before income taxes from discontinued operations for the fourth quarter of 2011 was $1.2 million compared to a loss before income taxes from discontinued operations of $3.4 million for the fourth quarter of 2010, mainly due to the resulting gain from the reversal of its MMT litigation accrual which was settled in December 2011.
The company’s net income for the fourth quarter of 2011 was $2 million compared to a $5.3 million net loss for the fourth quarter of 2010.