The group owner’s net loss for the fourth quarter was $5.3 million compared to a $4.5 million net loss for the fourth quarter of 2009
Acme 4Q Station Revenue Rises 7%
Acme Communications announced its consolidated financial results for the fourth quarter and full year ended Dec. 31, 2010. Net revenue from continuing operations increased 10% to $4 million for the fourth quarter compared to net revenues of $3.6 million in the fourth quarter of 2009. Continuing stations’ revenue increased 7% and revenues at its syndicated The Daily Buzz increased 22% for the quarter compared to the prior year quarter.
(As previously announced, LIN Media has exercised its option to acquire Acme’s WBDT Dayton, Ohio, and WCWF (formerly WIWB) Green Bay, Wis., and Lockwood Broadcast Group is purchasing WBXX Knoxville, Tenn. Accordingly, it treated the results of those stations as discontinued operations. The FCC approved the Knoxville sale on March 21 and the LIN transactions on April 8, and Acme said it now expects all three sales to be consummated in the second quarter of 2011.)
Total operating costs decreased 25% to $6.5 million for the fourth quarter compared to $8.7 million for the fourth quarter of 2009. This decrease is mainly related to the net effect of a decrease in long-lived assets impairment charges of $4.5 million, offset by a $1.6 million litigation reserve allocated to Acme’s continuing stations (an additional $1.9 million has been allocated to its discontinued stations) relating to the unfavorable court ruling received in connection with the company’s MMT litigation for which Acme recorded a total litigation reserve of approximately $3.5 million as previously announced on March 25.
Station cash-based operating expenses, which exclude the litigation reserve, remained at $2.3 million when compared to the fourth quarter of 2009.
Acme’s resulting continuing operations broadcast cash flow for the quarter, which excludes the litigation reserve, increased to $321,000 compared to $121,000 for the fourth quarter of 2009.
Adjusted EBITDA from continuing operations also improved, increasing to negative $208,000 compared to EBITDA of negative $358,000 for the fourth quarter of 2009 on improved broadcast cash flow and our net loss from continuing operations decreased to $1.8 million compared to a net loss of $2.9 million for the fourth quarter of 2009.
Acme’s loss before income taxes from discontinued operations for the fourth quarter of 2010 was $2.5 million compared to a loss before income taxes from discontinued operations of $729,000 for the fourth quarter of 2009, mainly due to the litigation reserve attributable to our discontinued operations in connection with the above mentioned MMT litigation. Excluding that charge, our loss from discontinuing operations would have been approximately 12% less principally on lower expenses related to our LIN shared-services agreement.
Acme’s net loss for the fourth quarter of 2010 was $5.3 million compared to a $4.5 million net loss for the fourth quarter of 2009 due to the aforementioned litigation reserve and losses on disposal of fixed assets offset by reduced impairment charges compared to the fourth quarter of 2009.