ACME Television Announces Second Quarter Results; Posts 2nd Quarter Revenue Gain of 34% and Broadcast Cash Flow Gain of 43%
SANTA ANA, Calif., Aug. 12, 1999 -- ACME Television, LLC ("ACME TV")and its parent holding company, ACME Intermediate Holdings, LLC ("ACME Intermediate", andtogether with ACME TV, the "Company") today reported second quarter net revenues of $15.5million and broadcast cash flow of $3.9 million, an increase of 34% and 43%, respectively, over thesame period of 1998. On a pro forma basis, net revenues grew 34% and broadcast cash flow grew49% for the quarter. EBITDA for the quarter increased 48% to $3.1 million compared to the secondquarter of 1998.
For the six months ended June 30, 1999, net revenues increased 38% to $26.6 million andbroadcast cash flow increased 47% to $6.5 million over the first half of 1998. EBITDA increased55% to $5.0 million compared to $3.2 million in the first half of 1998.
Both the second quarter and six month increases reflect the continued growth in both audience andrevenue shares at each of the Company's stations during the periods reported. The 1999 resultsinclude the June operating results of the three stations (WBDT - Dayton, WIWB - Green Bay andWBUI - Champaign/Decatur) recently acquired from Paxson Communications Corporation. Thelosses generated at these three stations during the period were not significant.
The second quarter net loss at ACME Television and ACME Intermediate of $14.3 million and$15.8 million, respectively, include an $8.2 million charge for non-cash equity-based compensationto the Company's executive founders. There was no similar charge in the corresponding 1998period.
The Company owns and operates nine stations serving markets covering 5.4% of the country'stelevision households, making the Company the third largest affiliate group of The WB Networkbehind Tribune Broadcasting Company and Sinclair Broadcast Group.
Selected Financial Data (Unaudited - in $000's)
Three Months Ended Six Months Ended
June 30 June 30
1999 1998 1999 1998
Net Revenues $ 15,512 $ 11,570 $ 26,635 $ 19,327
ACME TV Net Loss ($14,308) ($ 5,085) ($22,286) ($ 8,343)
ACME Intermediate Net Loss ($15,800) ($ 6,384) ($25,171) ($10,854)
Broadcast Cash Flow $ 3,883 $ 2,712 $ 6,516 $ 4,433
EBITDA $ 3,121 $ 2,107 $ 5,033 $ 3,239
Broadcast cash flow is defined as operating income, plus depreciation and amortization, programamortization, non-cash equity based compensation, LMA fees and corporate overhead, lessprogram payments -- the latter as adjusted to reflect reductions for impaired or expired rights inconnection with acquisitions. EBITDA is defined as broadcast cash flow less corporate overheadexpenses. The Company has included broadcast cash flow and EBITDA data because theCompany believes such data is a useful measure for evaluating the Company's operatingperformance. Broadcast cash flow and EBITDA eliminate the effect of depreciation andamortization which relate to acquisitions under the purchase method of accounting and the impactof accelerated program amortization and the impact of corporate expenses, and allow for anevaluation of the operating performance of the Company and its stations relative to that of theCompany's competitors which may not have similar depreciation, amortization or corporatestructures. The Company's definition of broadcast cash flow and EBITDA may not be comparableto similarly titled measures presented by other companies. Broadcast cash flow and EBITDA arenot, and should not be used as an indicator or alternative to operating income, net loss or cash flowas reflected in the consolidated financial statements, are not measures of financial performanceunder generally accepted accounting principles and should not be considered in isolation or assubstitutes for measures of performance prepared in accordance with generally acceptedaccounting principles.
References to "pro forma" or "pro forma basis" means that the financial results being discussedinclude the financial results of all stations owned and operated as of June 30, 1999, as if they wereowned or operated for the entire period covered by the discussion.
CONTACT: ACME Television LLC, Santa Ana
Tom Allen, Executive Vice President/CFO