ACME Communications Announces Fourth Quarter and Full Year 2009 Results

SANTA ANA, Calif., June 18, 2010 (GLOBE NEWSWIRE) -- ACME Communications, Inc. (Pink Sheets:ACME) today announced its financial results for the fourth quarter and full year ended December 31, 2009.

Our net revenues from continuing operations decreased 14% to $6.8 million for the fourth quarter compared to net revenues of $7.9 million in the fourth quarter of 2008. The decrease was driven primarily by continued sharply lower advertising demand resulting in a 15% decrease in net revenues at our television stations. Revenues at The Daily Buzz were essentially unchanged for the quarter compared to the fourth quarter of 2008.  Total operating costs decreased 55% to $15.0 million for the fourth quarter compared to $33.2 million for the fourth quarter of 2008 on a $16.9 million decrease in intangible asset impairments. Station cash-based operating expenses decreased 12%, primarily on reduced promotion, barter program expense and compensation expense reflecting the Company's continued efforts to reduce all discretionary costs in the face of a continued severe economic downturn. Our resulting broadcast cash flow for the quarter was $199,000 compared to $529,000 for the fourth quarter of 2008. Adjusted EBITDA from continuing operations decreased to negative $280,000 compared to EBITDA of negative $148,000 for the fourth quarter of 2008 on lower broadcast cash flow, offset somewhat by lower corporate expenses. Our net loss for the fourth quarter of 2009 was $4.5 million compared to a net loss of $18.8 million for the fourth quarter of 2008.

For the full year, our net revenues for continuing operations decreased 19% to $26.8 million compared to net revenues of $33.2 million for calendar 2008 on sharply lower advertising demand in our five television markets. Total operating costs decreased to $38.4 million for calendar 2009 compared to operating costs of $74.0 million for calendar 2008 largely due to a decrease in intangible asset impairment charges of $28.9 million. Station cash-based operating expenses were down 11% from the prior year period and broadcast cash flow declined to negative $464,000 from $2.5 million for calendar 2008 on substantially reduced revenues. Adjusted EBITDA from continuing operations declined to negative $2.5 million from $141,000 and our net loss decreased to $8.7 million compared to a net loss of $32.7 million for calendar 2008.

Commenting on the fourth quarter and full year results, Jamie Kellner, ACME's Chairman and CEO, said, "This past year was a very difficult one for the industry and for ACME. Market conditions were challenging, especially given the competition's focused efforts to regain market share of regular business following a record political year in 2008. While we are seeing a pickup in advertiser demand in the first half of 2010, as has historically been the case, the traditional affiliates are leading the way with those gains. We believe that our recently announced Lin Media and Fisher Communications deals will provide meaningful improvements in our operating cash flows beginning in the third quarter of 2010 and expect to continue to find creative ways to maximize shareholder value."

Use of Broadcast Cash Flow, Adjusted EBITDA and Same Station Results

GAAP refers to generally accepted accounting principles in the United States. Broadcast cash flow, station cash-based operating expenses and adjusted EBITDA are non-GAAP measures. Broadcast cash flow is commonly used as an indicator of operating performance for broadcasting companies and is also used to value broadcasting assets. Station cash-based operating expenses, which use program payments in place of program amortization, exclude "The Daily Buzz" production costs and exclude non-cash operating expenses like depreciation and amortization, impairment of intangibles, lease abandonment costs and equity-based compensation, are an important metric in determining our cash expense growth. Adjusted EBITDA is also used as a performance measure and often used to measure a company's ability to service debt, as evidenced by the fact that our senior credit facility historically contained financial covenants relating to our adjusted EBITDA.

Broadcast cash flow, station cash-based operating expenses and adjusted EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We consider operating loss to be the most comparable GAAP measure to broadcast cash flow and to adjusted EBITDA; therefore, the Company has included a reconciliation of operating loss to broadcast cash flow and adjusted EBITDA in Supplemental Table 1. A reconciliation of operating expenses to cash-based station operating expenses is included in Supplemental Table 2. Because broadcast cash flow, cash-based station operating expenses and adjusted EBITDA are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations, the broadcast cash flow, cash-based station operating expenses and adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.

The Company expects to post its full financial statements on its Web site at www.acmecommunications.com by Monday, June 21, 2010.

About ACME Communications, Inc.

ACME Communications, Inc. owns and operates six television stations serving markets covering 2.2% of the nation's television households. The Company's stations are: KWBQ-TV and KASY-TV, Albuquerque-Santa Fe, NM; WBXX-TV, Knoxville, TN; WBDT-TV, Dayton, OH; WIWB-TV, Green Bay-Appleton, WI and WBUW-TV, Madison, WI. All of the Company's stations, except KASY-TV, a MyNetworkTV affiliate, are affiliates of The CW Network. The Company also produces The Daily Buzz, a nationally syndicated morning news and lifestyle program which airs on 161 television stations across the country. The Company's shares are traded over-the-counter under the symbol: ACME.PK.