Debt-free ACME Communications expects to draw on its revolving credit line during Q2. Revenues declined 6% in Q4 and, like everyone else in television, CEO Jamie Kellner sees a difficult year ahead.
ACME, with its portfolio of five CW affiliates and one MyNetworkTV, reported Q4 revenues down 6% to $7.9 million. Revenues for the TV stations fell 5% and the syndicated “Daily Buzz” program suffered a 9% decline. Broadcast cash flow increased 17% to $529,000.
For the full year, Daily Buzz revenues were up 55% and the stations were flat, so total revenues were essentially flat at $30.1 million.
Kellner noted that he and other top executives have taken pay cuts, along with other cost-cutting moves. The company gave no forward guidance, with Kellner telling investors there is just no visibility in the current market.
ACME last week extended the maturity date of its revolving credit agreement with its lending group to May 8, 2011. In theory, the revolver is $6 million, but it is capped by a metric related to the value of the stations, so the company currently has access to only about $4.4 million. CFO Tom Allen said ACME expects to draw on that revolver in Q2.