ACME’s net revenues for the fourth quarter of 2000 increased 14% over the fourth quarter of 1999 to $20.0 million. Broadcast cash flow increased 9% to $5.4 million and adjusted earnings before interest, taxes, depreciation and amortization increased 15% to $4.6 million versus the comparable prior year period.
For the twelve months ended December 31, 2000, ACME’s net revenues increased 22% to $73.4 million compared to 1999 and broadcast cash flow increased 39% to $20.1 million. Adjusted EBITDA for the twelve months ended December 31, 2000, after excluding a $3.0 million third quarter 1999 non-recurring charge related to the Company’s 1999 initial public offering, increased 50% over 1999 EBITDA to $16.5 million.
Same station revenue and broadcast cash flow growth for the 2000 fourth quarter over the prior year period, which exclude the results of KASY-Albuquerque/Santa Fe (acquired during the fourth quarter of 1999) were 13% and 7%, respectively. For the full year, same station revenues increased 20% and broadcast cash flow increased 29% for the five stations owned or operated by ACME for the full years 2000 and 1999. The same station revenue gain for the full year has been calculated excluding the impact of KPLR’s St. Louis Cardinal baseball contract conversion from a rights deal in 1999, where the station sold and retained revenues from advertising time, to a time-buy in 2000, where the station received a payment from the Cardinals to carry the games, but the Cardinals sold and retained the revenues from advertising time.
The improved broadcast cash flow results for both the fourth quarter and full year periods reflect continued growth in most of ACME’s stations’ ratings and revenue market shares. Broadcast cash flow margins for the fourth quarter declined slightly from 28% in the prior year fourth quarter to 27%, reflecting primarily a softening advertising marketplace and the Company’s increased fourth quarter programming costs. For the full year, the Company improved its broadcast cash flow margins to 27% from 24% on the strength of ratings growth and reduced losses at the three stations acquired from Paxson Communications in June 1999.
Commenting on the results, Jamie Kellner, ACME’s Chairman and CEO, said, Aside from political revenue, fourth quarter advertising demand was weak across our markets. Politicians traditionally target older viewers — something we expect will change in future election periods — so our younger skewing stations did not participate in any significant way in the fourth quarter political season. Even without the political opportunity, we were able to deliver a 13% increase in same station revenues.
Since our inception in 1997, we have been almost exclusively focused on developing WB affiliated stations in the nation’s middle markets. Aside from our flagship station, KPLR in St. Louis, all of our remaining nine stations are in developing phases. In the November 2000 ratings period, the majority of these stations produced outstanding ratings growth. KWBP in Portland generated the largest growth in prime time ratings among all WB affiliates. During the same period, WBXX in Knoxville became the number one ranked WB affiliate in the non-metered markets. Our duopoly in the Albuquerque-Santa Fe marketplace increased its combined sign-on to sign-off ratings from 67-100%, depending on the demographic. In addition, KPLR remains the top ranked WB affiliate in the country for viewers aged 18-49 years old — a feat they’ve accomplished in five of the last six ratings books.
Concurrent with the positive ratings momentum across our group, seven of our nine developing stations posted double-digit revenue gains averaging 38% during the fourth quarter. These increases were largely offset by slower revenue growth at KPLR, due primarily to a decline in non-political revenues in the St. Louis marketplace. Another indication of our developing stations’ growth is the fact that for the first time ever, KPLR’s revenue accounted for less than half that of the group’s revenue during the fourth quarter of 2000. As our developing stations continue to take advantage of the industry-leading ratings momentum of the WB Network in reaching the coveted 18-34 year-old audience, our revenues will become more balanced across our asset base.
In 2001, we will remain focused on investing in our developing stations through new syndicated programming, promotion and sales initiatives. As these investments are occurring during a weak advertising market, our broadcast cash flow might be negatively impacted. However, we believe our ratings demonstrate that we are taking the necessary steps to position our company for long-term growth and we believe our investments will ultimately result in increased shareholder value.
