ACME’s net revenues for the quarter increased 2% over the first quarter of 2000 to $16.5 million. Broadcast cash flow decreased 19% to $2.9 million and adjusted earnings before interest, taxes, depreciation and amortization decreased 28% to $1.9 million versus the comparable prior year period.
The decline in broadcast cash flow results for the first quarter reflects slower revenue growth coupled with the Company’s continued investmentin programming, staffing and sales related costs which drove an increase in total station operating costs for the quarter of 7%.
Commenting on the quarter’s results, Jamie Kellner, ACME’s Chairman and CEO, said, The television broadcasting business continues to be adversely impacted by an overall soft economy and slack demand from advertisers, and our station group has not been immune to this depressed environment. However, despite the fact that total television advertising revenues were down in most of our nine markets, we were able to increase revenue at eight of our ten stations and we are confident that we grew our market share of advertising dollars at most of our stations.
In the February 2001 ratings period, every one of our developing stations posted outstanding ratings growth, with an average 46% increase in the 5:00 p.m. to midnight timeframe among adults 18-49 years old. In addition, our sign-on to sign-off household viewership at these growing stations increased 21% compared to the year earlier sweeps period. These ratings and circulation gains demonstrate that we continue to position our station portfolio to take even greater shares away from our competitors when the advertising market begins to recover and to position us for long-term growth.
