ACME Communications (ACME Communications) Financial Strength : 0 (As of Sep. 2012)

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What is ACME Communications Financial Strength?

ACME Communications has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

ACME Communications's Interest Coverage for the quarter that ended in Sep. 2012 was 75.27. ACME Communications's debt to revenue ratio for the quarter that ended in Sep. 2012 was 0.03. As of today, ACME Communications's Altman Z-Score is 0.00.

Competitive Comparison of ACME Communications's Financial Strength

For the Broadcasting subindustry, ACME Communications's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ACME Communications's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, ACME Communications's Financial Strength distribution charts can be found below:

* The bar in red indicates where ACME Communications's Financial Strength falls into.

ACME Communications Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

ACME Communications's Interest Expense for the months ended in Sep. 2012 was $-0.02 Mil. Its Operating Income for the months ended in Sep. 2012 was $1.13 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2012 was $0.56 Mil.

ACME Communications's Interest Coverage for the quarter that ended in Sep. 2012 is

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2012 )	/	Interest Expense (Q: Sep. 2012 )
	=	-1	*	1.129	/	-0.015
	=	75.27

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

ACME Communications's Debt to Revenue Ratio for the quarter that ended in Sep. 2012 is

Debt to Revenue Ratio	=	Total Debt (Q: Sep. 2012 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0.056	+	0.557)	/	17.964
	=	0.03

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

ACME Communications has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

ACME Communications (OTCPK:ACME) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

ACME Communications has the Financial Strength Rank of 0.

ACME Communications Financial Strength Related Terms

Thank you for viewing the detailed overview of ACME Communications's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

ACME Communications (ACME Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » ACME Communications Inc (OTCPK:ACME) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.acmecommunications.com

ACME Communications, Inc. was incorporated in Delaware in 1999. The Company owns and operates nine broadcast television stations in medium-sized markets across the United States. The eight television stations that comprise its continuing operations are regionally diverse and range in market size. All but one of the Company's stations are affiliates of The WB Television Network. The Company's second station in the Albuquerque-Santa Fe marketplace is a UPN affiliate. The Company's eight stations have only been on the air, or achieving measurable ratings, for 5-7 years. The Company derive revenues primarily from the sale of advertising time to local, regional and national advertisers and from program licensing fees related to The Daily Buzz that have been a fast growing component of its revenue base. Its advertising revenues depend on popular programming that attracts audiences in the demographic groups targeted by advertisers, allowing it to sell advertising time at satisfactory rates. The Company's rates are directly affected by the number of and demographic makeup of its viewing audience, as measured by Nielsen Media Research. The Company's stations are generally ranked fifth in their respective markets in terms of either their share of viewers or their share of the market's broadcast television revenue. In periods of lower advertising demand competition from market leaders, generally the ABC, CBS, NBC and Fox affiliated stations, increases as these stations become more aggressive in their pricing to maintain their revenue share. The Company's operations are subject to regulation by the FCC.

Executives

Harvey Hanerfeld	10 percent owner	1919 PENNSYLVANIA AVENUE NW, SUITE 725, WASHINGTON DC 20006
Wynnefield Partners Small Cap Value Lp	10 percent owner	450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Nelson Obus	10 percent owner
Wynnefield Capital Management Llc	10 percent owner	450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp I	10 percent owner	450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Joshua Landes	10 percent owner
Wynnefield Capital, Inc. Profit Sharing Plan	10 percent owner	450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Wynnefield Capital Inc	10 percent owner	450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Small Cap Value Offshore Fund Ltd	10 percent owner	450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Channel Partnership Ii L P	10 percent owner	450 SEVENTH AVENUE SUITE 509, NEW YORK NY 10123
Brian W Mcneill	director	2101 E 4TH ST STE 2029, SANTA ANA CA 92705
Frederick Gerald Wasserman	director	4 NOBADEER DRIVE, PENNINGTON NJ 08534

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