Attached files
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| 8-K - HOLLYWOOD MEDIA CORP | v201679_8k.htm |
EXHIBIT
99.1
HOLLYWOOD
MEDIA CORP. REPORTS 2010 THIRD QUARTER RESULTS
BOCA
RATON, Fla., November 10, 2010 – Hollywood Media Corp. (Nasdaq: HOLL), a leading
provider of online ticketing services and entertainment-related offerings, today
reported financial results for the third quarter ended September 30,
2010. As previously announced, the Company has reached a definitive
agreement to sell its Broadway Ticketing business subject to the approval of
Hollywood Media’s shareholders as well as the satisfaction or waiver of certain
other closing conditions set forth in the definitive agreement. The
Company filed a proxy statement on October 20, 2010 announcing a shareholder
meeting on December 10, 2010 to vote on a proposal to approve the
transaction.
For the
2010 third quarter, net revenues increased 16% to $25.4 million compared to
$21.9 million in the prior-year period. Broadway Ticketing revenues,
which represented 96% of the Company’s total net revenues, increased 18% versus
the prior year period due to higher ticket sales. Advertising sales
from Broadway shows increased 279% which is reported as a reduction in cost of
revenues-ticketing.
Net loss
for the 2010 third quarter was $0.4 million, or $0.01 per share, which includes
$0.3 million in legal expenses related to the proposed sale of the Broadway
Ticketing business. This compares to a net loss in the prior year
period of $0.3 million, or $0.01 per share.
EBITDA*
in the 2010 third quarter for the Company as a whole was a loss of $0.1 million,
which includes $0.3 million in legal expenses related to the proposed sale of
the Broadway Ticketing businesses noted above, compared to break-even EBITDA in
the prior-year period. Broadway Ticketing EBITDA increased 65% on
higher sales to $1.8 million in the third quarter versus $1.1 million last
year.
At
September 30, 2010, the Company had cash and cash equivalents of $7.3 million
with no debt compared to cash and cash equivalents of $6.8 million with no debt
at June 30, 2010. The Company also has approximately $1.2 million in
its restricted cash balance related to a bond for Broadway ticketing
purchases.
Teleconference
Information
Management
will host a teleconference today at 4:30 p.m. Eastern Time. To access
the teleconference, please dial 877-407-8293 (U.S.) or 201-689-8349
(international) approximately 10 minutes prior to the start of the
call. The teleconference will also be available via live webcast on
the investor relations portion of Hollywood Media’s website, http://www.hollywoodmedia.com/conference_calls.htm.
If you
are unable to listen to the live teleconference, a replay will be available
through November 17, 2010, and can be accessed by dialing 877-660-6853 (U.S.) or
201-612-7415 (international). Callers will be prompted for replay
account number 342# followed by conference ID number
360417#. An archived version of the webcast will also be
available under the investor relations section of Hollywood Media’s website at
http://www.hollywoodmedia.com.
About
Hollywood Media Corp.
Hollywood
Media is comprised primarily of Internet businesses focused on online ticketing,
which include Broadway.com and Hollywood Media’s minority interest in
MovieTickets.com. Hollywood Media also owns the UK-based CinemasOnline and an
Intellectual Property division.
*Note
on EBITDA
EBITDA is
a non-GAAP financial measures. EBITDA is defined as net income before
interest, taxes, depreciation and amortization. Hollywood Media has presented
EBITDA in this release because it considers such information an important
supplemental measure which management utilizes as one of its tools in evaluating
performance and believes it is frequently used by securities analysts, investors
and other interested parties in the evaluation and comparison of companies in
our industry as well as our results of operations from period to period. EBITDA
has limitations as an analytical tool, and you should not consider it in
isolation, or as a substitute for Hollywood Media’s financial results as
reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect
changes in, or cash requirements for, Hollywood Media’s working capital needs;
(b) EBITDA does not reflect interest expense, or the cash requirements necessary
to service interest or principal payments, if any; and (c) although depreciation
and amortization are non-cash charges, the assets being depreciated and
amortized may have to be replaced in the future, and EBITDA does not reflect any
cash requirements for such capital expenditures. Because of these limitations,
EBITDA should not be considered as a principal indicator of Hollywood Media’s
performance. Hollywood Media compensates for these limitations by relying
primarily on Hollywood Media’s GAAP results and using EBITDA only
supplementally.
Note
on Forward-Looking Statements
Statements
in this press release may be “forward-looking statements” within the meaning of
federal securities laws. The matters discussed herein that are forward-looking
statements are based on current management expectations that involve risks and
uncertainties that may result in such expectations not being realized. Actual
outcomes and results may differ materially from what is expressed or forecasted
in such forward-looking statements due to numerous potential risks and
uncertainties, including, but not limited to, the need to manage our growth, our
ability to realize anticipated revenues and cost efficiencies, the impact of
potential future dispositions or other strategic transactions by Hollywood
Media, our ability to develop and maintain strategic relationships, our ability
to compete with other online ticketing services and other competitors,
technology risks, the volatility of our stock price, and other risks and factors
described in Hollywood Media Corp.’s filings with the Securities and Exchange
Commission including our Form 10-K for 2009. Such forward-looking statements
speak only as of the date on which they are made.
Attached
are the following financial tables:
CONDENSED
CONSOLIDATED BALANCE SHEETS
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
SEGMENT
SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION
Contact:
Investor
Relations Department
Hollywood
Media Corp.
L.
Melheim
ir@hollywoodmedia.com
561-998-8000
HOLLYWOOD
MEDIA CORP. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
September 30,
|
December 31,
|
|||||||
|
2010
|
2009
|
|||||||
|
(unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ | 7,308,487 | $ | 11,764,810 | ||||
|
Receivables,
net
|
1,254,471 | 897,503 | ||||||
|
Inventories
held for sale, net
|
5,244,485 | 3,735,691 | ||||||
|
Deferred
ticket costs
|
9,934,718 | 10,985,160 | ||||||
|
Prepaid
expenses
|
2,942,893 | 1,896,237 | ||||||
|
Other
receivables
|
1,136,173 | 1,125,263 | ||||||
|
Other
current assets
|
9,911 | 436,675 | ||||||
|
Related
party receivable
|
242,182 | 335,245 | ||||||
|
Restricted
cash
|
1,221,000 | 1,221,000 | ||||||
|
Total
current assets
|
29,294,320 | 32,397,584 | ||||||
|
PROPERTY
AND EQUIPMENT, net
|
3,793,541 | 4,369,085 | ||||||
|
INVESTMENTS
IN AND ADVANCES TO UNCONSOLIDATED INVESTEES
|
826,889 | 230,097 | ||||||
|
INTANGIBLE
ASSETS, net
|
206,070 | 390,818 | ||||||
|
GOODWILL
|
20,230,119 | 20,197,513 | ||||||
|
OTHER
ASSETS
|
21,082 | 21,082 | ||||||
|
TOTAL
ASSETS
|
$ | 54,372,021 | $ | 57,606,179 | ||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Accounts
payable
|
$ | 1,234,466 | $ | 1,632,351 | ||||
|
Accrued
expenses and other
|
3,154,284 | 3,074,549 | ||||||
|
Deferred
revenue
|
13,013,628 | 14,012,178 | ||||||
|
Gift
certificate liability
|
3,497,188 | 3,794,899 | ||||||
|
Customer
deposits
|
360,423 | 948,273 | ||||||
|
Current
portion of capital lease obligations
|
75,979 | 123,061 | ||||||
|
Current
portion of notes payable
|
6,380 | 37,454 | ||||||
|
Total
current liabilities
|
21,342,348 | 23,622,765 | ||||||
|
DEFERRED
REVENUE
|
158,654 | 309,190 | ||||||
|
CAPITAL
LEASE OBLIGATIONS, less current portion
|
18,630 | 75,830 | ||||||
|
OTHER
DEFERRED LIABILITY
|
956,270 | 1,105,553 | ||||||
|
NOTES
PAYABLE, less current portion
|
- | 2,432 | ||||||
|
COMMITMENTS
AND CONTINGENCIES
|
||||||||
|
SHAREHOLDERS'
EQUITY:
|
||||||||
|
Preferred
Stock, $.01 par value, 1,000,000 shares authorized; none
outstanding
|
- | - | ||||||
|
Common
stock, $.01 par value, 100,000,000 shares authorized; 31,179,066 and
31,037,656 shares issued and outstanding at September 30, 2010
and December 31, 2009, respectively
|
311,791 | 310,377 | ||||||
|
Additional
paid-in capital
|
309,695,522 | 309,480,331 | ||||||
|
Accumulated
deficit
|
(278,124,706 | ) | (277,315,848 | ) | ||||
|
Total
Hollywood Media Corp shareholders' equity
|
31,882,607 | 32,474,860 | ||||||
|
Non-controlling
interest
|
13,512 | 15,549 | ||||||
|
Total
shareholders' equity
|
31,896,119 | 32,490,409 | ||||||
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 54,372,021 | $ | 57,606,179 | ||||
HOLLYWOOD
MEDIA CORP. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
THREE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
NET
REVENUES
|
||||||||||||||||
|
Ticketing
|
$ | 79,317,020 | $ | 69,979,418 | $ | 24,408,490 | $ | 20,597,971 | ||||||||
|
Other
|
2,981,093 | 3,441,400 | 973,392 | 1,256,695 | ||||||||||||
| 82,298,113 | 73,420,818 | 25,381,882 | 21,854,666 | |||||||||||||
|
OPERATING
COSTS AND EXPENSES
|
||||||||||||||||
|
Cost
of revenues - ticketing
|
64,578,465 | 57,768,570 | 19,259,832 | 16,615,916 | ||||||||||||
|
Editorial,
production, development and technology
|
1,974,184 | 1,944,210 | 644,390 | 707,297 | ||||||||||||
|
Selling,
general and administrative
|
8,415,751 | 7,572,482 | 3,014,325 | 2,454,488 | ||||||||||||
|
Payroll
and benefits
|
8,339,384 | 7,402,148 | 2,827,042 | 2,363,274 | ||||||||||||
|
Depreciation
and amortization
|
1,111,322 | 1,184,187 | 354,038 | 389,219 | ||||||||||||
|
Total
operating costs and expenses
|
84,419,106 | 75,871,597 | 26,099,627 | 22,530,194 | ||||||||||||
|
Loss
from operations
|
(2,120,993 | ) | (2,450,779 | ) | (717,745 | ) | (675,528 | ) | ||||||||
|
EARNINGS
(LOSSES) OF UNCONSOLIDATED INVESTEES
|
||||||||||||||||
|
Equity
in earnings of unconsolidated investees
|
636,839 | 1,912,906 | 87,971 | 73 | ||||||||||||
|
Impairment
loss
|
- | (5,000,000 | ) | - | - | |||||||||||
|
Total
equity in earnings (losses) of unconsolidated investees
|
636,839 | (3,087,094 | ) | 87,971 | 73 | |||||||||||
|
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
|
Interest,
net
|
11,605 | 18,714 | (99 | ) | 3,592 | |||||||||||
|
Other,
net
|
118,737 | (156,069 | ) | (4,397 | ) | (115,855 | ) | |||||||||
|
Loss
from continuing operations
|
(1,353,812 | ) | (5,675,228 | ) | (634,270 | ) | (787,718 | ) | ||||||||
|
Income
from discontinued operations
|
506,902 | 472,487 | 181,458 | 472,487 | ||||||||||||
|
Net
loss
|
(846,910 | ) | (5,202,741 | ) | (452,812 | ) | (315,231 | ) | ||||||||
|
NET
(INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST
|
38,052 | (32,821 | ) | 23,352 | (33,762 | ) | ||||||||||
|
Net
loss attributable to Hollywood Media Corp
|
$ | (808,858 | ) | $ | (5,235,562 | ) | $ | (429,460 | ) | $ | (348,993 | ) | ||||
|
Basic
and diluted income (loss) per common share
|
||||||||||||||||
|
Continuing
operations
|
$ | (0.04 | ) | $ | (0.19 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||
|
Discontinued
operations
|
0.02 | 0.02 | 0.01 | 0.02 | ||||||||||||
|
Total
basic and diluted net loss per share
|
$ | (0.02 | ) | $ | (0.17 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
|
Weighted
average common and common equivalent shares
|
||||||||||||||||
|
outstanding
- basic and diluted
|
30,920,354 | 30,565,413 | 30,945,735 | 30,637,658 | ||||||||||||
Hollywood
Media Corp.
Segment
Summary Financial Data and EBITDA Reconciliation
|
For
the Nine Months Ended September 30, 2010
|
||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||
|
Broadway
|
Intellectual
|
|||||||||||||||||||
|
Ticketing
|
Ad
Sales (1)
|
Properties
|
Other
(2)
|
Total
|
||||||||||||||||
|
Net
Revenues
|
$ | 79,317,020 | $ | 2,297,894 | $ | 683,199 | $ | - | $ | 82,298,113 | ||||||||||
|
Operating
Income (Loss)
|
4,189,238 | (404,820 | ) | (84,845 | ) | (5,820,566 | ) | (2,120,993 | ) | |||||||||||
|
Net
Income (Loss)
|
4,176,681 | (353,624 | ) | (7,440 | ) | (4,624,475 | ) | (808,858 | ) | |||||||||||
|
Add
back (Income) Expense:
|
||||||||||||||||||||
|
Interest,
net
|
(868 | ) | 6,803 | (49 | ) | (17,491 | ) | (11,605 | ) | |||||||||||
|
Taxes
|
13,425 | (58,619 | ) | - | 8,241 | (36,953 | ) | |||||||||||||
|
Depreciation
and Amortization
|
671,742 | 205,663 | 254 | 233,663 | 1,111,322 | |||||||||||||||
|
EBITDA
Income (Loss)
|
$ | 4,860,980 | $ | (199,777 | ) | $ | (7,235 | ) | $ | (4,400,062 | ) | $ | 253,906 | |||||||
|
For
the Nine Months Ended September 30, 2009
|
||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||
|
Broadway
|
Intellectual
|
|||||||||||||||||||
|
Ticketing
|
Ad
Sales (1)
|
Properties
|
Other
(2)
|
Total
|
||||||||||||||||
|
Net
Revenues
|
$ | 69,979,418 | $ | 2,510,258 | $ | 931,142 | $ | - | $ | 73,420,818 | ||||||||||
|
Operating
Income (Loss)
|
3,186,593 | (246,437 | ) | 67,022 | (5,457,957 | ) | (2,450,779 | ) | ||||||||||||
|
Net
Income (Loss)
|
3,002,149 | (5,233,951 | ) | 33,420 | (3,037,180 | ) | (5,235,562 | ) | ||||||||||||
|
Add
back (Income) Expense:
|
||||||||||||||||||||
|
Interest,
net
|
(10,092 | ) | 5,525 | (515 | ) | (13,632 | ) | (18,714 | ) | |||||||||||
|
Taxes
|
1,929 | (51,795 | ) | - | (14,575 | ) | (64,441 | ) | ||||||||||||
|
Depreciation
and Amortization
|
617,505 | 271,569 | 225 | 294,888 | 1,184,187 | |||||||||||||||
|
EBITDA
Income (Loss)
|
$ | 3,611,491 | $ | (5,008,652 | ) | $ | 33,130 | $ | (2,770,499 | ) | $ | (4,134,530 | ) | |||||||
|
For
the Three Months Ended September 30, 2010
|
||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||
|
Broadway
|
Intellectual
|
|||||||||||||||||||
|
Ticketing
|
Ad
Sales (1)
|
Properties
|
Other
(2)
|
Total
|
||||||||||||||||
|
Net
Revenues
|
$ | 24,408,490 | $ | 784,777 | $ | 188,615 | $ | - | $ | 25,381,882 | ||||||||||
|
Operating
Income (Loss)
|
1,547,479 | (114,522 | ) | (49,947 | ) | (2,100,755 | ) | (717,745 | ) | |||||||||||
|
Net
Income (Loss)
|
1,535,922 | (101,837 | ) | (15,397 | ) | (1,848,148 | ) | (429,460 | ) | |||||||||||
|
Add
back (Income) Expense:
|
||||||||||||||||||||
|
Interest,
net
|
(568 | ) | 2,689 | (14 | ) | (2,008 | ) | 99 | ||||||||||||
|
Taxes
|
12,089 | (9,600 | ) | - | 8,241 | 10,730 | ||||||||||||||
|
Depreciation
and Amortization
|
222,243 | 63,151 | 105 | 68,539 | 354,038 | |||||||||||||||
|
EBITDA
Income (Loss)
|
$ | 1,769,686 | $ | (45,597 | ) | $ | (15,306 | ) | $ | (1,773,376 | ) | $ | (64,593 | ) | ||||||
|
For
the Three Months Ended September 30, 2009
|
||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||
|
Broadway
|
Intellectual
|
|||||||||||||||||||
|
Ticketing
|
Ad
Sales (1)
|
Properties
|
Other
(2)
|
Total
|
||||||||||||||||
|
Net
Revenues
|
$ | 20,597,971 | $ | 845,639 | $ | 411,056 | $ | - | $ | 21,854,666 | ||||||||||
|
Operating
Income (Loss)
|
1,015,580 | (87,787 | ) | 68,980 | (1,672,301 | ) | (675,528 | ) | ||||||||||||
|
Net
Income (Loss)
|
870,216 | (74,312 | ) | 35,311 | (1,180,208 | ) | (348,993 | ) | ||||||||||||
|
Add
back (Income) Expense:
|
||||||||||||||||||||
|
Interest,
net
|
(2,699 | ) | 1,962 | (20 | ) | (2,835 | ) | (3,592 | ) | |||||||||||
|
Taxes
|
1,929 | (10,829 | ) | - | (16,075 | ) | (24,975 | ) | ||||||||||||
|
Depreciation
and Amortization
|
203,311 | 89,423 | 75 | 96,410 | 389,219 | |||||||||||||||
|
EBITDA
Income (Loss)
|
$ | 1,072,757 | $ | 6,244 | $ | 35,366 | $ | (1,102,708 | ) | $ | 11,659 | |||||||||
(1) The
Ad Sales segment includes other advertising sales by CinemasOnline.
(2) The
Other segment is comprised of payroll and benefits for corporate and
administrative personnel as well as other corporate-wide expenses such as legal
fees, audit fees, proxy costs, insurance, centralized information technology,
and includes consulting fees and other fees and costs relating to compliance
with the provisions of the Sarbanes-Oxley Act of 2002 that require Hollywood
Media and its Independent Registered Public Accounting Firm to make an
assessment of and report on internal control over financial
reporting. Also includes Discontinued Operations financial
information.