EX-99.1 3 e15467ex99_1.txt PRESS RELEASE Exhibit 99.1 HOLLYWOOD MEDIA CORP. HOLLYWOOD MEDIA REPORTS SECOND QUARTER 2003 FINANCIAL RESULTS BOCA RATON, Fla., Aug. 12 /PRNewswire-FirstCall/ -- Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of news, information and ticketing covering the entertainment and media industries, today announced financial results for the three and six month periods ending June 30, 2003. Mitchell Rubenstein, Chairman and CEO of Hollywood Media Corp., stated: "We delivered 9.4% revenue growth in the second quarter (excluding barter revenue*), and we are experiencing continued demand for our products and services. We look forward to the rest of the year as we continue to focus on improving the bottom line." FINANCIAL RESULTS Net revenues for the three months ended June 30, 2003 increased $0.9 million or 5.3% to $17.0 million from $16.1 million in the same period of 2002. Excluding barter revenue* from both quarters (barter revenue decreased from $0.6 million in the second quarter of 2002 to zero in the second quarter of 2003), revenue increased 9.4% to $17.0 million in the second quarter 2003 compared to $15.5 million in the second quarter of 2002. The net loss for the second quarter of 2003 was $1.9 million, a reduction of 73.3%, as compared to a net loss of $6.9 million in the second quarter of 2002. The net loss per share for the second quarter of 2003 was $0.09 as compared to $0.25 per share in the second quarter of 2002. Please note that the weighted average number of shares outstanding for the three months ended June 30, 2003 was 20,615,978 shares as compared to 28,276,884 shares in the comparable period in 2002. This improvement in the second quarter of 2003 was achieved even after considering that the Company recorded charges of $0.8 million in the second quarter of 2003 relating primarily to an accrual for ticketing gift certificates sold during the year ended December 31, 2002 and in the first quarter of 2003. These matters were not material to either the Company's previously reported annual 2002 or first quarter 2003 results. Net revenues for the six months ended June 30, 2003 increased $2.7 million or 9.4% to $31.5 million from $28.8 million in the same period of 2002. Excluding barter revenue* from both periods (barter revenue decreased from $1.3 million for the six months ended June 30, 2002 to zero for the six months ended June 30, 2003), for the six months ended June 30, 2003 revenue increased 14.8% to $31.5 million compared to $27.5 million for the six months ended June 30, 2002. The net loss for the six months ended June 30, 2003 was $4.7 million, a reduction of 67.2%, as compared to a net loss of $14.5 million for the six months ended June 30, 2002. The net loss per share for the six months ended June 30, 2003 was $0.23 as compared to $0.51 per share for the six months ended June 30, 2002. *NON-GAAP FINANCIAL MEASURES Revenues excluding barter are non-GAAP financial measures, and are provided for consideration in addition to, and not as a substitute for or superior to, reported revenues without such exclusion, which are also set forth above. Hollywood Media believes that revenues excluding barter may be useful information for investors regarding Hollywood Media's results of operations for the second quarter of 2003 and for the six months ended June 30, 2003, because such measures show growth in revenues without the effects of non-cash barter revenue, as Hollywood Media has decided to minimize its utilization of barter revenue arrangements. Barter revenue is offset by an equal amount of barter expense, and therefore does not impact the calculation of net loss. TELECONFERENCE INFORMATION The Company will host a teleconference to discuss its second quarter 2003 financial results. The conference call is scheduled for Tuesday, August 12, at 10:00 a.m. Eastern Time. To access the teleconference, please dial 646-862-1145 approximately five minutes prior to the start of the call. The teleconference will also be available via live webcast on the investor relations portion of the Company's website, located at http://www.hollywood.com/about_us/. Following prepared remarks, management will take questions from the audience via phone and e-mail. To ask a question via e-mail, please send your questions to questions@exec.hollywood.com in advance of, or during, the live call. If you are unable to listen to the live teleconference at its scheduled time, there will be a replay available through August 19, 2003, and can be accessed by dialing 800-633-8284 (U.S.), 402-977-9140 (Int'l), passcode 21157800. A replay of the teleconference will also be archived on the investor relations portion of the Company's website, and this press release is posted on the investor relations portion of the Company's website. ABOUT HOLLYWOOD MEDIA Hollywood Media Corp. is a leading provider of news, information and ticketing covering the entertainment and media industries. On the strength of its history in developing comprehensive entertainment industry databases, as well as its major strategic partners and unique content, the Company has launched a network of media businesses. The Company's Data Business includes CinemaSource, EventSource, AdSource and Baseline/FilmTracker. The Company's Broadway Tickets business includes Theatre Direct International, Broadway.com and 1-800-Broadway. These services supply thousands of media outlets with specific information on entertainment events such as movies, live theater and concerts, and sell tickets for Broadway. The Company's businesses also include an intellectual property business, as well as Hollywood.com and a minority interest in MovieTickets.com. In addition, the Company owns and operates two cable television networks, Totally Hollywood TV and Totally Broadway TV. 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 and integrate new businesses, our ability to develop strategic relationships, our ability to compete with other media, data and Internet companies, 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 2002. Such forward-looking statements speak only as of the date on which they are made, and Hollywood Media Corp. does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. /CONTACT: John Buckley, buckley@braincomm.com, or Kim Holt, both of Brainerd Communicators, Inc., +1-212-986-6667, for Hollywood Media Corp./ /Company News On-Call: http://www.prnewswire.com/comp/094769.html / /Web site: http://www.hollywood.com / (HOLL) - Financial Tables Below - HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, December 31, 2003 2002 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,517,700 $ 2,342,238 Receivables, net 1,271,804 1,845,063 Inventories, net 6,170,908 7,144,311 Prepaid expenses 1,474,675 1,026,454 Other receivables 784,952 510,532 Other current assets 324,393 247,532 Deferred advertising - CBS 418,051 924,780 ------------ ------------ Total current assets 11,962,483 14,040,910 PROPERTY AND EQUIPMENT, net 2,912,640 3,563,569 INVESTMENTS IN AND ADVANCES TO EQUITY METHOD INVESTEES 858,022 610,172 IDENTIFIABLE INTANGIBLE ASSETS, net 1,988,896 2,342,807 GOODWILL, net 40,813,683 40,773,968 OTHER ASSETS 516,702 737,231 ------------ ------------ TOTAL ASSETS $ 59,052,426 $ 62,068,657 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,953,626 $ 1,354,663 Accrued expenses and other 4,728,351 3,854,881 Notes payable 300,000 250,000 Loan from shareholder/officer 400,000 - Accrued exit and retail closure costs - 27,500 Deferred revenue 7,996,711 8,890,002 Current portion of capital lease obligations 242,479 340,083 ------------ ------------ Total current liabilities 15,621,167 14,717,129 CAPITAL LEASE OBLIGATIONS, less current portion 152,678 238,546 DEFERRED REVENUE 299,511 214,626 MINORITY INTEREST 48,149 - OTHER DEFERRED LIABILITY 2,307,616 2,381,863 CONVERTIBLE DEBENTURES, NET 3,596,008 3,223,988 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Preferred Stock, $.01 par value, 539,127 shares authorized; none outstanding - - Common stock, $.01 par value, 100,000,000 shares authorized; 20,513,708 and 20,253,863 shares issued and outstanding at March 31, 2003 and December 31, 2002, respectively 206,342 202,539 Additional paid-in capital 277,735,143 277,261,293 Accumulated deficit (240,914,188) (236,171,327) ------------ ------------ Total shareholders' equity 37,027,297 41,292,505 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 59,052,426 $ 62,068,657 ============ ============ HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Six Months Ended June 30, Three Months Ended June 30, ------------------------- --------------------------- 2003 2002 2003 2002 ----------- ------------ ----------- ----------- NET REVENUES $31,539,930 $28,821,158 $16,977,115 $16,115,716 COST OF REVENUES 23,596,143 19,297,233 13,027,598 11,061,072 ----------- ------------ ----------- ----------- Gross margin 7,943,787 9,523,925 3,949,517 5,054,644 ----------- ------------ ----------- ----------- OPERATING EXPENSES: General and administrative 3,558,810 3,097,661 1,667,578 1,245,679 Selling and marketing 468,232 1,787,711 190,836 861,779 Salaries and benefits 6,649,876 7,053,087 3,370,248 3,489,967 Amortization of CBS advertising 506,729 9,602,743 316,706 5,025,145 Depreciation and amortization 1,254,393 1,847,736 614,517 942,681 ----------- ------------ ----------- ----------- Total operating expenses 12,438,040 23,388,938 6,159,885 11,565,251 ----------- ------------ ----------- ----------- Operating loss (4,494,253) (13,865,013) (2,210,368) (6,510,607) EQUITY IN EARNINGS - INVESTMENTS 806,126 230,958 801,721 14,575 OTHER INCOME (EXPENSE): Interest expense (675,687) (455,328) (333,026) (237,705) Interest income 11,647 10,231 9,354 7,209 Other, net 8,894 2,400 57,985 (18,446) ----------- ------------ ----------- ----------- Loss before minority interest (4,343,273) (14,076,752) (1,674,334) (6,744,974) MINORITY INTEREST (399,588) (393,411) (179,015) (189,411) ----------- ------------ ----------- ----------- NET LOSS $(4,742,861) $(14,470,163) $(1,853,349) $(6,934,385) =========== ============ =========== =========== Basic and diluted net loss per common share $(0.23) $(0.51) $(0.09) $(0.25) =========== ============ =========== =========== Weighted average shares outstanding 20,509,155 28,197,227 20,615,978 28,276,884 =========== ============ =========== ===========