-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ao3R8ypB3HIeqm/1t3M8+YOTqewHUhfFYMRi8tJgLcvk+7Co28HKOpM6ngB+oS1j fhx3VwfDThrUnGxR62N0zQ== 0001116502-04-001391.txt : 20040519 0001116502-04-001391.hdr.sgml : 20040519 20040519172708 ACCESSION NUMBER: 0001116502-04-001391 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040517 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040519 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOLLYWOOD MEDIA CORP CENTRAL INDEX KEY: 0000912544 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RETAIL STORES, NEC [5990] IRS NUMBER: 650385686 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14332 FILM NUMBER: 04819483 BUSINESS ADDRESS: STREET 1: 2255 GLADES RD STREET 2: STE 237 W CITY: BOCA RATON STATE: FL ZIP: 33431 BUSINESS PHONE: 5619988000 MAIL ADDRESS: STREET 1: 2255 GLADES RD STREET 2: STE 237 W CITY: BOCA RATON STATE: FL ZIP: 33431 FORMER COMPANY: FORMER CONFORMED NAME: HOLLYWOOD COM INC DATE OF NAME CHANGE: 20000511 FORMER COMPANY: FORMER CONFORMED NAME: BIG ENTERTAINMENT INC DATE OF NAME CHANGE: 19930924 8-K 1 hollywood-8k.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) MAY 17, 2004 ------------------------------- HOLLYWOOD MEDIA CORP. - -------------------------------------------------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) FLORIDA 0-22908 65-0385686 - -------------------------------------------------------------------------------- (STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER OF INCORPORATION) IDENTIFICATION NO.) 2255 GLADES ROAD, SUITE 221A, BOCA RATON, FLORIDA 33431 - ---------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (561) 998-8000 ---------------------------- ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following exhibit is furnished in connection with the disclosure pursuant to Item 12 of this Form 8-K. 99.1 Press Release of Hollywood Media Corp. dated May 17, 2004 (Hollywood Media Reports Financial Results for the First Quarter of Fiscal 2004). ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. The following information is furnished pursuant to Item 12 of Form 8-K. On May 17, 2004, we issued a press release announcing Hollywood Media's financial results for the first quarter of fiscal 2004. This information is furnished herewith as Exhibit 99.1 hereto and is incorporated herein by reference. The information in this Item 12 of this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HOLLYWOOD MEDIA CORP. By: /s/ Scott Gomez ------------------------------- Scott Gomez Vice President of Finance and Accounting Date: May 17, 2004 EX-99.1 2 pressrelease-991.txt PRESS RELEASE HOLLYWOOD MEDIA REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL 2004 - - NEW MSOS LAUNCH THTV WITH ROLLOUTS PLANNED FOR ADDITIONAL GEOGRAPHIC MARKETS - - - BROADWAY TICKETING DEFERRED REVENUE INCREASES 26% - (Boca Raton, FL - May 17, 2004) - 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 first quarter ended March 31, 2004. FINANCIAL RESULTS Net revenues for the quarter ended March 31, 2004 increased 2 percent, to $14.8 million from $14.5 million for the same period of 2003. Deferred revenue for Broadway tickets sold for future performances, a key leading indicator of future revenue for the Broadway Ticketing division, was up 26 percent as of March 31, 2004 compared to December 31, 2003. The net loss for the first quarter narrowed 41 percent to $1.66 million, or $0.07 per share, compared with a net loss of $2.81 million, or $0.14 per share, for the first quarter of 2003. "Our Broadway Ticketing division reported steady results, overcoming the typical slow time of year for tourism in New York and posting a slight increase in revenue," commented Mitchell Rubenstein, Chief Executive Officer of Hollywood Media Corp. "More importantly, our deferred revenue at the end of the quarter was up substantially versus the end of fiscal 2003. This growth, coupled with an approximate 22 percent increase in Broadway ticket sales in April 2004 as compared to April 2003, provides increased optimism for the balance of the year for this division. In addition, our Broadway Ticketing division revenues include high margin commissions on sales of hotel room packages, and our sales of hotel rooms increased 55 percent compared to the year ago quarter. We saw revenue declines in our intellectual property division, due primarily to the vagaries of revenue recognition applied to book publishing, but the strong pipeline of new published titles in this division leads management to expect a rebound in revenues in this division as the year progresses. Our Internet ad sales division experienced revenue growth of 57 percent in the first quarter 2004 as compared to first quarter 2003. We made some strategic decisions in our Data Services business designed to improve profitability, and, based on a strong pipeline of new business and new business opportunities, including our expansion in the UK, we expect measurable growth in that business for the remainder of the year. In addition, MovieTickets.com (in which Hollywood Media has a 26.4% ownership interest) added a large Internet Service Provider to its distribution channel and continued to show solid customer adoption of online ticket sales with over 1 million tickets sold for the film, "The Passion of the Christ." Mr. Rubenstein continued, "We have implemented an aggressive strategy seeking to expand distribution of our interactive cable TV network, Totally Hollywood TV ("THTV"), through cable television operators (MSOs) as this channel is quickly growing in popularity among MSOs and subscribers. In the past 30 days, THTV launched distribution with an additional Top 8 MSO in certain markets, bringing the total number of MSOs distributing THTV to four of the Top 8. In two different geographic areas, based on MSO-provided statistics, THTV was by far the most viewed item in the cable operator's free video-on-demand offerings, far outpacing recognized networks' VOD offerings on such tier of programming service. Looking forward, we are excited about the growth potential in all of our businesses, and believe we are well positioned for future success." The Company completed the quarter with a substantially stronger balance sheet compared to the prior-year period, due primarily to our previously reported private placement of common stock in February 2004. The Company completed the quarter with a current ratio of 1.41:1 while total shareholders' equity increased 41 percent to $48.4 million compared to $34.3 million as of December 31, 2003. HOLLYWOOD MEDIA REPORTS 2004 FIRST QUARTER RESULTS Page 2 RECENT DEVELOPMENTS During and subsequent to the first quarter of 2004, the Company continued to execute its operating strategy. Specifically: o THTV launched with two new MSOs bringing the total number carrying THTV to four of the Top 8 MSOs in the U.S. Roll-out continues to new geographic markets. o In April 2004, MovieTickets.com announced that it signed an agreement with EarthLink, one of the nation's largest Internet service providers with five million subscribers, to provide convenient movie ticketing services for EarthLink subscribers and other visitors on the Earthlink start page. TELECONFERENCE INFORMATION As previously announced, management will host a teleconference to discuss the Company's First Quarter 2004 financial results. The conference call is scheduled for May 17, 2004 at 4:30 p.m. Eastern Time. To access the teleconference, please dial 800-231-5571 if calling within the United States or 973-582-2703 if calling internationally 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 May 24, 2004 and can be accessed by dialing 877-519-4471 (U.S.), 973-341-3080 (Int'l), passcode 4767517. A replay of the teleconference will also be archived for a longer period on the investor relations portion of the Company's web site. 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 Broadway.com, 1-800-Broadway and Theatre Direct International. 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 the cable television network, Totally Hollywood TV ("THTV"). Financial Tables Follow 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 2003. Such forward-looking statements speak only as of the date on which they are made. Contact: Matthew Hayden Hayden Communications, Inc. matt@haydenir.com 858-456-4533 HOLLYWOOD MEDIA REPORTS 2004 FIRST QUARTER RESULTS Page 3 HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, 2004 2003 ------------- ------------- (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 12,642,403 $ 1,867,999 Receivables, net 1,446,944 1,496,934 Inventories, net 8,873,768 5,770,289 Prepaid expenses 854,928 941,966 Other receivables 1,107,222 654,141 Other current assets 41,156 10,296 Deferred advertising - CBS 38,807 38,807 ------------- ------------- Total current assets 25,005,228 10,780,432 RESTRICTED CASH 1,000,000 850,000 PROPERTY AND EQUIPMENT, net 2,049,869 2,236,906 INVESTMENTS IN AND ADVANCES TO EQUITY METHOD INVESTEES 119,213 164,205 IDENTIFIABLE INTANGIBLE ASSETS, net 1,430,029 1,603,985 GOODWILL 40,813,682 40,813,682 OTHER ASSETS 393,818 431,811 ------------- ------------- TOTAL ASSETS $ 70,811,839 $ 56,881,021 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,170,975 $ 2,201,431 Accrued expenses and other 4,085,598 5,178,467 Loan from shareholder/officer -- 600,000 Deferred revenue 11,309,411 9,063,317 Current portion of capital lease obligations 218,440 227,538 ------------- ------------- Total current liabilities 17,784,424 17,270,753 CAPITAL LEASE OBLIGATIONS, less current portion 155,520 178,790 DEFERRED REVENUE, less current portion 205,813 193,063 MINORITY INTEREST 41,258 21,895 OTHER DEFERRED LIABILITY 191,700 903,192 CONVERTIBLE DEBENTURES, NET 4,019,106 4,027,629 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; 27,669,695 and 21,810,266 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively 276,697 218,103 Additional paid-in capital 294,732,710 279,087,772 Deferred compensation (81,250) (162,500) Accumulated deficit (246,514,139) (244,857,676) ------------- ------------- Total shareholders' equity 48,414,018 34,285,699 ------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 70,811,839 $ 56,881,021 ============= ============= HOLLYWOOD MEDIA REPORTS 2004 FIRST QUARTER RESULTS Page 4 HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended March 31, ---------------------------- 2004 2003 ------------ ------------ As Restated, See Note 2) NET REVENUES Ticketing $ 11,878,290 $ 11,520,248 Other 2,906,430 3,017,438 ------------ ------------ 14,784,720 14,537,686 ------------ ------------ OPERATING EXPENSES: Cost of revenues - ticketing 9,951,540 10,038,722 Editorial, production, development and technology (exclusive of depreciation and amortization shown separately below) 1,188,021 1,159,735 Selling, general and administrative 4,978,313 4,709,438 Amortization of CBS advertising -- 190,023 Depreciation and amortization 530,117 639,876 ------------ ------------ Total operating expenses 16,647,991 16,737,794 ------------ ------------ Operating loss (1,863,271) (2,200,108) EQUITY IN EARNINGS OF INVESTMENTS 4,694 4,405 OTHER INCOME (EXPENSE): Interest, net (417,955) (340,368) Other, net 690,561 (49,091) ------------ ------------ Loss before minority interest (1,585,971) (2,585,162) MINORITY INTEREST IN EARNINGS OF SUBSIDIARIES (70,492) (220,573) ------------ ------------ Net loss $ (1,656,463) $ (2,805,735) ============ ============ Basic and diluted loss per common share $ (0.07) $ (0.14) ============ ============ Weighted average common and common equivalent shares outstanding - basic and diluted 24,916,531 20,401,079 ============ ============
- --------------- (1) Net Revenues have been reduced by $25,129, or 0.2%, in the three months ended March 31, 2003 restated condensed consolidated statement of operations as a result of an underaccrual for Broadway Ticketing gift certificates. Cost of Revenues - Ticketing has been decreased by $108,906, or 1.1%, in the three months ended March 31, 2003 restated condensed consolidated statement of operations as a result of an overaccrual for Broadway ticketing purchases. The number of weighted average shares outstanding was increased by 2,788 shares for the three months ended March 31, 2003 to include vested restricted shares. -----END PRIVACY-ENHANCED MESSAGE-----