EX-99.1 2 v155677_ex99-1.htm Unassociated Document
Exhibit 99.1


Hollywood Media Corp. Reports 2009 Second Quarter Results

BOCA RATON, Fla., July 29, 2009 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services, today reported financial results for the second quarter ended June 30, 2009.  Results for the 2008 second quarter reflect the divestment of the Company’s Hollywood.com business in August 2008, which has been accounted for as discontinued operations.

Highlights:
 
Income from operations for the Company as a whole of $260,703, despite lower net revenues;
75% year-over-year increase in Broadway Ticketing EBITDA*; and
Year-over-year reduction of 28% in SG&A and payroll and benefits expenses; total year-over-year operating cost and expense reduction of 19%.
 

For the 2009 second quarter, Hollywood Media reported net revenues of $30.3 million, primarily attributable to Broadway Ticketing revenues.  This compares to net revenues of $35.5 million in the second quarter of last year.  The year-over-year decline in net revenues primarily reflects lower group sales as a result of the economy as well as lower ancillary sales for hotels and other tourism-related services.    Advertising sales from Broadway shows, which are not recorded as revenues but rather as a reduction to cost of revenues-ticketing, increased by more than $0.3 million, or 206%, in the second quarter 2009 period versus the prior year.

Net loss for the 2009 second quarter was $4.8 million, or $0.16 per share, which includes a $5.0 million non-cash impairment charge related to the Ad Sales segment. This compares to a 2008 second quarter net loss of $0.7 million, or $0.02 per share, which included a loss from discontinued operations of $0.7 million and a $1.3 million cash dividend related to the Company’s 26.2 percent equity interest in MovieTickets.com. There was no dividend in second quarter 2009.  EBITDA loss in the 2009 second quarter for the Company as a whole was $4.4 million, which includes the $5.0 million impairment charge mentioned above.  This compares to EBITDA (Modified)* of $0.3 million in the second quarter of 2008, which included the $1.3 million cash dividend mentioned above.

Mitchell Rubenstein, CEO of Hollywood Media, commented, “We drove significant improvement in profitability from operations in the second quarter, highlighted by income from operations for the Company as a whole and a 75% increase in Broadway Ticketing EBITDA versus the prior year.   The results reflect significant decreases in operating expenses coupled with increases in gross margin percentage and ad sales on Broadway.com.”
 
 
 

 

Exhibit 99.1

Cash and cash equivalents was $8.4 million as of June 30, 2009, compared to $10.8 million as of March 31, 2009.  The change reflects $1.3 million in purchases of Broadway ticketing inventory, capital expenditures of $0.4 million in connection with a redesign of the Broadway.com site and payment of $0.3 million in audit fees that had been accrued in the 2008 fourth quarter. The Company also has approximately $1.2 million in its restricted cash balance, which was transferred by the Company during the first quarter of 2009 to secure a bond for future Broadway ticketing purchases.
 
Teleconference Information

Management will host a teleconference to discuss the Company’s 2009 second quarter financial results. The conference call is scheduled for Wednesday, July 29, 2009 at 8:30 a.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 August 7, 2009, 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 328715#.   An archived version of the webcast will also be available on 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 its Intellectual Property division.

*Note on EBITDA
EBITDA and EBITDA (Modified) are non-GAAP financial measures.  EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA (Modified) is defined as net income from continuing operations before interest, taxes, depreciation and amortization on continuing operations. 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. Hollywood Media has provided a reconciliation of net income to EBITDA (Modified) in the attached tables.

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 2008. Such forward-looking statements speak only as of the date on which they are made.

 
 

 

Exhibit 99.1

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
 
   
June 30,
   
December 31,
 
   
2009
   
2008
 
   
(unaudited)
       
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 8,394,861     $ 12,685,946  
Receivables, net
    1,571,901       1,433,797  
Inventories held for sale
    5,856,495       4,491,841  
Deferred ticket costs
    8,382,431       12,085,237  
Prepaid expenses
    1,583,512       1,418,563  
Other receivables
    1,169,803       1,431,216  
Other current assets
    20,483       99,945  
Related party receivable
    38,020       -  
Restricted cash
    1,303,220       2,600,000  
Total current assets
    28,320,726       36,246,545  
                 
PROPERTY AND EQUIPMENT, net
    5,003,862       4,649,202  
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES
    131,431       132,800  
INTANGIBLE ASSETS, net
    525,601       682,896  
GOODWILL
    20,154,292       25,154,292  
OTHER ASSETS
    34,548       73,126  
TOTAL ASSETS
  $ 54,170,460     $ 66,938,861  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
Accounts payable
  $ 1,500,553     $ 1,329,949  
Accrued expenses and other
    2,702,751       3,708,652  
Deferred revenue
    11,370,876       15,196,455  
Gift certificate liability
    3,004,196       3,434,359  
Customer deposits
    615,801       831,838  
Current portion of capital lease obligations
    155,863       203,579  
Current portion of notes payable
    49,230       43,147  
Related party payable
    82,220       2,622,438  
Total current liabilities
    19,481,490       27,370,417  
                 
DEFERRED REVENUE
    369,409       401,309  
CAPITAL LEASE OBLIGATIONS, less current portion
    118,648       203,901  
OTHER DEFERRED LIABILITY
    1,135,465       1,168,096  
NOTES PAYABLE, less current portion
    16,752       36,258  
                 
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; 31,037,656
         
and 30,883,913 shares issued and outstanding at June 30, 2009 and
         
    December 31, 2008, respectively
    310,376       308,839  
Additional paid-in capital
    309,298,158       309,100,760  
Accumulated deficit
    (276,582,000 )     (271,695,431 )
Total Hollywood Media Corp shareholders' equity
    33,026,534       37,714,168  
Noncontrolling interest
    22,162       44,712  
Total shareholders' equity
    33,048,696       37,758,880  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 54,170,460     $ 66,938,861  
 

 
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

   
SIX MONTHS ENDED 
JUNE 30,
   
THREE MONTHS ENDED
JUNE 30,
 
   
2009
   
2008
   
2009
   
2008
 
                         
NET REVENUES
                       
Ticketing
  $ 49,381,447     $ 59,062,595     $ 29,138,882     $ 33,764,778  
Other
    2,184,705       3,454,389       1,113,373       1,778,536  
      51,566,152       62,516,984       30,252,255       35,543,314  
                                 
                                 
OPERATING COSTS AND EXPENSES
                               
Cost of revenues - ticketing
    41,152,654       49,782,868       24,118,554       28,762,843  
Editorial, production, development and technology
    1,236,913       1,901,363       594,923       925,053  
Selling, general and administrative
    5,117,994       6,954,601       2,437,983       3,300,539  
Payroll and benefits
    5,038,874       6,773,953       2,452,198       3,509,594  
Depreciation and amortization
    794,968       985,266       387,894       457,775  
                                 
Total operating costs and expenses
    53,341,403       66,398,051       29,991,552       36,955,804  
                                 
Income (loss) from operations
    (1,775,251 )     (3,881,067 )     260,703       (1,412,490 )
                                 
EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES
                               
Equity in earnings (losses) of unconsolidated investees
    1,912,833       1,317,513       (810 )     1,314,074  
Impairment loss of unconsolidated investee
    (5,000,000 )     -       (5,000,000 )     -  
                                 
Total equity in earnings (losses) of unconsolidated investees
    (3,087,167 )     1,317,513       (5,000,810 )     1,314,074  
                                 
OTHER INCOME (EXPENSE)
                               
Interest, net
    15,122       300,333       3,670       122,199  
Other, net
    (40,214 )     (33,582 )     (56,053 )     (41,283 )
                                 
Loss from continuing operations
    (4,887,510 )     (2,296,803 )     (4,792,490 )     (17,500 )
                                 
Loss  from discontinued operations
    -       (1,520,775 )     -       (674,802 )
Loss from discontinued operations
    -       (1,520,775 )     -       (674,802 )
                                 
Net loss
    (4,887,510 )     (3,817,578 )     (4,792,490 )     (692,302 )
                                 
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTEREST
    941       (65,822 )     (2,226 )     (42,060 )
                                 
Net loss attributable to Hollywood Media Corp
  $ (4,886,569 )   $ (3,883,400 )   $ (4,794,716 )   $ (734,362 )
                                 
Basic and diluted loss per common share
                               
Continuing operations
  $ (0.16 )   $ (0.07 )   $ (0.16 )   $ (0.00 )
Discontinued operations
    -       (0.05 )     -       (0.02 )
Total basic and diluted net loss per share
  $ (0.16 )   $ (0.12 )   $ (0.16 )   $ (0.02 )
                                 
Weighted average common and common equivalent shares
                               
outstanding - basic and diluted
    30,529,429       31,909,540       30,639,123       31,964,851  
 

 
Hollywood Media Corp.
Segment Summary Financial Data and EBITDA Reconciliation
 
For the Six Months Ended June 30, 2009
                             
(unaudited)
                             
   
Broadway
         
Intellectual
             
   
Ticketing
   
Ad Sales (1)(3)
   
Properties
   
Other (2)
   
Total
 
                               
Net Revenues
  $ 49,381,447     $ 1,664,619     $ 520,086     $ -     $ 51,566,152  
                                         
Operating Income (Loss)
    2,171,013       (158,650 )     (1,958 )     (3,785,656 )     (1,775,251 )
                                         
Net Income (Loss) from continuing operations
    2,131,933       (5,159,639 )     (1,891 )     (1,856,972 )     (4,886,569 )
                                         
  Add back (Income) Expense:
                                       
                                         
      Interest, net
    (7,393 )     3,563       (495 )     (10,797 )     (15,122 )
      Taxes
    -       (40,966 )     -       1,500       (39,466 )
      Depreciation and Amortization
    414,194       182,146       150       198,478       794,968  
                                         
EBITDA Income (Loss) from continuing operations
  $ 2,538,734     $ (5,014,896 )   $ (2,236 )   $ (1,667,791 )   $ (4,146,189 )
                                         
 
For the Six Months Ended June 30, 2008
                             
(unaudited)
                             
   
Broadway
         
Intellectual
             
   
Ticketing
   
Ad Sales (1)
   
Properties
   
Other (2)
   
Total
 
                               
Net Revenues
  $ 59,062,595     $ 2,712,349     $ 742,040     $ -     $ 62,516,984  
                                         
Operating Income (Loss)
    1,479,861       (230,571 )     143,221       (5,273,578 )     (3,881,067 )
                                         
Net Income (Loss) from continuing operations
    1,525,678       (201,321 )     76,743       (3,763,725 )     (2,362,625 )
                                         
  Add back (Income) Expense:
                                       
                                         
      Interest, net
    (55,521 )     7,976       (2,154 )     (250,634 )     (300,333 )
      Taxes
    -       (19,607 )     -       52,000       32,393  
      Depreciation and Amortization
    459,520       311,657       -       214,089       985,266  
                                         
EBITDA Income (Loss) from continuing operations
  $ 1,929,677     $ 98,705     $ 74,589     $ (3,748,270 )   $ (1,645,299 )
                                         
 
For the Three Months Ended June 30, 2009
                                       
(unaudited)
                                       
   
Broadway
           
Intellectual
                 
   
Ticketing
   
Ad Sales (1)(3)
   
Properties
   
Other (2)
   
Total
 
                                         
Net Revenues
  $ 29,138,882     $ 849,261     $ 264,112     $ -     $ 30,252,255  
                                         
Operating Income (Loss)
    2,053,088       (45,215 )     4,597       (1,751,767 )     260,703  
                                         
Net Income (Loss) from continuing operations
    2,011,230       (5,059,158 )     1,699       (1,748,487 )     (4,794,716 )
                                         
  Add back (Income) Expense:
                                       
                                         
      Interest
    (2,968 )     1,849       (138 )     (2,413 )     (3,670 )
      Taxes
    -       (6,846 )     -       -       (6,846 )
      Depreciation and Amortization
    198,934       91,164       75       97,721       387,894  
                                         
EBITDA Income (Loss) from continuing operations
  $ 2,207,196     $ (4,972,991 )   $ 1,636     $ (1,653,179 )   $ (4,417,338 )
                                         
 
For the Three Months Ended June 30, 2008
                             
(unaudited)
                             
   
Broadway
         
Intellectual
             
   
Ticketing
   
Ad Sales (1)
   
Properties
   
Other (2)
   
Total
 
                               
Net Revenues
  $ 33,764,778     $ 1,369,629     $ 408,907     $ -     $ 35,543,314  
                                         
Operating Income (Loss)
    1,079,490       (43,742 )     86,288       (2,534,526 )     (1,412,490 )
                                         
Net Income (Loss) from continuing operations
    1,086,357       (47,163 )     47,967       (1,146,721 )     (59,560 )
                                         
  Add back (Income) Expense:
                                       
                                         
      Interest
    (22,262 )     2,334       (765 )     (101,506 )     (122,199 )
      Taxes
    -       (7,207 )     -       25,000       17,793  
      Depreciation and Amortization
    195,438       156,743       -       105,594       457,775  
                                         
EBITDA Income (Loss) from continuing operations
  $ 1,259,533     $ 104,707     $ 47,202     $ (1,117,633 )   $ 293,809  


(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.
(3)  The Ad Sales segment includes a $5.0 million non-cash impairment loss to MovieTickets.com.