EX-99.1 2 v164636_ex99-1.htm Unassociated Document
 Exhibit 99.1
 
 
HOLLYWOOD MEDIA CORP. REPORTS 2009 THIRD QUARTER RESULTS
~ Positive EBITDA* Across All Operating Divisions ~
~ Significant Year-over-Year Cost Savings and Expense Reductions ~

BOCA RATON, Fla., November 4, 2009 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services, today reported financial results for the third quarter ended September 30, 2009.  Results reflect the divestment of the Company’s Hollywood.com business in August 2008, which has been accounted for as discontinued operations.

For the 2009 third quarter, Hollywood Media reported net revenues of $21.9 million.  This compares to net revenues of $25.5 million in the third quarter of last year.  Revenue performance during this seasonally slower period reflected softness in ticket sales as well as lower ancillary sales for hotels.  The Company noted that while net revenues were lower for the quarter versus last year, preliminary results for the month of October 2009 reflected an increase in individual consumer ticket sales on Broadway.com versus the prior year.

Loss from continuing operations for the 2009 third quarter was $0.8 million, or $0.03 per share, compared to $1.9 million, or $0.06 per share, in the prior-year period.  Net loss for the 2009 third quarter, which includes $0.5 million in gains from an earn-out from discontinued operations, was $0.3 million, or $0.01 per share, versus a net loss of $6.3 million, or $0.20 per share, which included a loss from discontinued operations of $4.4 million, or $0.14 per share.

EBITDA* in the 2009 third quarter for the Company as a whole was break-even, which included $0.5 million in gains from an earn-out from discontinued operations, versus an EBITDA loss of $6.0 million in the third quarter of 2008, which included a $4.4 million loss from discontinued operations.  EBITDA for all three operating segments was positive for the 2009 third quarter, with Broadway Ticketing EBITDA increasing to $1.1 million, despite a $0.1 million one-time charge related to the replacement of the old Broadway.com site in the period. The Company realized a 27% reduction in SG&A and payroll and benefits expenses with a total decrease in year-over-year operating costs and expenses of 18%.

Mitchell Rubenstein, CEO of Hollywood Media, commented, “During the third quarter, we continued to realize the benefits of significant expense reductions and managed our ticketing inventory well.  Our new Broadway.com site is now fully operational, and we are encouraged by initial sales trends ahead of the busy holiday selling season.”

Cash and cash equivalents was $9.8 million at September 30, 2009 up from $8.4 million at June 30, 2009 due to an increase in operating cash flow.  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 ticketing purchases.

 
 

Teleconference Information

Management will host a teleconference to discuss the Company’s 2009 third quarter financial results. The conference call is scheduled for Wednesday, November 4, 2009 at 9:00 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 November 11, 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 336617#.   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 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 2008. 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,
  
   
2009
    
2008
  
   
(unaudited)
        
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 9,761,580     $ 12,685,946  
Receivables, net
     1,189,689       1,433,797  
Inventories held for sale
     4,071,233       4,491,841  
Deferred ticket costs
     9,839,951       12,085,237  
Prepaid expenses
     1,698,894       1,418,563  
Other receivables
     1,254,595       1,431,216  
Other current assets
     203,240       99,945  
Related party receivable
     101,349       -  
Restricted cash
     1,221,000       2,600,000  
Total current assets
     29,341,531       36,246,545  
                 
PROPERTY AND EQUIPMENT, net
     4,644,434       4,649,202  
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES
     136,504       132,800  
INTANGIBLE ASSETS, net
     457,303       682,896  
GOODWILL
     20,183,142       25,154,292  
OTHER ASSETS
     31,148       73,126  
TOTAL ASSETS
   $ 54,794,062     $ 66,938,861  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
   $ 647,441     $ 1,329,949  
Accrued expenses and other
     3,043,127       3,708,652  
Deferred revenue
     12,888,759       15,196,455  
Gift certificate liability
     2,881,359       3,434,359  
Customer deposits
     852,943       831,838  
Current portion of capital lease obligations
     142,544       203,579  
Current portion of notes payable
     45,308       43,147  
Related party payable
     -       2,622,438  
Total current liabilities
     20,501,481       27,370,417  
                 
DEFERRED REVENUE
     314,103       401,309  
CAPITAL LEASE OBLIGATIONS, less current portion
     94,609       203,901  
OTHER DEFERRED LIABILITY
     1,120,892       1,168,096  
NOTES PAYABLE, less current portion
     6,424       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 September 30, 2009 and
                
December 31, 2008, respectively
     310,376       308,839  
Additional paid-in capital
     309,321,245       309,100,760  
Accumulated deficit
     (276,930,993 )     (271,695,431 )
Total Hollywood Media Corp shareholders' equity
     32,700,628       37,714,168  
Noncontrolling interest
     55,925       44,712  
Total shareholders' equity
     32,756,553       37,758,880  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 54,794,062     $ 66,938,861  
 
 
 

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

   
NINE MONTHS ENDED
SEPTEMBER 30,
    
THREE MONTHS ENDED
SEPTEMBER 30,
  
   
2009
    
2008
    
2009
    
2008
  
             
NET REVENUES
                        
Ticketing
   $ 69,979,418     $ 83,044,397     $ 20,597,971     $ 23,981,802  
Other
     3,441,400       4,995,369       1,256,695       1,540,980  
      73,420,818       88,039,766       21,854,666       25,522,782  
                                 
OPERATING COSTS AND EXPENSES
                                
Cost of revenues - ticketing
     57,768,570       69,416,062       16,615,916       19,633,194  
Editorial, production, development and technology
     1,944,210       2,685,058       707,297       783,695  
Selling, general and administrative
     7,572,482       10,098,009       2,454,488       3,143,408  
Payroll and benefits
     7,402,148       10,249,690       2,363,274       3,475,737  
Depreciation and amortization
     1,184,187       1,451,359       389,219       466,093  
                                 
Total operating costs and expenses
     75,871,597       93,900,178       22,530,194       27,502,127  
                                 
Loss from operations
     (2,450,779 )     (5,860,412 )     (675,528 )     (1,979,345 )
                                 
EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES
                                
Equity in earnings (losses) of unconsolidated investees
     1,912,906       1,312,622       73       (4,891 )
Impairment loss
     (5,000,000 )     -       -       -  
                                 
Total equity in earnings (losses) of unconsolidated investees
     (3,087,094 )     1,312,622       73       (4,891 )
                                 
OTHER INCOME (EXPENSE)
                                
Interest, net
     18,714       392,104       3,592       91,771  
Other, net
     (156,069 )     (40,273 )     (115,855 )     (6,691 )
                                 
Loss from continuing operations
     (5,675,228 )     (4,195,959 )     (787,718 )     (1,899,156 )
                                 
Gain (loss) on sale of discontinued operations, net of income taxes
     472,487       (4,303,717 )     472,487       (4,303,717 )
Loss from discontinued operations
     -       (1,635,750 )     -       (114,975 )
                                 
Income (loss) from discontinued operations
     472,487       (5,939,467 )     472,487       (4,418,692 )
                                 
Net loss
     (5,202,741 )     (10,135,426 )     (315,231 )     (6,317,848 )
                                 
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST
     (32,821 )     (97,573 )     (33,762 )     (31,751 )
                                 
Net loss attributable to Hollywood Media Corp
   $ (5,235,562 )   $ (10,232,999 )   $ (348,993 )   $ (6,349,599 )
                                 
Basic and diluted income (loss) per common share
                                
Continuing operations
   $ (0.19 )   $ (0.13 )   $ (0.03 )   $ (0.06 )
Discontinued operations
     0.02       (0.19 )     0.02       (0.14 )
Total basic and diluted net loss per share
   $ (0.17 )   $ (0.32 )   $ (0.01 )   $ (0.20 )
                                 
Weighted average common and common equivalent shares
                                
outstanding - basic and diluted
     30,565,413       31,971,997       30,637,658       32,095,554  
 
 
Hollywood Media Corp.
Segment Summary Financial Data and EBITDA Reconciliation
 
For the Nine Months Ended September 30, 2009
(unaudited)
   
Broadway
Ticketing
    
Ad Sales (1)(3)
    
Intellectual
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 Nine Months Ended September 30, 2008
(unaudited)
   
Broadway
Ticketing
    
Ad Sales (1)
    
Intellectual
Properties
    
Other (2)
    
Total
  
                               
Net Revenues
   $ 83,044,397     $ 3,959,304     $ 1,036,065     $ -     $ 88,039,766  
                                         
Operating Income (Loss)
     2,338,563       (317,053 )     211,100       (8,093,022 )     (5,860,412 )
                                         
Net Income (Loss)
     2,396,545       (295,810 )     109,058       (12,442,792 )     (10,232,999 )
                                         
Add back (Income) Expense:
                                  
                                         
Interest, net
     (66,280 )     9,865       (3,239 )     (332,450 )     (392,104 )
Taxes
     -       (17,418 )     7       59,809       42,398  
Depreciation and Amortization
     657,295       463,879       75       330,110       1,451,359  
                                         
EBITDA Income (Loss)
   $ 2,987,560     $ 160,516     $ 105,901     $ (12,385,323 )   $ (9,131,346 )
 
For the Three Months Ended September 30, 2009
(unaudited)
   
Broadway
Ticketing
    
Ad Sales (1)
    
Intellectual
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
     (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  
 
For the Three Months Ended September 30, 2008
(unaudited)
   
Broadway
Ticketing
    
Ad Sales (1)
    
Intellectual
Properties
    
Other (2)
    
Total
  
                               
Net Revenues
   $ 23,981,802     $ 1,246,955     $ 294,025     $ -     $ 25,522,782  
                                         
Operating Income (Loss)
     858,702       (86,482 )     67,879       (2,819,444 )     (1,979,345 )
                                         
Net Income (Loss)
     870,867       (94,489 )     32,315       (7,158,292 )     (6,349,599 )
                                         
Add back (Income) Expense:
                                  
                                         
Interest
     (10,759 )     1,889       (1,085 )     (81,816 )     (91,771 )
Taxes
     -       2,189       7       7,809       10,005  
Depreciation and Amortization
     197,775       152,222       75       116,021       466,093  
                                         
EBITDA Income (Loss)
   $ 1,057,883     $ 61,811     $ 31,312     $ (7,116,278 )   $ (5,965,272 )
 
(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.
(3) 
The Ad Sales segment includes a $5.0 million non-cash impairment loss to MovieTickets.com.