EX-99.1 2 v193867_ex99-1.htm Unassociated Document
Exhibit 99.1
 
HOLLYWOOD MEDIA CORP. REPORTS 2010 SECOND QUARTER RESULTS


BOCA RATON, Fla., August 16, 2010 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the second quarter ended June 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.

For the 2010 second quarter, net revenues increased 11% to $33.6 million compared to $30.3 million in the prior-year period.  Broadway Ticketing revenues, which represented 97% of the Company’s total net revenues, increased 12% versus the prior year period.

Net income for the 2010 second quarter was $0.2 million, or $0.01 per diluted share.  This compares to a net loss of $4.8 million, or $0.16 per share, in the prior-year period which included a $5.0 million non-cash impairment charge related to the Ad Sales segment.  Net income for the 2010 second quarter was impacted by $0.2 million in legal expenses related to the proposed sale of the Broadway Ticketing business, a $0.2 million increase in inventory reserve to reflect the Company’s decision to carry more ticketing inventory to meet demand, a $0.1 million early termination fee on an office lease in order to downsize the Company’s corporate offices in Boca Raton, Florida, and $0.1 million in payroll costs in the Broadway Ticketing business relating to the proposed sale.

EBITDA* in the 2010 second quarter for the Company as a whole was $0.6 million, compared to an EBITDA loss of $4.4 million in the prior-year period.  EBITDA in the 2010 second quarter was impacted by the items noted above and EBITDA loss in the 2009 second quarter included the non-cash impairment charge noted above.    Broadway Ticketing EBITDA contributed $2.1 million in the 2010 second quarter, which was impacted as noted above by the payroll costs relating to the proposed sale and the increase in inventory reserve, compared to $2.2 million in the prior-year period.

Mitchell Rubenstein, CEO of Hollywood Media, commented, “We continued to drive revenue gains in our Broadway Ticketing business during the period highlighted by 12% growth in the segment.  We attribute the increase to the successful relaunch of our enhanced Broadway.com website, our focus on inventory management,  and robust tourism in New York City.  Advertising sales from Broadway shows increased 44% which serves as an offset to our cost of revenues-ticketing.”
 
“Within our Intellectual Property division, we are pleased that one of our latest book projects, ‘Death’s Excellent Vacation,’ developed under our Tekno Books subsidiary and edited by Charlaine Harris and Toni Kelner, reached #8 on The New York Times® Hardcover Fiction Bestseller List. The most recent list is posted at www.nytimes.com and will be published in this Sunday’s print edition of The New York Times® Book Review.  Finally, MovieTickets.com, in which we own a 26.2% equity interest, reached a new milestone in the period as it announced the signing of its 200th movie theater chain partner.”
 
At June 30, 2010, cash and cash equivalents were $6.8 million with no debt compared to cash and cash equivalents of $10.0 million with no debt at March 31, 2010.  The change in cash position is due primarily to an increase of $3.4 million in ticketing inventories held for sale, as well as $0.3 million in cash paid in connection with the proposed sale of Broadway Ticketing and the $0.1 million early lease termination fee mentioned above. In addition to the impact of the Company’s decision to carry more ticketing inventory to meet improved demand, the Company historically builds up its ticketing inventory in the second quarter in anticipation of the seasonally strong fourth quarter holiday season.  On June 30, 2010, the Company’s ticketing inventory level was $0.6 million higher than it was on June 30, 2009.  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 to discuss the Company’s 2010 second quarter financial results. The conference call is scheduled for Monday, August 16, 2010 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 August 23, 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 355164#.   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
 
             
   
June 30
    
December 31,
  
   
2010
    
2009
  
   
(unaudited)
        
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 6,801,204     $ 11,764,810  
Receivables, net
     1,043,272       897,503  
Inventories held for sale, net
     6,275,993       3,735,691  
Deferred ticket costs
     8,906,280       10,985,160  
Prepaid expenses
     2,642,107       1,896,237  
Other receivables
     1,099,180       1,125,263  
Other current assets
     25,943       436,675  
Related party receivable
     206,379       335,245  
Restricted cash
     1,221,000       1,221,000  
  Total current assets
     28,221,358       32,397,584  
                 
PROPERTY AND EQUIPMENT, net
     3,893,013       4,369,085  
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES
     750,430       230,097  
INTANGIBLE ASSETS, net
     265,104       390,818  
GOODWILL
     20,230,119       20,197,513  
OTHER ASSETS
     21,082       21,082  
  TOTAL ASSETS
   $ 53,381,106     $ 57,606,179  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable
   $ 1,048,781     $ 1,632,351  
Accrued expenses and other
     2,910,799       3,074,549  
Deferred revenue
     11,661,726       14,012,178  
Gift certificate liability
     3,601,090       3,794,899  
Customer deposits
     460,682       948,273  
Current portion of capital lease obligations
     75,564       123,061  
Current portion of notes payable
     15,285       37,454  
  Total current liabilities
     19,773,927       23,622,765  
                 
DEFERRED REVENUE
     247,252       309,190  
CAPITAL LEASE OBLIGATIONS, less current portion
     37,440       75,830  
OTHER DEFERRED LIABILITY
     995,932       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 June 30, 2010 and
          
    December 31, 2009, respectively
     311,791       310,377  
Additional paid-in capital
     309,722,146       309,480,331  
Accumulated deficit
     (277,695,246 )     (277,315,848 )
  Total Hollywood Media Corp shareholders' equity
     32,338,691       32,474,860  
Non-controlling interest
     (12,136 )     15,549  
  Total shareholders' equity
     32,326,555       32,490,409  
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 53,381,106     $ 57,606,179  

 
 
 


HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
                        
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        
(unaudited)
                        
                         
 
                         
   
SIX MONTHS ENDED JUNE 30,
    
THREE MONTHS ENDED JUNE 30,
  
   
2010
    
2009
    
2010
    
2009
  
                         
NET REVENUES
                        
    Ticketing
   $ 54,908,530     $ 49,381,447     $ 32,681,447     $ 29,138,882  
    Other
     2,007,701       2,184,705       938,435       1,113,373  
      56,916,231       51,566,152       33,619,882       30,252,255  
                                 
                                 
OPERATING COSTS AND EXPENSES
                                
    Cost of revenues - ticketing
     45,318,633       41,152,654       27,121,997       24,118,554  
    Editorial, production, development and technology
     1,329,794       1,236,913       640,628       594,923  
    Selling, general and administrative
     5,401,426       5,117,994       2,884,474       2,437,983  
    Payroll and benefits
     5,512,342       5,038,874       2,787,764       2,452,198  
    Depreciation and amortization
     757,284       794,968       373,245       387,894  
                                 
        Total operating costs and expenses
     58,319,479       53,341,403       33,808,108       29,991,552  
                                 
        Income (loss) from operations
     (1,403,248 )     (1,775,251 )     (188,226 )     260,703  
                                 
EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES
                                
    Equity in earnings (losses) of unconsolidated investees
     548,868       1,912,833       168,921       (810 )
    Impairment loss
     -       (5,000,000 )     -       (5,000,000 )
        Total equity in earnings (losses) of unconsolidated investees
     548,868       (3,087,167 )     168,921       (5,000,810 )
                                 
OTHER INCOME (EXPENSE)
                                
    Interest, net
     11,704       15,122       466       3,670  
    Other, net
     123,134       (40,214 )     63,807       (56,053 )
                                 
         Income (loss) from continuing operations
     (719,542 )     (4,887,510 )     44,968       (4,792,490 )
                                 
Income from discontinued operations
     325,444       -       144,974       -  
                                 
         Net income (loss)
     (394,098 )     (4,887,510 )     189,942       (4,792,490 )
                                 
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST
     14,700       941       16,489       (2,226 )
                                 
         Net income (loss) attributable to Hollywood Media Corp
   $ (379,398 )   $ (4,886,569 )   $ 206,431     $ (4,794,716 )
                                 
 Basic and diluted income (loss) per common share
                                
         Continuing operations
   $ (0.02 )   $ (0.16 )   $ 0.01     $ (0.16 )
         Discontinued operations
     0.01       -       0.00       -  
         Total basic and diluted net income (loss) per share
   $ (0.01 )   $ (0.16 )   $ 0.01     $ (0.16 )
                                 
Weighted average common and common equivalent shares
                                
   outstanding - basic
     30,907,452       30,528,692       30,945,735       30,637,658  
                                 
Weighted average common and common equivalent shares
                                
   outstanding - diluted
     30,907,452       30,528,692       31,179,068       30,637,658  

 
 
 

Hollywood Media Corp.
Segment Summary Financial Data and EBITDA Reconciliation
               
 
For the Six Months Ended June 30, 2010
            
(unaudited)
                            
   
Broadway
      
Intellectual
        
   
Ticketing
  
Ad Sales (1)
  
Properties
  
Other (2)
  
Total
                             
Net Revenues
 $
 54,908,530
   $
       1,513,117
   $
       494,584
   $
                      -
   $
        56,916,231
                             
Operating Income (Loss)
  
          2,641,759
    
           (290,298)
    
          (34,898)
    
         (3,719,811)
    
          (1,403,248)
                             
Net Income (Loss)
  
          2,640,759
    
           (251,787)
    
             7,957
    
         (2,776,327)
    
             (379,398)
                             
  Add back (Income) Expense:
                        
                             
      Interest, net
  
                  (300)
    
               4,114
    
                (35)
    
              (15,483)
    
               (11,704)
      Taxes
  
                1,336
    
             (49,019)
    
                  -
    
                      -
    
               (47,683)
      Depreciation and Amortization
  
            449,499
    
            142,512
    
               149
    
             165,124
    
              757,284
                             
EBITDA Income (Loss)
 $
        3,091,294
   $
         (154,180)
   $
          8,071
   $
        (2,626,686)
   $
            318,499
                             
For the Six Months Ended June 30, 2009
                  
(unaudited)
                            
   
Broadway
      
Intellectual
        
   
Ticketing
  
Ad Sales (1)
  
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)
  
          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)
 $
       2,538,734
   $
      (5,014,896)
   $
         (2,236)
   $
        (1,667,791)
   $
         (4,146,189)
                             
For the Three Months Ended June 30, 2010
                  
(unaudited)
                            
   
Broadway
      
Intellectual
        
   
Ticketing
  
Ad Sales (1)
  
Properties
  
Other (2)
  
Total
                             
Net Revenues
 $
      32,681,447
   $
          731,554
   $
      206,881
   $
                      -
   $
        33,619,882
                             
Operating Income (Loss)
  
          1,891,924
    
           (156,411)
    
          (38,714)
    
         (1,885,025)
    
             (188,226)
                             
Net Income (Loss)
  
          1,892,041
    
           (133,949)
    
             5,998
    
         (1,557,659)
    
              206,431
                             
  Add back (Income) Expense:
                        
                             
      Interest, net
  
                  (117)
    
               1,783
    
                (16)
    
                (2,116)
    
                   (466)
      Taxes
  
                     -
    
             (27,524)
    
                  -
    
                      -
    
               (27,524)
      Depreciation and Amortization
  
            224,634
    
              66,804
    
                 74
    
               81,733
    
              373,245
                             
EBITDA Income (Loss)
 $
        2,116,558
   $
           (92,886)
   $
           6,056
   $
       (1,478,042)
   $
            551,686
                             
For the Three Months Ended June 30, 2009
                  
(unaudited)
                            
   
Broadway
      
Intellectual
        
   
Ticketing
  
Ad Sales (1)
  
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)
  
          2,011,230
    
        (5,059,158)
    
             1,699
    
         (1,748,487)
    
          (4,794,716)
                             
  Add back (Income) Expense:
                        
                             
      Interest, net
  
               (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)
 $
        2,207,196
   $
      (4,972,991)
   $
           1,636
   $
        (1,653,179)
   $
         (4,417,338)
                             
                             
                             
(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.