Hollywood Media Corp. Reports 2009 Second Quarter Results

• Press Release
• Source: Hollywood Media Corp.
• On 7:00 am EDT, Wednesday July 29, 2009

BOCA RATON, FL--(Marketwire - 07/29/09) - Hollywood Media Corp. (NASDAQ:HOLL - News), 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:

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--  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."

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 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.

Attached are the following financial tables:

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    CONDENSED CONSOLIDATED BALANCE SHEETS
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    SEGMENT SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION



                 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          THREE MONTHS ENDED
                             JUNE 30,                   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      Ad Sales  Intellectual
               Ticketing      (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
     Amortiza-
     tion          414,194      182,146        150    198,478     794,968

               ----------- ------------ ---------- ---------- -----------
EBITDA Income
 (Loss) from
 continuing
 operations    $ 2,207,196 $ (4,972,991)$    1,636 $(1,653,179)$(4,417,338)
               =========== ============ ========== =========== ===========

For the Six
 Months Ended
 June 30,
 2008
(unaudited)
               Broadway      Ad Sales  Intellectual
               Ticketing      (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
     Amortiza-
     tion          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      Ad Sales  Intellectual
               Ticketing      (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
     Amortiza-
     tion          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      Ad Sales  Intellectual
               Ticketing      (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
     Amortiza-
     tion          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.