Hollywood Media Corp. Reports 2012 Second Quarter Results

Marketwired

BOCA RATON, FL--(Marketwire -08/20/12)- Hollywood Media Corp. (HOLL) today reported financial results for the second quarter ended June 30, 2012.

On a continuing operations basis, which includes the contribution from the Intellectual Property division, net revenues for the 2012 second quarter were $0.2 million compared to $0.5 million in the prior-year period. The decrease in net revenues for the 2012 second quarter as compared to the 2011 second quarter was attributable to the timing of the delivery of manuscripts by Tekno Books.

Loss from continuing operations for the 2012 second quarter was $1.3 million, or $0.06 per share, compared to income from continuing operations last year of $0.3 million, or $0.01 per share. The decrease in net income is primarily due to income from the key-man life insurance of $1.1 million resulting from the death of the former Chief Executive Partner of Tekno Books, Dr. Martin Greenberg during the 2011 second quarter.

Net loss, which includes discontinued operations, was $0.5 million, or $0.02 per share, in the 2012 second quarter, compared to net income of $0.1 million, or $0.01 per share, in the prior-year period. This decrease is primarily due to the above mentioned decrease in net income partially offset by a $0.6 million gain on the sale of the Company's U.K-based CinemasOnline business which occurred during the 2012 second quarter.

At June 30, 2012, the Company had cash and cash equivalents of $2.4 million and no debt as compared to cash and cash equivalents of $3.7 million and no debt at December 31, 2011.

During the 2012 second quarter, Hollywood Media Corp. announced that as part of an amendment related to the completed sale of its Broadway Ticketing Business ("Theatre Direct") to Key Brand Entertainment Inc., Key Brand agreed to pay the first $7 million earnout amount to Hollywood Media on or before October 1, 2012 regardless of the actual revenues of Theatre Direct for Key Brand's fiscal year ended June 30, 2012. Also during the period, the Company sold its U.K.-based CinemasOnline business, formerly included as part of the Ad Sales division.

About Hollywood Media Corp.

Hollywood Media Corp. is comprised primarily of an Ad Sales division, an Intellectual Property division, and various financial assets.

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, 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 2011. Such forward-looking statements speak only as of the date on which they are made.

 


HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, December 31,
2012 2011
------------- -------------
(unaudited)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 2,408,472 $ 3,683,063
Prepaid expenses 353,714 316,430
Other receivables 35,995 77,907
Related party receivable 642,082 443,588
Current portion of deferred compensation 430,000 430,000
Current assets of discontinued operations - 566,691
------------- -------------
Total current assets 3,870,263 5,517,679

PROPERTY AND EQUIPMENT, net 249,970 283,574
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
INVESTEES 1,413,929 1,573,325
INTANGIBLE ASSETS, net 12,899 17,116
GOODWILL 9,800,000 9,800,000
OTHER ASSETS 242,839 58,628
DEFERRED COMPENSATION, less current portion 733,651 948,651
LONG TERM ASSETS OF DISCONTINUED OPERATIONS - 23,816
------------- -------------
TOTAL ASSETS $ 16,323,551 $ 18,222,789
============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 503,632 $ 387,070
Accrued expenses and other 902,507 646,821
Deferred revenue 164,778 264,228
Current portion of capital lease obligations 18,427 21,829
Current liabilities of discontinued
operations - 1,130,268
------------- -------------
Total current liabilities 1,589,344 2,450,216

CAPITAL LEASE OBLIGATIONS, less current
portion 10,380 16,203
OTHER DEFERRED LIABILITY 31,601 42,514
DEFERRED REVENUE 25,475 46,200
DERIVATIVE LIABILITIES 1,040,000 1,090,000
LONG TERM LIABILITIES OF DISCONTINUED
OPERATIONS - 2,158

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; 23,179,066 shares issued
and outstanding at June 30, 2012 and
December 31, 2011, respectively 231,791 231,791
Additional paid-in capital 293,616,319 293,616,319
Accumulated deficit (280,221,359) (279,272,612)
------------- -------------
Total shareholders' equity 13,626,751 14,575,498
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,323,551 $ 18,222,789
============= =============




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

SIX MONTHS ENDED THREE MONTHS ENDED
June 30, June 30,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------


NET REVENUES $ 333,047 $ 689,123 $ 156,213 $ 460,475

OPERATING COSTS AND
EXPENSES
Editorial, production,
development and
technology 282,776 456,903 157,672 293,516
Selling, general and
administrative 1,200,978 1,727,449 696,132 527,173
Payroll and benefits 1,250,583 1,610,791 851,862 746,459
Depreciation and
amortization 75,164 112,639 37,570 54,990
----------- ----------- ----------- -----------

Total operating
costs and expenses 2,809,501 3,907,782 1,743,236 1,622,138
----------- ----------- ----------- -----------

Loss from operations (2,476,454) (3,218,659) (1,587,023) (1,161,663)

EARNINGS (LOSSES) OF
UNCONSOLIDATED
INVESTEES 17,815 179,383 (53,982) 115,282

OTHER INCOME (EXPENSE)
Interest, net 513,009 529,278 259,972 259,976
Other, net (1,674) 1,129,107 32,203 1,129,378
----------- ----------- ----------- -----------

(Loss) income from
continuing operations (1,947,304) (1,380,891) (1,348,830) 342,973


Gain (loss) on sale of
discontinued
operations, net of
income taxes 975,973 99,303 778,456 (10,139)
Income (loss) from
discontinued
operations 22,584 (165,390) 34,166 (175,955)
----------- ----------- ----------- -----------

Income (loss) from
discontinued
operations 998,557 (66,087) 812,622 (186,094)

Net (loss) income (948,747) (1,446,978) (536,208) 156,879

NET INCOME ATTRIBUTABLE
TO NON-CONTROLLING
INTEREST - (35,338) - (28,267)
----------- ----------- ----------- -----------

Net (loss) income
attributable to
Hollywood Media Corp $ (948,747) $(1,482,316) $ (536,208) $ 128,612
=========== =========== =========== ===========

Basic and diluted (loss)
income per common share
Continuing
operations $ (0.08) $ (0.05) $ (0.06) $ 0.01
Discontinued
operations 0.04 (0.01) 0.04 -
----------- ----------- ----------- -----------
Total basic and
diluted net (loss)
income per share $ (0.04) $ (0.06) $ (0.02) $ 0.01
=========== =========== =========== ===========

Weighted average common
and common equivalent
shares outstanding -
basic and diluted 23,179,066 25,610,007 23,179,066 23,179,066
=========== =========== =========== ===========


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