Hollywood Media Corp. Reports 2012 First Quarter Results

Expects to Receive $7 Million Earnout Payment in 2012 Related to Sale of Broadway Ticketing Business

Marketwired

BOCA RATON, FL--(Marketwire -05/15/12)- Hollywood Media Corp. (HOLL) today reported financial results for the first quarter ended March 31, 2012.

On a continuing operations basis which includes the contribution from the Ad Sales and Intellectual Property divisions, net revenues for the 2012 first quarter were $0.7 million compared to $1.0 million in the prior-year period.

Loss from continuing operations for the 2012 first quarter was $0.6 million, or $0.03 per share, compared to a loss from continuing operations last year of $1.7 million, or $0.06 per share.

Net loss, which includes discontinued operations, was $0.4 million or $0.02 per share, in the 2012 first quarter, compared to a net loss of $1.6 million or $0.06 per share in the prior-year period.

The Company had approximately 23.2 million weighted average shares outstanding in the 2012 first quarter compared to 28.1 million weighted average shares outstanding in the prior-year period. The reduction in share count principally relates to an 8.0 million share tender offer completed in the first quarter of 2011.

At March 31, 2012, the Company had cash and cash equivalents of $3.4 million and no debt as compared to cash and cash equivalents of $3.7 million and no debt at December 31, 2011.

Subsequent to the quarter close and as disclosed in an 8-K filing with the SEC on May 7, 2012, and as amended in an 8-K/A filing with the SEC on May 15, 2012, the Company sold its U.K.-based CinemasOnline business. Additionally, in a separate 8-K filing on April 25, 2012, 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 Corp. on or before October 1, 2012 regardless of the actual revenues of Theatre Direct and its subsidiaries for Key Brand's current fiscal year ending June 30, 2012.

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

March 31, December 31,
2012 2011
------------- -------------
(unaudited)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 3,359,481 $ 3,717,599
Receivables, net 300,753 229,365
Prepaid expenses 490,585 594,370
Other receivables 25,227 24,848
Related party receivable 518,734 521,497
Current portion of deferred compensation 430,000 430,000
------------- -------------
Total current assets 5,124,780 5,517,679

PROPERTY AND EQUIPMENT, net 288,264 307,390
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
INVESTEES 1,514,438 1,573,325
INTANGIBLE ASSETS, net 15,008 17,116
GOODWILL 9,800,000 9,800,000
OTHER ASSETS 58,428 58,628
DEFERRED COMPENSATION, less current portion 841,151 948,651
------------- -------------
TOTAL ASSETS $ 17,642,069 $ 18,222,789
============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 461,515 $ 403,743
Accrued expenses and other 785,981 890,881
Deferred revenue 620,623 706,432
Customer deposits 428,523 427,331
Current portion of capital lease obligations 19,506 21,829
------------- -------------
Total current liabilities 2,316,148 2,450,216

CAPITAL LEASE OBLIGATIONS, less current
portion 14,282 16,203
OTHER DEFERRED LIABILITY 37,058 42,514
DEFERRED REVENUE 21,622 48,358
DERIVATIVE LIABILITIES 1,090,000 1,090,000

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 March 31, 2012 and
December 31, 2011, respectively 231,791 231,791
Additional paid-in capital 293,616,319 293,616,319
Accumulated deficit (279,685,151) (279,272,612)
------------- -------------
Total shareholders' equity 14,162,959 14,575,498
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 17,642,069 $ 18,222,789
============= =============



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

THREE MONTHS ENDED
March 31,
----------------------------
2012 2011
------------- -------------

NET REVENUES $ 709,875 $ 970,873

OPERATING COSTS AND EXPENSES

Editorial, production, development and
technology 448,821 626,416
Selling, general and administrative 642,892 1,300,870
Payroll and benefits 551,147 1,016,991
Depreciation and amortization 42,637 74,806
------------- -------------

Total operating costs and expenses 1,685,497 3,019,083
------------- -------------

Loss from operations (975,622) (2,048,210)

EARNINGS OF UNCONSOLIDATED INVESTEES 71,797 64,101

OTHER INCOME
Interest, net 253,037 269,101
Other, net 40,732 1,709
------------- -------------

Loss from continuing operations (610,056) (1,713,299)

Income from discontinued operations 197,517 109,442
------------- -------------

Net loss (412,539) (1,603,857)

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING
INTEREST - (7,071)
------------- -------------

Net loss attributable to Hollywood Media
Corp.     $ (412,539) $ (1,610,928)
============= =============

Basic and diluted income (loss) per common
share
Continuing operations $ (0.03) $ (0.06)
Discontinued operations 0.01 0.00
------------- -------------
Total basic and diluted net loss per share $ (0.02) $ (0.06)
============= =============

Weighted average common and common equivalent
shares outstanding - basic and diluted 23,179,066 28,067,957
============= =============



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