Hollywood Media Corp. Reports 2013 First Quarter Results

Marketwired

BOCA RATON, FL--(Marketwired - May 14, 2013) - Hollywood Media Corp. (NASDAQ: HOLL) today reported financial results for the first quarter ended March 31, 2013.

On a continuing operations basis, which includes the contribution from Tekno Books, the Company's 100% owned subsidiary under the Intellectual Property division, net revenues for the 2013 first quarter were $0.1 million compared to $0.2 million in the prior-year period.

Loss from continuing operations for the 2013 first quarter was $0.3 million, or $0.01 per share, compared to a loss from continuing operations for the 2012 first quarter of $0.6 million, or $0.03 per share. Net loss, which includes discontinued operations, was $0.3 million, or $0.01 per share, in the 2013 first quarter, compared to net loss of $0.4 million, or $0.02 per share, in the prior-year period.

At March 31, 2013, the Company had cash and cash equivalents of $9.9 million and no debt as compared to cash and cash equivalents of $11.4 million and no debt at December 31, 2012. 

The Company repurchased 510,700 shares of Hollywood Media's common stock for $0.7 million during the first quarter of 2013.

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 Corp., 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 2012. 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,  
    2013     2012  
    (unaudited)        
ASSETS            
             
CURRENT ASSETS:                
  Cash and cash equivalents   $ 9,946,831     $ 11,378,519  
  Prepaid expenses     688,016       329,915  
  Other receivables     74,885       75,105  
  Notes receivable, current     1,466,253       1,375,545  
  Related party receivable     30,929       37,287  
  Current portion of deferred compensation     430,000       430,000  
    Total current assets     12,636,914       13,626,371  
                 
PROPERTY AND EQUIPMENT, net     299,034       240,645  
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES     138,222       138,384  
INTANGIBLE ASSETS, net     6,574       8,683  
GOODWILL     6,200,000       6,200,000  
OTHER ASSETS     727,982       727,982  
NOTES RECEIVABLE, less current portion     4,320,322       4,455,106  
WARRANT     700,000       700,000  
DEFERRED COMPENSATION, less current portion     411,151       518,651  
    TOTAL ASSETS   $ 25,440,199     $ 26,615,822  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 612,814     $ 414,123  
  Accrued expenses and other     677,321       1,036,788  
  Deferred revenue     108,169       111,669  
  Current portion of capital lease obligations     18,510       16,255  
    Total current liabilities     1,416,814       1,578,835  
                 
CAPITAL LEASE OBLIGATIONS, less current portion     32,295       2,152  
OTHER DEFERRED LIABILITY     258       355  
DEFERRED REVENUE     9,000       14,000  
DERIVATIVE LIABILITIES     60,000       60,000  
    TOTAL LIABILITIES     1,518,367       1,655,342  
                 
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; 22,651,766 and 23,162,466 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively     226,518       231,625  
  Additional paid-in capital     292,847,044       293,591,903  
  Accumulated deficit     (269,151,730 )     (268,863,048 )
    Total shareholders' equity     23,921,832       24,960,480  
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 25,440,199     $ 26,615,822  
                     
   
   
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
             
             
    THREE MONTHS ENDED
MARCH 31,
 
    2013     2012  
         
                 
NET REVENUES   $ 81,059     $ 176,834  
                 
OPERATING COSTS AND EXPENSES                
  Editorial, production, development and technology     57,498       125,104  
  Selling, general and administrative     941,044       504,846  
  Payroll and benefits     431,246       398,721  
  Depreciation and amortization     21,134       37,594  
                   
    Total operating costs and expenses     1,450,922       1,066,265  
                   
    Loss from operations     (1,369,863 )     (889,431 )
                 
(LOSSES) EARNINGS OF UNCONSOLIDATED INVESTEES     (152 )     71,797  
                 
OTHER INCOME (EXPENSE):                
  Interest, net     493,300       253,037  
  Accretion of discount, net of allowance for uncollectability     610,479       -  
  Other, net     538       (33,877 )
    Total other income     1,104,317       219,160  
                 
      Loss from continuing operations before income taxes     (265,698 )     (598,474 )
      Income tax (expense)     (22,984 )     -  
        Loss from continuing operations     (288,682 )     (598,474 )
                 
      Gain on sale of discontinued operations, net of income taxes     -       197,517  
      Loss from discontinued operations     -       (11,582 )
                 
      Income from discontinued operations     -       185,935  
                 
      Net loss   $ (288,682 )   $ (412,539 )
                 
                 
Basic and diluted income (loss) per common share                
      Continuing operations   $ (0.01 )   $ (0.03 )
      Discontinued operations     -       0.01  
      Total basic and diluted net loss per share   $ (0.01 )   $ (0.02 )
                 
Weighted average common and common equivalent shares outstanding - basic and diluted     22,776,185       23,179,066  

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