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Hollywood Media Corp. Reports 2012 Second Quarter Results

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 =========== =========== =========== ===========