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IDW Media Holdings Reports First Quarter 2017 Results

STAMFORD, CT and SAN DIEGO, CA--(Marketwired - Mar 17, 2017) - IDW Media Holdings, Inc. ( OTCQX : IDWM ), a fully integrated media company announced today its results for the first quarter ended January 31, 2017.

Gross Revenue of $14.8 million for the three months ended January 31, 2017 compared to $10.7 million for the three months ended January 31, 2016. Worldwide sales of IDW Entertainment television shows as well as a 20% increase in revenue in IDW Publishing were the primary drivers of the increased revenue.

First Quarter 2017 Financial Highlights:

  • IDW Entertainment Revenue of $3.3 million or 22.3% of Gross Revenues compared to $37 thousand last year.
  • IDW Publishing Revenue of $7.5 million increased by $1.2 million over previous year Q1 revenue.
  • CTM Revenue of $4.0 million decreased by $0.4 million from previous year Q1 revenue.

Commenting on the results, Ted Adams, CEO stated, "Our Q1 performance reflects solid growth at IDW Publishing and the continued success of the TV programs we have launched in IDW Entertainment." 

Our publishing division -- which includes IDW Publishing where we primarily publish comic books and graphic novels and IDW Games where we publish board games and card games, continued to be led by the success of the March books and the Teenage Mutant Ninja Turtles board game was another important contributor to growth in the quarter. We will be launching a new partnership with leading book distributor Penguin Random House on April 1, which we expect will contribute to the long-term growth of IDW Publishing. Given the scope of the transition, we don't expect to see a positive impact of the new distribution partnership until later in the fiscal year.

IDW Entertainment continued its positive momentum driven by the success of the initial seasons of Wynonna Earp and Dirk Gently. Both series have been renewed for second seasons, with anticipated premieres in 2017. IDW Entertainment continues to form strategic alliances with major talent including the just announced Jonathan Kellerman best-selling book property Alex Delaware and The Devil with Grey's Anatomy's Ellen Pompeo. In addition, Locke and Key, created by Joe Hill, is currently in development for a television series. 

CTM revenue decline in Q1 of 2017 is primarily attributed to a decline of ski season revenue due to poor ski conditions in the Northeast this winter, as well as the decrease in the number of Broadway shows in production during the period. CTM is preparing for the busy summer travel season.

Forward Looking Statements:
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our public disclosures provide information on certain of such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

About IDW Media Holdings
IDW Media Holdings, Inc. ( OTCQX : IDWM ) is a fully integrated media company, which includes the award-winning IDW Publishing, IDW Games, IDW Entertainment, Top Shelf Productions, the San Diego Comic Art Gallery, and CTM Media Group Inc. CTM Media Group Inc. is one of North America's largest distributors of tourism information. Distributing over 100 million brochures last year, CTM's comprehensive visitor out of home marketing network includes over 14,000 brochure information displays and over 400 award-winning touch screen kiosks.

The financial statements below have been derived from the Company's financial statements at the dates shown, but do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the Company's quarterly report for the three months ended January 31, 2017 filed on March 17, 2017, and annual report for the fiscal year ended October 31, 2016 filed on January 30, 2017, both with the OTC Markets Group OTCQX: IDWM.

 
IDW MEDIA HOLDINGS, INC.
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 
(in thousands)   January 31, 2017 (Unaudited)     October 31, 2016  
Assets                
Current assets:                
  Cash and cash equivalents   $ 5,668     $ 6,203  
  Trade accounts receivable, net     8,245       11,592  
  Inventory - print and production costs     14,386       13,652  
  Prepaid expenses     1,877       1,738  
  Note receivable - current portion     217       310  
Total current assets     30,393       33,495  
Property and equipment, net     3,170       3,394  
Non-current assets                
  Trade accounts receivable - non-current portion     2,373       2,478  
  Deferred taxes     10,311       10,413  
  Intangible Assets, net     1,440       1,539  
  Goodwill     2,227       2,227  
  Other assets     324       392  
Total non-current assets     16,675       17,049  
Total assets   $ 50,238     $ 53,938  
Liabilities and stockholders' equity                
Current liabilities:                
  Trade accounts payable     2,782     $ 2,412  
  Accrued expenses     4,479       8,730  
  Deferred revenue     1,675       1,809  
  Income taxes payable     636       1,037  
  Capital lease obligations - current portion     355       365  
  Bank loans payable - current portion     427       426  
  Other current liabilities     368       421  
Total current liabilities     10,722       15,200  
Non-current liabilities                
  Accrued liabilities - non-current     709       470  
  Capital lease obligations - long term portion     671       807  
  Bank loans payable - long term portion     642       749  
Total non-current liabilities     2,022       2,026  
Total liabilities     12,744       17,226  
Commitments and contingencies     -       -  
Stockholders' equity:                
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at January 31, 2017 and October 31, 2016     -       -  
Class B common stock, $0.01 par value; authorized shares - 12,000; 5,727 shares and 5,553 shares issued and outstanding at January 31, 2017 and October 31, 2016, respectively     57       56  
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at January 31, 2017 and October 31, 2016     5       5  
Additional paid-in capital     53,853       53,208  
Accumulated other comprehensive loss     (242 )     (250 )
Accumulated deficit     (14,983 )     (15,111 )
Treasury stock, at cost, consisting of 519 shares of Class B common stock at January 31, 2017 and October 31, 2016     (1,196 )     (1,196 )
Total stockholders' equity     37,494       36,712  
Total liabilities and stockholders' equity   $ 50,238     $ 53,938  
                 
 
IDW MEDIA HOLDINGS, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
    Three Months Ended
January 31,
 
(in thousands, except per share data)   2017     2016  
                 
Revenues   $ 14,765     $ 10,654  
Costs and expenses:                
  Direct cost of revenues     7,733       4,772  
  Selling, general and administrative (i)     6,348       5,325  
  Depreciation and amortization     382       364  
  Bad debt expense     11       25  
Total costs and expenses     14,474       10,486  
Income from operations     291       168  
Interest expense, net     (16 )     (13 )
Other income (expense), net     (1 )     (41 )
Income before income taxes     274       114  
Provision for income taxes     (147 )     (102 )
Net income     127       12  
                 
Net income (loss) attributable to non-controlling interests     -       (104 )
Net income (loss) attributable to IDW Media Holdings, Inc.   $
127
    $
(92
)
                 
Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders:                
Net income per share   $ 0.02     $ (.02 )
                 
Weighted-average number of shares used in the calculation of basic and diluted income per share:     5,702       4,649  
                 
Dividend declared per common share:   $ 0.00     $ 0.163  
                 
Interest Expense   $ 18     $ 15  
                 
(i) Stock-based compensation included in selling, general and administrative expenses   $ 647     $ 96  
                 
 
IDW Media Holdings, Inc. Adjusted EBITDA
 
Reconciliation of Consolidated Net Income (Loss) to
Consolidated EBITDA and Consolidated Adjusted EBITDA
(Unaudited)
 
    Three Months Ended
January 31,
(in thousands)   2017   2016
Net income   $ 127   $ 12
  Depreciation and amortization     382     364
  Provision for income taxes     147     102
  Interest expense, net     16     13
EBITDA     672     491
Non-cash compensation     647     96
Adjusted EBITDA   $ 1,319   $ 587
             

Adjusted EBITDA is defined as net income before interest expense, provision for income taxes and depreciation and amortization, with further adjustments to reflect the elimination of income statement items including non-cash charges, and expenses that we consider not indicative of ongoing operations.