SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

May 17, 2010 07:30 ET

Hollywood Media Corp. Reports 2010 First Quarter Results

BOCA RATON, FL--(Marketwire - May 17, 2010) - Hollywood Media Corp. (NASDAQ: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the first quarter ended March 31, 2010. As announced on December 29, 2009, the Company has reached a definitive agreement to sell its Broadway Ticketing business subject to the approval of Hollywood Media's shareholders as well as the satisfaction or waiver of certain other closing conditions set forth in the definitive agreement.

For the 2010 first quarter, Hollywood Media reported a 9% increase in net revenues to $23.3 million versus $21.3 million in the prior-year period. The Broadway Ticketing business unit's revenues, which represented 95% of the Company's total revenue, increased 10% versus the prior year period.

Loss from continuing operations for the 2010 first quarter was $0.8 million, or $0.02 per share, compared to a net loss of $0.1 million, or $0.00 per share, in the prior-year period which included a cash dividend of $1.9 million, or $0.06 per share, from the Company's 26.2% interest in MovieTickets.com. Net loss for the 2010 first quarter was $0.6 million, or $0.02 per share.

EBITDA* in the 2010 first quarter for the Company as a whole was a loss of $0.2 million, compared to positive EBITDA of $0.3 million in the prior-year period, which, as noted above, included the $1.9 million MovieTickets.com dividend.

Broadway Ticketing EBITDA nearly tripled to approximately $1.0 million in the 2010 first quarter, versus $0.3 million in the 2009 first quarter.

Mitchell Rubenstein, CEO of Hollywood Media, commented, "We continue to benefit from a more favorable environment for Broadway entertainment with a significant uptick in demand from the prior year. In addition to growing ticketing and ancillary revenues while managing costs, we also increased advertising sales from Broadway shows by over 75% which is recorded as a reduction in our cost of revenues-ticketing, which contributed to an increase in gross margin in the first quarter of 2010 to 18.1% from 15.9% in the first quarter of 2009. MovieTickets.com, in which we own a 26.2% interest, also continues to perform well."

At March 31, 2010, cash and cash equivalents were $10.0 million with no debt, compared to $11.8 million with no debt at December 31, 2009. The Company also has approximately $1.2 million in its restricted cash balance related to a bond for Broadway ticketing purchases.

Teleconference Information

Management will host a teleconference to discuss the Company's 2010 first quarter financial results. The conference call is scheduled for Monday, May 17, 2010 at 9:00 a.m. Eastern Time. To access the teleconference, please dial 877-407-8293 (U.S.) or 201-689-8349 (international) approximately 10 minutes prior to the start of the call. The teleconference will also be available via live webcast on the investor relations portion of Hollywood Media's website, http://www.hollywoodmedia.com/conference_calls.htm.

If you are unable to listen to the live teleconference, a replay will be available through May 24, 2010, and can be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415 (international). Callers will be prompted for replay account number 342# followed by conference ID number 350417#. An archived version of the webcast will also be available under the investor relations section of Hollywood Media's website at http://www.hollywoodmedia.com

About Hollywood Media Corp.

Hollywood Media is comprised primarily of Internet businesses focused on online ticketing, which include Broadway.com and Hollywood Media's minority interest in MovieTickets.com. Hollywood Media also owns the UK-based CinemasOnline and an Intellectual Property division.

*Note on EBITDA

EBITDA is a non-GAAP financial measures. EBITDA is defined as net income before interest, taxes, depreciation and amortization. Hollywood Media has presented EBITDA in this release because it considers such information an important supplemental measure which management utilizes as one of its tools in evaluating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation and comparison of companies in our industry as well as our results of operations from period to period. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for Hollywood Media's financial results as reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, Hollywood Media's working capital needs; (b) EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, if any; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should not be considered as a principal indicator of Hollywood Media's performance. Hollywood Media compensates for these limitations by relying primarily on Hollywood Media's GAAP results and using EBITDA only supplementally.

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, our ability to compete with other online ticketing services and other competitors, 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 2009. 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,
                                                   2010           2009
                                               ------------   ------------
                                               (unaudited)
              ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                    $ 10,010,121   $ 11,764,810
  Receivables, net                                1,091,243        897,503
  Inventories held for sale                       2,975,760      3,735,691
  Deferred ticket costs                          15,496,215     10,985,160
  Prepaid expenses                                2,630,684      1,896,237
  Other receivables                               1,686,692      1,125,263
  Other current assets                              102,391        436,675
  Related party receivable                          361,704        335,245
  Restricted cash                                 1,221,000      1,221,000
                                               ------------   ------------
    Total current assets                         35,575,810     32,397,584

PROPERTY AND EQUIPMENT, net                       4,132,440      4,369,085
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
 INVESTEES                                          610,044        230,097
INTANGIBLE ASSETS, net                              327,961        390,818
GOODWILL                                         20,197,513     20,197,513
OTHER ASSETS                                         21,082         21,082
                                               ------------   ------------
    TOTAL ASSETS                               $ 60,864,850   $ 57,606,179
                                               ============   ============

    LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                             $  1,462,064   $  1,632,351
  Accrued expenses and other                      2,415,826      3,074,549
  Deferred revenue                               19,063,900     14,012,178
  Gift certificate liability                      3,590,902      3,794,899
  Customer deposits                                 669,254        948,273
  Current portion of capital lease obligations      102,629        123,061
  Current portion of notes payable                   25,364         37,454
                                               ------------   ------------
    Total current liabilities                    27,329,939     23,622,765

DEFERRED REVENUE                                    270,059        309,190
CAPITAL LEASE OBLIGATIONS, less current
 portion                                             56,643         75,830
OTHER DEFERRED LIABILITY                          1,083,186      1,105,553
NOTES PAYABLE, less current portion                   1,150          2,432

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; 31,179,066 and
   31,037,656 shares issued and outstanding
   at March 31, 2010 and December 31, 2009,
   respectively                                     311,791        310,377
  Additional paid-in capital                    309,699,606    309,480,331
  Accumulated deficit                          (277,901,677)  (277,315,848)
                                               ------------   ------------
    Total Hollywood Media Corp shareholders'
     equity                                      32,109,720     32,474,860
  Non-controlling interest                           14,153         15,549
                                               ------------   ------------
    Total shareholders' equity                   32,123,873     32,490,409
                                               ------------   ------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 60,864,850   $ 57,606,179
                                               ============   ============





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

                                                   THREE MONTHS ENDED
                                                        MARCH 31,
                                               ---------------------------
                                                   2010           2009
                                               ------------   ------------

NET REVENUES
    Ticketing                                  $ 22,227,083   $ 20,242,565
    Other                                         1,069,266      1,071,332
                                               ------------   ------------
                                                 23,296,349     21,313,897
                                               ------------   ------------


OPERATING COSTS AND EXPENSES
    Cost of revenues - ticketing                 18,196,636     17,034,100
    Editorial, production, development and
     technology                                     689,166        641,990
    Selling, general and administrative           2,516,952      2,680,011
    Payroll and benefits                          2,724,578      2,586,676
    Depreciation and amortization                   384,039        407,074
                                               ------------   ------------

        Total operating costs and expenses       24,511,371     23,349,851
                                               ------------   ------------

        Loss from operations                     (1,215,022)    (2,035,954)

EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES      379,947      1,913,643

OTHER INCOME
    Interest, net                                    11,238         11,452
    Other, net                                       59,327         15,839
                                               ------------   ------------

         Loss from continuing operations           (764,510)       (95,020)

Income from discontinued operations                 180,470              -
                                               ------------   ------------

         Net loss                                  (584,040)       (95,020)

NET (INCOME) LOSS ATTRIBUTABLE TO
 NON-CONTROLLING INTEREST                            (1,789)         3,167

                                               ------------   ------------
         Net loss attributable to Hollywood
          Media Corp                           $   (585,829)  $    (91,853)
                                               ============   ============

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

Weighted average common and common equivalent
 shares outstanding - basic and diluted          30,868,745     30,418,516
                                               ============   ============




                        Hollywood Media Corp.
         Segment Summary Financial Data and EBITDA Reconciliation


For the Three Months Ended March 31, 2010
(unaudited)

              Broadway    Ad Sales  Intellectual
             Ticketing       (1)     Properties    Other (2)      Total
            -----------  ----------  -----------  -----------  -----------

Net
 Revenues   $22,227,083  $  781,563  $   287,703  $         -  $23,296,349

Operating
 Income
 (Loss)         749,835    (133,887)       3,816   (1,834,786)  (1,215,022)

            -----------  ----------  -----------  -----------  -----------
Net Income
 (Loss)         748,718    (117,838)       1,959   (1,218,668)    (585,829)

  Add back
   (Income)
   Expense:

     Interest,
       net         (183)      2,331          (19)     (13,367)     (11,238)
     Taxes        1,336     (21,495)           -            -      (20,159)
     Deprec-
      iation
      and
      Amort-
      ization   224,865      75,708           75       83,391      384,039

            -----------  ----------  -----------  -----------  -----------
EBITDA
 Income
 (Loss)     $   974,736  $  (61,294) $     2,015  $(1,148,644) $  (233,187)
            ===========  ==========  ===========  ===========  ===========

For the Three
 Months Ended
 March 31, 2009
(unaudited)

              Broadway    Ad Sales  Intellectual
             Ticketing       (1)     Properties    Other (2)      Total
            -----------  ----------  -----------  -----------  -----------
Net
 Revenues   $20,242,565  $  815,358  $   255,974  $         -  $21,313,897

Operating
 Income
 (Loss)         117,925    (113,435)      (6,555)  (2,033,889)  (2,035,954)

            -----------  ----------  -----------  -----------  -----------
Net Income
 (Loss)         120,703    (100,481)      (3,590)    (108,485)     (91,853)

  Add back
   (Income)
   Expense:

    Interest,
      net        (4,425)      1,714         (357)      (8,384)     (11,452)
    Taxes             -     (34,120)           -        1,500      (32,620)
    Deprec-
     iation
     and
     Amort-
     ization    215,260      90,982           75      100,757      407,074

            -----------  ----------  -----------  -----------  -----------
EBITDA
 Income
 (Loss)     $   331,538  $  (41,905) $    (3,872) $   (14,612) $   271,149
            ===========  ==========  ===========  ===========  ===========



(1)  The Ad Sales segment includes other advertising sales by
CinemasOnline.
(2)  The Other segment is comprised of payroll and benefits for corporate
and administrative personnel as well as other corporate-wide expenses such
as legal fees, audit fees, proxy costs, insurance, centralized information
technology, and includes consulting fees and other fees and costs relating
to compliance with the provisions of the Sarbanes-Oxley Act of 2002 that
require Hollywood Media and its Independent Registered Public Accounting
Firm to make an assessment of and report on internal control over financial
reporting. Also includes Discontinued Operations financial information.