SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

November 10, 2010 16:01 ET

Hollywood Media Corp. Reports 2010 Third Quarter Results

BOCA RATON, FL--(Marketwire - November 10, 2010) - Hollywood Media Corp. (NASDAQ: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the third quarter ended September 30, 2010. As previously announced, 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. The Company filed a proxy statement on October 20, 2010 announcing a shareholder meeting on December 10, 2010 to vote on a proposal to approve the transaction.

For the 2010 third quarter, net revenues increased 16% to $25.4 million compared to $21.9 million in the prior-year period. Broadway Ticketing revenues, which represented 96% of the Company's total net revenues, increased 18% versus the prior year period due to higher ticket sales. Advertising sales from Broadway shows increased 279% which is reported as a reduction in cost of revenues-ticketing.

Net loss for the 2010 third quarter was $0.4 million, or $0.01 per share, which includes $0.3 million in legal expenses related to the proposed sale of the Broadway Ticketing business. This compares to a net loss in the prior year period of $0.3 million, or $0.01 per share.

EBITDA* in the 2010 third quarter for the Company as a whole was a loss of $0.1 million, which includes $0.3 million in legal expenses related to the proposed sale of the Broadway Ticketing businesses noted above, compared to break-even EBITDA in the prior-year period. Broadway Ticketing EBITDA increased 65% on higher sales to $1.8 million in the third quarter versus $1.1 million last year.

At September 30, 2010, the Company had cash and cash equivalents of $7.3 million with no debt compared to cash and cash equivalents of $6.8 million with no debt at June 30, 2010. 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 today at 4:30 p.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 November 17, 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 360417#. 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

                                               September 30,  December 31,
                                                    2010          2009
                                                ------------  ------------
                                                (unaudited)
                     ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                     $  7,308,487  $ 11,764,810
  Receivables, net                                 1,254,471       897,503
  Inventories held for sale, net                   5,244,485     3,735,691
  Deferred ticket costs                            9,934,718    10,985,160
  Prepaid expenses                                 2,942,893     1,896,237
  Other receivables                                1,136,173     1,125,263
  Other current assets                                 9,911       436,675
  Related party receivable                           242,182       335,245
  Restricted cash                                  1,221,000     1,221,000
                                                ------------  ------------
    Total current assets                          29,294,320    32,397,584

PROPERTY AND EQUIPMENT, net                        3,793,541     4,369,085
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
 INVESTEES                                           826,889       230,097
INTANGIBLE ASSETS, net                               206,070       390,818
GOODWILL                                          20,230,119    20,197,513
OTHER ASSETS                                          21,082        21,082
                                                ------------  ------------
    TOTAL ASSETS                                $ 54,372,021  $ 57,606,179
                                                ============  ============

      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                              $  1,234,466  $  1,632,351
  Accrued expenses and other                       3,154,284     3,074,549
  Deferred revenue                                13,013,628    14,012,178
  Gift certificate liability                       3,497,188     3,794,899
  Customer deposits                                  360,423       948,273
  Current portion of capital lease obligations        75,979       123,061
  Current portion of notes payable                     6,380        37,454
                                                ------------  ------------
    Total current liabilities                     21,342,348    23,622,765

DEFERRED REVENUE                                     158,654       309,190
CAPITAL LEASE OBLIGATIONS, less current portion       18,630        75,830
OTHER DEFERRED LIABILITY                             956,270     1,105,553
NOTES PAYABLE, less current portion                        -         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 September
   30, 2010 and December 31, 2009, respectively      311,791       310,377
  Additional paid-in capital                     309,695,522   309,480,331
  Accumulated deficit                           (278,124,706) (277,315,848)
                                                ------------  ------------
    Total Hollywood Media Corp shareholders'
     equity                                       31,882,607    32,474,860
  Non-controlling interest                            13,512        15,549
                                                ------------  ------------
    Total shareholders' equity                    31,896,119    32,490,409
                                                ------------  ------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 54,372,021  $ 57,606,179
                                                ============  ============




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

                            NINE MONTHS ENDED        THREE MONTHS ENDED
                              SEPTEMBER 30,             SEPTEMBER 30,
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------

NET REVENUES
  Ticketing             $79,317,020  $69,979,418  $24,408,490  $20,597,971
  Other                   2,981,093    3,441,400      973,392    1,256,695
                        -----------  -----------  -----------  -----------
                         82,298,113   73,420,818   25,381,882   21,854,666
                        -----------  -----------  -----------  -----------

OPERATING COSTS AND
 EXPENSES
  Cost of revenues -
   ticketing             64,578,465   57,768,570   19,259,832   16,615,916
  Editorial, production,
   development and
   technology             1,974,184    1,944,210      644,390      707,297
  Selling, general
   and administrative     8,415,751    7,572,482    3,014,325    2,454,488
  Payroll and
   benefits               8,339,384    7,402,148    2,827,042    2,363,274
  Depreciation and
   amortization           1,111,322    1,184,187      354,038      389,219
                        -----------  -----------  -----------  -----------

    Total operating
     costs and expenses  84,419,106   75,871,597   26,099,627   22,530,194
                        -----------  -----------  -----------  -----------

    Loss from operations (2,120,993)  (2,450,779)    (717,745)    (675,528)

EARNINGS (LOSSES) OF
 UNCONSOLIDATED
 INVESTEES
  Equity in earnings
   of unconsolidated
   investees                636,839    1,912,906       87,971           73
  Impairment loss                 -   (5,000,000)           -            -
                        -----------  -----------  -----------  -----------
    Total equity in
     earnings (losses)
     of unconsolidated
     investees              636,839   (3,087,094)      87,971           73

OTHER INCOME (EXPENSE)
  Interest, net              11,605       18,714          (99)       3,592
  Other, net                118,737     (156,069)      (4,397)    (115,855)
                        -----------  -----------  -----------  -----------

    Loss from continuing
     operations          (1,353,812)  (5,675,228)    (634,270)    (787,718)

Income from discontinued
 operations                 506,902      472,487      181,458      472,487
                        -----------  -----------  -----------  -----------

    Net loss               (846,910)  (5,202,741)    (452,812)    (315,231)

NET (INCOME) LOSS
 ATTRIBUTABLE TO
 NON-CONTROLLING INTEREST    38,052      (32,821)      23,352      (33,762)

                        -----------  -----------  -----------  -----------
    Net loss attributable
     to Hollywood Media
     Corp               $  (808,858) $(5,235,562) $  (429,460) $  (348,993)
                        ===========  ===========  ===========  ===========

 Basic and diluted
  income (loss) per
  common share
    Continuing
     operations         $     (0.04) $     (0.19) $     (0.02) $     (0.03)
    Discontinued
     operations                0.02         0.02         0.01         0.02
                        -----------  -----------  -----------  -----------
    Total basic and
     diluted net loss
     per share          $     (0.02) $     (0.17) $     (0.01) $     (0.01)
                        ===========  ===========  ===========  ===========

Weighted average common
 and common equivalent
 shares outstanding -
 basic and diluted       30,920,354   30,565,413   30,945,735   30,637,658
                        ===========  ===========  ===========  ===========




                          Hollywood Media Corp.
         Segment Summary Financial Data and EBITDA Reconciliation

For the Nine Months Ended September 30, 2010
(unaudited)

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

Net Revenues  $79,317,020  $ 2,297,894  $683,199  $         -  $82,298,113

Operating Income
 (Loss)         4,189,238     (404,820)  (84,845)  (5,820,566)  (2,120,993)

              -----------  -----------  --------  -----------  -----------
Net Income
 (Loss)         4,176,681     (353,624)   (7,440)  (4,624,475)    (808,858)

 Add back (Income)
  Expense:

  Interest, net      (868)       6,803       (49)     (17,491)     (11,605)
  Taxes            13,425      (58,619)        -        8,241      (36,953)
  Depreciation
   and
   Amortization   671,742      205,663       254      233,663    1,111,322

              -----------  -----------  --------  -----------  -----------
EBITDA Income
 (Loss)       $ 4,860,980  $  (199,777) $ (7,235) $(4,400,062) $   253,906
              ===========  ===========  ========  ===========  ===========


For the Nine Months Ended September 30, 2009
(unaudited)

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

Net Revenues  $69,979,418  $ 2,510,258  $931,142  $         -  $73,420,818

Operating Income
 (Loss)         3,186,593     (246,437)   67,022   (5,457,957)  (2,450,779)

              -----------  -----------  --------  -----------  -----------
Net Income
 (Loss)         3,002,149   (5,233,951)   33,420   (3,037,180)  (5,235,562)

 Add back (Income)
  Expense:

  Interest, net   (10,092)       5,525      (515)     (13,632)     (18,714)
  Taxes             1,929      (51,795)        -      (14,575)     (64,441)
  Depreciation
   and
   Amortization   617,505      271,569       225      294,888    1,184,187

              -----------  -----------  --------  -----------  -----------
EBITDA Income
 (Loss)       $ 3,611,491  $(5,008,652) $ 33,130  $(2,770,499) $(4,134,530)
              ===========  ===========  ========  ===========  ===========


For the Three Months Ended September 30, 2010
(unaudited)

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

Net Revenues  $24,408,490  $   784,777  $188,615  $         -  $25,381,882

Operating Income
 (Loss)         1,547,479     (114,522)  (49,947)  (2,100,755)    (717,745)

              -----------  -----------  --------  -----------  -----------
Net Income
 (Loss)         1,535,922     (101,837)  (15,397)  (1,848,148)    (429,460)

 Add back (Income)
  Expense:

  Interest, net      (568)       2,689       (14)      (2,008)          99
  Taxes            12,089       (9,600)        -        8,241       10,730
  Depreciation
   and
   Amortization   222,243       63,151       105       68,539      354,038

              -----------  -----------  --------  -----------  -----------
EBITDA Income
 (Loss)       $ 1,769,686  $   (45,597) $(15,306) $(1,773,376) $   (64,593)
              ===========  ===========  ========  ===========  ===========


For the Three Months Ended September 30, 2009
(unaudited)

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

Net Revenues  $20,597,971  $   845,639  $411,056  $         -  $21,854,666

Operating Income
 (Loss)         1,015,580      (87,787)   68,980   (1,672,301)    (675,528)

              -----------  -----------  --------  -----------  -----------
Net Income
 (Loss)           870,216      (74,312)   35,311   (1,180,208)    (348,993)

 Add back (Income)
  Expense:

  Interest, net    (2,699)       1,962       (20)      (2,835)      (3,592)
  Taxes             1,929      (10,829)        -      (16,075)     (24,975)
  Depreciation
   and
   Amortization   203,311       89,423        75       96,410      389,219

              -----------  -----------  --------  -----------  -----------
EBITDA Income
 (Loss)       $ 1,072,757  $     6,244  $ 35,366  $(1,102,708) $    11,659
              ===========  ===========  ========  ===========  ===========



(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.