SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

May 16, 2011 06:55 ET

Hollywood Media Corp. Reports 2011 First Quarter Results

BOCA RATON, FL--(Marketwire - May 16, 2011) - Hollywood Media Corp. (NASDAQ: HOLL) today reported financial results for the first quarter ended March 31, 2011. As previously announced, the Company completed the sale of its Broadway Ticketing business on December 15, 2010, which has been accounted for as discontinued operations along with the divested Hollywood.com operations.

On a continuing operations basis which includes the contribution from the Ad Sales and Intellectual Property divisions, net revenues for the 2011 first quarter were $1.0 million compared to $1.1 million in the prior-year period.

Loss from continuing operations for the 2011 first quarter was $1.7 million, or $0.06 per share, compared to a loss from continuing operations last year of $1.5 million, or $0.05 per share.

First quarter 2011 net loss, which includes the impact of discontinued operations, was $1.6 million, or $0.06 per share, versus a loss of $0.6 million, or $0.02 per share, in the prior year period.

The Company completed on February 25, 2011 its tender offer of 8 million shares at a total cost of $16.4 million. As a result, the Company now has approximately 23.2 million shares outstanding compared to 28.2 million shares outstanding at March 31, 2010.

At March 31, 2011, the Company had cash and cash equivalents of $5.6 million and no debt versus cash and cash equivalents of $29.4 million and no debt at December 31, 2010. The change reflects the completion of the Company's tender offer at a total cost of $16.4 million as well as costs related to the sale of the Broadway Ticketing business including a working capital adjustment.

About Hollywood Media Corp.

Hollywood Media Corp. is comprised primarily of an Ad Sales division including Hollywood Media Corp.'s minority interest in MovieTickets.com, UK Theatres Online (formerly known as CinemasOnline), and an Intellectual Property division.

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 2010. 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,
20112010
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$5,593,482$29,406,063
Receivables, net391,498465,079
Prepaid expenses798,7011,055,972
Other receivables168,79159,224
Related party receivable193,773299,963
Current portion of deferred compensation430,000-
Total current assets7,576,24531,286,301
PROPERTY AND EQUIPMENT, net419,550455,436
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES1,018,190955,065
INTANGIBLE ASSETS, net27,9937,549
GOODWILL14,595,78314,595,783
OTHER ASSETS16,94518,425
DEFERRED COMPENSATION, less current portion1,271,151-
TOTAL ASSETS$24,925,857$47,318,559
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable$1,006,496$802,684
Accrued expenses and other719,5756,804,066
Deferred revenue979,097980,786
Customer deposits501,670654,554
Current portion of capital lease obligations50,58360,031
Current portion of notes payable1,2242,362
Total current liabilities3,258,6459,304,483
CAPITAL LEASE OBLIGATIONS, less current portion33,15538,217
OTHER DEFERRED LIABILITY64,81275,120
DEFERRED REVENUE100,365148,002
DERIVATIVE LIABILITY1,720,000-
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 and 31,179,066 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively231,791311,791
Additional paid-in capital293,578,584309,898,584
Accumulated deficit(274,021,209)(272,410,281)
Total Hollywood Media Corp shareholders' equity19,789,16637,800,094
Non-controlling interest(40,286)(47,357)
Total shareholders' equity19,748,88037,752,737
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$24,925,857$47,318,559
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED
March 31,
20112010
NET REVENUES$970,873$1,069,266
OPERATING COSTS AND EXPENSES
Editorial, production, development and technology626,416689,166
Selling, general and administrative1,300,870906,446
Payroll and benefits1,016,9911,279,337
Depreciation and amortization74,806159,174
Total operating costs and expenses3,019,0833,034,123
Loss from operations(2,048,210)(1,964,857)
EARNINGS OF UNCONSOLIDATED INVESTEES64,101379,947
OTHER INCOME
Interest, net269,10111,055
Other, net1,70960,627
Loss from continuing operations(1,713,299)(1,513,228)
Gain on sale of discontinued operations, net of income taxes109,442180,470
Income of discontinued operations-748,718
Income from discontinued operations109,442929,188
Net loss(1,603,857)(584,040)
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST(7,071)(1,789)
Net loss attributable to Hollywood Media Corp$(1,610,928)$(585,829)
Basic and diluted income (loss) per common share
Continuing operations$(0.06)$(0.05)
Discontinued operations0.000.03
Total basic and diluted net loss per share$(0.06)$(0.02)
Weighted average common and common equivalent shares outstanding - basic and diluted28,067,95730,868,745