SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

April 16, 2012 17:12 ET

Hollywood Media Corp. Reports 2011 Fourth Quarter and Year End Results

BOCA RATON, FL--(Marketwire - Apr 16, 2012) - Hollywood Media Corp. (NASDAQ: HOLL) today reported financial results for the fourth quarter and year ended December 31, 2011.

On a continuing operations basis which includes the contribution from the Ad Sales and Intellectual Property divisions, net revenues for the 2011 fourth quarter were $0.8 million compared to $1.0 million in the prior-year period. For the full year 2011, net revenues were $3.8 million versus $4.0 million in 2010.

Loss from continuing operations for the 2011 fourth quarter was $0.2 million, or $0.01 per diluted share, compared to a loss from continuing operations last year of $1.6 million, or $0.06 per diluted share. For the full year 2011, loss from continuing operations was $7.3 million, or $0.30 per diluted share, which included a non-cash goodwill impairment charge of $4.8 million in the third quarter of 2011 relating to the Company's Ad Sales Division, compared to a loss from continuing operations last year of $7.1 million or $0.23 per diluted share.

Net income, which includes Discontinued Operations, was essentially $0 in the 2011 fourth quarter, compared to net income last year of $5.7 million or $0.18 per share. For the full year 2011, net loss, which includes Discontinued Operations, was $6.9 million, or $0.28 per diluted share, compared to net income last year of $4.9 million, or $0.16 per diluted share.

The Company had approximately 23.2 million weighted average shares outstanding in the 2011 fourth quarter compared to 31.2 million weighted average shares outstanding in the prior-year period. The reduction in share count principally relates to an 8.0 million share tender offer completed in the first quarter of 2011.

At December 31, 2011, the Company had cash and cash equivalents of $3.7 million and no debt as compared to 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 in the first quarter of 2011, costs related to the sale of the Broadway Ticketing business including a working capital adjustment, and the Company's $1.3 million investment in Project Hollywood, LLC.

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
December 31, December 31,
2011 2010
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,717,599 $ 29,406,063
Receivables, net 229,365 465,079
Prepaid expenses 594,370 1,055,972
Other receivables 24,848 59,224
Related party receivable 521,497 299,963
Current portion of deferred compensation 430,000 -
Total current assets 5,517,679 31,286,301
PROPERTY AND EQUIPMENT, net 307,390 455,436
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES 1,573,325 955,065
INTANGIBLE ASSETS, net 17,116 7,549
GOODWILL 9,800,000 14,595,783
OTHER ASSETS 58,628 18,425
DEFERRED COMPENSATION, less current portion 948,651 -
TOTAL ASSETS $ 18,222,789 $ 47,318,559
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 403,743 $ 802,684
Accrued expenses and other 890,881 6,804,066
Deferred revenue 706,432 980,786
Customer deposits 427,331 654,554
Current portion of capital lease obligations 21,829 60,031
Current portion of notes payable - 2,362
Total current liabilities 2,450,216 9,304,483
CAPITAL LEASE OBLIGATIONS, less current portion 16,203 38,217
OTHER DEFERRED LIABILITY 42,514 75,120
DEFERRED REVENUE 48,358 148,002
DERIVATIVE LIABILITY 1,090,000 -
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 December 31, 2011 and December 31, 2010, respectively 231,791 311,791
Additional paid-in capital 293,616,319 309,898,584
Accumulated deficit (279,272,612 ) (272,410,281 )
Total Hollywood Media Corp shareholders' equity 14,575,498 37,800,094
Non-controlling interest - (47,357 )
Total shareholders' equity 14,575,498 37,752,737
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 18,222,789 $ 47,318,559
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
TWELVE MONTHS ENDED
December 31,
THREE MONTHS ENDED
December 31,
2011 2010 2011 2010
NET REVENUES $ 3,769,772 $ 3,995,177 $ 822,458 $ 1,014,084
OPERATING COSTS AND EXPENSES
Editorial, production, development and technology 2,345,352 2,641,205 420,738 667,021
Selling, general and administrative 3,372,194 3,677,612 696,836 393,932
Payroll and benefits 3,860,323 4,799,058 552,896 1,205,178
Depreciation and amortization 245,168 541,326 45,526 101,746
Total operating costs and expenses 9,823,037 11,659,201 1,715,996 2,367,877
Loss from operations (6,053,265 ) (7,664,024 ) (893,538 ) (1,353,793 )
LOSSES OF UNCONSOLIDATED INVESTEES
Equity in earnings of unconsolidated investees 593,767 765,015 184,176 128,176
Impairment loss (4,795,783 ) - - -
Total equity in (losses) earnings of unconsolidated investees (4,202,016 ) 765,015 184,176 128,176
OTHER INCOME (EXPENSE)
Interest, net 1,041,932 64,916 260,695 54,179
Other, net 2,042,526 6,311 272,076 (75,473 )
Income taxes, net of refunds (130,571 ) (283,756 ) 1,352 (334,134 )
Loss from continuing operations (7,301,394 ) (7,111,538 ) (175,239 ) (1,581,045 )
Gain on sale of discontinued operations, net of income taxes 524,156 6,057,421 269,314 5,550,519
Income of discontinued operations - 5,909,763 - 1,733,082
Income from discontinued operations 524,156 11,967,184 269,314 7,283,601
Net (loss) income (6,777,238 ) 4,855,646 94,075 5,702,556
NET LOSS (INCOME) ATTRIBUTABLE TO NON-CONTROLLING INTEREST (85,093 ) 49,921 (55,066 ) 11,869
Net (loss) income attributable to Hollywood Media Corp $ (6,862,331 ) $ 4,905,567 $ 39,009 $ 5,714,425
Basic and diluted (loss) income per common share
Continuing operations $ (0.30 ) $ (0.23 ) $ (0.01 ) $ (0.06 )
Discontinued operations 0.02 0.39 0.01 0.24
Total basic and diluted net (loss) income per share $ (0.28 ) $ 0.16 $ - $ 0.18
Weighted average common and common equivalent shares outstanding - basic and diluted 24,384,547 30,937,619 23,179,066 30,988,851