SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

August 15, 2011 16:01 ET

Hollywood Media Corp. Reports 2011 Second Quarter Results

BOCA RATON, FL--(Marketwire - Aug 15, 2011) - Hollywood Media Corp. (NASDAQ: HOLL) today reported financial results for the second quarter ended June 30, 2011.

On a continuing operations basis which includes the contribution from the Ad Sales and Intellectual Property divisions, net revenues for the 2011 second quarter were $1.1 million compared to $0.9 million in the prior-year period.

Income from continuing operations for the 2011 second quarter was $0.2 million, or $0.01 per diluted share, compared to a loss from continuing operations last year of $1.8 million, or $0.06 per share.

Net income, which includes discontinued operations, was $0.2 million, or $0.01 per diluted share, in the 2011 second quarter, unchanged from the prior year period. The Company had approximately 23.2 million weighted average shares outstanding in the 2011 second quarter compared to 30.9 million weighted average shares outstanding in the prior-year period. The reduction in share count relates to an 8 million share tender offer completed in the 2011 first quarter.

At June 30, 2011, the Company had cash and cash equivalents of $4.6 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 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
June 30, December 31,
2011 2010
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 4,563,010 $ 29,406,063
Receivables, net 336,558 465,079
Prepaid expenses 876,543 1,055,972
Other receivables 1,227,666 59,224
Related party receivable 194,609 299,963
Current portion of deferred compensation 430,000 -
Total current assets 7,628,386 31,286,301
PROPERTY AND EQUIPMENT, net 397,442 455,436
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES 1,133,472 955,065
INTANGIBLE ASSETS, net 22,887 7,549
GOODWILL 14,595,783 14,595,783
OTHER ASSETS 17,288 18,425
DEFERRED COMPENSATION, less current portion 1,163,651 -
TOTAL ASSETS $ 24,958,909 $ 47,318,559
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 774,840 $ 802,684
Accrued expenses and other 960,433 6,804,066
Deferred revenue 844,146 980,786
Customer deposits 534,257 654,554
Current portion of capital lease obligations 35,787 60,031
Current portion of notes payable - 2,362
Total current liabilities 3,149,463 9,304,483
CAPITAL LEASE OBLIGATIONS, less current portion 26,441 38,217
OTHER DEFERRED LIABILITY 55,736 75,120
DEFERRED REVENUE 100,071 148,002
DERIVATIVE LIABILITY 1,720,000 -
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; 23,179,068 and 31,179,066 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively 231,791 311,791
Additional paid-in capital 293,578,584 309,898,584
Accumulated deficit (273,892,597 ) (272,410,281 )
Total Hollywood Media Corp shareholders' equity 19,917,778 37,800,094
Non-controlling interest (10,580 ) (47,357 )
Total shareholders' equity 19,907,198 37,752,737
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 24,958,909 $ 47,318,559
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
SIX MONTHS ENDED
June 30,
THREE MONTHS ENDED
June 30,
2011 2010 2011 2010
NET REVENUES $ 2,086,694 $ 2,007,701 $ 1,115,821 $ 938,435
OPERATING COSTS AND EXPENSES
Editorial, production, development and technology 1,405,415 1,329,794 778,999 640,628
Selling, general and administrative 2,001,125 2,104,424 700,255 1,197,978
Payroll and benefits 1,918,152 2,310,705 901,161 1,031,368
Depreciation and amortization 142,068 307,785 67,262 148,611
Total operating costs and expenses 5,466,760 6,052,708 2,447,677 3,018,585
Loss from operations (3,380,066 ) (4,045,007 ) (1,331,856 ) (2,080,150 )
EARNINGS OF UNCONSOLIDATED INVESTEES 179,383 548,868 115,282 168,921
OTHER INCOME
Interest, net 520,856 11,404 251,755 349
Other, net 1,133,546 124,434 1,131,837 63,807
(Loss) income from continuing operations (1,546,281 ) (3,360,301 ) 167,018 (1,847,073 )
Gain (loss) on sale of discontinued operations, net of income taxes 99,303 325,444 (10,139 ) 144,974
Income of discontinued operations - 2,640,759 - 1,892,041
Income (loss) from discontinued operations 99,303 2,966,203 (10,139 ) 2,037,015
Net (loss) income (1,446,978 ) (394,098 ) 156,879 189,942
NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST (35,338 ) 14,700 (28,267 ) 16,489
Net (loss) income attributable to Hollywood Media Corp $ (1,482,316 ) $ (379,398 ) $ 128,612 $ 206,431
Basic and diluted income (loss) per common share
Continuing operations $ (0.06 ) $ (0.11 ) $ 0.01 $ (0.06 )
Discontinued operations 0.00 0.10 (0.00 ) 0.07
Total basic and diluted net (loss) income per share $ (0.06 ) $ (0.01 ) $ 0.01 $ 0.01
Weighted average common and common equivalent shares outstanding - basic
25,610,007

30,907,452

23,179,068

30,945,735
Weighted average common and common equivalent shares outstanding - diluted
25,610,007

30,907,452

23,179,068

31,179,068