SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

August 20, 2012 06:55 ET

Hollywood Media Corp. Reports 2012 Second Quarter Results

BOCA RATON, FL--(Marketwire - Aug 20, 2012) - Hollywood Media Corp. (NASDAQ: HOLL) today reported financial results for the second quarter ended June 30, 2012.

On a continuing operations basis, which includes the contribution from the Intellectual Property division, net revenues for the 2012 second quarter were $0.2 million compared to $0.5 million in the prior-year period. The decrease in net revenues for the 2012 second quarter as compared to the 2011 second quarter was attributable to the timing of the delivery of manuscripts by Tekno Books.

Loss from continuing operations for the 2012 second quarter was $1.3 million, or $0.06 per share, compared to income from continuing operations last year of $0.3 million, or $0.01 per share. The decrease in net income is primarily due to income from the key-man life insurance of $1.1 million resulting from the death of the former Chief Executive Partner of Tekno Books, Dr. Martin Greenberg during the 2011 second quarter.

Net loss, which includes discontinued operations, was $0.5 million, or $0.02 per share, in the 2012 second quarter, compared to net income of $0.1 million, or $0.01 per share, in the prior-year period. This decrease is primarily due to the above mentioned decrease in net income partially offset by a $0.6 million gain on the sale of the Company's U.K-based CinemasOnline business which occurred during the 2012 second quarter.

At June 30, 2012, the Company had cash and cash equivalents of $2.4 million and no debt as compared to cash and cash equivalents of $3.7 million and no debt at December 31, 2011.

During the 2012 second quarter, Hollywood Media Corp. announced that as part of an amendment related to the completed sale of its Broadway Ticketing Business ("Theatre Direct") to Key Brand Entertainment Inc., Key Brand agreed to pay the first $7 million earnout amount to Hollywood Media on or before October 1, 2012 regardless of the actual revenues of Theatre Direct for Key Brand's fiscal year ended June 30, 2012. Also during the period, the Company sold its U.K.-based CinemasOnline business, formerly included as part of the Ad Sales division.

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  
   
    June 30,     December 31,  
    2012     2011  
    (unaudited)        
ASSETS            
             
CURRENT ASSETS:                
  Cash and cash equivalents   $ 2,408,472     $ 3,683,063  
  Prepaid expenses     353,714       316,430  
  Other receivables     35,995       77,907  
  Related party receivable     642,082       443,588  
  Current portion of deferred compensation     430,000       430,000  
  Current assets of discontinued operations     -       566,691  
    Total current assets     3,870,263       5,517,679  
                 
PROPERTY AND EQUIPMENT, net     249,970       283,574  
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES     1,413,929       1,573,325  
INTANGIBLE ASSETS, net     12,899       17,116  
GOODWILL     9,800,000       9,800,000  
OTHER ASSETS     242,839       58,628  
DEFERRED COMPENSATION, less current portion     733,651       948,651  
LONG TERM ASSETS OF DISCONTINUED OPERATIONS     -       23,816  
    TOTAL ASSETS   $ 16,323,551     $ 18,222,789  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 503,632     $ 387,070  
  Accrued expenses and other     902,507       646,821  
  Deferred revenue     164,778       264,228  
  Current portion of capital lease obligations     18,427       21,829  
  Current liabilities of discontinued operations     -       1,130,268  
    Total current liabilities     1,589,344       2,450,216  
                 
CAPITAL LEASE OBLIGATIONS, less current portion     10,380       16,203  
OTHER DEFERRED LIABILITY     31,601       42,514  
DEFERRED REVENUE     25,475       46,200  
DERIVATIVE LIABILITIES     1,040,000       1,090,000  
LONG TERM LIABILITIES OF DISCONTINUED OPERATIONS     -       2,158  
                 
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 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively     231,791       231,791  
  Additional paid-in capital     293,616,319       293,616,319  
  Accumulated deficit     (280,221,359 )     (279,272,612 )
    Total shareholders' equity     13,626,751       14,575,498  
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 16,323,551     $ 18,222,789  
                 
                 
   
   
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
   
    SIX MONTHS ENDED     THREE MONTHS ENDED  
    June 30,     June 30,  
    2012     2011     2012     2011  
                         
                         
NET REVENUES   $ 333,047     $ 689,123     $ 156,213     $ 460,475  
                                 
OPERATING COSTS AND EXPENSES                                
  Editorial, production, development and technology     282,776       456,903       157,672       293,516  
  Selling, general and administrative     1,200,978       1,727,449       696,132       527,173  
  Payroll and benefits     1,250,583       1,610,791       851,862       746,459  
  Depreciation and amortization     75,164       112,639       37,570       54,990  
                                   
    Total operating costs and expenses     2,809,501       3,907,782       1,743,236       1,622,138  
                                     
    Loss from operations     (2,476,454 )     (3,218,659 )     (1,587,023 )     (1,161,663 )
                                     
  EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES     17,815       179,383       (53,982 )     115,282  
                                   
OTHER INCOME (EXPENSE)                                
  Interest, net     513,009       529,278       259,972       259,976  
  Other, net     (1,674 )     1,129,107       32,203       1,129,378  
                                 
  (Loss) income from continuing operations     (1,947,304 )     (1,380,891 )     (1,348,830 )     342,973  
                                   
                                   
  Gain (loss) on sale of discontinued operations, net of income taxes     975,973       99,303       778,456       (10,139 )
  Income (loss) from discontinued operations     22,584       (165,390 )     34,166       (175,955 )
                                   
  Income (loss) from discontinued operations     998,557       (66,087 )     812,622       (186,094 )
                                   
    Net (loss) income     (948,747 )     (1,446,978 )     (536,208 )     156,879  
                                 
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST     -       (35,338 )     -       (28,267 )
                                 
Net (loss) income attributable to Hollywood Media Corp   $ (948,747 )   $ (1,482,316 )   $ (536,208 )   $ 128,612  
                                 
Basic and diluted (loss) income per common share                                
    Continuing operations   $ (0.08 )   $ (0.05 )   $ (0.06 )   $ 0.01  
    Discontinued operations     0.04       (0.01 )     0.04       -  
    Total basic and diluted net (loss) income per share   $ (0.04 )   $ (0.06 )   $ (0.02 )   $ 0.01  
                                 
Weighted average common and common equivalent shares outstanding - basic and diluted     23,179,066       25,610,007       23,179,066       23,179,066