SOURCE: Hollywood Media Corp.

Hollywood Media Corp.

March 17, 2010 16:00 ET

Hollywood Media Corp. Reports Improved 2009 Fourth Quarter Results

BOCA RATON, FL--(Marketwire - March 17, 2010) - Hollywood Media Corp. (NASDAQ: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the fourth quarter and year ended December 31, 2009. Results reflect the divestment of the Company's Hollywood.com business in August 2008, which has been accounted for as discontinued operations. As announced on December 29, 2009, 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.

For the 2009 fourth quarter, Hollywood Media reported a 3% increase in net revenues to $30.0 million versus $29.0 million for the same period in 2008. Broadway Ticketing revenue, which represented 96% of total Company revenue, increased 4% for the period over the 2008 fourth quarter.

Loss from continuing operations for the 2009 fourth quarter was $0.6 million, or $0.02 per share, compared to a loss of $6.3 million, or $0.20 per share, in the prior-year period which included a $3.5 million impairment charge. For the full year, the Company reported a loss from continuing operations of $6.2 million, or $0.20 per share, which includes a 2009 second quarter $5.0 million impairment charge in the Ad Sales Division. This compares to a 2008 loss from continuing operations of $10.5 million, or $0.33 per share, which included the $3.5 million impairment charge.

Net loss for the 2009 fourth quarter was $0.4 million, or $0.02 per share, versus a net loss for the 2008 fourth quarter of $6.6 million, or $0.21 per share, which included the $3.5 million impairment charge as well as a loss from discontinued operations of $0.4 million. For the full year 2009, net loss was $5.6 million, or $0.18 per share, which includes the $5.0 million impairment charge as well as offsetting gains of $0.7 million from an earn-out from discontinued operations. This compares to a net loss in the full year 2008 of $16.9 million, or $0.53 per share, which included the $3.5 million impairment charge as well as a loss from discontinued operations of $6.3 million.

EBITDA* in the 2009 fourth quarter for the Company as a whole was nearly break-even at a loss of $0.1 million, as compared to an EBITDA loss of $5.6 million in the prior-year period, which included the $3.5 million impairment charge. EBITDA for the full year 2009 was a loss of $4.8 million, which includes the $5.0 million impairment charge, compared to an EBITDA loss of $8.8 million for the full 2008 year, which included the $3.5 million impairment charge. Broadway Ticketing EBITDA totaled $1.9 million in the 2009 fourth quarter and $5.5 million for the full year 2009, as compared to $0.4 million and $3.4 million for the fourth quarter and full year 2008, respectively. The Company realized a year-over-year decline in operating costs and expenses of 13% in the 2009 fourth quarter versus the prior year and a 17% decline for the 2009 full year.

Cash flow provided by operating activities from continuing operations during the fourth quarter 2009 was $2.0 million and for the full year 2009 cash flow provided by operating activities from continuing operations was $0.1 million. This compares to cash provided by operating activities from continuing operations of $1.1 million for the fourth quarter 2008 and cash used in operating activities from continuing operations of $4.5 million for the full year 2008.

Mitchell Rubenstein, CEO of Hollywood Media, commented, "We generated solid gains in our Broadway Ticketing operations as a result of increased demand coupled with expense reductions. We remain well-capitalized with a strengthened cash position and no debt. Finally, MovieTickets.com, in which we own a 26.2% interest, continues to benefit from strong movie theater attendance and started 2010 on a positive note with revenues up 50% for the month of January compared to the prior-year period."

Cash and cash equivalents increased to $11.8 million at December 31, 2009 from $9.8 million at September 30, 2009 due to an increase in operating cash flow. The Company also has approximately $1.2 million in its restricted cash balance.

Teleconference Information

Management will host a teleconference to discuss the Company's 2009 fourth quarter and year-end financial results. The conference call is scheduled for Wednesday, March 17, 2010 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 March 24, 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 347099#. An archived version of the webcast will also be available on 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 its 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 2008 and, when filed, 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

                                                December 31,  December 31,
                                                    2009          2008
                                                ------------  ------------

                     ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                     $ 11,764,810  $ 12,685,946
  Receivables, net                                   897,503     1,433,797
  Inventories held for sale                        3,735,691     4,491,841
  Deferred ticket costs                           10,985,160    12,085,237
  Prepaid expenses                                 1,896,237     1,418,563
  Other receivables                                1,125,263     1,287,752
  Other current assets                               436,675        99,945
  Related party receivable                           335,245       143,464
  Restricted cash                                  1,221,000     2,600,000
                                                ------------  ------------
    Total current assets                          32,397,584    36,246,545

PROPERTY AND EQUIPMENT, net                        4,369,085     4,649,202
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
 INVESTEES                                           230,097       132,800
INTANGIBLE ASSETS, net                               390,818       682,896
GOODWILL                                          20,197,513    25,154,292
OTHER ASSETS                                          21,082        73,126
                                                ------------  ------------
    TOTAL ASSETS                                $ 57,606,179  $ 66,938,861
                                                ============  ============

      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                              $  1,632,351  $  1,329,949
  Accrued expenses and other                       3,074,549     3,708,652
  Deferred revenue                                14,012,178    15,196,455
  Gift certificate liability                       3,794,899     3,434,359
  Customer deposits                                  948,273       831,838
  Current portion of capital lease obligations       123,061       203,579
  Current portion of notes payable                    37,454        43,147
  Related party payable                                    -     2,622,438
                                                ------------  ------------
    Total current liabilities                     23,622,765    27,370,417

DEFERRED REVENUE                                     309,190       401,309
CAPITAL LEASE OBLIGATIONS, less current portion       75,830       203,901
OTHER DEFERRED LIABILITY                           1,105,553     1,168,096
NOTES PAYABLE, less current portion                    2,432        36,258

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; 31,037,656 and 30,883,913
   shares issued and outstanding at December 31,
   2009 and December 31, 2008, respectively          310,377       308,839
  Additional paid-in capital                     309,480,331   309,100,760
  Accumulated deficit                           (277,315,848) (271,695,431)
                                                ------------  ------------
    Total Hollywood Media Corp shareholders'
     equity                                       32,474,860    37,714,168
  Non-controlling interest                            15,549        44,712
                                                ------------  ------------
    Total shareholders' equity                    32,490,409    37,758,880
                                                ------------  ------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 57,606,179  $ 66,938,861
                                                ============  ============




                  HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                          TWELVE MONTHS ENDED        THREE MONTHS ENDED
                             December 31,               December 31,
                       -------------------------  ------------------------
                           2009         2008          2009         2008
                       -----------  ------------  -----------  -----------

NET REVENUES
    Ticketing          $98,807,557  $110,918,969  $28,880,944  $27,874,572
    Other                4,571,353     6,138,962    1,077,148    1,143,593
                       -----------  ------------  -----------  -----------
                       103,378,910   117,057,931   29,958,092   29,018,165
                       -----------  ------------  -----------  -----------

OPERATING COSTS AND
 EXPENSES
    Cost of revenues -
     ticketing          81,014,536    92,882,066   23,245,966   23,466,004
    Editorial,
     production,
     development and
     technology          2,569,354     3,323,546      625,144      638,488
    Selling, general
     and administrative 10,827,719    13,932,852    3,255,237    3,834,843
    Payroll and
     benefits           10,574,375    13,284,857    3,172,227    3,035,167
    Impairment loss              -     3,524,697            -    3,524,697
    Depreciation and
     amortization        1,590,598     2,224,831      406,411      773,472
                       -----------  ------------  -----------  -----------

        Total operating
         costs and
         expenses      106,576,582   129,172,849   30,704,985   35,272,671
                       -----------  ------------  -----------  -----------

        Loss from
         operations     (3,197,672)  (12,114,918)    (746,893)  (6,254,506)

EARNINGS (LOSSES) OF
 UNCONSOLIDATED INVESTEES
    Equity in earnings
     (losses) of
     unconsolidated
     investees           2,006,498     1,160,623       93,592     (151,999)
    Impairment loss     (5,000,000)            -            -            -
                       -----------  ------------  -----------  -----------

        Total equity in
         earnings
         (losses) of
         unconsolidated
         investees      (2,993,502)    1,160,623       93,592     (151,999)

OTHER INCOME (EXPENSE)
    Interest, net           28,922       425,251       10,208       33,147
    Other, net             (75,146)       44,958       80,923       85,231
                       -----------  ------------  -----------  -----------

         Loss from
          continuing
          operations    (6,237,398)  (10,484,086)    (562,170)  (6,288,127)

         Loss on sale
          of discontinued
          operations, net
          of income taxes  614,572    (4,655,122)     142,085            -
         Gain (loss) from
          discontinued
          operations             -    (1,635,750)           -     (351,405)
                       -----------  ------------  -----------  -----------
         Income (loss)
          from discontinued
          operations       614,572    (6,290,872)     142,085     (351,405)
                       -----------  ------------  -----------  -----------

         Net loss       (5,622,826)  (16,774,958)    (420,085)  (6,639,532)

NET (INCOME) LOSS
 ATTRIBUTABLE TO
 NON-CONTROLLING
 INTEREST                    2,409       (81,365)      35,230       16,208
                       -----------  ------------  -----------  -----------
         Net loss
          attributable
          to Hollywood
          Media Corp   $(5,620,417) $(16,856,323) $  (384,855) $(6,623,324)
                       ===========  ============  ===========  ===========

 Basic and diluted
  income (loss) per
  common share
         Continuing
          operations   $     (0.20) $      (0.33) $     (0.02) $     (0.20)
         Discontinued
          operations          0.02         (0.20)        0.00        (0.01)
                       -----------  ------------  -----------  -----------
         Total basic
          and diluted
          net loss per
          share        $     (0.18) $      (0.53) $     (0.02) $     (0.21)
                       ===========  ============  ===========  ===========

Weighted average common
 and common equivalent
 shares outstanding -
 basic and diluted      30,584,902    31,793,853   30,642,730   31,263,293
                       ===========  ============  ===========  ===========





                          Hollywood Media Corp.
         Segment Summary Financial Data and EBITDA Reconciliation

For the Year Ended
 December 31, 2009
 (unaudited)

             Broadway    Ad Sales   Intellectual
            Ticketing     (1)(3)     Properties   Other (2)       Total
          ------------  -----------  ----------  -----------  ------------
Net
 Revenues $ 98,860,362  $ 3,391,714  $1,126,834  $         -  $103,378,910

Operating
 Income
 (Loss)      4,809,588     (355,892)     (4,816)  (7,646,552)   (3,197,672)

          ------------  -----------  ----------  -----------  ------------
Net Income
 (Loss)      4,699,144   (5,332,248)     (4,845)  (5,597,040)   (6,234,989)

 Add back
  (Income)
  Expense:

   Interest,
    net        (12,761)       7,476        (549)     (23,088)      (28,922)
   Taxes         1,929      (68,711)          -      (14,575)      (81,357)
   Depreciation
    and
    Amortiza-
     tion      846,603      354,932         299      388,764     1,590,598

          ------------  -----------  ----------  -----------  ------------
EBITDA
 Income
 (Loss)   $  5,534,915  $(5,038,551) $   (5,095) $(5,245,939) $ (4,754,670)
          ============  ===========  ==========  ===========  ============

For the Year Ended
 December 31, 2008
 (unaudited)

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

Net
 Revenues $110,918,969  $ 4,830,760  $1,308,202  $         -  $117,057,931

Operating
 Income
 (Loss)      2,533,682   (3,977,171)    (71,372) (10,600,057)  (12,114,918)

          ------------  -----------  ----------  -----------  ------------
Net Income
 (Loss)      2,600,393   (3,884,198)   (307,923)  (8,973,723)  (10,565,451)

 Add back
  (Income)
  Expense:

   Interest,
    net        (65,451)      11,652      (4,521)    (366,931)     (425,251)
   Taxes             -      (59,553)          7       60,499           953
   Depreciation
    and
    Amortiza-
     tion      876,049      901,351         150      447,281     2,224,831

          ------------  -----------  ----------  -----------  ------------
EBITDA
 Income
 (Loss)   $  3,410,991  $(3,030,748) $ (312,287) $(8,832,874) $ (8,764,918)
          ============  ===========  ==========  ===========  ============


For the Three Months Ended
 December 31, 2009
 (unaudited)

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

Net
 Revenues $ 28,880,944  $   881,456  $  195,692  $         -  $ 29,958,092

Operating
 Income
 (Loss)      1,622,995     (109,455)    (71,838)  (2,188,595)     (746,893)

          ------------  -----------  ----------  -----------  ------------
Net Income
 (Loss)      1,696,995      (98,297)    (38,265)  (2,087,373)     (526,940)

 Add back
  (Income)
  Expense:

   Interest     (2,669)       1,951         (34)      (9,456)      (10,208)
   Taxes             -      (16,916)          -            -       (16,916)
   Depreciation
    and
    Amortiza-
     tion      229,098       83,363          74       93,876       406,411

          ------------  -----------  ----------  -----------  ------------
EBITDA
 Income
 (Loss)   $  1,923,424  $   (29,899) $  (38,225) $(2,002,953) $   (147,653)
          ============  ===========  ==========  ===========  ============


For the Three Months Ended
 December 31, 2008
 (unaudited)

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

Net
 Revenues $ 27,874,572  $   871,456  $  272,137  $         -  $ 29,018,165

Operating
 Income
 (Loss)        195,119   (3,660,118)   (282,472)  (2,507,035)   (6,254,506)

          ------------  -----------  ----------  -----------  ------------
Net Income
 (Loss)        203,848   (3,588,388)   (416,981)  (2,470,398)   (6,271,919)

 Add back
  (Income)
  Expense:

   Interest        829        1,787      (1,282)     (34,481)      (33,147)
   Taxes             -      (42,135)          -          690       (41,445)
   Depreciation
    and
    Amortiza-
     tion      218,754      437,472          75      117,171       773,472

          ------------  -----------  ----------  -----------  ------------
EBITDA
 Income
 (Loss)   $    423,431  $(3,191,264) $ (418,188) $(2,387,018) $ (5,573,039)
          ============  ===========  ==========  ===========  ============

(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.

(3)  The Ad Sales segment includes a $5.0 million non-cash impairment loss
to MovieTickets.com.