SOURCE: IDW Media Holdings

IDW Media Holdings

September 15, 2016 09:00 ET

IDW Media Holdings, Inc. Reports Record Third Quarter 2016 Results

Record Third Quarter Gross Revenue of $17.6mm Resulting in an Increase of 31% and Record Nine Month Gross Revenue of $41.6mm Resulting in an Increase of 17% Led by the Success of IDW Entertainment

STAMFORD, CT and SAN DIEGO, CA--(Marketwired - Sep 15, 2016) - IDW Media Holdings, Inc. (OTC PINK: IDWM), a fully integrated media company announced today its results for the third quarter ended July 31, 2016.

Gross Revenue of $17.6 million for the three months ended July 31, 2016 compared to $13.4 million for the three months ended July 31, 2015, and $41.6 million for the nine months ended July 31, 2016 compared to $35.5 million for the nine months ended July 31, 2015 is primarily due to IDW Entertainment which increased by $4 million and $7.5 million for those periods. The increase resulted from the release of IDW Entertainment television episodes.

Third Quarter Financial Highlights:

  • IDW Entertainment 3rd Quarter Revenue of $4 million or 23% of Total Revenues compared to $58k or 0.4% last year.
  • On June 21, 2016, IDWM acquired the remaining 17% non-controlling interest of IDW Inc. resulting in 100% ownership and no minority interest.
  • Income from operations increased by $691,000 or 36% for the three months ended July 31, 2016 compared to the three months ended July 31, 2015, primarily due to IDW Entertainment. 
  • The increase resulted from gross profit from the release of IDW Entertainment television episodes.

Management
Commenting on the results, Ted Adams, CEO stated, "Our third quarter performance reflects record growth from the IDW Entertainment Division".

Mr. Adams added, "In the fourth quarter of 2016, we expect continued revenue growth, led by the success of our March graphic novels and additional IDW Entertainment revenue from the premier of Dirk Gently airing on BBC America."

Forward Looking Statements:
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

About IDW Media Holdings
IDW Media Holdings (OTC PINK: IDWM) is a fully integrated media company, which includes the award-winning IDW Publishing, IDW Games, IDW Entertainment, Top Shelf Productions, the San Diego Comic Art Gallery, and CTM Media Group Inc. a subsidiary of IDW Media Holdings (OTC: IDWM) (OTCBB: IDWM) (OTC PINK: IDWM). CTM Media Group Inc. is one of North America's largest distributors of tourism information. Distributing over 100 million brochures last year, CTM's comprehensive visitor out of home marketing network includes over 14,000 brochure information displays and 400 award-winning touch screen kiosks.

   
   
IDW MEDIA HOLDINGS, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(in thousands)   July 31, 2016 (Unaudited)     October 31, 2015  
Assets                
Current assets:                
  Cash and cash equivalents   $ 8,160     $ 6,596  
  Trade accounts receivable, net     9,948       5,915  
  Inventory - print and production costs     13,938       5,688  
  Prepaid expenses     1,762       2,015  
  Deferred taxes - current portion     201       200  
  Note receivable - current portion     372       372  
Total current assets     34,381       20,786  
Property and equipment, net     3,320       3,039  
Non-current assets                
  Note receivable - non-current portion     31       310  
  Deferred taxes - non-current portion     12,625       12,705  
  Intangible Assets, net     1,639       1,769  
  Goodwill     2,227       1,700  
  Other assets     703       498  
Total non-current assets     17,225       16,982  
Total assets   $ 54,926     $ 40,807  
Liabilities and stockholders' equity                
Current liabilities:                
  Trade accounts payable     1,974     $ 1,302  
  Accrued expenses     9,772       3,907  
  Deferred revenue     3,539       2,131  
  Income taxes payable     1,742       936  
  Deferred taxes payable     441       441  
  Capital lease obligations - current portion     331       257  
  Bank loans payable - current portion     460       431  
  Other current liabilities     425       359  
Total current liabilities     18,684       9,764  
Non-current liabilities                
  Capital lease obligations - long term portion     686       527  
  Bank loans payable - long term portion     856       1,199  
Total non-current liabilities     1,542       1,726  
Total liabilities     20,226       11,490  
Stockholders' equity (see note 1):                
  IDW Media Holdings, Inc. stockholders' equity:                
  Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2016 and October 31, 2015     -       -  
  Class B common stock, $0.01 par value; authorized shares - 12,000; 5,553 shares and 4,623 shares issued and outstanding at July 31, 2016 and October 31, 2015, respectively     56       46  
  Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July 31, 2016 and October 31, 2015     5       5  
  Additional paid-in capital     53,023       47,419  
  Accumulated other comprehensive loss     (197 )     (153 )
  Accumulated deficit     (16,991 )     (18,780 )
  Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2016 and October 31, 2015     (1,196 )     (1,196 )
  Total IDW Media Holdings, Inc. stockholders' equity     34,700       27,341  
  Non-controlling interests     -       1,976  
Total stockholders' equity     34,700       29,317  
Total liabilities and stockholders' equity   $ 54,926     $ 40,807  
                 
                 
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
    Three Months Ended
July 31,
    Nine Months Ended
July 31,
(in thousands, except per share data)   2016     2015     2016 2015
                   
Revenues   $ 17,608     $ 13,454     $ 41,634     $ 35,519
Costs and expenses:                              
  Direct cost of revenues     8,706       5,650       20,752       15,912
  Selling, general and administrative (i)     5,791       5,414       16,611       15,609
  Depreciation and amortization     395       442       1,137       1,256
  Bad debt expense     99       22       122       15
Total costs and expenses     14,991       11,528       38,622       32,792
Income from operations     2,617       1,926       3,012       2,727
Interest expense, net     (19 )     (17 )     (57 )     (19)
Other income (expense), net     10       22       (22 )     (100)
Income before income taxes     2,608       1,931       2,933       2,608
Provision for income taxes     (998 )     (705 )     (1,229 )     (952)
Net income     1,610       1,226       1,704       1,656
                               
Net income attributable to non-controlling interests     227       (112 )     -       (512)
Net income attributable to IDW Media Holdings, Inc.   $
1,837
    $
1,114
    $ 1,704     $ 1,144
                               
Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders (see notes 1 and 3):                              
Net income (loss) per share   $ .37     $ .24     $ .36     $ .25
                               
Weighted-average number of shares used in the calculation of basic and diluted income per share:     5,007       4,649       4,772       4,637
                               
Dividend declared per common share:   $ 0.00     $ 0.163     $ 0.163     $ 0.489
                               
Interest Expense   $ 22     $ 20     $ 68     $ 57
                               
(i) Stock-based compensation included in selling, general and administrative expenses   $ 96     $ 91     $ 289     $ 274
                               

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