Hollywood Media Corp. ("Company") (NASDAQ: HOLL) today reported
financial results for the second quarter ended June 30, 2013.
On a continuing operations basis, which includes the
contribution from Tekno Books, the Company's 100% owned subsidiary
under the Intellectual Property division, net revenues for the 2013
second quarter were $0.1 million compared to $0.2 million in the
prior-year period.
Loss from continuing operations for the 2013 second quarter was
$0.1 million, or $0.01 per share, compared to a loss from
continuing operations for the 2012 second quarter of $1.3 million,
or $0.06 per share. Net loss, which includes discontinued
operations, was $0.1 million, or $0.01 per share, in the 2013
second quarter, compared to net loss of $0.5 million, or $0.02 per
share, in the prior-year period. Income from discontinued
operations during the 2012 second quarter primarily consisted of a
$0.6 million gain on the sale of the Company's U.K.-based
CinemasOnline business.
At June 30, 2013, the Company had cash and cash equivalents of
$9.7 million and no debt as compared to cash and cash equivalents
of $11.4 million and no debt at December 31, 2012.
The Company repurchased 521,500 shares of Hollywood Media's
common stock for $0.8 million during the first half of 2013,
comprised of 510,700 shares in first quarter 2013 and 10,800 shares
in second quarter 2013.
On August 8, 2013, the Company entered into the Transaction
Agreement (the "Agreement") among Key Brand Entertainment Inc.
("Key Brand"), Theatre Direct NY, Inc. ("Theatre Direct"), and the
Company for the prepayment by Key Brand in full of the amount owed
to the Company pursuant to the loan (the "Loan") under the Second
Lien Credit, Security and Pledge Agreement, dated as of December
15, 2010, among Key Brand, Theatre Direct, and the Company, as
amended. Pursuant to the Agreement, Key Brand paid to the Company
on August 8, 2013 in cash the amount of $13,861,738, which
constituted the outstanding principal plus accrued interest through
August 8, 2013 of the Loan. The Loan was scheduled to mature on
June 30, 2015.
In addition, pursuant to the Agreement, Theatre Direct redeemed
a warrant ("Warrant") to purchase shares of common stock of Theatre
Direct held by the Company. The redemption price for the Warrant
was $2,750,000 and was paid on August 8, 2013 to the Company. The
Warrant provided, among other things, that the Company could sell
the Warrant to Theatre Direct for a floor amount of $3,000,000
beginning on June 30, 2015.
Accordingly, the Company received on August 8, 2013 a total of
$16,611,738 consisting of $13,861,738 from the prepayment of the
Loan and $2,750,000 from the redemption of the Warrant.
About Hollywood Media Corp.
Hollywood Media Corp. is comprised primarily of an Ad Sales
division 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 Corp., 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 2012. 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,
2013 2012
------------- -------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 9,669,277 $ 11,378,519
Prepaid expenses 1,227,912 329,915
Other receivables 69,953 75,105
Notes receivable, current 1,567,837 1,375,545
Related party receivable 26,552 37,287
Current portion of deferred compensation 430,000 430,000
------------- -------------
Total current assets 12,991,531 13,626,371
PROPERTY AND EQUIPMENT, net 286,604 240,645
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
INVESTEES 138,082 138,384
INTANGIBLE ASSETS, net 4,466 8,683
GOODWILL 6,200,000 6,200,000
OTHER ASSETS 727,982 727,982
NOTES RECEIVABLE, less current portion 4,195,677 4,455,106
WARRANT 750,000 700,000
DEFERRED COMPENSATION, less current portion 303,651 518,651
------------- -------------
TOTAL ASSETS $ 25,597,993 $ 26,615,822
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 664,588 $ 414,123
Accrued expenses and other 851,587 1,036,788
Deferred revenue 104,451 111,669
Current portion of capital lease obligations 15,023 16,255
------------- -------------
Total current liabilities 1,635,649 1,578,835
CAPITAL LEASE OBLIGATIONS, less current
portion 30,444 2,152
OTHER DEFERRED LIABILITY 161 355
DEFERRED REVENUE 9,000 14,000
DERIVATIVE LIABILITIES 60,000 60,000
------------- -------------
TOTAL LIABILITIES 1,735,254 1,655,342
------------- -------------
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; 22,640,966 and
23,162,466 shares issued and outstanding at
June 30, 2013 and December 31, 2012,
respectively 226,410 231,625
Additional paid-in capital 292,831,089 293,591,903
Accumulated deficit (269,194,760) (268,863,048)
------------- -------------
Total shareholders' equity 23,862,739 24,960,480
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 25,597,993 $ 26,615,822
============= =============
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ ------------------------
2013 2012 2013 2012
----------- ----------- ----------- -----------
NET REVENUES $ 183,461 $ 333,047 $ 102,402 $ 156,213
OPERATING COSTS AND
EXPENSES
Editorial, production,
development and
technology 113,322 282,776 55,824 157,672
Selling, general and
administrative 1,696,191 1,200,978 755,144 696,132
Payroll and benefits 898,787 1,250,583 467,541 851,862
Depreciation and
amortization 42,088 75,164 20,953 37,570
----------- ----------- ----------- -----------
Total operating
costs and expenses 2,750,388 2,809,501 1,299,462 1,743,236
----------- ----------- ----------- -----------
Loss from operations (2,566,927) (2,476,454) (1,197,060) (1,587,023)
----------- ----------- ----------- -----------
(LOSSES) EARNINGS OF
UNCONSOLIDATED
INVESTEES (292) 17,815 (140) (53,982)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest, net 973,847 513,009 480,547 259,972
Accretion of discount,
net of allowance for
uncollectability 1,250,373 - 639,894 -
Other, net 52,124 (1,674) 51,586 32,203
----------- ----------- ----------- -----------
Total other income 2,276,344 511,335 1,172,027 292,175
----------- ----------- ----------- -----------
Loss from
continuing
operations before
income taxes (290,875) (1,947,304) (25,173) (1,348,830)
Income tax
(expense) (40,837) - (17,857) -
----------- ----------- ----------- -----------
Loss from
continuing
operations (331,712) (1,947,304) (43,030) (1,348,830)
----------- ----------- ----------- -----------
Gain on sale of
discontinued
operations, net
of income taxes - 975,973 - 778,456
Income from
discontinued
operations - 22,584 - 34,166
----------- ----------- ----------- -----------
Income from
discontinued
operations - 998,557 - 812,622
----------- ----------- ----------- -----------
Net loss $ (331,712) $ (948,747) $ (43,030) $ (536,208)
=========== =========== =========== ===========
Basic and diluted (loss)
income per common share
Continuing
operations $ (0.01) $ (0.08) $ (0.01) $ (0.06)
Discontinued
operations - 0.04 - 0.04
----------- ----------- ----------- -----------
Total basic and
diluted net loss
per share $ (0.01) $ (0.04) $ (0.01) $ (0.02)
=========== =========== =========== ===========
Weighted average common
and common equivalent
shares outstanding -
basic and diluted 22,712,110 23,179,066 22,648,740 23,179,066
=========== =========== =========== ===========
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