Hollywood Media Corp. Reports 2013 Third Quarter Results

BOCA RATON, FL--(Marketwired - Oct 29, 2013) - Hollywood Media Corp. ("Company") (NASDAQ: HOLL) today reported financial results for the third quarter ended September 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 third quarter were $0.1 million compared to $0.1 million in the prior-year period.

Income from continuing operations for the 2013 third quarter was $8.2 million, or $0.36 per share, compared to a loss from continuing operations for the 2012 third quarter of $2.3 million, or $0.10 per share, which includes a non-cash goodwill impairment charge of $3.6 million relating to the Company's Ad Sales division. Income from continuing operations for the 2013 third quarter was primarily attributable to a $9.2 million gain from the Transaction Agreement (as defined below). Net income was $8.2 million, or $0.36 per share, in the 2013 third quarter, compared to net loss, which includes discontinued operations, of $0.5 million, or $0.02 per share, in the prior-year period.

At September 30, 2013, the Company had cash and cash equivalents of $24.9 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 three quarters 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.

Attached are the following financial tables: CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

			September 30,			December 31,
			2013			2012
			(unaudited)
ASSETS

CURRENT ASSETS:
	Cash and cash equivalents		$	24,867,007		$	11,378,519
	Prepaid expenses			1,102,064			329,915
	Other receivables			74,893			75,105
	Notes receivable, current			33,603			1,375,545
	Related party receivable			21,883			37,287
	Current portion of deferred compensation			430,000			430,000
		Total current assets		26,529,450			13,626,371

PROPERTY AND EQUIPMENT, net				360,574			240,645
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES				139,145			138,384
INTANGIBLE ASSETS, net				2,358			8,683
GOODWILL				6,200,000			6,200,000
OTHER ASSETS				195,928			727,982
NOTES RECEIVABLE, less current portion				84,007			4,455,106
WARRANT				-			700,000
DEFERRED COMPENSATION, less current portion				196,151			518,651
		TOTAL ASSETS	$	33,707,613		$	26,615,822

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
	Accounts payable		$	478,144		$	414,123
	Accrued expenses and other			964,164			1,036,788
	Deferred revenue			82,451			111,669
	Current portion of capital lease obligations			11,318			16,255
		Total current liabilities		1,536,077			1,578,835

CAPITAL LEASE OBLIGATIONS, less current portion				28,640			2,152
OTHER DEFERRED LIABILITY				65			355
DEFERRED REVENUE				9,000			14,000
DERIVATIVE LIABILITIES				60,000			60,000
		TOTAL LIABILITIES		1,633,782			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 September 30, 2013 and December 31, 2012, respectively			226,410			231,625
	Additional paid-in capital			292,831,089			293,591,903
	Accumulated deficit			(260,983,668	)		(268,863,048	)
		Total shareholders' equity		32,073,831			24,960,480
		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	33,707,613		$	26,615,822




HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)


				NINE MONTHS ENDED SEPTEMBER 30,						THREE MONTHS ENDED SEPTEMBER 30,
				2013			2012			2013			2012


NET REVENUES				$	323,445		$	429,082		$	139,984		$	96,035

OPERATING COSTS AND EXPENSES
	Editorial, production, development and technology				181,734			391,503			68,412			108,727
	Selling, general and administrative				2,579,142			1,839,990			882,951			639,012
	Payroll and benefits				1,338,777			1,619,487			439,990			368,904
	Depreciation and amortization				58,899			113,032			16,811			37,868

		Total operating costs and expenses			4,158,552			3,964,012			1,408,164			1,154,511

		Loss from operations			(3,835,107	)		(3,534,930	)		(1,268,180	)		(1,058,476	)


EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES
	Equity in earnings (losses) of unconsolidated investees				108			(141,851	)		400			(159,665	)
	Impairment loss				-			(3,600,000	)		-			(3,600,000	)
	Total equity in earnings (losses) of unconsolidated investees				108			(3,741,851	)		400			(3,759,665	)

OTHER INCOME
	Interest, net				1,175,044			777,411			201,197			264,400
	Accretion of discount, net of allowance for uncollectability				1,468,757			-			218,384			-
	Other, net				9,297,426			1,108,312			9,245,302			1,109,986
		Total other income			11,941,227			1,885,723			9,664,883			1,374,386

		Income (loss) from continuing operations before income taxes			8,106,228			(5,391,058	)		8,397,103			(3,443,755	)
		Income tax (expense) benefit			(226,848	)		1,498,482			(186,011	)		1,127,612
			Income (loss) from continuing operations		7,879,380			(3,892,576	)		8,211,092			(2,316,143	)

		Gain on sale of discontinued operations, net of income taxes			-			2,444,891			-			1,839,788
		Income from discontinued operations			-			22,584			-			-

		Income from discontinued operations			-			2,467,475			-			1,839,788

		Net income (loss)		$	7,879,380		$	(1,425,101	)	$	8,211,092		$	(476,355	)


Basic and diluted income (loss) per common share
	Continuing operations			$	0.35		$	(0.17	)	$	0.36		$	(0.10	)
	Discontinued operations				-			0.11			-			0.08
	Total basic and diluted net income (loss) per share			$	0.35		$	(0.06	)	$	0.36		$	(0.02	)

Weighted average common and common equivalent shares outstanding - basic and diluted					22,688,135			23,179,066			22,640,966			23,179,066