Hollywood Media Corp.

$HOLL - Nasdaq - Retail
0 LAST
0 CHANGE $
0 CHANGE %
loader
ON 0
WATCHLISTS

COMMUNIQUÉ DETAILS

Up 0 0 Down
Hollywood Media Corp. Reports 2012 Fourth Quarter and Year End Results

BOCA RATON, FL -- (Marketwire) -- 04/01/13 -- Hollywood Media Corp. (NASDAQ: HOLL) today reported financial results for the fourth quarter and year ended December 31, 2012.

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 2012 fourth quarter were unchanged at $0.2 million compared to $0.2 million in the prior-year period. For the full year 2012, net revenues were $0.6 million versus $1.1 million in 2011.

Income from continuing operations for the 2012 fourth quarter, was $4.8 million, or $0.21 per share, compared to a loss from continuing operations for the 2011 fourth quarter of $0.1 million, or $0.01 per share. The income tax benefit of $3.8 million was fully offset by the income tax expense recognized in the Gain on sale of discontinued operations, net of income taxes. Income from continuing operations for the full year 2012 was $0.9 million, or $0.04 per share, which included a non-cash goodwill impairment charge of $3.6 million in the third quarter of 2012 related to the Company's Ad Sales Division, $0.4 million of non-cash amortization expense of deferred compensation costs and $0.1 million depreciation and amortization. This compared to a loss from continuing operations for the full year 2011 of $7.1 million, or $0.29 per share, which included a non-cash goodwill impairment charge of $4.8 million in the third quarter of 2011 related to the Company's Ad Sales Division. The income tax benefit of $5.3 million was fully offset by the income tax expense recognized in the Gain on sale of discontinued operations, net of income taxes.

Net income, which includes discontinued operations, was $11.8 million, or $0.51 per share, in the 2012 fourth quarter, compared to net income of $0.04 million, or $0.00 per share, in the prior-year period. For the full year 2012, net income, which includes discontinued operations, was $10.4 million, or $0.45 per share, compared to a net loss in 2011 of $6.9 million, or $0.28 per share.

At December 31, 2012, the Company had cash and cash equivalents of $11.4 million and no debt as compared to cash and cash equivalents of $3.7 million and no debt at December 31, 2011.

The increased cash position reflects a $7 million earnout payment in cash received in the 2012 fourth quarter from Key Brand Entertainment Inc. ("Key Brand") pursuant to the amended purchase agreement related to the completed sale of Hollywood Media's Broadway Ticketing Business ("Theatre Direct") to Key Brand. In addition, during the 2012 fourth quarter Key Brand notified Hollywood Media that it achieved the revenue target for the second $7 million earnout under the purchase agreement in Key Brand's fiscal year ended June 30, 2012. Accordingly, this $7 million amount was added to the principal amount of the $8.5 million loan due Hollywood Media by Key Brand. Pursuant to this loan, interest will be payable to Hollywood Media at an increased rate of 13% per annum and principal on such second $7 million earnout amount will be amortized in equal quarterly installments over the period commencing October 5, 2012 and ending on June 30, 2015 which is the new shortened maturity date of the loan. As a result of this second $7 million earnout being added to the loan and a subsequent payment received in the amount of $1.0 million (which included a principal payment of $0.5 million), the principal amount of the loan due Hollywood Media by Key Brand was $15.0 million as of December 31, 2012. A $1.1 million payment was received during the first quarter of 2013 in accordance with the terms of the loan.

The Company purchased 16,600 shares of Hollywood Media's common stock for $0.1 million during the fourth quarter of 2012 and 510,700 shares of Hollywood Media's common stock for $0.7 million during the first quarter of 2013.

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 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
                        CONSOLIDATED BALANCE SHEETS

                                                December 31,   December 31,
                                                    2012           2011
                                               -------------  -------------

                    ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                    $  11,378,519  $   3,683,063
  Prepaid expenses                                   329,915        316,430
  Other receivables                                   75,105              -
  Note receivable, current                         1,375,545              -
  Related party receivable                            37,287        521,497
  Current portion of deferred compensation           430,000        430,000
  Current assets of discontinued operations                -        566,691
                                               -------------  -------------
    Total current assets                          13,626,371      5,517,681

PROPERTY AND EQUIPMENT, net                          240,645        283,574
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED
 INVESTEES                                           138,384      1,573,325
INTANGIBLE ASSETS, net                                 8,683         17,116
GOODWILL                                           6,200,000      9,800,000
OTHER ASSETS                                         727,982         58,628
NOTE RECEIVABLE, less current portion              4,455,106              -
WARRANT                                              700,000              -
DEFERRED COMPENSATION, less current portion          518,651        948,651
LONG TERM ASSETS OF DISCONTINUED OPERATIONS                -         23,814
                                               -------------  -------------
    TOTAL ASSETS                               $  26,615,822  $  18,222,789
                                               =============  =============

     LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                             $     414,123  $     387,070
  Accrued expenses and other                       1,036,788        646,821
  Deferred revenue                                   111,669        264,228
  Current portion of capital lease obligations        16,255         21,829
  Current liabilities of discontinued
   operations                                              -      1,130,268
                                               -------------  -------------
    Total current liabilities                      1,578,835      2,450,216

CAPITAL LEASE OBLIGATIONS, less current
 portion                                               2,152         16,203
OTHER DEFERRED LIABILITY                                 355         42,514
DEFERRED REVENUE                                      14,000         46,200
DERIVATIVE LIABILITIES                                60,000      1,090,000
LONG TERM LIABILITIES OF DISCONTINUED
 OPERATIONS                                                -          2,158
                                               -------------  -------------
    TOTAL LIABILITIES                              1,655,342      3,647,291

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; 23,162,466 and
   23,179,066 shares issued and outstanding at
   December 31, 2012 and December 31, 2011,
   respectively                                      231,625        231,791
  Additional paid-in capital                     293,591,903    293,616,319
  Accumulated deficit                           (268,863,048)  (279,272,612)
                                               -------------  -------------
    Total shareholders' equity                    24,960,480     14,575,498
                                               -------------  -------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $  26,615,822  $  18,222,789
                                               =============  =============



                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS

                           TWELVE MONTHS ENDED        THREE MONTHS ENDED
                               December 31,              December 31,
                         ------------------------  ------------------------
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------


NET REVENUES             $   616,338  $ 1,067,708  $   187,256  $   226,162

OPERATING COSTS AND
 EXPENSES
    Editorial,
     production,
     development and
     technology              639,865      651,614      248,362       89,572
    Selling, general and
     administrative        2,854,440    2,782,020    1,014,450      511,221
    Payroll and benefits   2,688,017    3,242,209    1,068,530      398,653
    Depreciation and
     amortization            136,443      203,231       23,411       40,578
                         -----------  -----------  -----------  -----------

      Total operating
       costs and
       expenses            6,318,765    6,879,074    2,354,753    1,040,024
                         -----------  -----------  -----------  -----------

      Loss from
       operations         (5,702,427)  (5,811,366)  (2,167,497)    (813,862)
                         -----------  -----------  -----------  -----------


LOSSES OF UNCONSOLIDATED
 INVESTEES
  Equity in earnings of
   unconsolidated
   investees                (142,003)     593,767         (152)     184,176
  Impairment loss         (3,600,000)  (4,795,783)           -            -
                         -----------  -----------  -----------  -----------
    Total losses in
     earnings of
     unconsolidated
     investees            (3,742,003)  (4,202,016)        (152)     184,176
                         -----------  -----------  -----------  -----------

OTHER INCOME (EXPENSE):
  Interest, net            1,249,868    1,049,843      472,457      260,183
  Accretion of discount,
   net of allowance for
   uncollectability        1,717,900            -    1,717,900            -
  Other, net               2,068,665    2,025,160      960,353      394,208
                         -----------  -----------  -----------  -----------

    Loss from continuing
     operations before
     income taxes         (4,407,997)  (6,938,379)     983,061       24,705
    Income tax benefit
     (expense), net of
     refund                5,326,300     (130,571)   3,827,818     (130,571)
                         -----------  -----------  -----------  -----------
      Income (loss) from
       continuing
       operations            918,303   (7,068,950)   4,810,879     (105,866)
                         -----------  -----------  -----------  -----------

    Gain on sale of
     discontinued
     operations, net of
     income taxes          9,468,677      524,156    7,023,786      269,314
    Income (loss) of
     discontinued
     operations               22,584     (232,444)           -      (69,573)
                         -----------  -----------  -----------  -----------

    Income from
     discontinued
     operations            9,491,261      291,712    7,023,786      199,741
                         -----------  -----------  -----------  -----------

    Net income (loss)     10,409,564   (6,777,238)  11,834,665       93,875

NET INCOME (LOSS)
 ATTRIBUTABLE TO NON-
 CONTROLLING INTEREST    $         -      (85,093) $         -      (55,066)
                         -----------  -----------  -----------  -----------

Net income (loss)
 attributable to
 Hollywood Media Corp.   $10,409,564  $(6,862,331) $11,834,665  $    38,809
                         ===========  ===========  ===========  ===========

Basic and diluted income
 (loss) per common share
    Continuing
     operations          $      0.04  $     (0.29) $      0.21  $     (0.01)
    Discontinued
     operations                 0.41         0.01         0.30         0.01
                         -----------  -----------  -----------  -----------
    Total basic and
     diluted net income
     (loss) per share    $      0.45  $     (0.28) $      0.51  $         -
                         ===========  ===========  ===========  ===========

Weighted average common
 and common equivalent
 shares outstanding -
 basic and diluted        23,178,814   24,384,547   23,178,064   23,179,066
                         -----------  -----------  -----------  -----------


Source: Hollywood Media Corp.

SHARE THIS: Twitter StockTwits LinkedIn Google Plus SHORT URL: http://bdvt.co/lVp

SIGN IN TO BOARDVOTE

FORGOT PASSWORD?