GREEN BAY, Wis., April 7, 2014 /PRNewswire/ -- Hollywood
Media Corp. (OTC Pink: HOLL) today reported unaudited financial
results for the fourth quarter and year ended December 31, 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
fourth quarter were $0.1 million
compared to $0.2 million in the
prior-year period. For the full year 2013, net revenues were
$0.4 million versus $0.6 million in 2012.
Loss from continuing operations for the 2013 fourth quarter, was
$1.6 million, or $0.07 per share, compared to income from
continuing operations for the 2012 fourth quarter of $4.8 million, or $0.21 per share. The income tax benefit of
$3.8 million in the 2012 fourth
quarter 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 2013 was
$6.3 million, or $0.28 per share. This compared to income from
continuing operations for the full year 2012 of $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. The income tax benefit of $5.3 million for the full year 2012 was fully
offset by the income tax expense recognized in the Gain on sale of
discontinued operations, net of income taxes.
Net loss, which includes discontinued operations, was
$1.6 million, or $0.07 per share, in the 2013 fourth quarter,
compared to net income of $11.8
million, or $0.51 per share,
in the prior-year period. For the full year 2013, net income, which
includes discontinued operations was $6.3
million, or $0.28 per share,
compared to net income in 2012 of $10.4
million, or $0.45 per
share.
At December 31, 2013, the Company
had cash and cash equivalents of $22.9
million and no debt as compared to cash and cash equivalents
of $11.4 million and no debt at
December 31, 2012.
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.
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. 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
2013
fourth quarter and year end results are unaudited. 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, 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
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
(unaudited)
|
|
(audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
22,937,557
|
|
$
11,378,519
|
|
Prepaid
expenses
|
890,351
|
|
329,915
|
|
Other
receivables
|
101,131
|
|
75,105
|
|
Notes receivable,
current
|
33,603
|
|
1,375,545
|
|
Related party
receivable
|
2,066
|
|
37,287
|
|
Current portion of
deferred compensation
|
430,000
|
|
430,000
|
|
Total current
assets
|
24,394,708
|
|
13,626,371
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, net
|
355,640
|
|
240,645
|
|
INVESTMENTS IN AND
ADVANCES TO UNCONSOLIDATED INVESTEES
|
151,492
|
|
138,384
|
|
INTANGIBLE ASSETS,
net
|
249
|
|
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
|
88,651
|
|
518,651
|
|
TOTAL
ASSETS
|
$
31,470,675
|
|
$
26,615,822
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$
77,952
|
|
$
414,123
|
|
Accrued expenses and
other
|
714,556
|
|
1,036,788
|
|
Deferred
revenue
|
79,938
|
|
111,669
|
|
Current portion of
capital lease obligations
|
7,480
|
|
16,255
|
|
Total current
liabilities
|
879,926
|
|
1,578,835
|
|
|
|
|
|
|
CAPITAL LEASE
OBLIGATIONS, less current portion
|
26,770
|
|
2,152
|
|
OTHER DEFERRED
LIABILITY
|
-
|
|
355
|
|
DEFERRED
REVENUE
|
8,650
|
|
14,000
|
|
DERIVATIVE
LIABILITIES
|
480,000
|
|
60,000
|
|
TOTAL
LIABILITIES
|
1,395,346
|
|
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; 22,386,192 and
23,162,466 shares issued and
outstanding at December 31, 2013 and December 31, 2012,
respectively
|
223,862
|
|
231,625
|
|
Additional paid-in
capital
|
292,461,667
|
|
293,591,903
|
|
Accumulated
deficit
|
(262,610,200)
|
|
(268,863,048)
|
|
Total
shareholders' equity
|
30,075,329
|
|
24,960,480
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
31,470,675
|
|
$
26,615,822
|
|
HOLLYWOOD MEDIA
CORP. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR
ENDED
DECEMBER 31,
|
|
|
THREE MONTHS
ENDED
DECEMBER 31,
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
(unaudited)
|
|
(audited)
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
NET
REVENUES
|
|
$
424,751
|
|
$
616,338
|
|
|
$
101,306
|
|
$
187,256
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Editorial, production, development and technology
|
|
231,644
|
|
639,865
|
|
|
49,910
|
|
248,362
|
|
Selling, general and administrative
|
|
3,186,425
|
|
2,854,440
|
|
|
607,283
|
|
1,014,450
|
|
Payroll and benefits
|
|
1,820,867
|
|
2,688,017
|
|
|
482,090
|
|
1,068,530
|
|
Depreciation and amortization
|
|
73,169
|
|
136,443
|
|
|
14,270
|
|
23,411
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating costs and expenses
|
|
5,312,105
|
|
6,318,765
|
|
|
1,153,553
|
|
2,354,753
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(4,887,354)
|
|
(5,702,427)
|
|
|
(1,052,247)
|
|
(2,167,497)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSSES OF
UNCONSOLIDATED INVESTEES
|
|
|
|
|
|
|
|
|
|
|
Equity in
losses of unconsolidated investees
|
|
(187,616)
|
|
(142,003)
|
|
|
(187,724)
|
|
(152)
|
|
Impairment
loss
|
|
-
|
|
(3,600,000)
|
|
|
-
|
|
-
|
|
Total equity
in losses of unconsolidated investees
|
|
(187,616)
|
|
(3,742,003)
|
|
|
(187,724)
|
|
(152)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME
|
|
|
|
|
|
|
|
|
|
|
Interest, net
|
|
1,181,104
|
|
1,249,868
|
|
|
6,060
|
|
472,457
|
|
Accretion of discount, net of allowance for
uncollectability
|
|
1,468,757
|
|
1,717,900
|
|
|
-
|
|
1,717,900
|
|
Other, net
|
|
8,878,922
|
|
2,068,665
|
|
|
(418,504)
|
|
960,353
|
|
Total other
income
|
|
11,528,783
|
|
5,036,433
|
|
|
(412,444)
|
|
3,150,710
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income
taxes
|
|
6,453,813
|
|
(4,407,997)
|
|
|
(1,652,415)
|
|
983,061
|
|
Income tax (expense) benefit
|
|
(200,965)
|
|
5,326,300
|
|
|
25,883
|
|
3,827,818
|
|
Income (loss) from continuing operations
|
|
6,252,848
|
|
918,303
|
|
|
(1,626,532)
|
|
4,810,879
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on sale of discontinued operations, net of income taxes
|
|
-
|
|
9,468,677
|
|
|
-
|
|
7,023,786
|
|
Income from discontinued operations
|
|
-
|
|
22,584
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
|
-
|
|
9,491,261
|
|
|
-
|
|
7,023,786
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
$
6,252,848
|
|
$
10,409,564
|
|
|
$
(1,626,532)
|
|
$
11,834,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted income (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
0.28
|
|
$
0.04
|
|
|
$
(0.07)
|
|
$
0.21
|
|
Discontinued operations
|
|
-
|
|
0.41
|
|
|
-
|
|
0.30
|
|
Total basic and diluted net income (loss) per share
|
|
$
0.28
|
|
$
0.45
|
|
|
$
(0.07)
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common and common equivalent shares outstanding - basic and diluted
|
|
|
|
|
|
|
|
|
|
|
22,646,231
|
|
23,178,814
|
|
|
22,521,887
|
|
23,179,066
|
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SOURCE Hollywood Media Corp.