Hollywood Media Corp. Reports First Quarter 2009 Results
BOCA RATON, Fla., April 30, 2009 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services, today reported financial results for the first quarter ended March 31, 2009. Results for the 2008 first quarter reflect the divestment of the Company’s Hollywood.com business in August 2008, which has been accounted for as discontinued operations.
• Positive EBITDA* performance for the Broadway Ticketing division and the Company as a whole;
• Net loss of $0.00 per share;
• Expense savings of $1.7 million in the first quarter 2009 representing a 24% year-over-year decline in expenses;
• Record movie theater attendance driving strong performance from MovieTickets.com. Cash dividend of $1.9 million from MovieTickets.com recognized by Hollywood Media in the 2009 first quarter.
For the 2009 first quarter, Hollywood Media reported net revenues of $21.3 million, primarily attributable to Broadway Ticketing revenues. This compares to net revenues of $27.0 million in the first quarter of last year. Broadway Ticketing revenues were impacted as a result of fewer shows on Broadway, the timing of Easter in this year’s second quarter versus last year’s first quarter, and softer group sales. Advertising sales from Broadway shows, which are not recorded as revenues but rather as a reduction to cost of revenues-ticketing, more than tripled in the period versus the prior year.
Net loss for the 2009 first quarter was $0.1 million, or $0.00 per share. This compares to a 2008 first quarter net loss of $3.1 million, or $0.10 per share, which included a loss from discontinued operations of $0.8 million, or $0.03 per share. EBITDA in the 2009 first quarter for the Company as a whole was $0.3 million as compared to an EBITDA (Modified)* loss of $1.9 million in the first quarter of 2008.
Cash and cash equivalents were $10.8 million as of March 31, 2009, compared to $12.7 million as of December 31, 2008. The first quarter amount reflects the transfer during the quarter of approximately $1.2 million to our restricted cash balance to secure a bond for future Broadway ticketing purchases.
“While Broadway Ticketing revenues were impacted in this seasonally slow period by fewer Broadway shows and the absence of Easter in this year’s first quarter, we are optimistic that the business will improve as new shows open throughout 2009,” commented Mitchell Rubenstein, CEO of Hollywood Media. “We also look forward to benefiting from our ownership interest in MovieTickets.com in future quarters as movies continue to do well at the box office.”
Mr. Rubenstein continued, “Our efforts to manage costs and eliminate expenses resulted in a 24% reduction in operating expenses for the period. These cost reductions were deep and wide-ranging, taking place at corporate as well as at the operating businesses. They included head count reductions at all levels and significant reductions in SG&A expenses. We were able to move forward with these cost savings as a result of our recent divestments combined with a more streamlined and restructured operations structure which enabled us to downsize without inhibiting future organic growth.”
*Note on EBITDA
EBITDA and EBITDA (Modified) are non-GAAP financial measures. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA (Modified) is defined as loss from continuing operations before interest, taxes, depreciation and amortization on continuing operations. Hollywood Media has presented EBITDA in this release because it considers such information an important supplemental measure which management utilizes as one of its tools in evaluating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation and comparison of companies in our industry as well as our results of operations from period to period. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for Hollywood Media’s financial results as reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, Hollywood Media’s working capital needs; (b) EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, if any; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should not be considered as a principal indicator of Hollywood Media’s performance. Hollywood Media compensates for these limitations by relying primarily on Hollywood Media’s GAAP results and using EBITDA only supplementally. Hollywood Media has provided a reconciliation of net income to EBITDA (Modified) in the attached tables.
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 and integrate new businesses, our ability to realize anticipated revenues, cost efficiencies and sources of capital, the impact of potential future dispositions or other strategic transactions by Hollywood Media, our ability to develop and maintain strategic relationships, our ability to compete with other media, data and internet companies, 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 2008. Such forward-looking statements speak only as of the date on which they are made, and Hollywood Media undertakes no obligation to publicly update or revise any forward-looking statement except as required by law.
Attached are the following financial tables:
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SEGMENT SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION