BOCA RATON, Fla., November 4, 2009 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services, today reported financial results for the third quarter ended September 30, 2009. Results reflect the divestment of the Company’s Hollywood.com business in August 2008, which has been accounted for as discontinued operations.
For the 2009 third quarter, Hollywood Media reported net revenues of $21.9 million. This compares to net revenues of $25.5 million in the third quarter of last year. Revenue performance during this seasonally slower period reflected softness in ticket sales as well as lower ancillary sales for hotels. The Company noted that while net revenues were lower for the quarter versus last year, preliminary results for the month of October 2009 reflected an increase in individual consumer ticket sales on Broadway.com versus the prior year.
Loss from continuing operations for the 2009 third quarter was $0.8 million, or $0.03 per share, compared to $1.9 million, or $0.06 per share, in the prior-year period. Net loss for the 2009 third quarter, which includes $0.5 million in gains from an earn-out from discontinued operations, was $0.3 million, or $0.01 per share, versus a net loss of $6.3 million, or $0.20 per share, which included a loss from discontinued operations of $4.4 million, or $0.14 per share.
EBITDA* in the 2009 third quarter for the Company as a whole was break-even, which included $0.5 million in gains from an earn-out from the divested Hollywood.com operations, versus an EBITDA loss of $6.0 million in the third quarter of 2008, which included a $4.4 million loss from discontinued operations. EBITDA for all three operating segments was positive for the 2009 third quarter, with Broadway Ticketing EBITDA increasing to $1.1 million, despite a $0.1 million one-time charge related to the replacement of the old Broadway.com site in the period. The Company realized a 27% reduction in SG&A and payroll and benefits expenses with a total decrease in year-over-year operating costs and expenses of 18%.
Management will host a teleconference to discuss the Company’s 2009 third quarter financial results. The conference call is scheduled for Wednesday, November 4, 2009 at 9:00 a.m. Eastern Time. To access the teleconference, please dial 877-407-8293 (U.S.) or 201-689-8349 (international) approximately 10 minutes prior to the start of the call. The teleconference will also be available via live webcast on the investor relations portion of Hollywood Media’s website, http://www.hollywoodmedia.com/conference_calls.htm.
If you are unable to listen to the live teleconference, a replay will be available through November 11, 2009, and can be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415 (international). Callers will be prompted for replay account number 342# followed by conference ID number 336617#. An archived version of the webcast will also be available on the investor relations section of Hollywood Media’s website at http://www.hollywoodmedia.com.
About Hollywood Media Corp.
Hollywood Media is comprised primarily of Internet businesses focused on online ticketing, which include Broadway.com and Hollywood Media’s minority interest in MovieTickets.com. Hollywood Media also owns the UK-based CinemasOnline and its Intellectual Property division.
*Note on EBITDA
EBITDA is a non-GAAP financial measures. EBITDA is defined as net income before interest, taxes, depreciation and amortization. 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.
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, our ability to develop and maintain strategic relationships, our ability to compete with other online ticketing services and other competitors, 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.
Attached are the following financial tables:
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SEGMENT SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION