Hollywood Media Corp. Reports Third Quarter 2008 Results
Wednesday, November 05, 2008
BOCA RATON, Fla., November 5, 2008 -- Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services, today reported financial results for the third quarter ended September 30, 2008. Results reflect the divestment of the Company’s Hollywood.com business in August 2008 and its Showtimes data business unit in August 2007, which have been accounted for as discontinued operations.
For the 2008 third quarter, Hollywood Media reported net revenues of $25.5 million compared to $26.8 million in the prior-year period. Broadway Ticketing represented 94% of net revenues with the balance attributable primarily to Ad Sales from the Company’s U.K.-based CinemasOnline business. The decline in net revenues was mainly due to a decrease of $0.8 million in revenue from the Company’s London West End ticketing operation, Theatre.com, and a decrease of $0.3 million in revenue from sales of hotel packages. As previously reported, Theatre.com has transitioned from handling its own sales to an arrangement with a third party ticket agency. As a result, Theatre.com now recognizes an agency commission based on ticket price, which reduces revenue while also lowering operating expenses.
The loss from continuing operations for the third quarter of 2008 was $1.9 million, or $0.06 per share, which includes approximately $0.4 million of non-recurring severance expense following the divestment of the Hollywood.com business and compares to a $1.7 million loss from continuing operations, or $0.05 per share, in the same period last year. Net loss for the 2008 third quarter, which includes a loss from discontinued operations of $4.4 million, was $6.3 million, or $0.20 per share, compared to net income of $8.1 million, or $0.24 per share, in the prior-year period which includes a gain from discontinued operations of $9.8 million.
“As we move into our busy fourth quarter holiday season, we expect that prevailing economic conditions may impact overall demand for Broadway entertainment. While we are not immune to broader market trends with advanced orders for the fourth quarter off to a slower start, we are anticipating some positive effect in the quarter from new Broadway shows, including the hit show, Billy Elliot, which opens November 15th, and Shrek, based on the popular animated films. We also believe that we have the right ticket inventory levels to meet anticipated demand during the holiday period.” Mr. Rubenstein concluded, “We have taken important steps to position our business for long-term performance. With the divestment of our non-core businesses, we are now largely a pure play provider in online ticketing and related services. This concentrated focus should enable us to more aggressively pursue compelling opportunities to accelerate growth while managing costs.”
At September 30, 2008, cash and cash equivalents were $14.3 million, compared to $20.9 million at June 30, 2008. The cash position at quarter end reflects the purchase of increased ticketing inventory to meet anticipated demand during the fourth quarter holiday period for Broadway’s most popular shows as well as the loss related to the sale of the Hollywood.com business.
Management will host a teleconference to discuss Hollywood Media’s third quarter 2008 financial results on Wednesday, November 5, 2008, at 10:00 a.m. Eastern Time. To access the teleconference, please dial 888-562-3654 (U.S.) or 973-582-2703 (international) approximately 10 minutes prior to the start of the call. The reference passcode for the call is 71189453. The teleconference will also be available via live Web cast on the investor relations portion of Hollywood Media’s Web site, located at http://www.hollywoodmedia.com/conference_calls.htm. Following prepared remarks, management will take questions from the audience via phone and e-mail.
If you are unable to listen to the live teleconference at its scheduled time, a replay will be available through November 24, 2008 and can be accessed by dialing 800-642-1687 or 706-645-9291 (international), passcode 71189453. An archived version of the Web cast will also be available on the investor relations portion of Hollywood Media’s Web site at http://www.hollywoodmedia.com.
About Hollywood Media Corp.
*Note on EBITDA
Note on Forward-Looking Statements