HOLLYWOOD MEDIA CORP. REPORTS 2010 FIRST QUARTER RESULTS
Boca Raton, Florida, May 17, 2010 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the first quarter ended March 31, 2010. As announced on December 29, 2009, the Company has reached a definitive agreement to sell its Broadway Ticketing business subject to the approval of Hollywood Media’s shareholders as well as the satisfaction or waiver of certain other closing conditions set forth in the definitive agreement.
For the 2010 first quarter, Hollywood Media reported a 9% increase in net revenues to $23.3 million versus $21.3 million in the prior-year period. The Broadway Ticketing business unit’s revenues, which represented 95% of the Company’s total revenue, increased 10% versus the prior year period.
Loss from continuing operations for the 2010 first quarter was $0.8 million, or $0.02 per share, compared to a net loss of $0.1 million, or $0.00 per share, in the prior-year period which included a cash dividend of $1.9 million, or $0.06 per share, from the Company’s 26.2% interest in MovieTickets.com. Net loss for the 2010 first quarter was $0.6 million, or $0.02 per share.
EBITDA* in the 2010 first quarter for the Company as a whole was a loss of $0.2 million, compared to positive EBITDA of $0.3 million in the prior-year period, which, as noted above, included the $1.9 million MovieTickets.com dividend.
Broadway Ticketing EBITDA nearly tripled to approximately $1.0 million in the 2010 first quarter, versus $0.3 million in the 2009 first quarter.
Mitchell Rubenstein, CEO of Hollywood Media, commented, “We continue to benefit from a more favorable environment for Broadway entertainment with a significant uptick in demand from the prior year. In addition to growing ticketing and ancillary revenues while managing costs, we also increased advertising sales from Broadway shows by over 75% which is recorded as a reduction in our cost of revenues-ticketing, which contributed to an increase in gross margin in the first quarter of 2010 to 18.1% from 15.9% in the first quarter of 2009. MovieTickets.com, in which we own a 26.2% interest, also continues to perform well.”
At March 31, 2010, cash and cash equivalents were $10.0 million with no debt, compared to $11.8 million with no debt at December 31, 2009. The Company also has approximately $1.2 million in its restricted cash balance related to a bond for Broadway ticketing purchases.
Management will host a teleconference to discuss the Company’s 2010 first quarter financial results. The conference call is scheduled for Monday, May 17, 2010 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 May 24, 2010, 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 350417#. An archived version of the webcast will also be available under 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 an 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 2009. Such forward-looking statements speak only as of the date on which they are made.
Attached are the following financial tables: