Hollywood Media Corp. Reports 2010 Second Quarter Results
Monday, August 16, 2010
BOCA RATON, Fla., August 16, 2010 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the second quarter ended June 30, 2010. As previously announced, 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 second quarter, net revenues increased 11% to $33.6 million compared to $30.3 million in the prior-year period. Broadway Ticketing revenues, which represented 97% of the Company’s total net revenues, increased 12% versus the prior year period.
Net income for the 2010 second quarter was $0.2 million, or $0.01 per diluted share. This compares to a net loss of $4.8 million, or $0.16 per share, in the prior-year period which included a $5.0 million non-cash impairment charge related to the Ad Sales segment. Net income for the 2010 second quarter was impacted by $0.2 million in legal expenses related to the proposed sale of the Broadway Ticketing business, a $0.2 million increase in inventory reserve to reflect the Company’s decision to carry more ticketing inventory to meet demand, a $0.1 million early termination fee on an office lease in order to downsize the Company’s corporate offices in Boca Raton, Florida, and $0.1 million in payroll costs in the Broadway Ticketing business relating to the proposed sale.
EBITDA* in the 2010 second quarter for the Company as a whole was $0.6 million, compared to an EBITDA loss of $4.4 million in the prior-year period. EBITDA in the 2010 second quarter was impacted by the items noted above and EBITDA loss in the 2009 second quarter included the non-cash impairment charge noted above. Broadway Ticketing EBITDA contributed $2.1 million in the 2010 second quarter, which was impacted as noted above by the payroll costs relating to the proposed sale and the increase in inventory reserve, compared to $2.2 million in the prior-year period.
Management will host a teleconference to discuss the Company’s 2010 second quarter financial results. The conference call is scheduled for Monday, August 16, 2010 at 4:30 p.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 August 23, 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 355164#. 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
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: