BOCA RATON, Fla., November 10, 2010 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the third quarter ended September 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. The Company filed a proxy statement on October 20, 2010 announcing a shareholder meeting on December 10, 2010 to vote on a proposal to approve the transaction.
For the 2010 third quarter, net revenues increased 16% to $25.4 million compared to $21.9 million in the prior-year period. Broadway Ticketing revenues, which represented 96% of the Company’s total net revenues, increased 18% versus the prior year period due to higher ticket sales. Advertising sales from Broadway shows increased 279% which is reported as a reduction in cost of revenues-ticketing.
Net loss for the 2010 third quarter was $0.4 million, or $0.01 per share, which includes $0.3 million in legal expenses related to the proposed sale of the Broadway Ticketing business. This compares to a net loss in the prior year period of $0.3 million, or $0.01 per share.
EBITDA* in the 2010 third quarter for the Company as a whole was a loss of $0.1 million, which includes $0.3 million in legal expenses related to the proposed sale of the Broadway Ticketing businesses noted above, compared to break-even EBITDA in the prior-year period. Broadway Ticketing EBITDA increased 65% on higher sales to $1.8 million in the third quarter versus $1.1 million last year.
At September 30, 2010, the Company had cash and cash equivalents of $7.3 million with no debt compared to cash and cash equivalents of $6.8 million with no debt at June 30, 2010. 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 today 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 November 17, 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 360417#. 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:
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SEGMENT SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION