HOLLYWOOD MEDIA CORP REPORTS
2011 THIRD QUARTER RESULTS
Monday November 21, 2011
BOCA RATON, FL (November 21, 2011) – Hollywood Media Corp. (Nasdaq: HOLL) today reported financial results for the third quarter ended September 30, 2011.
Note on Forward-Looking Statements
On a continuing operations basis which includes the contribution from the Ad Sales and Intellectual Property divisions, net revenues for the 2011 third quarter were $0.9 million compared to $1.0 million in the prior-year period.
Loss from continuing operations for the 2011 third quarter was $5.6 million, or $0.24 per diluted share, which includes a non-cash goodwill impairment charge of $4.8 million relating to the Company’s Ad Sales division, compared to a loss from continuing operations last year of $2.2 million, or $0.07 per share.
Net loss, which includes discontinued operations, was $5.4 million, or $0.23 per diluted share, in the 2011 third quarter, compared to a net loss last year of $0.4 million, or $0.01 per share. The Company had approximately 23.2 million weighted average shares outstanding in the 2011 third quarter compared to 30.9 million weighted average shares outstanding in the prior-year period. The reduction in share count relates to an 8 million share tender offer completed in the 2011 first quarter.
At September 30, 2011, the Company had cash and cash equivalents of $5.5 million and no debt versus cash and cash equivalents of $29.4 million and no debt at December 31, 2010. The change reflects the completion of the Company’s tender offer as well as costs related to the sale of the Broadway Ticketing business including a working capital adjustment.
During the quarter, Mitchell Rubenstein, CEO of Hollywood Media, became the Chief Executive Partner (CEP) of Tekno Books in which Hollywood Media maintains a 51% interest. Mr. Rubenstein’s appointment follows the death of Martin Greenberg, the prior CEP. Laurie Silvers, President of Hollywood Media, is now responsible for the day-to-day management of Tekno Books which includes a strategic shift in focus from print books to e-books.
About Hollywood Media Corp.
Hollywood Media Corp. is comprised primarily of an Ad Sales division, an Intellectual Property division, and various financial assets.
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, 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 2010. 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