HOLLYWOOD MEDIA CORP REPORTS
2012 SECOND QUARTER RESULTS
Monday August 20, 2012
BOCA RATON, FL (August 20, 2012) – Hollywood Media Corp. (Nasdaq: HOLL) today reported financial results for the second quarter ended June 30, 2012.
Note on Forward-Looking Statements
On a continuing operations basis, which includes the contribution from the Intellectual Property division, net revenues for the 2012 second quarter were $0.2 million compared to $0.5 million in the prior-year period. The decrease in net revenues for the 2012 second quarter as compared to the 2011 second quarter was attributable to the timing of the delivery of manuscripts by Tekno Books.
Loss from continuing operations for the 2012 second quarter was $1.3 million, or $0.06 per share, compared to income from continuing operations last year of $0.3 million, or $0.01 per share. The decrease in net income is primarily due to income from the key-man life insurance of $1.1 million resulting from the death of the former Chief Executive Partner of Tekno Books, Dr. Martin Greenberg during the 2011 second quarter.
Net loss, which includes discontinued operations, was $0.5 million, or $0.02 per share, in the 2012 second quarter, compared to net income of $0.1 million, or $0.01 per share, in the prior-year period. This decrease is primarily due to the above mentioned decrease in net income partially offset by a $0.6 million gain on the sale of the Company’s U.K-based CinemasOnline business which occurred during the 2012 second quarter.
At June 30, 2012, the Company had cash and cash equivalents of $2.4 million and no debt as compared to cash and cash equivalents of $3.7 million and no debt at December 31, 2011.
During the 2012 second quarter, Hollywood Media Corp. announced that as part of an amendment related to the completed sale of its Broadway Ticketing Business (“Theatre Direct”) to Key Brand Entertainment Inc., Key Brand agreed to pay the first $7 million earnout amount to Hollywood Media on or before October 1, 2012 regardless of the actual revenues of Theatre Direct for Key Brand’s fiscal year ended June 30, 2012. Also during the period, the Company sold its U.K.-based CinemasOnline business, formerly included as part of the Ad Sales division.
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 2011. Such forward-looking statements speak only as of the date on which they are made.
Attached are the following financial tables:
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS