HOLLYWOOD MEDIA CORP. REPORTS
2013 THIRD QUARTER RESULTS
Tuesday October 29, 2013
BOCA RATON, Fla., October 29, 2013 – Hollywood Media Corp. (“Company”) (Nasdaq: HOLL) today reported financial results for the third quarter ended September 30, 2013.
Note on Forward-Looking Statements
On a continuing operations basis, which includes the contribution from Tekno Books, the Company’s 100% owned subsidiary under the Intellectual Property division, net revenues for the 2013 third quarter were $0.1 million compared to $0.1 million in the prior-year period.
Income from continuing operations for the 2013 third quarter was $8.2 million, or $0.36 per share, compared to a loss from continuing operations for the 2012 third quarter of $2.3 million, or $0.10 per share, which includes a non-cash goodwill impairment charge of $3.6 million relating to the Company’s Ad Sales division. Income from continuing operations for the 2013 third quarter was primarily attributable to a $9.2 million gain from the Transaction Agreement (as defined below). Net income was $8.2 million, or $0.36 per share, in the 2013 third quarter, compared to net loss, which includes discontinued operations, of $0.5 million, or $0.02 per share, in the prior-year period.
At September 30, 2013, the Company had cash and cash equivalents of $24.9 million and no debt as compared to cash and cash equivalents of $11.4 million and no debt at December 31, 2012.
The Company repurchased 521,500 shares of Hollywood Media’s common stock for $0.8 million during the first three quarters of 2013, comprised of 510,700 shares in first quarter 2013 and 10,800 shares in second quarter 2013.
On August 8, 2013, the Company entered into the Transaction Agreement (the “Agreement”) among Key Brand Entertainment Inc. (“Key Brand”), Theatre Direct NY, Inc. (“Theatre Direct”), and the Company for the prepayment by Key Brand in full of the amount owed to the Company pursuant to the loan (the “Loan”) under the Second Lien Credit, Security and Pledge Agreement, dated as of December 15, 2010, among Key Brand, Theatre Direct, and the Company, as amended. Pursuant to the Agreement, Key Brand paid to the Company on August 8, 2013 in cash the amount of $13,861,738, which constituted the outstanding principal plus accrued interest through August 8, 2013 of the Loan. The Loan was scheduled to mature on June 30, 2015.
In addition, pursuant to the Agreement, Theatre Direct redeemed a warrant (“Warrant”) to purchase shares of common stock of Theatre Direct held by the Company. The redemption price for the Warrant was $2,750,000 and was paid on August 8, 2013 to the Company. The Warrant provided, among other things, that the Company could sell the Warrant to Theatre Direct for a floor amount of $3,000,000 beginning on June 30, 2015.
Accordingly, the Company received on August 8, 2013 a total of $16,611,738 consisting of $13,861,738 from the prepayment of the Loan and $2,750,000 from the redemption of the Warrant.
About Hollywood Media Corp.
Hollywood Media Corp. is comprised primarily of an Ad Sales division and an Intellectual Property division.
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 Corp., 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 2012. 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