HOLLYWOOD MEDIA CORP. REPORTS
2013 FOURTH QUARTER AND YEAR END RESULTS
Monday April 7, 2014
Green Bay, WI., April 7, 2014 – Hollywood Media Corp. (OTC Pink: HOLL) today reported unaudited financial results for the fourth quarter and year ended December 31, 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 fourth quarter were $0.1 million compared to $0.2 million in the prior-year period. For the full year 2013, net revenues were $0.4 million versus $0.6 million in 2012.
Loss from continuing operations for the 2013 fourth quarter, was $1.6 million, or $0.07 per share, compared to income from continuing operations for the 2012 fourth quarter of $4.8 million, or $0.21 per share. The income tax benefit of $3.8 million in the 2012 fourth quarter was fully offset by the income tax expense recognized in the Gain on sale of discontinued operations, net of income taxes. Income from continuing operations for the full year 2013 was $6.3 million, or $0.28 per share. This compared to income from continuing operations for the full year 2012 of $0.9 million, or $0.04 per share, which included a non-cash goodwill impairment charge of $3.6 million in the third quarter of 2012 related to the Company’s Ad Sales Division. The income tax benefit of $5.3 million for the full year 2012 was fully offset by the income tax expense recognized in the Gain on sale of discontinued operations, net of income taxes.
Net loss, which includes discontinued operations, was $1.6 million, or $0.07 per share, in the 2013 fourth quarter, compared to net income of $11.8 million, or $0.51 per share, in the prior-year period. For the full year 2013, net income, which includes discontinued operations was $6.3 million, or $0.28 per share, compared to net income in 2012 of $10.4 million, or $0.45 per share.
At December 31, 2013, the Company had cash and cash equivalents of $22.9 million and no debt as compared to cash and cash equivalents of $11.4 million and no debt at December 31, 2012.
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.
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. 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.
2013 fourth quarter and year end results are unaudited. 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, 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