Hollywood Media Corp. Reports 2013 Fourth Quarter And Year End Results

GREEN BAY, Wis., April 7, 2014 /PRNewswire/ -- Hollywood Media Corp. (OTC Pink: HOLL) today reported unaudited financial results for the fourth quarter and year ended December 31, 2013.

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.

Note on Forward-Looking Statements
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

 

HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS








December 31,


December 31,



2013


2012



(unaudited)


(audited)

ASSETS









CURRENT ASSETS:





Cash and cash equivalents

$ 22,937,557


$ 11,378,519


Prepaid expenses

890,351


329,915


Other receivables

101,131


75,105


Notes receivable, current

33,603


1,375,545


Related party receivable

2,066


37,287


Current portion of deferred compensation

430,000


430,000


  Total current assets

24,394,708


13,626,371






PROPERTY AND EQUIPMENT, net

355,640


240,645

INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES

151,492


138,384

INTANGIBLE ASSETS, net

249


8,683

GOODWILL

6,200,000


6,200,000

OTHER ASSETS

195,928


727,982

NOTES RECEIVABLE, less current portion

84,007


4,455,106

WARRANT

-


700,000

DEFERRED COMPENSATION, less current portion

88,651


518,651


  TOTAL ASSETS

$  31,470,675


$ 26,615,822







LIABILITIES AND SHAREHOLDERS' EQUITY









CURRENT LIABILITIES:





Accounts payable

$        77,952


$     414,123


Accrued expenses and other

714,556


1,036,788


Deferred revenue

79,938


111,669


Current portion of capital lease obligations

7,480


16,255


  Total current liabilities

879,926


1,578,835






CAPITAL LEASE OBLIGATIONS, less current portion

26,770


2,152

OTHER DEFERRED LIABILITY

-


355

DEFERRED REVENUE

8,650


14,000

DERIVATIVE LIABILITIES

480,000


60,000


  TOTAL LIABILITIES

1,395,346


1,655,342






COMMITMENTS AND CONTINGENCIES









SHAREHOLDERS' EQUITY:





Preferred Stock, $.01 par value, 1,000,000 shares authorized; none outstanding

-


-


Common Stock, $.01 par value, 100,000,000 shares authorized; 22,386,192 and 23,162,466 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively

223,862


231,625


Additional paid-in capital

292,461,667


293,591,903


Accumulated deficit

(262,610,200)


(268,863,048)


  Total shareholders' equity

30,075,329


24,960,480


  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$  31,470,675


$  26,615,822

 

 

HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



























YEAR ENDED            
DECEMBER 31,



THREE MONTHS ENDED             
DECEMBER 31,



2013


2012



2013


2012



(unaudited)


(audited)



(unaudited)


(unaudited)











NET REVENUES


$    424,751


$      616,338



$     101,306


$      187,256











OPERATING COSTS AND EXPENSES










    Editorial, production, development and technology 


231,644


639,865



49,910


248,362

    Selling, general and administrative 


3,186,425


2,854,440



607,283


1,014,450

    Payroll and benefits


1,820,867


2,688,017



482,090


1,068,530

    Depreciation and amortization


73,169


136,443



14,270


23,411











        Total operating costs and expenses


5,312,105


6,318,765



1,153,553


2,354,753











        Loss from operations


(4,887,354)


(5,702,427)



(1,052,247)


(2,167,497)





















LOSSES OF UNCONSOLIDATED INVESTEES










  Equity in losses of unconsolidated investees


(187,616)


(142,003)



(187,724)


(152)

  Impairment loss


-


(3,600,000)



-


-

  Total equity in losses of unconsolidated investees


(187,616)


(3,742,003)



(187,724)


(152)











OTHER INCOME










    Interest, net


1,181,104


1,249,868



6,060


472,457

    Accretion of discount, net of allowance for uncollectability


1,468,757


1,717,900



-


1,717,900

    Other, net


8,878,922


2,068,665



(418,504)


960,353

      Total other income


11,528,783


5,036,433



(412,444)


3,150,710











         Income (loss) from continuing operations before income taxes


6,453,813


(4,407,997)



(1,652,415)


983,061

         Income tax (expense) benefit


(200,965)


5,326,300



25,883


3,827,818

            Income (loss) from continuing operations 


6,252,848


918,303



(1,626,532)


4,810,879











         Gain on sale of discontinued operations, net of income taxes


-


9,468,677



-


7,023,786

         Income from discontinued operations


-


22,584



-


-











         Income from discontinued operations


-


9,491,261



-


7,023,786











         Net income (loss)


$ 6,252,848


$ 10,409,564



$ (1,626,532)


$ 11,834,665





















 Basic and diluted income (loss) per common share 










         Continuing operations


$          0.28


$            0.04



$          (0.07)


$            0.21

         Discontinued operations


-


0.41



-


0.30

         Total basic and diluted net income (loss) per share


$          0.28


$            0.45



$          (0.07)


$            0.51











Weighted average common and common equivalent shares outstanding - basic and diluted











22,646,231


23,178,814



22,521,887


23,179,066

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SOURCE Hollywood Media Corp.




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