HOLLYWOOD MEDIA REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS
(Boca Raton, FL – November 13, 2003) – Hollywood Media Corp.(Nasdaq:HOLL), a leading provider of news, information and ticketing covering the entertainment and media industries, today announced financial results for the three and nine month periods ended September 30, 2003.
Mitchell Rubenstein, Chairman and CEO of Hollywood Media Corp., stated: “Driven primarily by our Broadway Ticketing and Data businesses, we generated top line growth of 11% in the third quarter, a considerable achievement given that the period is traditionally our softest due to seasonal factors. In the current quarter, we are experiencing continued demand for our products and services, with particular strength at our Broadway Ticketing and Hollywood.com units. Based primarily on strong holiday ticket sales in progress, including gift certificates, and other current trends, we expect our overall cash position to increase by over $1 million by the close of the year if current conditions continue. We look forward to the coming holiday season, which is typically the strongest period for our company.”
FINANCIAL RESULTS
Net revenues for the three months ended September 30, 2003 increased $1.4 million or 11% to $14.0 million from $12.6 million in the same period of 2002. The net loss for the third quarter of 2003 was $2.3 million, a reduction of 96%, as compared to a net loss of $62.8 million in the third quarter of 2002. The net loss per share for the third quarter of 2003 was $0.11 as compared to $2.40 per share in the third quarter of 2002. Please note that the weighted average number of shares outstanding for the three months ended September 30, 2003 was 21,045,043 shares as compared to 26,193,222 shares in the comparable period in 2002.
Net revenues for the nine months ended September 30, 2003 increased $4.0 million or 10% to $45.5 million from $41.5 million in the same period of 2002. The net loss for the nine months ended September 30, 2003 was $7.1 million, a reduction of 91%, as compared to a net loss of $77.2 million for the nine months ended September 30, 2002. The net loss per share for the nine months ended September 30, 2003 was $0.34 as compared to $2.81 per share for the nine months ended September 30, 2002.
TELECONFERENCE INFORMATION
The Company will host a teleconference to discuss its third quarter 2003 financial results. The conference call is scheduled for Thursday, November 13, at 10:00 a.m. Eastern Time. To access the teleconference, please dial 415-247-8589 approximately five minutes prior to the start of the call. The teleconference will also be available via live webcast on the investor relations portion of the Company’s website, located athttp://www.hollywood.com/about_us/. Following prepared remarks, management will take questions from the audience via phone and e-mail. To ask a question via e-mail, please send your questions toquestions@exec.hollywood.com in advance of, or during, the live call.
If you are unable to listen to the live teleconference at its scheduled time, there will be a replay available through
HOLLYWOOD MEDIA REPORTS THIRD QUARTER 2003 FINANCIAL RESULTS
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November 20, 2003, and can be accessed by dialing 800-633-8284 (U.S.), 402-977-9140 (Int’l), passcode 21166011. A replay of the teleconference and a copy of this press release will be archived on the investor relations portion of the Company’s website.
About Hollywood Media
Hollywood Media Corp. is a leading provider of news, information and ticketing covering the entertainment and media industries. On the strength of its history in developing comprehensive entertainment industry databases, as well as its major strategic partners and unique content, the Company has launched a network of media businesses. The Company's Data Business includes CinemaSource, EventSource, AdSource and Baseline/FilmTracker. The Company’s Broadway Tickets business includes Broadway.com, 1-800-Broadway and Theatre Direct International. These services supply thousands of media outlets with specific information on entertainment events such as movies, live theater and concerts, and sell tickets for Broadway. The Company's businesses also include an intellectual property business, as well as Hollywood.com and a minority interest in Movie Tickets.com. In addition, the Company owns and operates the cable television network, Totally Hollywood TV (“THTV”).
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 and integrate new businesses, our ability to develop strategic relationships, our ability to compete with other media, data and Internet companies, technology risks, the volatility of our stock price, and other risks and factors described in Hollywood Media Corp.'s filings with the Securiti es and Exchange Commission including our Form 10-K for 2002. Such forward-looking statements speak only as of the date on which they are made, and Hollywood Media Corp. does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
- Financial Tables Below -
Contact
John Buckley/Kim Holt
Brainerd Communicators, Inc.
212-986-6667
buckley@braincomm.com
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||
2003 |
| 2002 |
| 2003 |
| 2002 | ||||||
NET REVENUES | $ | 45,515,343 | 41,450,495 | $ | 13,975,413 | $ | 12,629,337 | |||||
| ||||||||||||
COST OF REVENUES | 32,984,812 | 28,504,839 | 9,388,669 | 9,207,606 | ||||||||
Gross margin | 12,530,531 | 12,945,656 | 4,586,744 | 3,421,731 | ||||||||
OPERATING EXPENSES: | ||||||||||||
General and administrative | 5,487,291 | 4,582,735 | 1,928,481 | 1,746,473 | ||||||||
Selling and marketing | 729,814 | 1,686,298 | 261,582 | (101,413) | ||||||||
Salaries and benefits | 10,130,330 | 11,145,505 | 3,480,454 | 4,092,418 | ||||||||
Amortization of CBS advertising | 609,193 | 10,936,495 | 102,464 | 1,333,752 | ||||||||
Impairment loss- CBS advertising | — | 57,274,680 | — | 57,274,680 | ||||||||
Write-off of prepaid trade credits | — | 655,500 | — | 655,500 | ||||||||
Exit and other retail closure costs | — | 411,399 | — | 150,000 | ||||||||
Depreciation and amortization | 1,839,801 | 2,425,496 | 585,408 | 577,760 | ||||||||
Total operating expenses | 18,796,429 | 89,118,108 | 6,358,389 | 65,729,170 | ||||||||
Operating loss | (6,265,898 | ) | (76,172,452 | ) | (1,771,645 | ) | (62,307,439 | ) | ||||
EQUITY IN EARNINGS - INVESTMENTS | 797,730 | 367,597 | (8,396 | ) | 136,639 | |||||||
OTHER INCOME (EXPENSE): | ||||||||||||
Interest expense | (1,049,561 | ) | (869,113 | ) | (373,874 | ) | (413,785 | ) | ||||
Interest income | 12,558 | 16,756 | 911 | 6,525 | ||||||||
Other, net | (108,165 | ) | 7,034 | (117,059 | ) | 4,634 | ||||||
Loss before minority interest | (6,613,336 | ) | (76,650,178 | ) | (2,270,063 | ) | (62,573,426 | ) | ||||
MINORITY INTEREST | (449,689 | ) | (595,668 | ) | (50,101 | ) | (202,257 | ) | ||||
NET LOSS | $ | (7,063,025 | ) | $ | (77,245,846 | ) | $ | (2,320,164 | ) | $ | (62,775,683 | ) |
Basic and diluted net loss per common share | $ | (0.34 | ) | $ | (2.81 | ) | $ | (0.11 | ) | $ | (2.40 | ) |
Weighted average shares outstanding | 20,689,747 | 27,521,885 | 21,045,043 | 26,193,222 |
—————
Note: On August 28, 2002, Hollywood Media exchanged approximately $49.0 million in non-cash advertising for Viacom's transfer to Hollywood Media of its entire equity interest in Hollywood Media and other consideration. As a result of the exchange, Hollywood Media's shares outstanding decreased to approximately 20.2 million shares from approximately 29.0 million shares.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2003 | December 31, 2002 | |||||
| ||||||
ASSETS |
| |||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 434,130 | $ | 2,342,238 | ||
Receivables, net | 1,319,747 | 1,845,063 | ||||
Inventories, net | 6,870,553 | 7,144,311 | ||||
Prepaid expenses | 1,435,817 | 1,026,454 | ||||
Other receivables | 930,934 | 510,532 | ||||
Other current assets | 50,148 | 247,532 | ||||
Deferred advertising – CBS | 315,587 | 924,780 | ||||
Total current assets | 11,356,916 | 14,040,910 | ||||
RESTRICTED CASH | 550,000 | — | ||||
PROPERTY AND EQUIPMENT, net | 2,591,876 | 3,563,569 | ||||
INVESTMENTS IN AND ADVANCES TO EQUITY METHOD INVESTEES | 772,234 | 610,172 | ||||
IDENTIFIABLE INTANGIBLE ASSETS, net | 1,811,940 | 2,342,807 | ||||
GOODWILL, net | 40,813,683 | 40,773,968 | ||||
OTHER ASSETS | 465,641 | 737,231 | ||||
TOTAL ASSETS | $ | 58,362,290 | $ | 62,068,657 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Accounts payable | $ | 2,101,478 | $ | 1,354,663 | ||
Accrued expenses and other | 4,393,049 | 3,854,881 | ||||
Notes payable | — | 250,000 | ||||
Loan from shareholder/officer | 700,000 | — | ||||
Accrued exit and retail closure costs | — | 27,500 | ||||
Deferred revenue | 8,979,603 | 8,890,002 | ||||
Current portion of capital lease obligations | 189,421 | 340,083 | ||||
Total current liabilities | 16,363,551 | 14,717,129 | ||||
CAPITAL LEASE OBLIGATIONS, less current portion | 113,085 | 238,546 | ||||
DEFERRED REVENUE | 290,813 | 214,626 | ||||
MINORITY INTEREST | 29,046 | — | ||||
OTHER DEFERRED LIABILITY | 2,292,022 | 2,381,863 | ||||
CONVERTIBLE DEBENTURES, NET | 3,803,278 | 3,223,988 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||
SHAREHOLDERS' EQUITY: | ||||||
Preferred Stock, $.01 par value, 539,127 shares authorized; none outstanding | — | — | ||||
Common stock, $.01 par value, 100,000,000 shares authorized; 21,383,004 and 20,253,863 shares issued and outstanding at September 30, 2003 and December 31, 2002, respectively | 213,830 | 202,539 | ||||
Deferred compensation | (243,750) | — | ||||
Additional paid-in capital | 278,734,767 | 277,261,293 | ||||
Accumulated deficit | (243,234,352 | ) | (236,171,327 | ) | ||
Total shareholders' equity | 35,470,495 | 41,292,505 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 58,362,290 | $ | 62,068,657 |