NovelStem International (NSTM) 8-K Hollywood Media Corp. Reports 2010 Second Quarter Results

Exhibit 99.1

HOLLYWOOD MEDIA CORP. REPORTS 2010 SECOND QUARTER RESULTS

BOCA RATON, Fla., August 16, 2010 – Hollywood Media Corp. (Nasdaq: HOLL), a leading provider of online ticketing services and entertainment-related offerings, today reported financial results for the second quarter ended June 30, 2010.  As previously announced, the Company has reached a definitive agreement to sell its Broadway Ticketing business subject to the approval of Hollywood Media’s shareholders as well as the satisfaction or waiver of certain other closing conditions set forth in the definitive agreement.

For the 2010 second quarter, net revenues increased 11% to $33.6 million compared to $30.3 million in the prior-year period.  Broadway Ticketing revenues, which represented 97% of the Company’s total net revenues, increased 12% versus the prior year period.

Net income for the 2010 second quarter was $0.2 million, or $0.01 per diluted share.  This compares to a net loss of $4.8 million, or $0.16 per share, in the prior-year period which included a $5.0 million non-cash impairment charge related to the Ad Sales segment.  Net income for the 2010 second quarter was impacted by $0.2 million in legal expenses related to the proposed sale of the Broadway Ticketing business, a $0.2 million increase in inventory reserve to reflect the Company’s decision to carry more ticketing inventory to meet demand, a $0.1 million early termination fee on an office lease in order to downsize the Company’s corporate offices in Boca Raton, Florida, and $0.1 million in payroll costs in the Broadway Ticketing business relating to the proposed sale.

EBITDA* in the 2010 second quarter for the Company as a whole was $0.6 million, compared to an EBITDA loss of $4.4 million in the prior-year period.  EBITDA in the 2010 second quarter was impacted by the items noted above and EBITDA loss in the 2009 second quarter included the non-cash impairment charge noted above.    Broadway Ticketing EBITDA contributed $2.1 million in the 2010 second quarter, which was impacted as noted above by the payroll costs relating to the proposed sale and the increase in inventory reserve, compared to $2.2 million in the prior-year period.

Mitchell Rubenstein, CEO of Hollywood Media, commented, “We continued to drive revenue gains in our Broadway Ticketing business during the period highlighted by 12% growth in the segment.  We attribute the increase to the successful relaunch of our enhanced Broadway.com website, our focus on inventory management,  and robust tourism in New York City.  Advertising sales from Broadway shows increased 44% which serves as an offset to our cost of revenues-ticketing.”

“Within our Intellectual Property division, we are pleased that one of our latest book projects, ‘Death’s Excellent Vacation,’ developed under our Tekno Books subsidiary and edited by Charlaine Harris and Toni Kelner, reached #8 on The New York Times® Hardcover Fiction Bestseller List. The most recent list is posted at www.nytimes.com and will be published in this Sunday’s print edition of The New York Times® Book Review.  Finally, MovieTickets.com, in which we own a 26.2% equity interest, reached a new milestone in the period as it announced the signing of its 200th movie theater chain partner.”

At June 30, 2010, cash and cash equivalents were $6.8 million with no debt compared to cash and cash equivalents of $10.0 million with no debt at March 31, 2010.  The change in cash position is due primarily to an increase of $3.4 million in ticketing inventories held for sale, as well as $0.3 million in cash paid in connection with the proposed sale of Broadway Ticketing and the $0.1 million early lease termination fee mentioned above. In addition to the impact of the Company’s decision to carry more ticketing inventory to meet improved demand, the Company historically builds up its ticketing inventory in the second quarter in anticipation of the seasonally strong fourth quarter holiday season.  On June 30, 2010, the Company’s ticketing inventory level was $0.6 million higher than it was on June 30, 2009. The Company also has approximately $1.2 million in its restricted cash balance related to a bond for Broadway ticketing purchases.

Teleconference Information

Management will host a teleconference to discuss the Company’s 2010 second quarter financial results. The conference call is scheduled for Monday, August 16, 2010 at 4:30 p.m. Eastern Time.  To access the teleconference, please dial 877-407-8293 (U.S.) or 201-689-8349 (international) approximately 10 minutes prior to the start of the call.  The teleconference will also be available via live webcast on the investor relations portion of Hollywood Media’s website, http://www.hollywoodmedia.com/conference_calls.htm.

If you are unable to listen to the live teleconference, a replay will be available through August 23, 2010, and can be accessed by dialing 877-660-6853 (U.S.) or 201-612-7415 (international).  Callers will be prompted for replay account number 342# followed by conference ID number 355164#.   An archived version of the webcast will also be available under the investor relations section of Hollywood Media’s website at http://www.hollywoodmedia.com

About Hollywood Media Corp.

Hollywood Media is comprised primarily of Internet businesses focused on online ticketing, which include Broadway.com and Hollywood Media’s minority interest in MovieTickets.com. Hollywood Media also owns the UK-based CinemasOnline and an Intellectual Property division.

*Note on EBITDA

EBITDA is a non-GAAP financial measures.  EBITDA is defined as net income before interest, taxes, depreciation and amortization. Hollywood Media has presented EBITDA in this release because it considers such information an important supplemental measure which management utilizes as one of its tools in evaluating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation and comparison of companies in our industry as well as our results of operations from period to period. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for Hollywood Media’s financial results as reported under GAAP. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, Hollywood Media’s working capital needs; (b) EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, if any; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should not be considered as a principal indicator of Hollywood Media’s performance. Hollywood Media compensates for these limitations by relying primarily on Hollywood Media’s GAAP results and using EBITDA only supplementally.

Note on Forward-Looking Statements

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, our ability to compete with other online ticketing services and other competitors, 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 2009. 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

    SEGMENT SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION

Contact:

Investor Relations Department

Hollywood Media Corp.

L. Melheim

ir@hollywoodmedia.com

561-998-8000

HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30			December 31,
	2010			2009
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	6,801,204		$	11,764,810
Receivables, net		1,043,272			897,503
Inventories held for sale, net		6,275,993			3,735,691
Deferred ticket costs		8,906,280			10,985,160
Prepaid expenses		2,642,107			1,896,237
Other receivables		1,099,180			1,125,263
Other current assets		25,943			436,675
Related party receivable		206,379			335,245
Restricted cash		1,221,000			1,221,000
Total current assets		28,221,358			32,397,584
PROPERTY AND EQUIPMENT, net		3,893,013			4,369,085
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES		750,430			230,097
INTANGIBLE ASSETS, net		265,104			390,818
GOODWILL		20,230,119			20,197,513
OTHER ASSETS		21,082			21,082
TOTAL ASSETS	$	53,381,106		$	57,606,179
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	1,048,781		$	1,632,351
Accrued expenses and other		2,910,799			3,074,549
Deferred revenue		11,661,726			14,012,178
Gift certificate liability		3,601,090			3,794,899
Customer deposits		460,682			948,273
Current portion of capital lease obligations		75,564			123,061
Current portion of notes payable		15,285			37,454
Total current liabilities		19,773,927			23,622,765
DEFERRED REVENUE		247,252			309,190
CAPITAL LEASE OBLIGATIONS, less current portion		37,440			75,830
OTHER DEFERRED LIABILITY		995,932			1,105,553
NOTES PAYABLE, less current portion		-			2,432
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; 31,179,066
and 31,037,656 shares issued and outstanding at June 30, 2010 and
December 31, 2009, respectively		311,791			310,377
Additional paid-in capital		309,722,146			309,480,331
Accumulated deficit		(277,695,246	)		(277,315,848	)
Total Hollywood Media Corp shareholders' equity		32,338,691			32,474,860
Non-controlling interest		(12,136	)		15,549
Total shareholders' equity		32,326,555			32,490,409
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	53,381,106		$	57,606,179

HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	SIX MONTHS ENDED JUNE 30,						THREE MONTHS ENDED JUNE 30,
	2010			2009			2010			2009
NET REVENUES
Ticketing	$	54,908,530		$	49,381,447		$	32,681,447		$	29,138,882
Other		2,007,701			2,184,705			938,435			1,113,373
		56,916,231			51,566,152			33,619,882			30,252,255
OPERATING COSTS AND EXPENSES
Cost of revenues - ticketing		45,318,633			41,152,654			27,121,997			24,118,554
Editorial, production, development and technology		1,329,794			1,236,913			640,628			594,923
Selling, general and administrative		5,401,426			5,117,994			2,884,474			2,437,983
Payroll and benefits		5,512,342			5,038,874			2,787,764			2,452,198
Depreciation and amortization		757,284			794,968			373,245			387,894
Total operating costs and expenses		58,319,479			53,341,403			33,808,108			29,991,552
Income (loss) from operations		(1,403,248	)		(1,775,251	)		(188,226	)		260,703
EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES
Equity in earnings (losses) of unconsolidated investees		548,868			1,912,833			168,921			(810	)
Impairment loss		-			(5,000,000	)		-			(5,000,000	)
Total equity in earnings (losses) of unconsolidated investees		548,868			(3,087,167	)		168,921			(5,000,810	)
OTHER INCOME (EXPENSE)
Interest, net		11,704			15,122			466			3,670
Other, net		123,134			(40,214	)		63,807			(56,053	)
Income (loss) from continuing operations		(719,542	)		(4,887,510	)		44,968			(4,792,490	)
Income from discontinued operations		325,444			-			144,974			-
Net income (loss)		(394,098	)		(4,887,510	)		189,942			(4,792,490	)
NET (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST		14,700			941			16,489			(2,226	)
Net income (loss) attributable to Hollywood Media Corp	$	(379,398	)	$	(4,886,569	)	$	206,431		$	(4,794,716	)
Basic and diluted income (loss) per common share
Continuing operations	$	(0.02	)	$	(0.16	)	$	0.01		$	(0.16	)
Discontinued operations		0.01			-			0.00			-
Total basic and diluted net income (loss) per share	$	(0.01	)	$	(0.16	)	$	0.01		$	(0.16	)
Weighted average common and common equivalent shares
outstanding - basic		30,907,452			30,528,692			30,945,735			30,637,658
Weighted average common and common equivalent shares
outstanding - diluted		30,907,452			30,528,692			31,179,068			30,637,658

Hollywood Media Corp.

Segment Summary Financial Data and EBITDA Reconciliation

For the Six Months Ended June 30, 2010
(unaudited)
		Broadway				Intellectual
		Ticketing		Ad Sales (1)		Properties		Other (2)		Total
Net Revenues	$	54,908,530	$	1,513,117	$	494,584	$	-	$	56,916,231
Operating Income (Loss)		2,641,759		(290,298)		(34,898)		(3,719,811)		(1,403,248)
Net Income (Loss)		2,640,759		(251,787)		7,957		(2,776,327)		(379,398)
Add back (Income) Expense:
Interest, net		(300)		4,114		(35)		(15,483)		(11,704)
Taxes		1,336		(49,019)		-		-		(47,683)
Depreciation and Amortization		449,499		142,512		149		165,124		757,284
EBITDA Income (Loss)	$	3,091,294	$	(154,180)	$	8,071	$	(2,626,686)	$	318,499
For the Six Months Ended June 30, 2009
(unaudited)
		Broadway				Intellectual
		Ticketing		Ad Sales (1)		Properties		Other (2)		Total
Net Revenues	$	49,381,447	$	1,664,619	$	520,086	$	-	$	51,566,152
Operating Income (Loss)		2,171,013		(158,650)		(1,958)		(3,785,656)		(1,775,251)
Net Income (Loss)		2,131,933		(5,159,639)		(1,891)		(1,856,972)		(4,886,569)
Add back (Income) Expense:
Interest, net		(7,393)		3,563		(495)		(10,797)		(15,122)
Taxes		-		(40,966)		-		1,500		(39,466)
Depreciation and Amortization		414,194		182,146		150		198,478		794,968
EBITDA Income (Loss)	$	2,538,734	$	(5,014,896)	$	(2,236)	$	(1,667,791)	$	(4,146,189)
For the Three Months Ended June 30, 2010
(unaudited)
		Broadway				Intellectual
		Ticketing		Ad Sales (1)		Properties		Other (2)		Total
Net Revenues	$	32,681,447	$	731,554	$	206,881	$	-	$	33,619,882
Operating Income (Loss)		1,891,924		(156,411)		(38,714)		(1,885,025)		(188,226)
Net Income (Loss)		1,892,041		(133,949)		5,998		(1,557,659)		206,431
Add back (Income) Expense:
Interest, net		(117)		1,783		(16)		(2,116)		(466)
Taxes		-		(27,524)		-		-		(27,524)
Depreciation and Amortization		224,634		66,804		74		81,733		373,245
EBITDA Income (Loss)	$	2,116,558	$	(92,886)	$	6,056	$	(1,478,042)	$	551,686
For the Three Months Ended June 30, 2009
(unaudited)
		Broadway				Intellectual
		Ticketing		Ad Sales (1)		Properties		Other (2)		Total
Net Revenues	$	29,138,882	$	849,261	$	264,112	$	-	$	30,252,255
Operating Income (Loss)		2,053,088		(45,215)		4,597		(1,751,767)		260,703
Net Income (Loss)		2,011,230		(5,059,158)		1,699		(1,748,487)		(4,794,716)
Add back (Income) Expense:
Interest, net		(2,968)		1,849		(138)		(2,413)		(3,670)
Taxes		-		(6,846)		-		-		(6,846)
Depreciation and Amortization		198,934		91,164		75		97,721		387,894
EBITDA Income (Loss)	$	2,207,196	$	(4,972,991)	$	1,636	$	(1,653,179)	$	(4,417,338)
(1)  The Ad Sales segment includes other advertising sales by CinemasOnline.
(2)  The Other segment is comprised of payroll and benefits for corporate and administrative personnel as well as other corporate-wide expenses such as legal fees, audit fees, proxy costs, insurance, centralized information technology, and includes consulting fees and other fees and costs relating to compliance with the provisions of the Sarbanes-Oxley Act of 2002 that require Hollywood Media and its Independent Registered Public Accounting Firm to make an assessment of and report on internal control over financial reporting.   Also includes Discontinued Operations financial information.