HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2010
(Unaudited)
Historical | Sale of | Pro Forma | ||||||||||
Hollywood Media Corp.(5) | Broadway Ticketing | Hollywood Media Corp. | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 7,308,487 | $ | 20,062,672 | (1),(2) | $ | 27,371,159 | |||||
Receivables, net | 1,254,471 | (634,747 | )(2) | 619,724 | ||||||||
Inventories held for sale, net | 5,244,485 | (5,244,485 | )(2) | - | ||||||||
Deferred ticket costs | 9,934,718 | (9,934,718 | )(2) | - | ||||||||
Prepaid expenses | 2,942,893 | (1,799,918 | )(2),(4) | 1,142,975 | ||||||||
Other receivables | 1,136,173 | (816,646 | )(2) | 319,527 | ||||||||
Other current assets | 9,911 | �� | (9,911 | )(2) | - | |||||||
Related party receivable | 242,182 | - | 242,182 | |||||||||
Restricted cash | 1,221,000 | (1,221,000 | )(2) | - | ||||||||
Total current assets | 29,294,320 | 401,247 | 29,695,567 | |||||||||
PROPERTY AND EQUIPMENT, net | 3,793,541 | (3,315,868 | )(2) | 477,673 | ||||||||
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES | 826,889 | - | 826,889 | |||||||||
INTANGIBLE ASSETS, net | 206,070 | (173,244 | )(2) | 32,826 | ||||||||
GOODWILL | 20,230,119 | (5,634,336 | )(2) | 14,595,783 | ||||||||
OTHER ASSETS | 21,082 | - | 21,082 | |||||||||
TOTAL ASSETS | $ | 54,372,021 | $ | (8,722,201 | ) | $ | 45,649,820 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 1,234,466 | $ | (442,512 | )(2) | $ | 791,954 | |||||
Accrued expenses and other | 3,154,284 | 3,051,835 | (2),(3) | 6,206,119 | ||||||||
Deferred revenue | 13,013,628 | (11,901,206 | )(2) | 1,112,422 | ||||||||
Gift certificate liability | 3,497,188 | (3,497,188 | )(2) | - | ||||||||
Customer deposits | 360,423 | (360,423 | )(2) | - | ||||||||
Current portion of capital lease obligations | 75,979 | (3,055 | )(2) | 72,924 | ||||||||
Current portion of notes payable | 6,380 | - | 6,380 | |||||||||
Total current liabilities | 21,342,348 | (13,152,549 | ) | 8,189,799 | ||||||||
DEFERRED REVENUE | 158,654 | - | 158,654 | |||||||||
CAPITAL LEASE OBLIGATIONS, less current portion | 18,630 | - | 18,630 | |||||||||
OTHER DEFERRED LIABILITY | 956,270 | (857,791 | )(2) | 98,479 | ||||||||
NOTES PAYABLE, less current portion | - | - | - | |||||||||
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 September, 2010 and December 31, 2009, respectively | 311,791 | - | 311,791 | |||||||||
Additional paid-in capital | 309,695,522 | - | 309,695,522 | |||||||||
Accumulated deficit | (278,124,706 | ) | 5,288,139 | (4),(9) | (272,836,567 | ) | ||||||
Total Hollywood Media Corp shareholders' equity | 31,882,607 | 5,288,139 | 37,170,746 | |||||||||
Non-controlling interest | 13,512 | - | 13,512 | |||||||||
31,896,119 | 5,288,139 | 37,184,258 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 54,372,021 | $ | (8,722,201 | ) | $ | 45,649,820 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the nine months ended September 30, 2010
(Unaudited)
Historical | Sale of | Pro Forma | ||||||||||
Hollywood Media Corp.(7) | Broadway Ticketing (8) | Hollywood Media Corp. | ||||||||||
NET REVENUES | ||||||||||||
Ticketing | $ | 79,317,020 | $ | (79,317,020 | ) | $ | - | |||||
Other | 2,981,093 | - | 2,981,093 | |||||||||
82,298,113 | (79,317,020 | ) | 2,981,093 | |||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
Cost of revenues - ticketing | 64,578,465 | (64,578,465 | ) | - | ||||||||
Editorial, production, development and technology | 1,974,184 | - | 1,974,184 | |||||||||
Selling, general and administrative | 8,415,751 | (5,132,071 | ) | 3,283,680 | ||||||||
Payroll and benefits | 8,339,384 | (4,745,504 | ) | 3,593,880 | ||||||||
Depreciation and amortization | 1,111,322 | (671,742 | ) | 439,580 | ||||||||
Total operating costs and expenses | 84,419,106 | (75,127,782 | ) | 9,291,324 | ||||||||
Loss from operations | (2,120,993 | ) | (4,189,238 | ) | (6,310,231 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES | 636,839 | - | 636,839 | |||||||||
OTHER INCOME | ||||||||||||
Interest, net | 11,605 | (868 | ) | 10,737 | ||||||||
Other, net | 118,737 | 13,425 | 132,162 | |||||||||
Loss from continuing operations | (1,353,812 | ) | (4,176,681 | ) | (5,530,493 | ) | ||||||
Income from discontinued operations | 506,902 | - | 506,902 | |||||||||
Net loss | (846,910 | ) | (4,176,681 | ) | (5,023,591 | ) | ||||||
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 38,052 | - | 38,052 | |||||||||
Net loss attributable to Hollywood Media Corp | $ | (808,858 | ) | $ | (4,176,681 | ) | $ | (4,985,539 | ) | |||
Basic and diluted income (loss) per common share | ||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (0.18 | ) | ||||||
Discontinued operations | 0.02 | 0.02 | ||||||||||
Total basic and diluted net loss per share | $ | (0.02 | ) | $ | (0.16 | ) | ||||||
Weighted average common and common equivalent shares | ||||||||||||
outstanding - basic | 30,920,354 | 30,920,354 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the nine months ended September 30, 2009
(Unaudited)
Historical | Sale of | Pro Forma | ||||||||||
Hollywood Media Corp.(7) | Broadway Ticketing (8) | Hollywood Media Corp. | ||||||||||
NET REVENUES | ||||||||||||
Ticketing | $ | 69,979,418 | $ | (69,979,418 | ) | $ | - | |||||
Other | 3,441,400 | - | 3,441,400 | |||||||||
73,420,818 | (69,979,418 | ) | 3,441,400 | |||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
Cost of revenues - ticketing | 57,768,570 | (57,768,570 | ) | - | ||||||||
Editorial, production, development and technology | 1,944,210 | - | 1,944,210 | |||||||||
Selling, general and administrative | 7,572,482 | (4,294,318 | ) | 3,278,164 | ||||||||
Payroll and benefits | 7,402,148 | (4,112,432 | ) | 3,289,716 | ||||||||
Depreciation and amortization | 1,184,187 | (617,505 | ) | 566,682 | ||||||||
Total operating costs and expenses | 75,871,597 | (66,792,825 | ) | 9,078,772 | ||||||||
Loss from operations | (2,450,779 | ) | (3,186,593 | ) | (5,637,372 | ) | ||||||
EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES | ||||||||||||
Equity in earnings of unconsolidated investees | 1,912,906 | - | 1,912,906 | |||||||||
Impairment loss | (5,000,000 | ) | - | (5,000,000 | ) | |||||||
Total equity in earnings (losses) of unconsolidated investees | (3,087,094 | ) | - | (3,087,094 | ) | |||||||
OTHER INCOME | ||||||||||||
Interest, net | 18,714 | (10,092 | ) | 8,622 | ||||||||
Other, net | (156,069 | ) | 194,536 | 38,467 | ||||||||
Loss from continuing operations | (5,675,228 | ) | (3,002,149 | ) | (8,677,377 | ) | ||||||
Income from discontinued operations | 472,487 | - | 472,487 | |||||||||
Net loss | (5,202,741 | ) | (3,002,149 | ) | (8,204,890 | ) | ||||||
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (32,821 | ) | - | (32,821 | ) | |||||||
Net loss attributable to Hollywood Media Corp | $ | (5,235,562 | ) | $ | (3,002,149 | ) | $ | (8,237,711 | ) | |||
Basic and diluted income (loss) per common share | ||||||||||||
Continuing operations | $ | (0.19 | ) | $ | (0.28 | ) | ||||||
Discontinued operations | 0.02 | 0.02 | ||||||||||
Total basic and diluted net loss per share | $ | (0.17 | ) | $ | (0.26 | ) | ||||||
Weighted average common and common equivalent shares | ||||||||||||
outstanding - basic and diluted | 30,565,413 | 30,565,413 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended December 31, 2009
(Unaudited)
Historical | Sale of | Pro Forma | ||||||||||
Hollywood Media Corp.(6) | Broadway Ticketing (8) | Hollywood Media Corp. | ||||||||||
NET REVENUES | ||||||||||||
Ticketing | $ | 98,860,362 | $ | (98,860,362 | ) | $ | - | |||||
Other | 4,518,548 | - | 4,518,548 | |||||||||
103,378,910 | (98,860,362 | ) | 4,518,548 | |||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
Cost of revenues - ticketing | 81,014,536 | (81,014,536 | ) | - | ||||||||
Editorial, production, development and technology | 2,569,354 | - | 2,569,354 | |||||||||
Selling, general and administrative | 10,827,719 | (6,487,658 | ) | 4,340,061 | ||||||||
Payroll and benefits | 10,574,375 | (5,701,977 | ) | 4,872,398 | ||||||||
Depreciation and amortization | 1,590,598 | (846,603 | ) | 743,995 | ||||||||
Total operating costs and expenses | 106,576,582 | (94,050,774 | ) | 12,525,808 | ||||||||
Loss from operations | (3,197,672 | ) | (4,809,588 | ) | (8,007,260 | ) | ||||||
EARNINGS (LOSSES) OF UNCONSOLIDATED INVESTEES | ||||||||||||
Equity in earnings of unconsolidated investees | 2,006,498 | - | 2,006,498 | |||||||||
Impairment loss | (5,000,000 | ) | - | (5,000,000 | ) | |||||||
Total equity in losses of unconsolidated investees | (2,993,502 | ) | - | (2,993,502 | ) | |||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest, net | 28,922 | (12,761 | ) | 16,161 | ||||||||
Other, net | (75,146 | ) | 123,205 | 48,059 | ||||||||
Loss from continuing operations | (6,237,398 | ) | (4,699,144 | ) | (10,936,542 | ) | ||||||
Income from discontinued operations | 614,572 | - | 614,572 | |||||||||
Net loss | (5,622,826 | ) | (4,699,144 | ) | (10,321,970 | ) | ||||||
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 2,409 | - | 2,409 | |||||||||
Net loss attributable to Hollywood Media Corp | $ | (5,620,417 | ) | $ | (4,699,144 | ) | $ | (10,319,561 | ) | |||
Basic and diluted income (loss) per common share | ||||||||||||
Continuing operations | $ | (0.20 | ) | $ | (0.36 | ) | ||||||
Discontinued operations | 0.02 | 0.02 | ||||||||||
Total basic and diluted net loss per share | $ | (0.18 | ) | $ | (0.34 | ) | ||||||
Weighted average common and common equivalent shares | ||||||||||||
outstanding - basic and diluted | 30,584,902 | 30,584,902 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2008
(Unaudited)
Historical | Sale of | Pro Forma | ||||||||||
Hollywood Media Corp.(6) | Broadway Ticketing (8) | Hollywood Media Corp. | ||||||||||
NET REVENUES | ||||||||||||
Ticketing | $ | 110,918,969 | $ | (110,918,969 | ) | $ | - | |||||
Other | 6,138,962 | - | 6,138,962 | |||||||||
117,057,931 | (110,918,969 | ) | 6,138,962 | |||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
Cost of revenues - ticketing | 92,882,066 | (92,882,066 | ) | - | ||||||||
Editorial, production, development and technology | 3,323,546 | - | 3,323,546 | |||||||||
Selling, general and administrative | 13,932,852 | (7,996,054 | ) | 5,936,798 | ||||||||
Payroll and benefits | 13,284,857 | (6,631,118 | ) | 6,653,739 | ||||||||
Impairment Loss | 3,524,697 | - | 3,524,697 | |||||||||
Depreciation and amortization | 2,224,831 | (876,049 | ) | 1,348,782 | ||||||||
Total operating costs and expenses | 129,172,849 | (108,385,287 | ) | 20,787,562 | ||||||||
Loss from operations | (12,114,918 | ) | (2,533,682 | ) | (14,648,600 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES | 1,160,623 | - | 1,160,623 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest, net | 425,251 | (65,451 | ) | 359,800 | ||||||||
Other, net | 44,958 | (1,260 | ) | 43,698 | ||||||||
Loss from continuing operations | (10,484,086 | ) | (2,600,393 | ) | (13,084,479 | ) | ||||||
Loss on sale of discontinued operations, net of income taxes | (4,655,122 | ) | - | (4,655,122 | ) | |||||||
Loss from discontinued operations | (1,635,750 | ) | - | (1,635,750 | ) | |||||||
Loss from discontinued operations | (6,290,872 | ) | - | (6,290,872 | ) | |||||||
Net loss | (16,774,958 | ) | (2,600,393 | ) | (19,375,351 | ) | ||||||
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (81,365 | ) | - | (81,365 | ) | |||||||
Net loss attributable to Hollywood Media Corp | $ | (16,856,323 | ) | $ | (2,600,393 | ) | $ | (19,456,716 | ) | |||
Basic and diluted loss per common share | ||||||||||||
Continuing operations | $ | (0.33 | ) | $ | (0.41 | ) | ||||||
Discontinued operations | (0.20 | ) | (0.20 | ) | ||||||||
Total basic and diluted net loss per share | $ | (0.53 | ) | $ | (0.61 | ) | ||||||
Weighted average common and common equivalent shares | ||||||||||||
outstanding - basic and diluted | 31,793,853 | 31,793,853 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2007
(Unaudited)
Historical | Sale of | Pro Forma | ||||||||||
Hollywood Media Corp.(6) | Broadway Ticketing (8) | Hollywood Media Corp. | ||||||||||
NET REVENUES | ||||||||||||
Ticketing | $ | 111,792,068 | $ | (111,792,068 | ) | $ | - | |||||
Other | 6,369,156 | - | 6,369,156 | |||||||||
118,161,224 | (111,792,068 | ) | 6,369,156 | |||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
Cost of revenues - ticketing | 94,017,924 | (94,017,924 | ) | - | ||||||||
Editorial, production, development and technology | 3,590,192 | - | 3,590,192 | |||||||||
Selling, general and administrative | 14,269,974 | (8,063,461 | ) | 6,206,513 | ||||||||
Payroll and benefits | 13,368,817 | (6,707,021 | ) | 6,661,796 | ||||||||
Depreciation and amortization | 1,378,492 | (351,310 | ) | 1,027,182 | ||||||||
Total operating costs and expenses | 126,625,399 | (109,139,716 | ) | 17,485,683 | ||||||||
Loss from operations | (8,464,175 | ) | (2,652,352 | ) | (11,116,527 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES | 4,747 | - | 4,747 | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest, net | 199,437 | (74,468 | ) | 124,969 | ||||||||
Other, net | (50,935 | ) | 35,559 | (15,376 | ) | |||||||
Loss from continuing operations | (8,310,926 | ) | (2,691,261 | ) | (11,002,187 | ) | ||||||
Gain on sale of discontinued operations, net of income taxes | 10,254,287 | - | 10,254,287 | |||||||||
Loss from discontinued operations | (211,993 | ) | - | (211,993 | ) | |||||||
Income from discontinued operations | 10,042,294 | - | 10,042,294 | |||||||||
Net income (loss) | 1,731,368 | (2,691,261 | ) | (959,893 | ) | |||||||
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 3,241 | - | 3,241 | |||||||||
Net income (loss) attributable to Hollywood Media Corp | $ | 1,734,609 | $ | (2,691,261 | ) | $ | (956,652 | ) | ||||
Basic and diluted income (loss) per common share | ||||||||||||
Continuing operations | $ | (0.25 | ) | $ | (0.33 | ) | ||||||
Discontinued operations | 0.30 | 0.30 | ||||||||||
Total basic and diluted net gain (loss) per share | $ | 0.05 | $ | (0.03 | ) | |||||||
Weighted average common and common equivalent shares | ||||||||||||
outstanding - basic and diluted | 33,303,886 | 33,303,886 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
Notes to the Pro Forma Condensed Consolidated Financial Statements
(Unaudited)
(1) | To record the cash proceeds of $20,000,000. |
(2) | Represents adjustments to eliminate assets and liabilities of the Broadway Ticketing businesses. |
(3) | The amount includes an accrual for estimated transaction expenses, costs and fees associated with the sale of $4,749,260. |
(4) | To record the gain on sale of the stock of the Broadway Ticketing business. The note receivable, earnout receivable and put/call option were recorded at fair value. |
The reconciliation of net gain is as follows: | ||||
Proceeds received | $ | 20,000,000 | ||
Working capital | 3,624,033 | |||
Net assets sold | (12,386,634 | ) | ||
Prepaid transaction costs | (1,200,000 | ) | ||
Accrued transaction expense | (4,749,260 | ) | ||
Net gain | $ | 5,288,139 |
(5) | Represents the Condensed Consolidated Balance Sheet included in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2010. |
(6) | Represents the Condensed Consolidated Statements of Operations included in the Company's Annual Report on Form 10-K for the years ended December 31, 2009, 2008 and 2007, as applicable. |
(7) | Represents the Condensed Consolidated Statements of Operations included in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2010 and 2009, as applicable. |
(8) | Represents adjustments to eliminate the results of operations of the Broadway Ticketing business that the Company believes are directly attributable to the sale and are factually supportable and will not continue after sale. |
(9) | The note receivable, earnout receivable and put/call option have been valued at fair value and fully reserved for in the proforma financial statements. The fair value is offset with a full reserve due to Key Brand's Entertainment current non-compliance with their senior lending facility. |