Exhibit 99.1
HOLLYWOOD MEDIA CORP.
HOLLYWOOD MEDIA REPORTS FIRST QUARTER 2003 FINANCIAL RESULTS
(Boca Raton, FL - May 14, 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 months
ended March 31, 2003.
Mitchell Rubenstein, Chairman and CEO of Hollywood Media Corp., stated: "We
delivered 21.9% revenue growth (excluding barter revenue*) during a challenging
economic period. We are experiencing strong demand for our products and services
and look forward to the rest of the year as we continue to focus on improving
the bottom line."
FINANCIAL RESULTS
Net revenues for the three months ended March 31, 2003 increased $1.9 million or
14.6% to $14.6 million from $12.7 million in the same period of 2002. Excluding
barter revenue* from both quarters (barter revenue decreased from $0.8 million
in the first quarter of 2002 to zero in the first quarter of 2003), full quarter
revenue increased by 21.9% to $14.6 million in the first quarter 2003 compared
to $11.9 million in the first quarter of 2002. The net loss for the first
quarter of 2003 was $2.9 million, a reduction of 61.7%, as compared to a net
loss of $7.5 million in the first quarter of 2002. The net loss per share for
the first quarter of 2003 was $0.14 as compared to $0.27 per share in the first
quarter of 2002. Please note that the weighted average number of shares
outstanding for the three months ended March 31, 2003 was 20,398,291 shares as
compared to 28,116,685 shares in the comparable period in 2002. Gross Margin for
the three months ended March 31, 2003 decreased $0.5 million or 10.6% to $4.0
million from $4.5 million in the same period of 2002. Excluding the effect of
barter revenue*, the gross margin increased by 7.6% to $4.0 million in the first
quarter of 2003 from $3.7 million in the first quarter of 2002.
*NON-GAAP FINANCIAL MEASURES
Revenues excluding barter, and gross margin excluding barter, are non-GAAP
financial measures, and should be considered in addition to, and not as a
substitute for or superior to, reported revenues and gross margin without such
exclusion, which are also set forth above. Hollywood Media believes that
revenues excluding barter, and gross margin excluding barter, are useful
information to investors regarding Hollywood Media's results of operations for
the first quarter of 2003, because such measures show growth in revenues and
gross margin without the effects of non-cash barter revenue, as Hollywood Media
has decided to minimize its utilization of barter revenue arrangements. Barter
revenue is offset by an equal amount of barter expense, and therefore does not
impact the calculation of net loss.
HOLLYWOOD MEDIA REPORTS FIRST QUARTER 2003 FINANCIAL RESULTS
Page 2
TELECONFERENCE INFORMATION
The Company will host a teleconference to discuss its first quarter 2003
financial results. The conference call is scheduled for 10:00 a.m. Eastern Time
tomorrow, May 15. To access the teleconference, please dial 212-346-7486
approximately five minutes prior to the start of the call. 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 to
questions@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 May 22, 2003, and can be accessed by
dialing 800-633-8284 (U.S.), 402-977-9140 (Int'l), passcode 21144477. A replay
of the teleconference will also be archived on the investor relations portion of
the Company's web site.
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 Theatre Direct International, Broadway.com and 1-800-Broadway.
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 MovieTickets.com.
In addition, the Company owns and operates two cable television networks,
Totally Hollywood TV and Totally Broadway TV.
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 Securities 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
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2003 2002
------------- -------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,236,331 $ 2,342,238
Receivables, net 1,492,170 1,845,063
Inventories, net 8,639,970 7,144,311
Prepaid expenses 1,097,306 1,026,454
Other receivables 747,103 510,532
Other current assets 48,332 247,532
Deferred advertising - CBS 734,757 924,780
------------- -------------
Total current assets 13,995,969 14,040,910
PROPERTY AND EQUIPMENT, net 3,239,010 3,563,569
INVESTMENTS IN AND ADVANCES TO EQUITY METHOD INVESTEES 236,130 610,172
IDENTIFIABLE INTANGIBLE ASSETS, net 2,165,852 2,342,807
GOODWILL, net 40,773,968 40,773,968
OTHER ASSETS 597,163 737,231
------------- -------------
TOTAL ASSETS $ 61,008,092 $ 62,068,657
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,052,558 $ 1,354,663
Accrued expenses and other 2,954,069 3,854,881
Notes payable 250,000 250,000
Accrued exit and retail closure costs 27,500 27,500
Deferred revenue 10,314,976 8,890,002
Current portion of capital lease obligations 279,327 340,083
------------- -------------
Total current liabilities 15,878,430 14,717,129
CAPITAL LEASE OBLIGATIONS, less current portion 198,928 238,546
DEFERRED REVENUE 327,089 214,626
MINORITY INTEREST 61,844 --
OTHER DEFERRED LIABILITY 2,398,239 2,381,863
CONVERTIBLE DEBENTURES, NET 3,402,653 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; 20,513,708
and 20,253,863 shares issued and outstanding at March 31, 2003 and
December 31, 2002, respectively 205,137 202,539
Additional paid-in capital 277,596,611 277,261,293
Accumulated deficit (239,060,839) (236,171,327)
------------- -------------
Total shareholders' equity 38,740,909 41,292,505
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 61,008,092 $ 62,068,657
============= =============
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
----------------------------
2003 2002
------------ ------------
NET REVENUES 14,562,815 $ 12,705,442
COST OF REVENUES 10,568,545 8,236,161
------------ ------------
Gross margin 3,994,270 4,469,281
------------ ------------
OPERATING EXPENSES:
General and administrative 1,891,232 1,889,920
Selling and marketing 277,396 925,932
Salaries and benefits 3,279,628 3,563,120
Amortization of CBS advertising 190,023 4,577,598
Depreciation and amortization 639,876 905,055
------------ ------------
Total operating expenses 6,278,155 11,861,625
------------ ------------
Operating loss (2,283,885) (7,392,344)
EQUITY IN EARNINGS - INVESTMENTS 4,405 216,383
OTHER INCOME (EXPENSE):
Interest expense (342,661) (179,685)
Interest income 2,293 3,022
Other, net (49,091) 20,846
------------ ------------
Loss before minority interest (2,668,939) (7,331,778)
MINORITY INTEREST (220,573) (204,000)
------------ ------------
NET LOSS $ (2,889,512) $ (7,535,778)
============ ============
Basic and diluted net loss per common share $ (0.14) $ (0.27)
============ ============
Weighted average shares outstanding 20,398,291 28,116,685
============ ============