EXHIBIT 99.1
HOLLYWOOD MEDIA REPORTS 2003 FINANCIAL RESULTS
- FULL YEAR 2003 REVENUES INCREASE 12% OVER 2002 -
- FOURTH QUARTER 2003 REVENUES INCREASE 15% OVER FOURTH QUARTER 2002 -
- GAAP LOSS NARROWS -
Boca Raton, FL, March 30, 2004 -- Hollywood Media Corp. (Nasdaq: HOLL - News), a
leading provider of news, information and ticketing covering the entertainment
and media industries, today announced financial results for the fourth quarter
and 12 months ended December 31, 2003.
FINANCIAL RESULTS
Net revenues for the twelve months ended December 31, 2003 increased $7.1
million, or 12 percent, to $64.9 million from $57.8 million for the same period
of 2002. The net loss for full year 2003 was $7.4 million, or $0.36 per share,
compared with a net loss of $82.8 million, or $3.24 per share, for full year
2002. The $82.8 million loss for the year 2002 includes a previously reported
$57.3 million non-cash charge relating to the Company's exchange agreement with
Viacom.
Net revenues for the three months ended December 31, 2003 increased $2.4 million
or 15 percent to $19.2 million compared to the $16.8 million reported in the
same period of 2002. The net loss for the fourth quarter of 2003 was $0.8
million, or $0.04 per share, compared with a net loss of $4.7 million, or $0.23
per share, for fourth quarter 2002.
Mitchell Rubenstein, Chairman and CEO of the Company, stated, "Our diverse
business model, with multiple revenue streams, is proving beneficial as we have
witnessed marked improvements in our overall financial performance. Our Broadway
Ticketing business, including Broadway.com and 1-800-Broadway, grew 15 percent
in 2003 compared to 2002. This division benefited from an increase in ticket
sales on Broadway.com along with additional service offerings, such as hotel
rooms, which were actively marketed to customers. We also benefited in 2003 from
an 18 percent increase in the revenues of our Intellectual Property division and
a 12 percent revenue increase in revenues in our Data Business when compared to
the 2002 calendar year. I am pleased with our results for 2003."
Mr. Rubenstein continued, "MovieTickets.com (in which we have a 26.4 percent
equity interest) experienced another solid year of growth, with revenues up
almost 300 percent so far in the first quarter 2004 as compared to the same
period in 2003 as customers have embraced the convenience of purchasing their
box office tickets online. We successfully expanded this service offering in
Europe where we see significant growth opportunities. We also made strides with
our cable TV network, Totally Hollywood TV ("THTV"), as this channel has proven
its viability to consumers. Looking ahead, we remain confident and we anticipate
continued growth of our business, driven in large part by our Broadway ticketing
operations, including the continued expansion into ticket sales for London's
West End shows, and the expansion of our affiliate programs, as well as growth
in Internet ad sales with a focus on significantly ramping up ad sales at
Hollywood.com and continued growth in our Data businesses. We have established a
portfolio of premier entertainment brands, in particular Broadway.com and
Hollywood.com, and we will focus on leveraging these established brands in the
coming quarters."
The Company's 2002 results have been restated, as reflected in the financial
tables included in this release, to correct an error in the way the Company had
previously accounted for ticketing revenues, ticketing cost, and its equity
interest in a joint venture. These changes, in the aggregate, increased net loss
for 2002 by 1.5 percent. The Company believes these adjustments are not material
to its fiscal year 2002 results.
RECENT DEVELOPMENTS
During and subsequent to the fourth quarter of 2003, the Company continued to
execute its operating strategy. Specifically:
In February, 2004, Hollywood Media announced the completion of a $16.4 million
private placement, which included the issuance to investors of 5,773,355 shares
of its common stock and warrants to purchase 1,443,339 shares of its common
stock, resulting in net proceeds to the Company of approximately $15.2 million.
The net proceeds of the private placement will be utilized for various corporate
purposes, including the continued expansion of Totally Hollywood TV, for
potential accretive acquisitions, for working capital and other general
corporate purposes.
The Company completed a successful Video-On-Demand(VOD)-based advertising
campaign for Buick. The campaign ran during July and August 2003 on Totally
Hollywood TV and featured 30-second advertisements in connection with the Buick
Rainier SUV's "Tiger Trap 2003."
The Company's Tekno Books unit (which is part of the Company's Intellectual
Property division) growth in revenue in 2003 vs. 2002 was driven in large part
by its participation in a new Left Behind book series. Previous Left Behind
books (not involving Tekno Books) have sold over 60 million copies worldwide and
hold sales records for Christian fiction.
TELECONFERENCE INFORMATION
As previously announced, management will host a teleconference to discuss the
Company's 2003 financial results. The conference call is scheduled for today,
Tuesday, March 30, 2004, at 4:30 p.m. Eastern Time.
To access the teleconference, please dial 800-231-5571 if calling within the
United States or 973-582-2703 if calling internationally 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 at http://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 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 April 6, 2004, and can be accessed by
dialing 877-519-4471 (U.S.), 973-341-3080 (Int'l), passcode 4632085. 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 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 shows. 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 the interactive
digital cable television network, Totally Hollywood TV ("THTV").
[FINANCIAL TABLES FOLLOW]
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 report 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.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2003 2002
---- ----
ASSETS (As Restated,
See Note 1 below)
CURRENT ASSETS:
Cash and cash equivalents $1,867,999 $2,342,238
Receivables, net 1,496,934 1,845,063
Inventories 5,770,289 7,144,311
Prepaid expenses 941,966 1,026,454
Other receivables 654,141 510,532
Other current assets 10,296 247,532
Deferred advertising - CBS 38,807 924,780
Total current assets 10,780,432 14,040,910
RESTRICTED CASH 850,000 --
PROPERTY AND EQUIPMENT, net 2,236,906 3,563,569
INVESTMENTS IN AND ADVANCES TO EQUITY
METHOD INVESTEES 164,205 294,438
INTANGIBLE ASSETS, net 1,603,985 2,342,807
GOODWILL, net 40,813,682 40,773,968
OTHER ASSETS 431,811 737,231
TOTAL ASSETS $56,881,021 $61,752,923
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,201,431 $1,354,663
Accrued expenses and other 5,178,467 4,299,655
Notes payable -- 250,000
Loan from shareholder/officer 600,000 --
Accrued exit and retail closure
costs -- 27,500
Deferred revenue 9,063,317 9,374,156
Current portion of capital lease
obligations 227,538 340,083
Total current liabilities 17,270,753 15,646,057
CAPITAL LEASE OBLIGATIONS, less
current portion 178,790 238,546
DEFERRED REVENUE 193,063 214,626
MINORITY INTEREST 21,895 --
OTHER DEFERRED LIABILITY 903,192 2,381,863
CONVERTIBLE DEBENTURES, NET 4,027,629 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; 21,810,266 and
20,253,863 shares issued and outstanding
at December 31, 2003 and December 31,
2002, respectively 218,103 202,539
Additional paid-in capital 279,087,772 277,261,293
Deferred compensation (162,500) --
Accumulated deficit (244,857,676) (237,415,989)
Total shareholders' equity 34,285,699 40,047,843
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $56,881,021 $61,752,923
(1) Accrued expenses and other has been increased by $444,774 for the 2002
restated financial statements as a result of an underaccrual for Broadway
Ticketing purchases.
Deferred revenue has been increased by $484,154 for the 2002 restated
financial statements as a result of an underaccrual for Broadway Ticketing
gift certificates.
Investments in and advances to equity method investees has been decreased by
$315,734 for the 2002 restated financial statements as a result of an
underaccrual of deferred revenue.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Yearly)
YEARS ENDED DECEMBER 31,
2003 2002
---- ----
(As Restated,
See Note 1 below)
NET REVENUES
Ticketing $52,266,539 $45,333,627
Other 12,592,423 12,419,490
64,858,962 57,753,117
OPERATING EXPENSES:
Cost of revenues - ticketing 44,850,254 39,930,761
Editorial, production,
development and technology 5,347,062 5,587,852
Selling, general and
administrative 18,706,679 20,833,096
Amortization of CBS advertising 885,974 11,251,566
Impairment loss - CBS advertising -- 57,274,680
Write-off of prepaid trade
credits -- 655,500
Depreciation and amortization 2,624,729 3,074,614
Provision for closed stores and
lease termination costs -- (14,644)
Total operating expenses 72,414,698 138,593,425
Operating loss (7,555,736) (80,840,308)
EQUITY IN EARNINGS OF INVESTMENTS 957,681 234,504
OTHER INCOME (EXPENSE):
Interest, net (1,442,707) (1,272,879)
Other, net 1,163,308 (250,566)
Loss before minority
interest (6,877,454) (82,129,249)
MINORITY INTEREST IN EARNINGS OF
SUBSIDIARIES (564,233) (665,529)
Net loss $(7,441,687) $(82,794,778)
Basic and diluted loss per common
share $(0.36) $(3.24)
Weighted average common and common
equivalent shares
outstanding - basic and diluted 20,829,183 25,535,626
(1) Net Revenues have been reduced by $484,154, or 0.8%, in the 2002 restated
financial statements as a result of an underaccrual for Broadway Ticketing
gift certificates.
Cost of Revenues - Ticketing has been increased by $444,774, or 1.1%, in the
2002 restated financial statements as a result of an underaccrual for
Broadway ticketing purchases
Equity in earnings of investments has been decreased by $315,734 as income
recognized by the investee during 2002, was incorrectly recorded.
The number of weighted average shares outstanding was reduced by 144,080
shares for the year ended December 31, 2002 to exclude shares issued of
restricted stock until vesting date.
As a result of the changes noted above, net loss for the year ended December
31, 2002 was increased by $1,244,662, or 1.5%.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Quarterly)
THREE MONTHS ENDED DECEMBER 31,
2003 2002
---- ----
(As Restated,
See Note 1 below)
NET REVENUES
Ticketing $15,740,983 $14,206,043
Other 3,508,202 2,595,402
19,249,185 16,801,445
OPERATING EXPENSES:
Cost of revenues - ticketing 13,220,646 12,371,468
Editorial, production,
development and technology 1,517,939 1,056,920
Selling, general and
administrative 4,915,871 6,214,601
Amortization of CBS advertising 276,781 315,071
Depreciation and amortization 784,928 649,118
Provision for closed stores and
lease termination costs -- (14,644)
Total operating expenses 20,716,165 20,592,534
Operating loss (1,466,980) (3,791,089)
EQUITY IN EARNINGS OF INVESTMENTS (77,924) (133,093)
OTHER INCOME (EXPENSE):
Interest, net (405,704) (420,522)
Other, net 1,271,473 (257,600)
Loss before minority
interest (679,135) (4,602,304)
MINORITY INTEREST IN EARNINGS OF
SUBSIDIARIES (114,544) (69,861)
Net loss $(793,679) $(4,672,165)
Basic and diluted loss per common
share $(0.04) $(0.23)
Weighted average common and common
equivalent shares outstanding -
basic and diluted 21,486,263 19,990,456
(1) Net Revenues have been increased by $14,669, or 0.1%, in the three months
ended December 31, 2002 restated financial statements as Broadway Ticketing
gift certificate revenue was understated.
Cost of Revenues - Ticketing has been increased by $66,830, or 0.7%, in the
three months ended December 31, 2002 restated financial statements as a
result of an underaccrual for Broadway ticketing purchases
Equity in earnings of investments has been decreased by $315,734 recognized
by the investee during 2002, was incorrectly recorded.
The number of weighted average shares outstanding was reduced by 216,951
shares for the three months ended December 31, 2002 to exclude shares issued
of restricted stock until vesting date.