- Broadway Ticketing EBITDA Increases 56.9% Compared to 2Q07 - BOCA RATON, Fla., Aug. 6
BOCA RATON, Fla., Aug. 6 /PRNewswire-FirstCall/ -- Hollywood Media Corp.
(Nasdaq: HOLL), a leading provider of news, information and ticketing covering
the entertainment and media industries, today reported financial results for
the second quarter ended June 30, 2008.
Second Quarter 2008 Financial Results
As previously reported, in August 2007 Hollywood Media sold its Showtimes
business unit to West World Media, LLC. For purposes of the financial results
presented in this press release, the operating results and the gain on sale of
the sold business are reported as discontinued operations in accordance with
GAAP and are excluded from Hollywood Media's net revenues and results of
continuing operations for all periods presented.
Hollywood Media's net revenues for the three months ended June 30, 2008
decreased 2.2 percent to $37.1 million compared to $37.9 million for the
second quarter of 2007. The decrease was primarily driven by a 2.9 percent
decline in the Broadway Ticketing division due to a $1.1 million decrease in
revenue from Theatre.com, the Company's London West End ticketing operation.
Theatre.com transitioned from handling its own sales to an arrangement with a
third party ticket agency. As a result of this arrangement, Theatre.com
recognizes an agency commission based on ticket price which reduced its
revenue while increasing the profitability of the UK ticketing business as
there are now less operational costs associated with this business.
The loss from continuing operations for the second quarter of 2008
decreased 62.9 percent to $734,362, or $0.02 per basic and diluted share based
on 31,964,851 weighted average common shares outstanding, compared to a $2.0
million loss from continuing operations for the second quarter of 2007, or
$0.06 per basic and diluted share based on 33,445,413 weighted average common
shares outstanding.
EBITDA (Modified)* for the Company as a whole for the second quarter of
2008 decreased to a loss of $237,728 compared to a loss of $1.4 million in
EBITDA (Modified) for the second quarter of 2007, an 83.6 percent improvement.
Net loss for the second quarter of 2008 was $734,362, or $0.02 per basic
and diluted share based on 31,964,851 weighted average common shares
outstanding, compared to a net loss for the second quarter of 2007 of $1.4
million, or $0.04 per basic and diluted share, based on 33,445,413 weighted
average common shares outstanding. Second quarter 2008 results include a $1.3
million dividend related to the Company's 26.2 percent equity interest in
MovieTickets.com. The decrease in weighted average common shares outstanding
in the second quarter of 2008 as compared to the same period of 2007 was due
to the Company's stock repurchases during the fourth quarter of 2007.
Hollywood Media's cash and cash equivalents were $20.9 million at
June 30, 2008, as compared to cash and cash equivalents of $26.8 million at
December 31, 2007. Hollywood Media's cash and cash equivalents at
June 30, 2008 did not include the dividend declared by MovieTickets.com in the
second quarter of 2008, which was received by Hollywood Media in July 2008.
"We reported solid second quarter results, particularly given the current
general economic slowdown," said Mitchell Rubenstein, Hollywood Media's Chief
Executive Officer. "While overall revenues were down slightly, primarily due
to the changes we made to our UK ticketing business, the Company benefited
from increased profitability at Broadway.com. We are also seeing strength in
ticket purchases among foreign buyers as well as strong sponsorship sales on
Broadway.com and increased group sales. We are looking forward to the launch
of an exciting line-up of new Broadway shows in the fourth quarter positioning
us well for the holiday season."
Rubenstein continued, "We continue to review potential M&A opportunities
that are focused on helping us to build our profitability and unlock the value
of our assets."
Second Quarter 2008 Business Review
During the second quarter of 2008, Broadway Ticketing revenues were $33.8
million, a 2.9 percent decrease from the second quarter of 2007. The decrease
resulted from a $1.1 million decrease in revenue from Theatre.com, the
Company's London West End ticketing operation. As previously reported, in
late 2007 Theatre.com transitioned from handling its own sales to an
arrangement with a third party ticket agency. As a result of this
arrangement, Theatre.com recognizes an agency commission based on ticket price
which reduced its revenue while increasing the profitability of the UK
ticketing business as there are now less operational costs associated with
this business.
EBITDA* for the Broadway Ticketing division in the second quarter 2008 was
$1.3 million, an increase of 56.9 percent as compared to $802,796 in the
second quarter of 2007, driven by the benefit from the pricing flexibility
resulting from regulatory changes in New York and an increase in sponsorship
revenue on Broadway.com.
Revenues for the Ad Sales segment were $2.8 million in the second quarter
of 2008, flat compared to the same quarter in 2007.
EBITDA* for the Ad Sales segment was a loss of $398,346 in the second
quarter of 2008, compared to income of $134,189 in the second quarter of 2007.
EBITDA for the recent period was impacted by the continued investment in
Hollywood.com.
Select Segment Highlights
The following tables provide revenue, EBITDA* and net income data for our
two highest revenue generating segments. The tables below should be reviewed
in conjunction with (i) the "Note on EBITDA" in this press release below and
(ii) the attached financial tables which include EBITDA results for all of our
reportable segments, with reconciliations to the GAAP results reflected in
Hollywood Media's consolidated income statements. The segment results for our
operating divisions do not include expenses in our "Other" segment comprised
mainly of specified corporate and public company expenses.
Quarter Ended June 30 ("Q2")
Net Revenue
Q2 2008 Q2 2007 % Change
Broadway Ticketing Division $33,764,778 $34,768,110 -2.9%
Ad Sales Division$2,810,525$2,828,335 -0.6%
EBITDA*
Q2 2008 Q2 2007 % Change
Broadway Ticketing Division $1,259,533 $802,796 56.9%
Ad Sales Division$(398,346) $134,189-396.9%
Net Income (Loss)
Q2 2008 Q2 2007 % Change
Broadway Ticketing Division $1,086,357 $733,431 48.1%
Ad Sales Division$(693,150) $(71,580)-868.4%
Teleconference Information
Management will host a teleconference to discuss Hollywood Media's second
quarter 2008 financial results on Wednesday, August 6, 2008 at 10:00 a.m.
Eastern Time. To access the teleconference, please dial 888-562-3654 (U.S.) or
973-582-2703 (International) approximately 10 minutes prior to the start of
the call. The reference passcode for the call is 57215840. The teleconference
will also be available via live Web cast on the investor relations portion of
Hollywood Media's Web site, located at
http://www.hollywood.com/corporate_profile/about_us/468707. 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 September 4, 2008 and can be
accessed by dialing 800-642-1687 (U.S.) or 706-645-9291 (Int'l), passcode
57215840. An archived version of the webcast will also be available on the
investor relations portion of Hollywood Media's Web site.
About Hollywood Media Corp.
Hollywood Media Corp. is a leading provider of news, information and
ticketing covering the entertainment and media industries. Hollywood Media's
businesses include: its Broadway Ticketing division including Broadway.com,
1-800-Broadway and Theatre Direct International; and its Ad Sales division
including Hollywood.com and the UK-based CinemasOnline. Other Hollywood Media
businesses include Hollywood.com Television, a free VOD cable TV network, and
Hollywood Media's minority interest in MovieTickets.com.
*Note on EBITDA
EBITDA and EBITDA (Modified) are non-GAAP financial measures. EBITDA is
defined as net income before interest, taxes, depreciation and amortization.
EBITDA (Modified) is defined as loss from continuing operations before
interest, taxes, depreciation and amortization on continuing operations.
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. Hollywood
Media has provided a reconciliation of net income to EBITDA in the attached
tables.
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 and integrate new businesses,
our ability to realize anticipated revenues, cost efficiencies and sources of
capital, 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 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 2007. Such
forward-looking statements speak only as of the date on which they are made.
Attached are the following financial tables:
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF OPERATIONS
SEGMENT SUMMARY FINANCIAL DATA AND EBITDA RECONCILIATION
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2008 2007
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $20,946,053 $26,758,550
Receivables, net3,051,683 3,038,711
Inventories held for sale 4,704,413 3,950,578
Deferred ticket costs 12,832,06416,481,861
Prepaid expenses1,972,518 2,290,182
Other receivables 1,903,537 3,873,799
Dividend receivable 1,311,100 -
Other current assets 143,294 629,298
Total current assets 46,864,66257,022,979
PROPERTY AND EQUIPMENT, net 5,238,071 4,890,120
INVESTMENTS IN AND ADVANCES TO
UNCONSOLIDATED INVESTEES 290,243 286,985
INTANGIBLE ASSETS, net1,620,594 1,477,822
GOODWILL 29,822,42230,237,137
OTHER ASSETS 54,71163,793
TOTAL ASSETS $83,890,703 $93,978,836
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $4,004,313$5,655,729
Accrued expenses and other 3,767,873 4,808,551
Deferred revenue 20,184,99424,273,625
Customer deposits 1,432,357 1,928,357
Current portion of capital lease
obligations 161,316 141,809
Current portion of notes payable 59,46353,422
Total current liabilities29,610,31636,861,493
DEFERRED REVENUE586,915 544,491
CAPITAL LEASE OBLIGATIONS, less
current portion223,652 255,971
OTHER DEFERRED LIABILITY873,711 622,189
NOTES PAYABLE, less current portion 79,69994,289
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;
32,095,552 and 31,897,983 shares
issued and outstanding at
June 30, 2008 and December 31, 2007,
respectively 320,956 318,980
Additional paid-in capital310,917,962 310,120,531
Accumulated deficit (258,722,508) (254,839,108)
Total shareholders' equity 52,516,41055,600,403
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $83,890,703 $93,978,836
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
2008 2007 2008 2007
NET REVENUES
Ticketing$59,062,595 $58,851,282 $33,764,778 $34,768,110
Other 6,347,6445,786,9943,299,4723,148,530
65,410,239 64,638,276 37,064,250 37,916,640
OPERATING COSTS AND
EXPENSES
Cost of revenues -
ticketing49,782,868 50,513,554 28,762,843 30,150,574
Editorial, production,
development and
technology (exclusive
of depreciation and
amortization shown
separately below) 3,180,2162,669,6381,566,8431,362,063
Selling, general and
administrative
(exclusive of
depreciation and
amortization shown
separately below) 8,561,5797,794,3114,105,8353,724,871
Payroll and benefits 8,030,3218,074,5254,115,0784,120,580
Depreciation and
amortization 1,255,694 857,446 601,040 428,125
Total operating
costs and
expenses 70,810,678 69,909,474 39,151,639 39,786,213
Loss from
operations (5,400,439) (5,271,198) (2,087,389) (1,869,573)
EQUITY IN EARNINGS OF
UNCONSOLIDATED
INVESTEES 1,317,513 8751,314,074 671
OTHER INCOME (EXPENSE)
Interest, net300,333 (319,621) 122,199 (138,296)
Other, net (34,985) 39,262 (41,186) 37,400
Loss from continuing
operations before
minority interest (3,817,578) (5,550,682)(692,302) (1,969,798)
MINORITY INTEREST IN
INCOME OF SUBSIDIARIES(65,822)(382) (42,060) (10,370)
Loss from continuing
operations (3,883,400) (5,551,064)(734,362) (1,980,168)
Income from
discontinued
operations -1,048,938- 538,161
Net loss $(3,883,400) $(4,502,126) $(734,362) $(1,442,007)
Basic and diluted
income (loss) per
common share
Continuing
operations $(0.12) $(0.16) $(0.02) $(0.06)
Discontinued
operations - 0.03- 0.02
Total basic and
diluted net loss
per share $(0.12) $(0.13) $(0.02) $(0.04)
Weighted average
common and common
equivalent shares
outstanding - basic
and diluted 31,909,540 33,351,780 31,964,851 33,445,413
Hollywood Media Corp.
Segment Summary Financial Data and EBITDA Reconciliation
For the Six Months Ended June 30, 2008
(unaudited)
BroadwayIntellectual
Ticketing Ad Sales(1) Properties
Net Revenues $59,062,595 $5,423,012$742,040
Operating Income (Loss) $1,479,861 $(1,647,003) $143,221
Net Income (Loss) from continuing
operations $1,525,678 $(1,619,156)$76,743
Add back (Income) Expense:
Interest, net (55,521) 7,976 (2,154)
Taxes- (18,107) -
Depreciation and Amortization 459,520 581,424 -
EBITDA Income (Loss) from continuing
operations $1,929,677 $(1,047,863)$74,589
Cable TV Other (2) Total
Net Revenues $182,592 $- $65,410,239
Operating Income (Loss) $(102,940) $(5,273,578) $(5,400,439)
Net Income (Loss) from continuing
operations $(102,940) $(3,763,725) $(3,883,400)
Add back (Income) Expense:
Interest, net - (250,634)(300,333)
Taxes - 52,000 33,893
Depreciation and Amortization 661 214,0891,255,694
EBITDA Income (Loss) from continuing
operations $(102,279) $(3,748,270) $(2,894,146)
For the Six Months Ended June 30, 2007
(unaudited)
BroadwayIntellectual
Ticketing Ad Sales(1) Properties
Net Revenues$58,851,282 $5,192,171$478,693
Operating Income (Loss)$951,754$(528,357) $(121)
Net Income (Loss) from continuing
operations$964,346$(495,723) $5,329
Add back (Income) Expense:
Interest (20,344)(110) (4,957)
Taxes (7,400) (30,565) -
Depreciation and Amortization 169,404 450,607 -
EBITDA Income (Loss) from continuing
operations $1,106,006 $(75,791) $372
For the Six Months Ended June 30, 2007
(unaudited)
Cable TVOther (2) Total
Net Revenues $116,130 $- $64,638,276
Operating Income (Loss) $(271,230) $(5,423,244) $(5,271,198)
Net Income (Loss) from continuing
operations $(271,230) $(5,753,786) $(5,551,064)
Add back (Income) Expense:
Interest- 345,032 319,621
Taxes - 735 (37,230)
Depreciation and Amortization 5,439 231,996 857,446
EBITDA Income (Loss) from continuing
operations $(265,791) $(5,176,023) $(4,411,227)
For the Three Months Ended June 30, 2008
(unaudited)
BroadwayIntellectual
Ticketing Ad Sales(1) Properties
Net Revenues$33,764,778 $2,810,525$408,907
Operating Income (Loss) $1,079,490$(689,826)$86,288
Net Income (Loss) from continuing
operations $1,086,357$(693,150)$47,967
Add back (Income) Expense:
Interest, net (22,262) 2,334(765)
Taxes - (7,207) -
Depreciation and Amortization 195,438 299,677 -
EBITDA Income (Loss) from continuing
operations $1,259,533$(398,346)$47,202
Cable TVOther (2) Total
Net Revenues$80,040 $- $37,064,250
Operating Income (Loss)$(28,815) $(2,534,526) $(2,087,389)
Net Income (Loss) from continuing
operations$(28,815) $(1,146,721) $(734,362)
Add back (Income) Expense:
Interest, net - (101,506)(122,199)
Taxes - 25,000 17,793
Depreciation and Amortization 331 105,594 601,040
EBITDA Income (Loss) from continuing
operations$(28,484) $(1,117,633) $(237,728)
For the Three Months Ended June 30, 2007
(unaudited)
BroadwayIntellectual
Ticketing Ad Sales(1) Properties
Net Revenues$34,768,110 $2,828,335$282,240
Operating Income (Loss)$712,302 $(95,332)$22,594
Net Income (Loss) from continuing
operations$733,431 $(71,580)$15,521
Add back (Income) Expense:
Interest (8,316) (28) (2,626)
Taxes (7,400) (24,131) -
Depreciation and Amortization 85,081 229,928 -
EBITDA Income (Loss) from continuing
operations$802,796 $134,189 $12,895
Cable TVOther (2) Total
Net Revenues$37,955 $- $37,916,640
Operating Income (Loss) $(136,873) $(2,372,264) $(1,869,573)
Net Income (Loss) from continuing
operations $(136,873) $(2,520,667) $(1,980,168)
Add back (Income) Expense:
Interest- 149,266 138,296
Taxes -- (31,531)
Depreciation and Amortization 2,424 110,692 428,125
EBITDA Income (Loss) from continuing
operations $(134,449) $(2,260,709) $(1,445,278)
(1) The Ad Sales segment includes Internet advertising sales on
Hollywood.com, commissions from advertising sales on MovieTickets.com
and Internet and 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 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.
SOURCE Hollywood Media Corp.
