Hollywood Media Corp. Reports 2012 Fourth Quarter and Year End Results

Hollywood Media Corp. Reports 2012 Fourth Quarter and Year End Results 
BOCA RATON, FL -- (Marketwire) -- 04/01/13 --  Hollywood Media Corp.
(NASDAQ: HOLL) today reported financial results for the fourth
quarter and year ended December 31, 2012. 
On a continuing operations basis, which includes the contribution
from Tekno Books, the Company's 100% owned subsidiary under the
Intellectual Property division, net revenues for the 2012 fourth
quarter were unchanged at $0.2 million compared to $0.2 million in
the prior-year period. For the full year 2012, net revenues were $0.6
million versus $1.1 million in 2011.  
Income from continuing operations for the 2012 fourth quarter, was
$4.8 million, or $0.21 per share, compared to a loss from continuing
operations for the 2011 fourth quarter of $0.1 million, or $0.01 per
share. The income tax benefit of $3.8 million was fully offset by the
income tax expense recognized in the Gain on sale of discontinued
operations, net of income taxes. Income from continuing operations
for the full year 2012 was $0.9 million, or $0.04 per share, which
included a non-cash goodwill impairment charge of $3.6 million in the
third quarter of 2012 related to the Company's Ad Sales Division,
$0.4 million of non-cash amortization expense of deferred
compensation costs and $0.1 million depreciation and amortization.
This compared to a loss from continuing operations for the full year
2011 of $7.1 million, or $0.29 per share, which included a non-cash
goodwill impairment charge of $4.8 million in the third quarter of
2011 related to the Company's Ad Sales Division. The income tax
benefit of $5.3 million was fully offset by the income tax expense
recognized in the Gain on sale of discontinued operations, net of
income taxes. 
Net income, which includes discontinued operations, was $11.8
million, or $0.51 per share, in the 2012 fourth quarter, compared to
net income of $0.04 million, or $0.00 per share, in the prior-year
period. For the full year 2012, net income, which includes
discontinued operations, was $10.4 million, or $0.45 per share,
compared to a net loss in 2011 of $6.9 million, or $0.28 per share. 
At December 31, 2012, the Company had cash and cash equivalents of
$11.4 million and no debt as compared to cash and cash equivalents of
$3.7 million and no debt at December 31, 2011.  
The increased cash position reflects a $7 million earnout payment in
cash received in the 2012 fourth quarter from Key Brand Entertainment
Inc. ("Key Brand") pursuant to the amended purchase agreement related
to the completed sale of Hollywood Media's Broadway Ticketing
Business ("Theatre Direct") to Key Brand. In addition, during the
2012 fourth quarter Key Brand notified Hollywood Media that it
achieved the revenue target for the second $7 million earnout under
the purchase agreement in Key Brand's fiscal year ended June 30,
2012. Accordingly, this $7 million amount was added to the principal
amount of the $8.5 million loan due Hollywood Media by Key Brand.
Pursuant to this loan, interest will be payable to Hollywood Media at
an increased rate of 13% per annum and principal on such second $7
million earnout amount will be amortized in equal quarterly
installments over the period commencing October 5, 2012 and ending on
June 30, 2015 which is the new shortened maturity date of the loan.
As a result of this second $7 million earnout being added to the loan
and a subsequent payment received in the amount of $1.0 million
(which included a principal payment of $0.5 million), the principal
amount of the loan due Hollywood Media by Key Brand was $15.0 million
as of December 31, 2012. A $1.1 million payment was received during
the first quarter of 2013 in accordance with the terms of the loan. 
The Company purchased 16,600 shares of Hollywood Media's common stock
for $0.1 million during the fourth quarter of 2012 and 510,700 shares
of Hollywood Media's common stock for $0.7 million during the first
quarter of 2013.  
About Hollywood Media Corp. 
Hollywood Media Corp. is comprised primarily of an Ad Sales division,
an Intellectual Property division, and various financial assets. 
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 Corp., our ability to
develop and maintain strategic relationships, 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 2012. Such forward-looking
statements speak only as of the date on which they are made. 


 
                                                                            
                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES                   
                        CONSOLIDATED BALANCE SHEETS                         
                                                                            
                                                December 31,   December 31, 
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
                    ASSETS                                                  
                                                                            
CURRENT ASSETS:                                                             
  Cash and cash equivalents                    $  11,378,519  $   3,683,063 
  Prepaid expenses                                   329,915        316,430 
  Other receivables                                   75,105              - 
  Note receivable, current                         1,375,545              - 
  Related party receivable                            37,287        521,497 
  Current portion of deferred compensation           430,000        430,000 
  Current assets of discontinued operations                -        566,691 
                                               -------------  ------------- 
    Total current assets                          13,626,371      5,517,681 
                                                                            
PROPERTY AND EQUIPMENT, net                          240,645        283,574 
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED                               
 INVESTEES                                           138,384      1,573,325 
INTANGIBLE ASSETS, net                                 8,683         17,116 
GOODWILL                                           6,200,000      9,800,000 
OTHER ASSETS                                         727,982         58,628 
NOTE RECEIVABLE, less current portion              4,455,106              - 
WARRANT                                              700,000              - 
DEFERRED COMPENSATION, less current portion          518,651        948,651 
LONG TERM ASSETS OF DISCONTINUED OPERATIONS                -         23,814 
                                               -------------  ------------- 
    TOTAL ASSETS                               $  26,615,822  $  18,222,789 
                                               =============  ============= 
                                                                            
     LIABILITIES AND SHAREHOLDERS' EQUITY                                   
                                                                            
CURRENT LIABILITIES:                                                        
  Accounts payable                             $     414,123  $     387,070 
  Accrued expenses and other                       1,036,788        646,821 
  Deferred revenue                                   111,669        264,228 
  Current portion of capital lease obligations        16,255         21,829 
  Current liabilities of discontinued                                       
   operations                                              -      1,130,268 
                                               -------------  ------------- 
    Total current liabilities                      1,578,835      2,450,216 
                                                                            
CAPITAL LEASE OBLIGATIONS, less current                                     
 portion                                               2,152         16,203 
OTHER DEFERRED LIABILITY                                 355         42,514 
DEFERRED REVENUE                                      14,000         46,200 
DERIVATIVE LIABILITIES                                60,000      1,090,000 
LONG TERM LIABILITIES OF DISCONTINUED                                       
 OPERATIONS                                                -          2,158 
                                               -------------  ------------- 
    TOTAL LIABILITIES                              1,655,342      3,647,291 
                                                                            
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; 23,162,466 and                                        
   23,179,066 shares issued and outstanding at                              
   December 31, 2012 and December 31, 2011,                                 
   respectively                                      231,625        231,791 
  Additional paid-in capital                     293,591,903    293,616,319 
  Accumulated deficit                           (268,863,048)  (279,272,612)
                                               -------------  ------------- 
    Total shareholders' equity                    24,960,480     14,575,498 
                                               -------------  ------------- 
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $  26,615,822  $  18,222,789 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES                   
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
                                                                            
                           TWELVE MONTHS ENDED        THREE MONTHS ENDED    
                               December 31,              December 31,       
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
NET REVENUES             $   616,338  $ 1,067,708  $   187,256  $   226,162 
                                                                            
OPERATING COSTS AND                                                         
 EXPENSES                                                                   
    Editorial,                                                              
     production,                                                            
     development and                                                        
     technology              639,865      651,614      248,362       89,572 
    Selling, general and                                                    
     administrative        2,854,440    2,782,020    1,014,450      511,221 
    Payroll and benefits   2,688,017    3,242,209    1,068,530      398,653 
    Depreciation and                                                        
     amortization            136,443      203,231       23,411       40,578 
                         -----------  -----------  -----------  ----------- 
                                                                            
      Total operating                                                       
       costs and                                                            
       expenses            6,318,765    6,879,074    2,354,753    1,040,024 
                         -----------  -----------  -----------  ----------- 
                                                                            
      Loss from                                                             
       operations         (5,702,427)  (5,811,366)  (2,167,497)    (813,862)
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
LOSSES OF UNCONSOLIDATED                                                    
 INVESTEES                                                                  
  Equity in earnings of                                                     
   unconsolidated                                                           
   investees                (142,003)     593,767         (152)     184,176 
  Impairment loss         (3,600,000)  (4,795,783)           -            - 
                         -----------  -----------  -----------  ----------- 
    Total losses in                                                         
     earnings of                                                            
     unconsolidated                                                         
     investees            (3,742,003)  (4,202,016)        (152)     184,176 
                         -----------  -----------  -----------  ----------- 
                                                                            
OTHER INCOME (EXPENSE):                                                     
  Interest, net            1,249,868    1,049,843      472,457      260,183 
  Accretion of discount,                                                    
   net of allowance for                                                     
   uncollectability        1,717,900            -    1,717,900            - 
  Other, net               2,068,665    2,025,160      960,353      394,208 
                         -----------  -----------  -----------  ----------- 
                                                                            
    Loss from continuing                                                    
     operations before                                                      
     income taxes         (4,407,997)  (6,938,379)     983,061       24,705 
    Income tax benefit                                                      
     (expense), net of                                                      
     refund                5,326,300     (130,571)   3,827,818     (130,571)
                         -----------  -----------  -----------  ----------- 
      Income (loss) from                                                    
       continuing                                                           
       operations            918,303   (7,068,950)   4,810,879     (105,866)
                         -----------  -----------  -----------  ----------- 
                                                                            
    Gain on sale of                                                         
     discontinued                                                           
     operations, net of                                                     
     income taxes          9,468,677      524,156    7,023,786      269,314 
    Income (loss) of                                                        
     discontinued                                                           
     operations               22,584     (232,444)           -      (69,573)
                         -----------  -----------  -----------  ----------- 
                                                                            
    Income from                                                             
     discontinued                                                           
     operations            9,491,261      291,712    7,023,786      199,741 
                         -----------  -----------  -----------  ----------- 
                                                                            
    Net income (loss)     10,409,564   (6,777,238)  11,834,665       93,875 
                                                                            
NET INCOME (LOSS)                                                           
 ATTRIBUTABLE TO NON-                                                       
 CONTROLLING INTEREST    $         -      (85,093) $         -      (55,066)
                         -----------  -----------  -----------  ----------- 
                                                                            
Net income (loss)                                                           
 attributable to                                                            
 Hollywood Media Corp.   $10,409,564  $(6,862,331) $11,834,665  $    38,809 
                         ===========  ===========  ===========  =========== 
                                                                            
Basic and diluted income                                                    
 (loss) per common share                                                    
    Continuing                                                              
     operations          $      0.04  $     (0.29) $      0.21  $     (0.01)
    Discontinued                                                            
     operations                 0.41         0.01         0.30         0.01 
                         -----------  -----------  -----------  ----------- 
    Total basic and                                                         
     diluted net income                                                     
     (loss) per share    $      0.45  $     (0.28) $      0.51  $         - 
                         ===========  ===========  ===========  =========== 
                                                                            
Weighted average common                                                     
 and common equivalent                                                      
 shares outstanding -                                                       
 basic and diluted        23,178,814   24,384,547   23,178,064   23,179,066 
                         -----------  -----------  -----------  ----------- 

  
Contact:
Investor Relations Department
Hollywood Media Corp.
L. Melheim
ir@hollywoodmedia.com 
561-998-8000 
 
 
Press spacebar to pause and continue. Press esc to stop.