Hollywood Media Corp. Reports 2013 Second Quarter Results

Hollywood Media Corp. Reports 2013 Second Quarter Results 
BOCA RATON, FL -- (Marketwired) -- 08/14/13 --  Hollywood Media Corp.
("Company") (NASDAQ: HOLL) today reported financial results for the
second quarter ended June 30, 2013. 
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 2013 second
quarter were $0.1 million compared to $0.2 million in the prior-year
period. 
Loss from continuing operations for the 2013 second quarter was $0.1
million, or $0.01 per share, compared to a loss from continuing
operations for the 2012 second quarter of $1.3 million, or $0.06 per
share. Net loss, which includes discontinued operations, was $0.1
million, or $0.01 per share, in the 2013 second quarter, compared to
net loss of $0.5 million, or $0.02 per share, in the prior-year
period. Income from discontinued operations during the 2012 second
quarter primarily consisted of a $0.6 million gain on the sale of the
Company's U.K.-based CinemasOnline business. 
At June 30, 2013, the Company had cash and cash equivalents of $9.7
million and no debt as compared to cash and cash equivalents of $11.4
million and no debt at December 31, 2012.  
The Company repurchased 521,500 shares of Hollywood Media's common
stock for $0.8 million during the first half of 2013, comprised of
510,700 shares in first quarter 2013 and 10,800 shares in second
quarter 2013. 
On August 8, 2013, the Company entered into the Transaction Agreement
(the "Agreement") among Key Brand Entertainment Inc. ("Key Brand"),
Theatre Direct NY, Inc. ("Theatre Direct"), and the Company for the
prepayment by Key Brand in full of the amount owed to the Company
pursuant to the loan (the "Loan") under the Second Lien Credit,
Security and Pledge Agreement, dated as of December 15, 2010, among
Key Brand, Theatre Direct, and the Company, as amended. Pursuant to
the Agreement, Key Brand paid to the Company on August 8, 2013 in
cash the amount of $13,861,738, which constituted the outstanding
principal plus accrued interest through August 8, 2013 of the Loan.
The Loan was scheduled to mature on June 30, 2015. 
In addition, pursuant to the Agreement, Theatre Direct redeemed a
warrant ("Warrant") to purchase shares of common stock of Theatre
Direct held by the Company. The redemption price for the Warrant was
$2,750,000 and was paid on August 8, 2013 to the Company. The Warrant
provided, among other things, that the Company could sell the Warrant
to Theatre Direct for a floor amount of $3,000,000 beginning on June
30, 2015.  
Accordingly, the Company received on August 8, 2013 a total of
$16,611,738 consisting of $13,861,738 from the prepayment of the Loan
and $2,750,000 from the redemption of the Warrant. 
About Hollywood Media Corp. 
Hollywood Media Corp. is comprised primarily of an Ad Sales division
and an Intellectual Property division. 
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                   
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                  June 30,     December 31, 
                                                    2013           2012     
                                               -------------  ------------- 
                                                (unaudited)                 
                    ASSETS                                                  
                                                                            
CURRENT ASSETS:                                                             
  Cash and cash equivalents                    $   9,669,277  $  11,378,519 
  Prepaid expenses                                 1,227,912        329,915 
  Other receivables                                   69,953         75,105 
  Notes receivable, current                        1,567,837      1,375,545 
  Related party receivable                            26,552         37,287 
  Current portion of deferred compensation           430,000        430,000 
                                               -------------  ------------- 
    Total current assets                          12,991,531     13,626,371 
                                                                            
PROPERTY AND EQUIPMENT, net                          286,604        240,645 
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED                               
 INVESTEES                                           138,082        138,384 
INTANGIBLE ASSETS, net                                 4,466          8,683 
GOODWILL                                           6,200,000      6,200,000 
OTHER ASSETS                                         727,982        727,982 
NOTES RECEIVABLE, less current portion             4,195,677      4,455,106 
WARRANT                                              750,000        700,000 
DEFERRED COMPENSATION, less current portion          303,651        518,651 
                                               -------------  ------------- 
    TOTAL ASSETS                               $  25,597,993  $  26,615,822 
                                               =============  ============= 
                                                                            
     LIABILITIES AND SHAREHOLDERS' EQUITY                                   
                                                                            
CURRENT LIABILITIES:                                                        
  Accounts payable                             $     664,588  $     414,123 
  Accrued expenses and other                         851,587      1,036,788 
  Deferred revenue                                   104,451        111,669 
  Current portion of capital lease obligations        15,023         16,255 
                                               -------------  ------------- 
    Total current liabilities                      1,635,649      1,578,835 
                                                                            
CAPITAL LEASE OBLIGATIONS, less current                                     
 portion                                              30,444          2,152 
OTHER DEFERRED LIABILITY                                 161            355 
DEFERRED REVENUE                                       9,000         14,000 
DERIVATIVE LIABILITIES                                60,000         60,000 
                                               -------------  ------------- 
    TOTAL LIABILITIES                              1,735,254      1,655,342 
                                               -------------  ------------- 
                                                                            
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; 22,640,966 and                                        
   23,162,466 shares issued and outstanding at                              
   June 30, 2013 and December 31, 2012,                                     
   respectively                                      226,410        231,625 
  Additional paid-in capital                     292,831,089    293,591,903 
  Accumulated deficit                           (269,194,760)  (268,863,048)
                                               -------------  ------------- 
    Total shareholders' equity                    23,862,739     24,960,480 
                                               -------------  ------------- 
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $  25,597,993  $  26,615,822 
                                               =============  ============= 
                                                                            
                                                                            
                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES                   
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (unaudited)                                 
                                                                            
                                                                            
                             SIX MONTHS ENDED         THREE MONTHS ENDED    
                                 JUNE 30,                  JUNE 30,         
                         ------------------------  ------------------------ 
                             2013         2012         2013         2012    
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
NET REVENUES             $   183,461  $   333,047  $   102,402  $   156,213 
                                                                            
OPERATING COSTS AND                                                         
 EXPENSES                                                                   
  Editorial, production,                                                    
   development and                                                          
   technology                113,322      282,776       55,824      157,672 
  Selling, general and                                                      
   administrative          1,696,191    1,200,978      755,144      696,132 
  Payroll and benefits       898,787    1,250,583      467,541      851,862 
  Depreciation and                                                          
   amortization               42,088       75,164       20,953       37,570 
                         -----------  -----------  -----------  ----------- 
                                                                            
    Total operating                                                         
     costs and expenses    2,750,388    2,809,501    1,299,462    1,743,236 
                         -----------  -----------  -----------  ----------- 
                                                                            
    Loss from operations  (2,566,927)  (2,476,454)  (1,197,060)  (1,587,023)
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
(LOSSES) EARNINGS OF                                                        
 UNCONSOLIDATED                                                             
 INVESTEES                      (292)      17,815         (140)     (53,982)
                         -----------  -----------  -----------  ----------- 
                                                                            
OTHER INCOME (EXPENSE)                                                      
  Interest, net              973,847      513,009      480,547      259,972 
  Accretion of discount,                                                    
   net of allowance for                                                     
   uncollectability        1,250,373            -      639,894            - 
  Other, net                  52,124       (1,674)      51,586       32,203 
                         -----------  -----------  -----------  ----------- 
    Total other income     2,276,344      511,335    1,172,027      292,175 
                         -----------  -----------  -----------  ----------- 
                                                                            
      Loss from                                                             
       continuing                                                           
       operations before                                                    
       income taxes         (290,875)  (1,947,304)     (25,173)  (1,348,830)
      Income tax                                                            
       (expense)             (40,837)           -      (17,857)           - 
                         -----------  -----------  -----------  ----------- 
        Loss from                                                           
         continuing                                                         
         operations         (331,712)  (1,947,304)     (43,030)  (1,348,830)
                         -----------  -----------  -----------  ----------- 
                                                                            
      Gain on sale of                                                       
       discontinued                                                         
       operations, net                                                      
       of income taxes             -      975,973            -      778,456 
      Income from                                                           
       discontinued                                                         
       operations                  -       22,584            -       34,166 
                         -----------  -----------  -----------  ----------- 
                                                                            
      Income from                                                           
       discontinued                                                         
       operations                  -      998,557            -      812,622 
                         -----------  -----------  -----------  ----------- 
                                                                            
      Net loss           $  (331,712) $  (948,747) $   (43,030) $  (536,208)
                         ===========  ===========  ===========  =========== 
                                                                            
                                                                            
Basic and diluted (loss)                                                    
 income per common share                                                    
      Continuing                                                            
       operations        $     (0.01) $     (0.08) $     (0.01) $     (0.06)
      Discontinued                                                          
       operations                  -         0.04            -         0.04 
                         -----------  -----------  -----------  ----------- 
      Total basic and                                                       
       diluted net loss                                                     
       per share         $     (0.01) $     (0.04) $     (0.01) $     (0.02)
                         ===========  ===========  ===========  =========== 
                                                                            
Weighted average common                                                     
 and common equivalent                                                      
 shares outstanding -                                                       
 basic and diluted        22,712,110   23,179,066   22,648,740   23,179,066 
                         ===========  ===========  ===========  =========== 

  
Contact:
Investor Relations Department
Hollywood Media Corp.
L. Melheim
ir@hollywoodmedia.com
561-998-8000 
 
 
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