Hollywood Media Corp. Reports 2013 Third Quarter Results

Hollywood Media Corp. Reports 2013 Third Quarter Results 
BOCA RATON, FL -- (Marketwired) -- 10/29/13 --  Hollywood Media Corp.
("Company") (NASDAQ: HOLL) today reported financial results for the
third quarter ended September 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 third
quarter were $0.1 million compared to $0.1 million in the prior-year
period. 
Income from continuing operations for the 2013 third quarter was $8.2
million, or $0.36 per share, compared to a loss from continuing
operations for the 2012 third quarter of $2.3 million, or $0.10 per
share, which includes a non-cash goodwill impairment charge of $3.6
million relating to the Company's Ad Sales division. Income from
continuing operations for the 2013 third quarter was primarily
attributable to a $9.2 million gain from the Transaction Agreement
(as defined below). Net income was $8.2 million, or $0.36 per share,
in the 2013 third quarter, compared to net loss, which includes
discontinued operations, of $0.5 million, or $0.02 per share, in the
prior-year period.  
At September 30, 2013, the Company had cash and cash equivalents of
$24.9 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 three quarters 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. 
Attached are the following financial tables:
 CONDENSED CONSOLIDATED
BALANCE SHEETS
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 


 
                                                                            
                                                                            
                HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES                      
                 CONDENSED CONSOLIDATED BALANCE SHEETS                      
                                                                            
                                            September 30,     December 31,  
                                                 2013             2012      
                                           ---------------  --------------- 
                                             (unaudited)                    
                  ASSETS                                                    
                                                                            
CURRENT ASSETS:                                                             
  Cash and cash equivalents                $    24,867,007  $    11,378,519 
  Prepaid expenses                               1,102,064          329,915 
  Other receivables                                 74,893           75,105 
  Notes receivable, current                         33,603        1,375,545 
  Related party receivable                          21,883           37,287 
  Current portion of deferred compensation         430,000          430,000 
                                           ---------------  --------------- 
    Total current assets                        26,529,450       13,626,371 
                                                                            
PROPERTY AND EQUIPMENT, net                        360,574          240,645 
INVESTMENTS IN AND ADVANCES TO                                              
 UNCONSOLIDATED INVESTEES                          139,145          138,384 
INTANGIBLE ASSETS, net                               2,358            8,683 
GOODWILL                                         6,200,000        6,200,000 
OTHER ASSETS                                       195,928          727,982 
NOTES RECEIVABLE, less current portion              84,007        4,455,106 
WARRANT                                                  -          700,000 
DEFERRED COMPENSATION, less current                                         
 portion                                           196,151          518,651 
                                           ---------------  --------------- 
    TOTAL ASSETS                           $    33,707,613  $    26,615,822 
                                           ===============  =============== 
                                                                            
   LIABILITIES AND SHAREHOLDERS' EQUITY                                     
                                                                            
CURRENT LIABILITIES:                                                        
  Accounts payable                         $       478,144  $       414,123 
  Accrued expenses and other                       964,164        1,036,788 
  Deferred revenue                                  82,451          111,669 
  Current portion of capital lease                                          
   obligations                                      11,318           16,255 
                                           ---------------  --------------- 
    Total current liabilities                    1,536,077        1,578,835 
                                                                            
CAPITAL LEASE OBLIGATIONS, less current                                     
 portion                                            28,640            2,152 
OTHER DEFERRED LIABILITY                                65              355 
DEFERRED REVENUE                                     9,000           14,000 
DERIVATIVE LIABILITIES                              60,000           60,000 
                                           ---------------  --------------- 
    TOTAL LIABILITIES                            1,633,782        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 September 30, 2013                                    
   and December 31, 2012, respectively             226,410          231,625 
  Additional paid-in capital                   292,831,089      293,591,903 
  Accumulated deficit                         (260,983,668)    (268,863,048)
                                           ---------------  --------------- 
    Total shareholders' equity                  32,073,831       24,960,480 
                                           ---------------  --------------- 
    TOTAL LIABILITIES AND SHAREHOLDERS'                                     
     EQUITY                                $    33,707,613  $    26,615,822 
                                           ===============  =============== 

 
                                                                            
                                                                            
                                                                            
                   HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES                   
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (unaudited)                                 
                                                                            
                                                                            
                             NINE MONTHS ENDED        THREE MONTHS ENDED    
                               SEPTEMBER 30,             SEPTEMBER 30,      
                         ------------------------  ------------------------ 
                             2013         2012         2013         2012    
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
NET REVENUES             $   323,445  $   429,082  $   139,984  $    96,035 
                                                                            
OPERATING COSTS AND                                                         
 EXPENSES                                                                   
  Editorial, production,                                                    
   development and                                                          
   technology                181,734      391,503       68,412      108,727 
  Selling, general and                                                      
   administrative          2,579,142    1,839,990      882,951      639,012 
  Payroll and benefits     1,338,777    1,619,487      439,990      368,904 
  Depreciation and                                                          
   amortization               58,899      113,032       16,811       37,868 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Total operating costs                                                    
    and expenses           4,158,552    3,964,012    1,408,164    1,154,511 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Loss from operations   (3,835,107)  (3,534,930)  (1,268,180)  (1,058,476)
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
EARNINGS (LOSSES) OF                                                        
 UNCONSOLIDATED                                                             
 INVESTEES                                                                  
  Equity in earnings                                                        
   (losses) of                                                              
   unconsolidated                                                           
   investees                     108     (141,851)         400     (159,665)
  Impairment loss                  -   (3,600,000)           -   (3,600,000)
                         -----------  -----------  -----------  ----------- 
  Total equity in                                                           
   earnings (losses) of                                                     
   unconsolidated                                                           
   investees                     108   (3,741,851)         400   (3,759,665)
                         -----------  -----------  -----------  ----------- 
                                                                            
OTHER INCOME                                                                
  Interest, net            1,175,044      777,411      201,197      264,400 
  Accretion of discount,                                                    
   net of allowance for                                                     
   uncollectability        1,468,757            -      218,384            - 
  Other, net               9,297,426    1,108,312    9,245,302    1,109,986 
                         -----------  -----------  -----------  ----------- 
   Total other income     11,941,227    1,885,723    9,664,883    1,374,386 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Income (loss) from                                                       
    continuing                                                              
    operations before             
                                          
    income taxes           8,106,228   (5,391,058)   8,397,103   (3,443,755)
   Income tax (expense)                                                     
    benefit                 (226,848)   1,498,482     (186,011)   1,127,612 
                         -----------  -----------  -----------  ----------- 
     Income (loss) from                                                     
      continuing                                                            
      operations           7,879,380   (3,892,576)   8,211,092   (2,316,143)
                         -----------  -----------  -----------  ----------- 
                                                                            
   Gain on sale of                                                          
    discontinued                                                            
    operations, net of                                                      
    income taxes                   -    2,444,891            -    1,839,788 
   Income from                                                              
    discontinued                                                            
    operations                     -       22,584            -            - 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Income from                                                              
    discontinued                                                            
    operations                     -    2,467,475            -    1,839,788 
                         -----------  -----------  -----------  ----------- 
                                                                            
   Net income (loss)     $ 7,879,380  $(1,425,101) $ 8,211,092  $  (476,355)
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
Basic and diluted income                                                    
 (loss) per common share                                                    
  Continuing operations  $      0.35  $     (0.17) $      0.36  $     (0.10)
  Discontinued                                                              
   operations                      -         0.11            -         0.08 
                         -----------  -----------  -----------  ----------- 
  Total basic and                                                           
   diluted net income                                                       
   (loss) per share      $      0.35  $     (0.06) $      0.36  $     (0.02)
                         ===========  ===========  ===========  =========== 
                                                                            
Weighted average common                                                     
 and common equivalent                                                      
 shares outstanding -                                                       
 basic and diluted        22,688,135   23,179,066   22,640,966   23,179,066 
                         ===========  ===========  ===========  =========== 

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