Hollywood Media Corp. Reports 2013 Fourth Quarter And Year End Results

Hollywood Media Corp. Reports 2013 Fourth Quarter And Year End Results

GREEN BAY, Wis., April 7, 2014 /PRNewswire/ -- Hollywood Media Corp. (OTC Pink: HOLL) today reported unaudited financial results for the fourth quarter and year ended December 31, 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 fourth quarter were $0.1 million compared to $0.2 million in the prior-year period. For the full year 2013, net revenues were $0.4 million versus $0.6 million in 2012.

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Loss from continuing operations for the 2013 fourth quarter, was $1.6 million, or $0.07 per share, compared to income from continuing operations for the 2012 fourth quarter of $4.8 million, or $0.21 per share. The income tax benefit of $3.8 million in the 2012 fourth quarter 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 2013 was $6.3 million, or $0.28 per share. This compared to income from continuing operations for the full year 2012 of $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. The income tax benefit of $5.3 million for the full year 2012 was fully offset by the income tax expense recognized in the Gain on sale of discontinued operations, net of income taxes.

Net loss, which includes discontinued operations, was $1.6 million, or $0.07 per share, in the 2013 fourth quarter, compared to net income of $11.8 million, or $0.51 per share, in the prior-year period. For the full year 2013, net income, which includes discontinued operations was $6.3 million, or $0.28 per share, compared to net income in 2012 of $10.4 million, or $0.45 per share.

At December 31, 2013, the Company had cash and cash equivalents of $22.9 million and no debt as compared to cash and cash equivalents of $11.4 million and no debt at December 31, 2012.

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.

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. 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
2013 fourth quarter and year end results are unaudited. 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, 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


December 31, December 31,

2013 2012
---- ----

(unaudited) (audited)

ASSETS


CURRENT
ASSETS:

Cash and cash
equivalents $22,937,557 $11,378,519

Prepaid
expenses 890,351 329,915

Other
receivables 101,131 75,105

Notes
receivable,
current 33,603 1,375,545

Related party
receivable 2,066 37,287

Current
portion of
deferred
compensation 430,000 430,000

Total current
assets 24,394,708 13,626,371


PROPERTY AND
EQUIPMENT,
net 355,640 240,645

INVESTMENTS IN
AND ADVANCES
TO
UNCONSOLIDATED
INVESTEES 151,492 138,384

INTANGIBLE
ASSETS, net 249 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 88,651 518,651

TOTAL ASSETS $31,470,675 $26,615,822
=========== ===========


LIABILITIES
AND
SHAREHOLDERS'
EQUITY


CURRENT
LIABILITIES:

Accounts
payable $77,952 $414,123

Accrued
expenses and
other 714,556 1,036,788

Deferred
revenue 79,938 111,669

Current
portion of
capital lease
obligations 7,480 16,255

Total current
liabilities 879,926 1,578,835


CAPITAL LEASE
OBLIGATIONS,
less current
portion 26,770 2,152

OTHER DEFERRED
LIABILITY - 355

DEFERRED
REVENUE 8,650 14,000

DERIVATIVE
LIABILITIES 480,000 60,000
------- ------

TOTAL
LIABILITIES 1,395,346 1,655,342
--------- ---------


COMMITMENTS
AND
CONTINGENCIES


SHAREHOLDERS'
EQUITY:

Preferred
Stock, $.01
par value,
1,000,000
shares
authorized;
none
outstanding - -

Common Stock,
$.01 par outstanding
value, at December
100,000,000 31, 2013 and
shares December 31,
authorized; 2012,
22,386,192 respectively
and
23,162,466
shares issued
and

223,862 231,625

Additional
paid-in
capital 292,461,667 293,591,903

Accumulated
deficit (262,610,200) (268,863,048)
----------- -----------

Total
shareholders'
equity 30,075,329 24,960,480
---------- ----------

TOTAL
LIABILITIES
AND
SHAREHOLDERS'
EQUITY $31,470,675 $26,615,822
=========== ===========





HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




YEAR ENDED THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------ ------------

2013 2012 2013 2012
---- ---- ---- ----

(unaudited) (audited) (unaudited) (unaudited)


NET REVENUES $424,751 $616,338 $101,306 $187,256


OPERATING COSTS AND
EXPENSES

Editorial, production,
development and
technology 231,644 639,865 49,910 248,362

Selling, general and
administrative 3,186,425 2,854,440 607,283 1,014,450

Payroll and benefits 1,820,867 2,688,017 482,090 1,068,530

Depreciation and
amortization 73,169 136,443 14,270 23,411
------ ------- ------ ------


Total operating costs
and expenses 5,312,105 6,318,765 1,153,553 2,354,753
--------- --------- --------- ---------


Loss from operations (4,887,354) (5,702,427) (1,052,247) (2,167,497)
--------- ---------- ---------- ----------



LOSSES OF
UNCONSOLIDATED
INVESTEES

Equity in losses of
unconsolidated
investees (187,616) (142,003) (187,724) (152)

Impairment loss - (3,600,000) - -
--- ---------- --- ---

Total equity in losses
of unconsolidated
investees (187,616) (3,742,003) (187,724) (152)
-------- ---------- -------- ----


OTHER INCOME

Interest, net 1,181,104 1,249,868 6,060 472,457

Accretion of discount,
net of allowance for
uncollectability 1,468,757 1,717,900 - 1,717,900

Other, net 8,878,922 2,068,665 (418,504) 960,353
--------- --------- -------- -------

Total other income 11,528,783 5,036,433 (412,444) 3,150,710
---------- --------- -------- ---------


Income (loss) from
continuing operations
before income taxes 6,453,813 (4,407,997) (1,652,415) 983,061

Income tax (expense)
benefit (200,965) 5,326,300 25,883 3,827,818
-------- --------- ------ ---------

Income (loss) from
continuing operations 6,252,848 918,303 (1,626,532) 4,810,879
--------- ------- ---------- ---------


Gain on sale of
discontinued
operations, net of
income taxes - 9,468,677 - 7,023,786

Income from
discontinued
operations - 22,584 - -
--- ------ --- ---


Income from
discontinued
operations - 9,491,261 - 7,023,786
--- --------- --- ---------


Net income (loss) $6,252,848 $10,409,564 $(1,626,532) $11,834,665
========== =========== =========== ===========



Basic and diluted
income (loss) per
common share

Continuing operations $0.28 $0.04 $(0.07) $0.21

Discontinued operations - 0.41 - 0.30

Total basic and diluted
net income (loss) per
share $0.28 $0.45 $(0.07) $0.51
===== ===== ====== =====


Weighted average common
and common equivalent
shares outstanding -
basic and diluted

22,646,231 23,178,814 22,521,887 23,179,066
========== ========== ========== ==========
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SOURCE Hollywood Media Corp.

Photo:http://photos.prnewswire.com/prnh/20140407/AQ99973LOGO
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Hollywood Media Corp.

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


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