x
|
QUARTERLY REPORT UNDER SECTION
13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
¨
|
TRANSITION REPORT UNDER SECTION
13 OR 15(D) OF THE
SECURITIES
|
Florida
|
65-0385686
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
|
2255
Glades Road, Suite 221A
|
||
Boca
Raton, Florida
|
33431
|
|
(Address
of principal executive offices)
|
(zip
code)
|
Page(s)
|
||
PART I
|
FINANCIAL INFORMATION
|
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
3
|
Condensed
Consolidated Balance Sheets as of September 30, 2009
|
||
(unaudited)
and December 31, 2008
|
3
|
|
Condensed
Consolidated Statements of Operations (unaudited) for the
|
||
Nine
and Three Months ended September 30, 2009 and 2008
|
4
|
|
Condensed
Consolidated Statements of Cash Flows (unaudited) for the
|
||
Nine
Months ended September 30, 2009 and 2008
|
5
|
|
Notes
to Condensed Consolidated Financial Statements (unaudited)
|
6-16
|
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF
|
|
FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
|
16-30
|
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES
|
|
ABOUT
MARKET RISK
|
30-31
|
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
31
|
PART II
|
OTHER INFORMATION
|
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
32
|
ITEM
1A.
|
RISK
FACTORS
|
32
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
32-33
|
ITEM
6.
|
EXHIBITS
|
34
|
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 9,761,580 | $ | 12,685,946 | ||||
Receivables,
net
|
1,189,689 | 1,433,797 | ||||||
Inventories
held for sale
|
4,071,233 | 4,491,841 | ||||||
Deferred
ticket costs
|
9,839,951 | 12,085,237 | ||||||
Prepaid
expenses
|
1,698,894 | 1,418,563 | ||||||
Other
receivables
|
1,254,595 | 1,431,216 | ||||||
Other
current assets
|
203,240 | 99,945 | ||||||
Related
party receivable
|
101,349 | - | ||||||
Restricted
cash
|
1,221,000 | 2,600,000 | ||||||
Total
current assets
|
29,341,531 | 36,246,545 | ||||||
PROPERTY
AND EQUIPMENT, net
|
4,644,434 | 4,649,202 | ||||||
INVESTMENTS
IN AND ADVANCES TO UNCONSOLIDATED INVESTEES
|
136,504 | 132,800 | ||||||
INTANGIBLE
ASSETS, net
|
457,303 | 682,896 | ||||||
GOODWILL
|
20,183,142 | 25,154,292 | ||||||
OTHER
ASSETS
|
31,148 | 73,126 | ||||||
TOTAL
ASSETS
|
$ | 54,794,062 | $ | 66,938,861 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable
|
$ | 647,441 | $ | 1,329,949 | ||||
Accrued
expenses and other
|
3,043,127 | 3,708,652 | ||||||
Deferred
revenue
|
12,888,759 | 15,196,455 | ||||||
Gift
certificate liability
|
2,881,359 | 3,434,359 | ||||||
Customer
deposits
|
852,943 | 831,838 | ||||||
Current
portion of capital lease obligations
|
142,544 | 203,579 | ||||||
Current
portion of notes payable
|
45,308 | 43,147 | ||||||
Related
party payable
|
- | 2,622,438 | ||||||
Total
current liabilities
|
20,501,481 | 27,370,417 | ||||||
DEFERRED
REVENUE
|
314,103 | 401,309 | ||||||
CAPITAL
LEASE OBLIGATIONS, less current portion
|
94,609 | 203,901 | ||||||
OTHER
DEFERRED LIABILITY
|
1,120,892 | 1,168,096 | ||||||
NOTES
PAYABLE, less current portion
|
6,424 | 36,258 | ||||||
COMMITMENTS
AND CONTINGENCES
|
||||||||
SHAREHOLDERS’
EQUITY:
|
||||||||
Preferred
stock, $.01 par value, 1,000,000 shares authorized; none
outstanding
|
- | - | ||||||
Common
stock, $.01 par value, 100,000,000 shares authorized; 31,037,656
and
|
||||||||
30,883,913
shares issued and outstanding at September 30, 2009 and
|
||||||||
December
31, 2008, respectively
|
310,376 | 308,839 | ||||||
Additional
paid-in capital
|
309,321,245 | 309,100,760 | ||||||
Accumulated
deficit
|
(276,930,993 | ) | (271,695,431 | ) | ||||
Total
Hollywood Media Corp. shareholders’ equity
|
32,700,628 | 37,714,168 | ||||||
Non-controlling
interest
|
55,925 | 44,712 | ||||||
Total
shareholders’ equity
|
32,756,553 | 37,758,880 | ||||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 54,794,062 | $ | 66,938,861 |
Nine Months Ended September
30,
|
Three Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
NET
REVENUES
|
||||||||||||||||
Ticketing
|
$ | 69,979,418 | $ | 83,044,397 | $ | 20,597,971 | $ | 23,981,802 | ||||||||
Other
|
3,441,400 | 4,995,369 | 1,256,695 | 1,540,980 | ||||||||||||
73,420,818 | 88,039,766 | 21,854,666 | 25,522,782 | |||||||||||||
OPERATING
COSTS AND EXPENSES
|
||||||||||||||||
Cost
of revenues – ticketing
|
57,768,570 | 69,416,062 | 16,615,916 | 19,633,194 | ||||||||||||
Editorial,
production, development and technology
|
1,944,210 | 2,685,058 | 707,297 | 783,695 | ||||||||||||
Selling,
general and administrative
|
7,572,482 | 10,098,009 | 2,454,488 | 3,143,408 | ||||||||||||
Payroll
and benefits
|
7,402,148 | 10,249,690 | 2,363,274 | 3,475,737 | ||||||||||||
Depreciation
and amortization
|
1,184,187 | 1,451,359 | 389,219 | 466,093 | ||||||||||||
Total
operating costs and expenses
|
75,871,597 | 93,900,178 | 22,530,194 | 27,502,127 | ||||||||||||
Loss
from operations
|
(2,450,779 | ) | (5,860,412 | ) | (675,528 | ) | (1,979,345 | ) | ||||||||
EARNINGS
(LOSSES) OF UNCONSOLIDATED INVESTEES
|
||||||||||||||||
Equity
in earnings (losses) of unconsolidated investees
|
1,912,906 | 1,312,622 | 73 | (4,891 | ) | |||||||||||
Impairment
loss
|
(5,000,000 | ) | - | - | - | |||||||||||
Total
equity in earnings (losses) of unconsolidated investees
|
(3,087,094 | ) | 1,312,622 | 73 | (4,891 | ) | ||||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Interest,
net
|
18,714 | 392,104 | 3,592 | 91,771 | ||||||||||||
Other,
net
|
(156,069 | ) | (40,273 | ) | (115,855 | ) | (6,691 | ) | ||||||||
Loss
from continuing operations
|
(5,675,228 | ) | (4,195,959 | ) | (787,718 | ) | (1,899,156 | ) | ||||||||
Gain
(loss) on sale of discontinued operations, net of income
taxes
|
472,487 | (4,303,717 | ) | 472,487 | (4,303,717 | ) | ||||||||||
Loss
from discontinued operations
|
- | (1,635,750 | ) | - | (114,975 | ) | ||||||||||
Income
(loss) from discontinued operations
|
472,487 | (5,939,467 | ) | 472,487 | (4,418,692 | ) | ||||||||||
Net
loss
|
(5,202,741 | ) | (10,135,426 | ) | (315,231 | ) | (6,317,848 | ) | ||||||||
NET
INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST
|
(32,821 | ) | (97,573 | ) | (33,762 | ) | (31,751 | ) | ||||||||
Net
loss attributable to Hollywood Media Corp.
|
$ | (5,235,562 | ) | $ | (10,232,999 | ) | $ | (348,993 | ) | $ | (6,349,599 | ) | ||||
Basic
and diluted income (loss) per common share
|
||||||||||||||||
Continuing
operations
|
$ | (0.19 | ) | $ | (0.13 | ) | $ | (0.03 | ) | $ | (0.06 | ) | ||||
Discontinued
operations
|
0.02 | (0.19 | ) | 0.02 | (0.14 | ) | ||||||||||
Total
basic and diluted net loss per share
|
$ | (0.17 | ) | $ | (0.32 | ) | $ | (0.01 | ) | $ | (0.20 | ) | ||||
Weighted
average common and common equivalent shares outstanding – basic and
diluted
|
30,565,413 | 31,971,997 | 30,637,658 | 32,095,554 |
Nine Months Ended September
30,
|
||||||||
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
loss
|
$ | (5,235,562 | ) | $ | (10,232,999 | ) | ||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Loss
(gain) from discontinued operations
|
(472,487 | ) | 5,939,467 | |||||
Depreciation
and amortization
|
1,184,187 | 1,451,359 | ||||||
401(k)
stock match
|
118,213 | 148,637 | ||||||
Equity
in earnings of unconsolidated investees, net of dividends
|
(3,704 | ) | 1,632 | |||||
Stock
based compensation
|
69,633 | 87,870 | ||||||
Amortization
of deferred compensation costs
|
- | 487,500 | ||||||
Provision
for bad debts
|
224,873 | 299,053 | ||||||
Impairment
loss
|
5,000,000 | - | ||||||
Loss
on retirement of property
|
154,438 | - | ||||||
Non-controlling
interest in earnings of subsidiaries, net of distributions
|
11,213 | 97,573 | ||||||
Changes
in assets and liabilities:
|
||||||||
Receivables
|
19,235 | 228,829 | ||||||
Inventories
held for sale
|
420,608 | (3,860,106 | ) | |||||
Deferred
ticket costs
|
2,245,286 | 3,571,646 | ||||||
Prepaid
expenses
|
(280,331 | ) | 635,254 | |||||
Other
receivables
|
176,621 | 2,377,262 | ||||||
Related
party receivable
|
(24,846 | ) | - | |||||
Other
current assets
|
(103,295 | ) | 411,616 | |||||
Other
assets
|
41,978 | 10,283 | ||||||
Accounts
payable
|
(704,946 | ) | (2,161,965 | ) | ||||
Accrued
expenses and other
|
(613.376 | ) | 211,833 | |||||
Deferred
revenue
|
(2,394,902 | ) | (4,807,749 | ) | ||||
Customer
deposits
|
21,105 | (467,706 | ) | |||||
Gift
certificate liability
|
(553,000 | ) | (227,313 | ) | ||||
Other
deferred liability
|
(47,204 | ) | 259,282 | |||||
Restricted
cash
|
(1,221,000 | ) | - | |||||
Net
cash used in operating activities – continuing operations
|
(1,967,263 | ) | (5,538,742 | ) | ||||
Net
cash used in operating activities - discontinued
operations
|
- | (2,717,075 | ) | |||||
Net
cash used in operating activities
|
(1,967,263 | ) | (8,255,817 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital
expenditures
|
(1,119,729 | ) | (1,090,268 | ) | ||||
Acquisition
of businesses, net of cash acquired
|
- | (43,313 | ) | |||||
Acquisition
of intangible assets
|
- | (17,000 | ) | |||||
Loss
on retirement of property
|
(1,592 | ) | - | |||||
Proceeds
from sale of assets
|
395,984 | 169,387 | ||||||
Proceeds
from property and equipment sales
|
- | 48,565 | ||||||
Net
cash used in investing activities – continuing operations
|
(725,337 | ) | (932,629 | ) | ||||
Net
cash used in investing activities – discontinued
operations
|
- | (3,274,868 | ) | |||||
Net
cash used in investing activities
|
(725,337 | ) | (4,207,497 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
received from exercise of stock options
|
- | 122,900 | ||||||
Payments
under capital lease obligations
|
(131,139 | ) | (108,498 | ) | ||||
Payments
of notes payable
|
(27,673 | ) | (34,496 | ) | ||||
Warrants
issued for consulting services
|
- | 4,429 | ||||||
Stock
repurchase program
|
(72,954 | ) | - | |||||
Net
cash used in financing activities – continuing operations
|
(231,766 | ) | (15,665 | ) | ||||
Net
cash used in financing activities – discontinued
operations
|
- | - | ||||||
Net
cash used in financing activities
|
(231,766 | ) | (15,665 | ) | ||||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(2,924,366 | ) | (12,478,979 | ) | ||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
12,685,946 | 26,758,550 | ||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 9,761,580 | $ | 14,279,571 | ||||
SUPPLEMENTAL
SCHEDULE OF CASH RELATED ACTIVITIES:
|
||||||||
Interest
paid
|
$ | 32,894 | $ | 50,545 | ||||
Income
taxes paid
|
$ | 19,595 | $ | 462,079 |
Nine
Months
Ended
|
Nine Months
Ended
|
Three
Months
Ended
|
Three
Months
Ended
|
|||||||||||||
September
30, 2009
|
September
30, 2008
|
September
30, 2009
|
September
30, 2008
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Operating
revenue
|
$ | - | $ | 3,948,495 | $ | - | $ | 1,055,240 | ||||||||
Loss
from discontinued operations
|
$ | - | $ | ( 1,635,750 | ) | $ | - | $ | (114,975 | ) | ||||||
Gain
(loss) on sale of
|
||||||||||||||||
discontinued
operations
|
472,487 | (4,303,717 | ) | 472,487 | (4,303,717 | ) | ||||||||||
Income
(loss) from
|
||||||||||||||||
discontinued
operations
|
$ | 472,487 | $ | (5,939,467 | ) | $ | 472,487 | $ | (4,418,692 | ) |
|
·
|
On
March 30, 2009, Hollywood Media issued 225,343 shares of common stock
valued at the December 31, 2008 closing share price of $1.00, or
$225,343, for payment of Hollywood Media’s 401(k) employer match for the
calendar year 2008.
|
|
·
|
On
February 8, 2008, Hollywood Media issued 96,569 shares of common stock
valued at the December 31, 2007 closing share price of $2.90, or $280,050,
for payment of Hollywood Media’s 401(k) employer match for the calendar
year 2007.
|
|
·
|
On
April 28, 2008, Hollywood Media issued 20,000 shares of common stock
valued at $17,600 pursuant to the exercise by the Chief Accounting Officer
of Hollywood Media of an employee stock option with an exercise price of
$0.88 per share.
|
|
·
|
On
June 24, 2008, Hollywood Media issued 81,000 shares of common stock valued
at $105,300, pursuant to the exercise by the Chief Executive Officer of
Hollywood Media of an employee stock option with an exercise price of
$1.30 per share.
|
Nine
months ended September 30,
|
Three
months ended September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
Revenues:
|
||||||||||||||||
Broadway
Ticketing
|
$ | 69,979,418 | $ | 83,044,397 | $ | 20,597,971 | $ | 23,981,802 | ||||||||
Ad
Sales
|
2,510,258 | 3,959,304 | 845,639 | 1,246,955 | ||||||||||||
Intellectual
Properties
|
931,142 | 1,036,065 | 411,056 | 294,025 | ||||||||||||
Other
|
- | - | - | - | ||||||||||||
$ | 73,420,818 | $ | 88,039,766 | $ | 21,854,666 | $ | 25,522,782 | |||||||||
Operating
Income (Loss):
|
||||||||||||||||
Broadway
Ticketing
|
$ | 3,186,593 | $ | 2,238,563 | $ | 1,015,580 | $ | 858,702 | ||||||||
Ad
Sales
|
(246,437 | ) | (317,053 | ) | (87,787 | ) | (86,482 | ) | ||||||||
Intellectual
Properties
|
67,022 | 211,100 | 68,980 | 67,879 | ||||||||||||
Other
|
(5,457,957 | ) | (8,093,022 | ) | (1,672,301 | ) | (2,819,444 | ) | ||||||||
$ | (2,450,779 | ) | $ | (5,860,412 | ) | $ | (675,528 | ) | $ | (1,979,345 | ) | |||||
Capital
Expenditures:
|
||||||||||||||||
Broadway
Ticketing
|
$ | 1,021,752 | $ | 656,857 | $ | 89,667 | $ | 150,562 | ||||||||
Ad
Sales
|
30,365 | 194,140 | 15,330 | 47,670 | ||||||||||||
Intellectual
Properties
|
- | 897 | - | 897 | ||||||||||||
Other
|
67,612 | 238,374 | 17,465 | 202,051 | ||||||||||||
$ | 1,119,729 | $ | 1,090,268 | $ | 122,462 | $ | 401,180 |
Depreciation
and Amortization Expense:
|
||||||||||||||||
Broadway
Ticketing
|
$ | 617,505 | $ | 657,295 | $ | 203,311 | $ | 197,775 | ||||||||
Ad
Sales
|
271,569 | 463,879 | 89,423 | 152,222 | ||||||||||||
Intellectual
Properties
|
225 | 75 | 75 | 75 | ||||||||||||
Other
|
294,888 | 330,110 | 96,410 | 116,021 | ||||||||||||
$ | 1,184,187 | $ | 1,451,359 | $ | 389,219 | $ | 466,093 | |||||||||
September
30,
|
December
31,
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
(unaudited)
|
||||||||||||||||
Segment
Assets:
|
||||||||||||||||
Broadway
Ticketing
|
$ | 31,540,577 | $ | 34,958,642 | ||||||||||||
Ad
Sales
|
16,579,856 | 21,989,086 | ||||||||||||||
Intellectual
Properties
|
410,317 | 543,989 | ||||||||||||||
Other
|
6,263,312 | 9,447,144 | ||||||||||||||
$ | 54,794,062 | $ | 66,938,861 |
(10)
|
RELATED
PARTY TRANSACTIONS:
|
(11)
|
SUBSEQUENT
EVENTS:
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
|
·
|
our
continuing operating losses,
|
|
·
|
negative
cash flows and accumulated deficit,
|
|
·
|
the
need to manage our growth,
|
|
·
|
our
ability to develop and maintain strategic relationships, including but not
limited to relationships with live theater
venues,
|
|
·
|
our
ability to compete with other online ticketing services and other
competitors,
|
|
·
|
our
ability to maintain and obtain sufficient capital to finance our growth
and operations,
|
|
·
|
our
ability to realize anticipated revenues and cost
efficiencies,
|
|
·
|
technology
risks and risks of doing business over the
Internet,
|
|
·
|
government
regulation,
|
|
·
|
adverse
economic factors such as recession, war, terrorism, international
incidents or labor strikes and
disputes,
|
|
·
|
our
ability to achieve and maintain effective internal
controls,
|
|
·
|
dependence
on our founders, and our ability to recruit and retain key personnel,
and
|
|
·
|
the
volatility of our stock price.
|
Intellectual
|
||||||||||||||||||||
Broadway
|
Properties
|
|||||||||||||||||||
Ticketing
|
Ad Sales
|
(a)
|
Other
|
Total
|
||||||||||||||||
(in
millions)
|
(in
millions)
|
(in
millions)
|
(in
millions)
|
(in
millions)
|
||||||||||||||||
Y3-09
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net
Revenues
|
$ | 70.0 | $ | 2.5 | $ | 0.9 | $ | - | $ | 73.4 | ||||||||||
Operating
Expenses
|
66.8 | 2.7 | 0.8 | 5.5 | 75.8 | |||||||||||||||
Operating
Income (Loss)
|
$ | 3.2 | $ | (0.2 | ) | $ | 0.1 | $ | (5.5 | ) | $ | (2.4 | ) | |||||||
%
of Total Net Revenue
|
95 | % | 4 | % | 1 | % | - | 100 | % | |||||||||||
Y3-08
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net
Revenues
|
$ | 83.0 | $ | 4.0 | $ | 1.0 | $ | - | $ | 88.0 | ||||||||||
Operating
Expenses
|
80.7 | 4.3 | 0.8 | 8.1 | 93.9 | |||||||||||||||
Operating
Income (Loss)
|
$ | 2.3 | $ | (0.3 | ) | $ | 0.2 | $ | (8.1 | ) | $ | (5.9 | ) | |||||||
%
of Total Net Revenue
|
94 | % | 5 | % | 1 | % | - | 100 | % |
Q3-09
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net
Revenues
|
$ | 20.6 | $ | 0.8 | $ | 0.4 | $ | - | $ | 21.8 | ||||||||||
Operating
Expenses
|
19.6 | 0.9 | 0.3 | 1.7 | 22.5 | |||||||||||||||
Operating
Income (Loss)
|
$ | 1.0 | $ | (0.1 | ) | $ | 0.1 | $ | (1.7 | ) | $ | (0.7 | ) | |||||||
%
of Total Net Revenue
|
94 | % | 4 | % | 2 | % | - | 100 | % | |||||||||||
Q3-08
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Net
Revenues
|
$ | 23.9 | $ | 1.3 | $ | 0.3 | $ | - | $ | 25.5 | ||||||||||
Operating
Expenses
|
23.1 | 1.4 | 0.2 | 2.8 | 27.5 | |||||||||||||||
Operating
Income (Loss)
|
$ | 0.8 | $ | (0.1 | ) | $ | 0.1 | $ | (2.8 | ) | $ | (2.0 | ) | |||||||
%
of Total Net Revenue
|
94 | % | 5 | % | 1 | % | - | 100 | % |
|
a.
|
Does
not include Hollywood Media’s 50% non-controlling interest in NetCo
Partners which is accounted for under the equity method of accounting and
Hollywood Media’s share of the income (loss) is reported as Equity in
Earnings of Unconsolidated Investees (discussed
below).
|
|
·
|
Broadway Ticketing –
sells tickets and related hotel and restaurant packages via Broadway.com,
1-800-BROADWAY and TDI to live theater events on Broadway, Off-Broadway
and London’s West End, to individual consumers, groups and domestic and
international travel professionals, including travel agencies, tour
operators, and educational institutions. Sales for events
in London’s West End are fulfilled through a partnership arrangement
between Theatre.com and an unrelated London-based ticket
agency. This segment also generates revenue from the sale of
sponsorships and advertisements on
Broadway.com.
|
|
·
|
Ad Sales – includes
CinemasOnline, which sells advertising on cinema and theater websites in
the U.K. and plasma TV displays throughout the U.K. and Ireland, and
includes Hollywood Media’s investment in
MovieTickets.com.
|
|
·
|
Intellectual Properties
– owns or controls the exclusive rights to certain intellectual
properties created by best-selling authors and media celebrities, which it
licenses for books and other media. This segment includes a 51%
interest in Tekno Books, and a book development business, and this segment
does not include our 50% non-controlling interest in NetCo
Partners.
|
|
·
|
Other – is comprised of
payroll and benefits for corporate and administrative personnel as well as
other corporate-wide expenses, such as legal fees, audit fees, proxy
costs, insurance, centralized information technology, and includes
consulting and other fees and costs relating to compliance with the
provisions of the Sarbanes-Oxley Act of 2002 that require Hollywood Media
to assess and report on internal control over financial reporting, and
related development of
controls.
|
Nine Months
Ended
|
Nine Months
Ended
|
Three Months
Ended
|
Three Months
Ended
|
|||||||||||||
September 30, 2009
|
September 30, 2008
|
September 30, 2009
|
September 30, 2008
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Operating
revenue
|
$ | - | $ | 3.9 | $ | - | $ | 1.0 | ||||||||
Loss
from discontinued operations
|
$ | - | $ | (1.6 | ) | $ | - | $ | (0.1 | ) | ||||||
Gain
(loss) on sale of discontinued operations
|
0.5 | (4.3 | ) | 0.5 | (4.3 | ) | ||||||||||
Income
(loss) from discontinued operations
|
$ | 0.5 | $ | (5.9 | ) | $ | 0.5 | $ | ( 4.4 | ) |
Nine
Months Ended
|
Three
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
millions)
|
(in
millions)
|
(in
millions)
|
(in
millions)
|
|||||||||||||
NetCo
Partners (a)
|
$ | - | $ | - | $ | - | $ | - | ||||||||
MovieTickets.com
(b)
|
(3.1 | ) | 1.3 | - | - | |||||||||||
$ | (3.1 | ) | $ | 1.3 | $ | - | $ | - |
|
·
|
the
U.S. and global economic downturn, which can adversely affect business and
personal discretionary spending for entertainment-related items such as
Broadway theater tickets, and has resulted in a reduction in tickets sold
and in net revenue;
|
|
·
|
increases
in Broadway ticket prices, which can positively affect Hollywood Media’s
revenues as the ticket service fees we earn are based on a percentage of
ticket prices, but which can also result in a lower volume of tickets
being sold and could adversely affect Hollywood Media’s revenues and,
accordingly, its earnings and cash flow;
and
|
|
·
|
New
York State’s repeal of caps on ticket service fees, which has given
Hollywood Media greater flexibility to charge higher service fees on
tickets for shows.
|
Maximum
|
||||||||||||||||
Total
Number of
|
Approximate
|
|||||||||||||||
Shares
Purchased
|
Dollar
Value of Shares
|
|||||||||||||||
as
Part of Publicly
|
that
May Yet Be
|
|||||||||||||||
Total
Number of
|
Average
Price
|
Announced
Plans
|
Purchased
Under the
|
|||||||||||||
Period
|
Shares Purchased
|
Paid Per Share
|
or Programs
|
Plans or Programs
|
||||||||||||
July
1, 2009 through July 31, 2009
|
- | - | - | - | ||||||||||||
August
1, 2009 through August 31, 2009
|
- | - | - | - | ||||||||||||
September
1, 2009 through September 30, 2009
|
- | - | - | - | ||||||||||||
Total
|
- | - | - | $ | 2,697,843 | (1) | ||||||||||
_______________
|
(1)
|
As
of September 30, 2009, calculated by subtracting (i) the total price paid
for all shares purchased under the repurchase program from inception
through September 30, 2009 of $7,302,157, from (ii) the $10,000,000
potential maximum dollar value of repurchases approved under the life of
the plan.
|
Exhibit
|
Description
|
Location
|
||
10.1
|
Amendment
to Purchase Agreement dated September 30, 2009 between Hollywood Media
Corp. and R&S Investments, LLC
|
(1)
|
||
31.1
|
Certification
of Chief Executive Officer. (Section 302)
|
(*)
|
||
31.2
|
Certification
of Chief Accounting Officer (Principal financial and accounting officer).
(Section 302)
|
(*)
|
||
32.1
|
Certification
of Chief Executive Officer. (Section 906)
|
(*)
|
||
32.2
|
|
Certification
of Chief Accounting Officer (Principal financial and accounting officer).
(Section 906)
|
|
(*)
|
(1)
|
Incorporated
by reference from the exhibit filed with Hollywood Media Corp’s Form 8-K
filed on October 5, 2009.
|
HOLLYWOOD
MEDIA CORP.
|
||
Date:
November 6, 2009
|
By:
|
/s/ Mitchell Rubenstein
|
Mitchell
Rubenstein, Chief Executive Officer (Principal executive
officer)
|
Date:
November 6, 2009
|
By:
|
/s/ Scott Gomez
|
Scott
Gomez, Chief Accounting Officer
(Principal
accounting officer)
|