Mitchell Rubenstein - Chairman and CEO
Hollywood Media Corp. (HOLL) Q3 2010 Earnings Call Transcript November 10, 2010 4:30 PM ET
Welcome to the Hollywood Media third quarter financial results conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator instructions), as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mitchell Rubenstein, Chairman and Chief Executive Officer for Hollywood Media.
Thank you Bob. I would like to welcome everyone to today's conference call to discuss Hollywood Media's 2010 third quarter financial results. Today's press release is available for viewing on the Investor Relations section of our website at hollywoodmedia.com. On October 20, 2010, we filed a final proxy statement related to the proposed sale of Theatre Direct New York at Broadway Ticketing subsidiary to Key Brand Entertainment. In the filing we announced a special meeting of shareholders to vote on the proposed transaction.
The meeting will take place at the company’s offices on December 10. In consideration of the upcoming meeting, I will keep my comments brief on today’s call and then we will open it up for any questions. Please note that we cannot provide any additional detail or comment on timing related to the proposed transaction other than what is disclosed in our public filings. This presentation may contain, in addition to historical information, forward-looking statements reflecting expectations that are subject to risks and uncertainties that may cause actual outcomes to differ materially from such expectations.
Many potential risks and uncertainties are discussed in Hollywood Media's Form 10-K report for 2009 and other filings with the SEC. These filings can be accessed through the Investor Relations section of the Hollywood Media website at hollywoodmedia.com or from the SEC’s Edgar database at sec.gov. Because forward-looking statements are subject to risks and uncertainties, we caution you not to place undue reliance on any forward-looking statements. Forward-looking statements made during this presentation speak only as of the date of this presentation. All written or oral forward-looking statements by Hollywood Media or on its behalf are qualified by these cautionary statements.
Today's press release contains additional data including information about the EBITDA results for Hollywood Media and its segments. Turning now to the highlights for the 2010 third quarter, net revenues increased 16% to $25.4 million from $21.9 million last year. Broadway Ticketing revenues which represented 96% of total revenues for the period increased 18% to $24.4 million on higher ticket sales. This was a result of our improved inventory bond strategy which is driving increased conversions and more transactions. The ad sales on broadway.com from Broadway shows, which is reported as a reduction in cost of revenues ticketing increased 279%.
Net income was a loss of $400,000 versus a loss of $300,000 last year. In the 2010 third quarter, we incurred $300,000 of legal expenses related to the proposed sale of the Broadway Ticketing business. Also note the net income for the third quarter 2010 included three months of earn-outs from hollywood.com equaling $200,000 as compared to net income for third quarter 2009 which pursuant to the terms of the sale agreement included the first 12 months of earn-outs from hollywood.com equaling $500,000. The earn-outs are reported as income from discontinued operations in both periods.
EBITDA for the Broadway Ticketing business grew 65% to $1.8 million from $1.1 million because of higher ticket sales. Total company EBITDA was a loss of $65,000 during the quarter versus breakeven performance in the prior year period. Q3 2010 included the $300,000 of legal expenses which I mentioned earlier as well as the hollywood.com earn-out amount which I also mentioned earlier. At September 30, 2010, we had cash and cash equivalents of $7.3 million with no debt compared to cash and cash equivalents of $6.8 million with no debt at June 30, 2010.
The company also has approximately $1.2 million in its restricted cash balance related to a bond for Broadway Ticketing purchases which is a separately stated item on our balance sheet. As of October 31, 2010 our cash was approximately $9.1 million plus the $1.2 million of restricted cash. Moving into the important fourth-quarter, we are pleased with Broadway Ticketing sales trends to date leading into the holiday selling season. And with that let us open the call for any questions. Operator, Bob.
Thank you. Ladies and gentlemen we will now be conducting question-and-answer session. (Operator instructions) there appears to be no questions at this time. I would like to turn it back over to management for closing comments.
Okay, thank you Bob. I thank everyone for attending today's conference call or who are listening to this later on replay and as noted, we had a solid quarter in our Broadway Ticketing business and look forward to updating you in the future. Thank you.
This does conclude the teleconference. You may disconnect your line at this time. Thank you for your participation.
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