Hollywood Media Corp. ( HOLL) Q3 2010 Earnings Call Transcript November 10, 2010 4:30 pm ET Executives Mitchell Rubenstein - Chairman and CEO Presentation Operator
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.Question-and-Answer Session Operator 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. Mitchell Rubenstein 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. Operator This does conclude the teleconference. You may disconnect your line at this time. Thank you for your participation. Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited. Read the rest of this transcript for free on seekingalpha.com