Record Third Quarter Gross Revenue of $17.6mm Resulting in an Increase of 31% and Record Nine Month Gross Revenue of $41.6mm
Resulting in an Increase of 17% Led by the Success of IDW Entertainment
STAMFORD, CT and SAN DIEGO, CA--(Marketwired - Sep 15, 2016) - IDW Media Holdings, Inc. (OTC PINK: IDWM), a
fully integrated media company announced today its results for the third quarter ended July 31, 2016.
Gross Revenue of $17.6 million for the three months ended July 31, 2016 compared to $13.4 million for the three months ended
July 31, 2015, and $41.6 million for the nine months ended July 31, 2016 compared to $35.5 million for the nine months ended July
31, 2015 is primarily due to IDW Entertainment which increased by $4 million and $7.5 million for those periods. The
increase resulted from the release of IDW Entertainment television episodes.
Third Quarter Financial Highlights:
- IDW Entertainment 3rd Quarter Revenue of $4 million or 23% of Total Revenues compared to $58k or 0.4% last year.
- On June 21, 2016, IDWM acquired the remaining 17% non-controlling interest of IDW Inc. resulting in 100% ownership and no
minority interest.
- Income from operations increased by $691,000 or 36% for the three months ended July 31, 2016 compared to the three months
ended July 31, 2015, primarily due to IDW Entertainment.
- The increase resulted from gross profit from the release of IDW Entertainment television episodes.
Management
Commenting on the results, Ted Adams, CEO stated, "Our third quarter performance reflects record growth from the
IDW Entertainment Division".
Mr. Adams added, "In the fourth quarter of 2016, we expect continued revenue growth, led by the success of our
March graphic novels and additional IDW Entertainment revenue from the premier of Dirk
Gently airing on BBC America."
Forward Looking Statements:
All statements above that are not purely about historical facts, including, but not limited to, those in which
we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these
forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially
from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide
detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under
applicable law, we assume no obligation to update any forward-looking statements.
About IDW Media Holdings
IDW Media Holdings (OTC PINK: IDWM) is a fully integrated media company, which includes the award-winning IDW
Publishing, IDW Games, IDW Entertainment, Top Shelf Productions, the San Diego Comic Art Gallery, and CTM Media Group Inc. a
subsidiary of IDW Media Holdings (OTC: IDWM) (OTCBB: IDWM) (OTC PINK: IDWM). CTM Media Group Inc. is one of North America's
largest distributors of tourism information. Distributing over 100 million brochures last year, CTM's comprehensive visitor out
of home marketing network includes over 14,000 brochure information displays and 400 award-winning touch screen kiosks.
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| IDW MEDIA HOLDINGS, INC. |
|
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
| (in thousands) |
|
July 31, 2016 (Unaudited) |
|
|
October 31, 2015 |
|
| Assets |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| |
Cash and cash equivalents |
|
$ |
8,160 |
|
|
$ |
6,596 |
|
| |
Trade accounts receivable, net |
|
|
9,948 |
|
|
|
5,915 |
|
| |
Inventory - print and production costs |
|
|
13,938 |
|
|
|
5,688 |
|
| |
Prepaid expenses |
|
|
1,762 |
|
|
|
2,015 |
|
| |
Deferred taxes - current portion |
|
|
201 |
|
|
|
200 |
|
| |
Note receivable - current portion |
|
|
372 |
|
|
|
372 |
|
| Total current assets |
|
|
34,381 |
|
|
|
20,786 |
|
| Property and equipment, net |
|
|
3,320 |
|
|
|
3,039 |
|
| Non-current assets |
|
|
|
|
|
|
|
|
| |
Note receivable - non-current portion |
|
|
31 |
|
|
|
310 |
|
| |
Deferred taxes - non-current portion |
|
|
12,625 |
|
|
|
12,705 |
|
| |
Intangible Assets, net |
|
|
1,639 |
|
|
|
1,769 |
|
| |
Goodwill |
|
|
2,227 |
|
|
|
1,700 |
|
| |
Other assets |
|
|
703 |
|
|
|
498 |
|
| Total non-current assets |
|
|
17,225 |
|
|
|
16,982 |
|
| Total assets |
|
$ |
54,926 |
|
|
$ |
40,807 |
|
| Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| |
Trade accounts payable |
|
|
1,974 |
|
|
$ |
1,302 |
|
| |
Accrued expenses |
|
|
9,772 |
|
|
|
3,907 |
|
| |
Deferred revenue |
|
|
3,539 |
|
|
|
2,131 |
|
| |
Income taxes payable |
|
|
1,742 |
|
|
|
936 |
|
| |
Deferred taxes payable |
|
|
441 |
|
|
|
441 |
|
| |
Capital lease obligations - current portion |
|
|
331 |
|
|
|
257 |
|
| |
Bank loans payable - current portion |
|
|
460 |
|
|
|
431 |
|
| |
Other current liabilities |
|
|
425 |
|
|
|
359 |
|
| Total current liabilities |
|
|
18,684 |
|
|
|
9,764 |
|
| Non-current liabilities |
|
|
|
|
|
|
|
|
| |
Capital lease obligations - long term portion |
|
|
686 |
|
|
|
527 |
|
| |
Bank loans payable - long term portion |
|
|
856 |
|
|
|
1,199 |
|
| Total non-current liabilities |
|
|
1,542 |
|
|
|
1,726 |
|
| Total liabilities |
|
|
20,226 |
|
|
|
11,490 |
|
| Stockholders' equity (see note 1): |
|
|
|
|
|
|
|
|
| |
IDW Media Holdings, Inc. stockholders' equity: |
|
|
|
|
|
|
|
|
| |
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2016 and October 31,
2015 |
|
|
- |
|
|
|
- |
|
| |
Class B common stock, $0.01 par value; authorized shares - 12,000; 5,553 shares and 4,623 shares issued and
outstanding at July 31, 2016 and October 31, 2015, respectively |
|
|
56 |
|
|
|
46 |
|
| |
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July
31, 2016 and October 31, 2015 |
|
|
5 |
|
|
|
5 |
|
| |
Additional paid-in capital |
|
|
53,023 |
|
|
|
47,419 |
|
| |
Accumulated other comprehensive loss |
|
|
(197 |
) |
|
|
(153 |
) |
| |
Accumulated deficit |
|
|
(16,991 |
) |
|
|
(18,780 |
) |
| |
Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2016 and October 31,
2015 |
|
|
(1,196 |
) |
|
|
(1,196 |
) |
| |
Total IDW Media Holdings, Inc. stockholders' equity |
|
|
34,700 |
|
|
|
27,341 |
|
| |
Non-controlling interests |
|
|
- |
|
|
|
1,976 |
|
| Total stockholders' equity |
|
|
34,700 |
|
|
|
29,317 |
|
| Total liabilities and stockholders' equity |
|
$ |
54,926 |
|
|
$ |
40,807 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| IDW MEDIA HOLDINGS, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| |
| |
|
Three Months Ended
July 31, |
|
|
Nine Months Ended
July 31, |
| (in thousands, except per share data) |
|
2016 |
|
|
2015 |
|
|
2016 |
2015 |
| |
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ |
17,608 |
|
|
$ |
13,454 |
|
|
$ |
41,634 |
|
|
$ |
35,519 |
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Direct cost of revenues |
|
|
8,706 |
|
|
|
5,650 |
|
|
|
20,752 |
|
|
|
15,912 |
| |
Selling, general and administrative (i) |
|
|
5,791 |
|
|
|
5,414 |
|
|
|
16,611 |
|
|
|
15,609 |
| |
Depreciation and amortization |
|
|
395 |
|
|
|
442 |
|
|
|
1,137 |
|
|
|
1,256 |
| |
Bad debt expense |
|
|
99 |
|
|
|
22 |
|
|
|
122 |
|
|
|
15 |
| Total costs and expenses |
|
|
14,991 |
|
|
|
11,528 |
|
|
|
38,622 |
|
|
|
32,792 |
| Income from operations |
|
|
2,617 |
|
|
|
1,926 |
|
|
|
3,012 |
|
|
|
2,727 |
| Interest expense, net |
|
|
(19 |
) |
|
|
(17 |
) |
|
|
(57 |
) |
|
|
(19) |
| Other income (expense), net |
|
|
10 |
|
|
|
22 |
|
|
|
(22 |
) |
|
|
(100) |
| Income before income taxes |
|
|
2,608 |
|
|
|
1,931 |
|
|
|
2,933 |
|
|
|
2,608 |
| Provision for income taxes |
|
|
(998 |
) |
|
|
(705 |
) |
|
|
(1,229 |
) |
|
|
(952) |
| Net income |
|
|
1,610 |
|
|
|
1,226 |
|
|
|
1,704 |
|
|
|
1,656 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to non-controlling interests |
|
|
227 |
|
|
|
(112 |
) |
|
|
- |
|
|
|
(512) |
| Net income attributable to IDW Media Holdings, Inc. |
|
$ |
1,837 |
|
|
$ |
1,114 |
|
|
$ |
1,704 |
|
|
$ |
1,144 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted income per share attributable to IDW Media Holdings, Inc. common
stockholders (see notes 1 and 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share |
|
$ |
.37 |
|
|
$ |
.24 |
|
|
$ |
.36 |
|
|
$ |
.25 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average number of shares used in the calculation of basic and diluted income per
share: |
|
|
5,007 |
|
|
|
4,649 |
|
|
|
4,772 |
|
|
|
4,637 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend declared per common share: |
|
$ |
0.00 |
|
|
$ |
0.163 |
|
|
$ |
0.163 |
|
|
$ |
0.489 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expense |
|
$ |
22 |
|
|
$ |
20 |
|
|
$ |
68 |
|
|
$ |
57 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (i) Stock-based compensation included in selling, general and administrative expenses |
|
$ |
96 |
|
|
$ |
91 |
|
|
$ |
289 |
|
|
$ |
274 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|