News Press Releases

IDW Announces Results for Second Quarter Fiscal Year 2023

IDWM | June 14, 2023

LOS ANGELES, CA and NEWARK, NJ / ACCESSWIRE / June 14, 2023 / IDW Media Holdings, Inc., (the "Company" or "IDW") (OTC:IDWM), an integrated media company, today reported results for its second quarter and six months ended April 30, 2023.

Second Quarter Fiscal 2023 (2Q23) Financial Results

Consolidated revenue decreased 9% to $5.5 million from $6.1 million in 2Q22, reflecting revenue decline at IDW Publishing ("IDWP").
IDWP revenue decreased to $5.4 million from $6.1 million in 2Q22 primarily due to timing of print sales to Scholastic.
IDW Entertainment (IDWE) reported no meaningful revenue in 2Q23.
Consolidated loss from operations was $1.9 million compared to consolidated loss from operations of $2.2 million in 2Q22.
Net loss was $1.9 million, or $0.15 per share, compared to net loss of $2.3 million, or $0.17 per share, in 2Q22.

Consolidated P&L Highlights*

(In millions, except per share data. Quarterly results are unaudited.* Numbers may not foot due to rounding)		2Q23			1Q23			2Q22
Revenue	$	5.5		$	6.6		$	6.1
Direct cost of revenue	$	2.9		$	3.4		$	3.6
SG&A including non-cash compensation	$	4.4		$	4.9		$	4.6
Non-cash compensation included in SG&A	$	0.2		$	0.2		$	0.2
Depreciation & amortization	$	0.1		$	0.2		$	0.1
Loss from operations	$	(1.9	)	$	(2.0	)	$	(2.2	)
Net loss	$	(1.9	)	$	(2.0	)	$	(2.3	)
Net loss per share	$	(0.15	)	$	(0.15	)	$	(0.17	)

Segment P&L Highlights*

		2Q23			1Q23			2Q22
Revenue
IDW Publishing	$	5.4		$	6.6		$	6.1
IDW Entertainment	$	-		$	-		$	-

Loss from operations
IDW Publishing	$	(0.2	)	$	(0.3	)	$	(0.3	)
IDW Entertainment	$	(0.4	)	$	(0.5	)	$	(1.7	)
Corporate (unallocated overhead)	$	(1.3	)	$	(1.2	)	$	(0.3	)

Financial Take-Aways

(2Q23 compared to 2Q22)

Revenue:
- IDWP: In 2Q23, revenue decreased primarily due to timing of print sales to Scholastic.
- IDWE: In 2Q23, IDWE reported no meaningful revenue. IDWE recognizes revenue upon the delivery of the entertainment products it develops.
Loss from Operations:
- IDWP: In 2Q23, loss from operations was $0.2 million, compared to loss from operations of $0.3 million in 2Q22. SG&A as a percentage of revenue was 48.6% compared to 50.9% in 2Q22.
- IDWE: In 2Q23, loss from operations was $0.4 million, compared to loss from operations of $1.7 million in 2Q22. SG&A decreased to $0.5 million compared to $1.2 million in 2Q22.
Balance Sheet Highlights: At April 30, 2023 IDW's cash balance was $5.6 million. Working capital (current assets less current liabilities) totaled $15.1 million.

Earnings Conference Call

IDW's management will host a conference call beginning at 5:00 PM Eastern time today solely to engage in Q&A with stockholders and potential investors. To listen to the call and participate in the Q&A, dial (888) 506-0062 (domestic) or (973) 528-0011 (international) and provide the following participant code: 280106. A recording of the call will be available via streaming audio through the IDW investor relations website following the call.

About IDW Media Holdings:

IDW (OTC: IDWM) is an integrated media company providing compelling stories and characters for global audiences. Our IDW Publishing and IDW Entertainment businesses acquire IP for holistic franchise development across comics and graphic novels, television and other entertainment platforms and leverage established stories from our creative partners.

Forward-Looking Statements:

In this press release, all statements 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. 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, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year ended October 30, 2022 (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), and subsequent reports filed with the SEC and OTC Markets. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contact:

David Jonas
Chief Executive Officer
investor.relations@idwmh.com

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)	April 30n, 2023 (unaudited)			October 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	5,603		$	10,014
Trade accounts receivable, net		5,757			6,448
Inventory		4,874			4,285
Prepaid expenses and other current assets		3,276			2,714
Total current assets		19,510			23,461
Non-current assets
Property and equipment, net		638			725
Right-of-use assets, net		1,018			1,157
Intangible assets, net		715			859
Goodwill		199			199
Television costs, net		1,597			1,486
Other assets		54			54
Total assets	$	23,731		$	27,941
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	$	1,692		$	1,321
Accrued expenses		2,410			3,353
Production costs payable		-			33
Deferred revenue		13			-
Operating lease obligations - current portion		289			278
Total current liabilities		4,404			4,985
Non-current liabilities
Operating lease obligations - long term portion		764			911
Total liabilities	$	5,168		$	5,896
Stockholders' equity (see Note 3):
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at April 30, 2023 and October 31, 2022		-			-
Class B common stock, $0.01 par value; authorized shares - 20,000; 14,209 and 14,053 shares issued and 13,690 and 13,534 shares outstanding at April 30, 2023 and October 31, 2022, respectively		135			134
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at April 30, 2023 and October 31, 2022		5			5
Additional paid-in capital		104,996			104,553
Accumulated deficit		(85,377	)		(81,451	)
Treasury stock, at cost, consisting of 519 shares of Class B common stock at April 30, 2023 and October 31, 2022		(1,196	)		(1,196	)
Total stockholders' equity		18,563			22,045
Total liabilities and stockholders' equity	$	23,731		$	27,941

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended						Six Months Ended
(in thousands, except per share data)	April 30, 2023			April 30, 2022			April 30, 2023			April 30, 2022

Revenues	$	5,487		$	6,053		$	12,080		$	17,902

Costs and expenses:
Direct cost of revenues		2,900			3,597			6,348			8,387
Selling, general and administrative		4,419			4,600			9,352			9,591
Depreciation and amortization		86			100			288			184
Total costs and expenses		7,405			8,297			15,988			18,162
Loss from operations		(1,918	)		(2,244	)		(3,908	)		(260	)

Interest income (expense), net		2			-			30			(10	)
Other (expense) income, net		(12	)		(9	)		(48	)		6
Net loss	$	(1,928	)	$	(2,253	)	$	(3,926	)	$	(264	)

Basic and diluted loss per share (see note 2):
Net Loss	$	(0.15	)	$	(0.17	)	$	(0.30	)	$	(0.02	)

Weighted-average number of shares used in the calculation of basic and diluted loss per share:		13,061			12,906			12,996			12,895

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended
(in thousands)	April 30, 2023			April 30, 2022
Operating activities:
Net loss	$	(3,926	)	$	(264	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of television costs		(156	)		999
Impairment of television costs		41			155
Depreciation and amortization		288			184
Loss on disposal of property and equipment		49			-
Bad debt expense		13			-
Stock based compensation		444			309
Amortization of right-of-use asset		139			244
Changes in operating assets and liabilities:
Trade accounts receivable		678			673
Inventory		(589	)		(201	)
Prepaid expenses and other assets		(562	)		21
Television costs		4			(1,205	)
Operating lease liability		(136	)		(308	)
Trade accounts payable, accrued expenses, production costs payable and other current liabilities		(605	)		(1,985	)
Deferred revenue		13			(2,037	)
Net cash used in operating activities		(4,305	)		(3,415	)
Investing activities:
Capital expenditures		(106	)		(436	)
Net cash used in investing activities		(106	)		(436	)
Financing activities:
Net cash provided by (used in) financing activities		-			-
Net decrease in cash and cash equivalents		(4,411	)		(3,851	)
Cash and cash equivalents at beginning of period		10,014			17,532
Cash and cash equivalents at end of period	$	5,603		$	13,681