IDW Entertainment Expands Line-Up of TV Programs, Poised for Significant Growth
STAMFORD, CT and SAN DIEGO, CA--(Marketwired - Sep 14, 2017) - IDW Media Holdings, Inc. (
Major Highlights and Milestones:
Fiscal Third Quarter 2017 Financial Highlights:
Ted Adams, CEO of IDW Media Holdings, commented "We launched IDW Entertainment in 2013 with a vision to leverage creative content, principally those created by IDW Publishing, into television productions. We are proud to report that this vision is becoming a reality. The reviews and consumer demand for IDW Entertainment's programs has been fantastic as evidenced by the fan support and renewal of Wynonna Earp for a third season, the renewal of Dirk Gently for a second season and the current production of Locke and Key."
Mr. Adams continued, "The demand for high quality, creative content for television, streaming and new media is robust, with the pace accelerating. IDW Publishing's deep and expanding library of creative publications that spans numerous genres is a treasure chest of opportunity for the entertainment business. With our strengthened balance sheet and IDW Entertainment's proven track record, we are well-positioned to satisfy the television and streaming industries' increasing appetite for high quality programming."
About IDW Media Holdings
IDW Media Holdings, Inc. (
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. 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 public disclosures provide information on certain of 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.
The financial statements below have been derived from the Company's financial statements at the dates shown, but do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the Company's quarterly report for the nine months ended July 31, 2017 filed on September 14, 2017, and annual report for the fiscal year ended October 31, 2016 filed on January 30, 2017, both with the OTC Markets Group OTCQX: IDWM.
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
(in thousands) | July 31, 2017 (Unaudited) | October 31, 2016 | |||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 17,192 | $ | 6,203 | |||||
Trade accounts receivable, net | 10,443 | 11,592 | |||||||
Inventory - print and production costs | 18,599 | 13,652 | |||||||
Prepaid expenses | 2,942 | 1,738 | |||||||
Note receivable - current portion | 31 | 310 | |||||||
Total current assets | 49,207 | 33,495 | |||||||
Property and equipment, net | 3,465 | 3,394 | |||||||
Non-current assets | |||||||||
Trade accounts receivable - non-current portion | 2,381 | 2,478 | |||||||
Deferred taxes | 11,354 | 10,413 | |||||||
Intangible Assets, net | 1,242 | 1,539 | |||||||
Goodwill | 2,227 | 2,227 | |||||||
Other assets | 481 | 392 | |||||||
Total non-current assets | 17,685 | 17,049 | |||||||
Total assets | $ | 70,357 | $ | 53,938 | |||||
Liabilities and stockholders' equity | |||||||||
Current liabilities: | |||||||||
Trade accounts payable | 2,382 | $ | 2,412 | ||||||
Accrued expenses | 7,129 | 8,730 | |||||||
Deferred revenue | 3,459 | 1,809 | |||||||
Bank loans payable - current portion | 5,016 | 426 | |||||||
Income taxes payable | 744 | 1,037 | |||||||
Capital lease obligations - current portion | 384 | 365 | |||||||
Other current liabilities | 526 | 421 | |||||||
Total current liabilities | 19,640 | 15,200 | |||||||
Non-current liabilities | |||||||||
Accrued liabilities - non-current | 1,144 | 470 | |||||||
Capital lease obligations - long term portion | 854 | 807 | |||||||
Bank loans payable - long term portion | 767 | 749 | |||||||
Total non-current liabilities | 2,765 | 2,026 | |||||||
Total liabilities | 22,405 | 17,226 | |||||||
Commitments and contingencies | - | - | |||||||
Stockholders' equity: | |||||||||
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2017 and October 31, 2016 | - | - | |||||||
Class B Common stock subscribed, $.01 par value; 40 shares at July 31, 2017 | - | - | |||||||
Class B common stock, $0.01 par value; authorized shares - 12,000; 6,050 shares and 5,553 shares issued and outstanding at July 31, 2017 and October 31, 2016, respectively | 61 | 56 | |||||||
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July 31, 2017 and October 31, 2016 | 5 | 5 | |||||||
Additional paid-in capital | 65,920 | 53,208 | |||||||
Common stock subscriptions receivable | (7 | ) | - | ||||||
Accumulated other comprehensive loss | (179 | ) | (250 | ) | |||||
Accumulated deficit | (16,652 | ) | (15,111 | ) | |||||
Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2017 and October 31, 2016 | (1,196 | ) | (1,196 | ) | |||||
Total stockholders' equity | 47,952 | 36,712 | |||||||
Total liabilities and stockholders' equity | $ | 70,357 | $ | 53,938 |
IDW MEDIA HOLDINGS, INC. | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended July 31, |
Nine Months Ended July 31, |
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(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | $ | 16,705 | $ | 17,608 | $ | 40,378 | $ | 41,634 | |||||||||
Costs and expenses: | |||||||||||||||||
Direct cost of revenues | 8,989 | 8,706 | 21,415 | 20,752 | |||||||||||||
Selling, general and administrative (i) | 7,011 | 5,791 | 19,979 | 16,611 | |||||||||||||
Depreciation and amortization | 397 | 395 | 1,159 | 1,137 | |||||||||||||
Bad debt expense | 12 | 99 | 23 | 122 | |||||||||||||
Total costs and expenses | 16,409 | 14,991 | 42,576 | 38,622 | |||||||||||||
Income (loss) from operations | 296 | 2,617 | (2,198 | ) | 3,012 | ||||||||||||
Interest expense, net | (68 | ) | (19 | ) | (102 | ) | (57 | ) | |||||||||
Other (expense) income, net | (2 | ) | 10 | (1 | ) | (22 | ) | ||||||||||
Income (loss) before income taxes | 226 | 2,608 | (2,301 | ) | 2,933 | ||||||||||||
(Provision for) benefit from income taxes | (83 | ) | (998 | ) | 760 | (1,229 | ) | ||||||||||
Net income (loss) | 143 | 1,610 | (1,541 | ) | 1,704 | ||||||||||||
Net income attributable to non-controlling interests | - | 227 | - | - | |||||||||||||
Net income (loss) attributable to IDW Media Holdings, Inc. | $ | 143 | $ | 1,837 | $ | (1,541 | ) | $ | 1,704 | ||||||||
Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders: | |||||||||||||||||
Net income (loss) per share | $ | .03 | $ | .37 | $ | (.27 | ) | $ | .36 | ||||||||
Weighted-average number of shares used in the calculation of basic and diluted income per share: | 5,795 | 5,007 | 5,750 | 4,772 | |||||||||||||
Dividend declared per common share: | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.163 | |||||||||
Interest Expense | $ | 70 | $ | 22 | $ | 109 | $ | 68 | |||||||||
(i) Stock-based compensation included in selling, general and administrative expenses | $ | 771 | $ | 96 | $ | 2,166 | $ | 289 | |||||||||
IDW Media Holdings, Inc. EBITDA and Adjusted EBITDA
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information, the Company is also disclosing for the three and nine months ended July 31, 2017 and 2016, EBITDA and Adjusted EBITDA, which are non-GAAP measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.
The Company's measure of EBITDA consists of net income before depreciation, amortization, provision for or benefit from income taxes, and net interest expense or interest income. Adjusted EBITDA makes further adjustments to EBITDA to reflect the elimination of certain income statement items including non-cash compensation, and expenses that we consider to be not indicative of ongoing operations.
These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2017 and fiscal 2016 periods.
Management believes that the Company's EBITDA and Adjusted EBITDA measures provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of the Company's core operating results. Management uses EBITDA and Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses EBITDA and Adjusted EBITDA to evaluate operating performance in relation to its competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, management believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting at this time.
Management refers to EBITDA and Adjusted EBITDA to facilitate internal and external comparisons to historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated for the Company's business segments.
While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. The Company's operating results exclusive of depreciation and amortization charges are useful indicators of its current performance.
Interest is excluded from operating income to arrive at EBITDA as this expense reflects the cost of debt financing and its exclusion may provide users of the financial information with a useful indication of the Company's operations. Income taxes are excluded in arriving at EBITDA as they reflect costs based on taxable income where computations and rates vary by the jurisdictions in which the Company does business and provides a different measure to evaluate operations and may be useful in evaluating operational performance.
Non-cash compensation is also considered an operating expense under GAAP and represents expenses that do not utilize the Company's cash resources and are useful in evaluating the Company's current performance.
EBITDA and Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, and other liquidity and financial performance prepared in accordance with GAAP. In addition, the Company's measurements of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Following are reconciliations of EBITDA and Adjusted EBITDA to Net Income (Loss), which is the most directly comparable GAAP measure.
Reconciliation of Consolidated Net Income (Loss) to | ||||||||||
Consolidated EBITDA and Consolidated Adjusted EBITDA | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended July 31, |
Nine Months Ended July 31, |
|||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||
Net income (loss) | 143 | 1,837 | (1,541 | ) | 1,704 | |||||
Depreciation and amortization | 397 | 395 | 1,159 | 1,137 | ||||||
Provision for (benefit from) income taxes | 83 | 998 | (760 | ) | 1,229 | |||||
Interest expense, net | 68 | 19 | 102 | 57 | ||||||
EBITDA | 691 | 3,249 | (1,040 | ) | 4,127 | |||||
Non-cash compensation | 771 | 96 | 2,166 | 289 | ||||||
Adjusted EBITDA | 1,462 |
3,345 |
1,126 | 4,416 | ||||||
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes and depreciation and amortization, with further adjustments to reflect the elimination of income statement items including non-cash charges, and expenses that we consider not indicative of ongoing operations.
Contact Information:
Contact:
Les Rozner
les@idwmh.com
(203) 716-8376