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IDW Publishing Achieves Operating Profitability in Fourth Quarter
Locke & Key Renewed for Third Season
NEWARK, NJ and LOS ANGELES, CA / ACCESSWIRE / January 25, 2021 / IDW Media Holdings, Inc. (OTC PINK:IDWM), an integrated media company, today reported a fourth quarter net loss per share of $0.20 on revenue of $10.1 million for the three months ended October 31, 2020. For the full fiscal year 2020, the net loss per share totaled $1.54 on revenue of $38.2 million.
Fourth Quarter FY 2020 (4Q20) Highlights
Comments from Ezra Rosensaft, Chief Executive Officer
"IDW generated significantly improved financial results in the fourth quarter. IDW Publishing had an outstanding quarter increasing revenue to its highest level in four years and generating positive income from operations. IDW Entertainment's results continue to improve as we work through the impacts of legacy production financing deals.
"Netflix announced that it will renew Locke & Key for a third season. The first season's compelling storyline, cast, and production values established an outstanding foundation for the continued success of the show. Congratulations to comic book creators Joe Hill and Gabe Rodríguez and Co-Showrunners Meredith Averill and (Executive Producer) Carlton Cuse.
"Looking ahead, IDW is positioned for a strong fiscal 2021. As we deepen our relationships with leading creators, further integrate our operations, and holistically develop our IP, we expect further improvements in our operational and financial results.
"We are in the process of re-registering IDW's Class B common stock with the Securities and Exchange Commission and are working to get that done in the first half of this calendar year, and then will work to get the stock listed on a national exchange."
Consolidated P&L Highlights
(In millions, except net loss per share, unaudited) (Numbers may not foot due to rounding) | 4Q20 | 3Q20 | 4Q19 | FY 2020 | FY 2019 | |||||||||||||||
Revenue | $ | 10.1 | $ | 8.5 | $ | 28.4 | $ | 38.2 | $ | 42.8 | ||||||||||
Direct cost of revenue | $ | 6.5 | $ | 8.1 | $ | 40.2 | $ | 29.5 | $ | 49.2 | ||||||||||
SG&A including non-cash compensation | $ | 4.5 | $ | 3.7 | $ | 6.1 | $ | 17.3 | $ | 18.4 | ||||||||||
Non-cash compensation included in SG&A | $ | 0.2 | $ | 0.5 | $ | 0.0 | $ | 1.1 | $ | 2.5 | ||||||||||
Depreciation & amortization | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | ||||||||||
Bad debt reserve | $ | 0.4 | $ | 0.0 | $ | 0.0 | $ | 0.4 | $ | 0.0 | ||||||||||
Interest and other expense, net | $ | 0.3 | $ | 0.0 | $ | 0.0 | $ | 0.4 | $ | 0.2 | ||||||||||
Loss from continuing operations | $ | (1.7 | ) | $ | (3.4 | ) | $ | (18.0 | ) | $ | (9.7 | ) | $ | (25.2 | ) | |||||
(Loss) income from discontinued operations | $ | (0.3 | ) | $ | (1.1 | ) | $ | 0.8 | $ | (4.1 | ) | $ | (1.3 | ) | ||||||
Net loss attributable to IDW Media | $ | (2.2 | ) | $ | (4.5 | ) | $ | (17.1 | ) | $ | (13.8 | ) | $ | (26.4 | ) | |||||
Net loss per share | $ | (0.20 | ) | $ | (0.47 | ) | $ | (2.29 | ) | $ | (1.54 | ) | $ | (3.90 | ) | |||||
Segment P&L Highlights
(Does not include corporate overhead.)
(in millions, unaudited) | 4Q20 | 3Q20 | 4Q19 | FY 2020 | FY 2019 | |||||||||||||||
Revenue | ||||||||||||||||||||
IDW Publishing | $ | 7.7 | $ | 5.2 | $ | 5.8 | $ | 23.9 | $ | 20.1 | ||||||||||
IDW Entertainment | $ | 2.4 | $ | 3.3 | $ | 22.6 | $ | 14.3 | $ | 22.7 | ||||||||||
CTM* | NA | NA | NA | NA | NA | |||||||||||||||
Income (loss) from operations* | ||||||||||||||||||||
IDW Publishing | $ | 0.5 | $ | 0.0 | $ | (0.8 | ) | $ | (0.1 | ) | $ | (5.2 | ) | |||||||
IDW Entertainment | $ | (2.0 | ) | $ | (3.2 | ) | $ | (17.2 | ) | $ | (8.6 | ) | $ | (19.8 | ) | |||||
CTM - ((Loss) income from discontinued operations)* | $ | (0.3 | ) | $ | (1.1 | ) | $ | 0.8 | $ | (4.1 | ) | $ | (1.3 | ) | ||||||
*CTM's bottom line results are reported as ‘Net (loss) income from discontinued operations' in all prior periods presented.
Financial Take-Aways
Earnings Conference Call
IDW's management will host an earnings conference call beginning at 5:00 PM Eastern today to present results, outlook and strategy followed by Q&A with investors.
To listen to the call and participate in the Q&A, dial 1-877-705-6003 (toll free - U.S.) or 1-201-493-6725 (toll - international) and request the ‘IDW Media call.'
A replay of the conference call can be accessed approximately three hours after the call concludes through February 1, 2021 by dialing 1-844-512-2921 (toll free - U.S.) or 1-412-317-6671 (toll - international) and providing this replay PIN number: 13715320. A replay will also be available via streaming audio through the IDW investor relations website.
About IDW
IDW (OTCPINK: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, games, merchandise and other entertainment platforms and leverage established stories from our creative partners.
Investor Contact
IDW Media Investor Relations
investor.relations@idwmh.com
IDW MEDIA HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data) | October 31, 2020 | October 31, 2019 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 10,541 | $ | 7,543 | ||||
Trade accounts receivable, net | 22,921 | 43,462 | ||||||
Inventory | 3,754 | 3,313 | ||||||
Prepaid expenses | 1,361 | 1,319 | ||||||
Current assets held for sale from discontinued operations | 11,171 | 5,186 | ||||||
Total current assets | 49,748 | 60,823 | ||||||
Property and equipment, net | 410 | 562 | ||||||
Right-of-use assets, net | 771 | - | ||||||
Non-current assets | ||||||||
Taxes receivable | - | 513 | ||||||
Investments | 25 | - | ||||||
Intangible assets, net | 52 | 115 | ||||||
Goodwill | 199 | 199 | ||||||
Television costs, net | 2,926 | 9,388 | ||||||
Other assets | 527 | 372 | ||||||
Non-current assets held for sale from discontinued operations | - | 5,165 | ||||||
Total assets | $ | 54,658 | $ | 77,137 | ||||
Liabilities and stockholders equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 1,406 | $ | 2,145 | ||||
Accrued expenses | 3,953 | 3,036 | ||||||
Deferred revenue | 2,385 | 1,058 | ||||||
Bank loans payable - current portion | 14,204 | 29,242 | ||||||
Related party loans payable - current portion | - | 4,550 | ||||||
Government loans- current portion | 793 | - | ||||||
Operating lease obligations - current portion | 562 | - | ||||||
Other current liabilities | 69 | 2,007 | ||||||
Current liabilities held for sale from discontinued operations | 8,540 | 3,344 | ||||||
Total current liabilities | 31,912 | 45,382 | ||||||
Non-current liabilities | ||||||||
Operating lease obligations - long term portion | 368 | - | ||||||
Bank loans payable - long term portion | - | 10,500 | ||||||
Government loans - long term portion | 403 | - | ||||||
Related party loans payable - long term portion | 3,750 | 4,500 | ||||||
Non-current liabilities held for sale from discontinued operations | - | 683 | ||||||
Total non-current liabilities | 4,521 | 15,683 | ||||||
Total liabilities | $ | 36,433 | $ | 61,065 | ||||
Stockholders equity (see note 4): | ||||||||
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at October 31, 2020 and October 31, 2019 | - | - | ||||||
Class B common stock, $0.01 par value; authorized shares - 12,000; 9,987 and 7,419 shares issued and 9,467 and 6,899 shares outstanding at October 31, 2020 and October 31, 2019, respectively | 93 | 74 | ||||||
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at October 31, 2020 and October 31, 2019 | 5 | 5 | ||||||
Stock subscription receivable | - | (1,000) | ||||||
Additional paid-in capital | 111,379 | 96,671 | ||||||
Accumulated other comprehensive loss | (60) | (60) | ||||||
Accumulated deficit | (91,996) | (78,457) | ||||||
Treasury stock, at cost, consisting of 519 shares of Class B common stock at October 31, 2020 and October 31, 2019 | (1,196) | (1,196) | ||||||
Total IDW Media Holdings Inc. stockholders equity | 18,225 | 16,037 | ||||||
Non-controlling interest | - | 35 | ||||||
Total stockholders equity | 18,225 | 16,072 | ||||||
Total liabilities and stockholders equity | $ | 54,658 | $ | 77,137 | ||||
IDW MEDIA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Fiscal Years Ended October 31, | ||||||||
(in thousands, except per share data) | 2020 | 2019 | ||||||
Revenues | $ | 38,162 | $ | 42,835 | ||||
Costs and expenses: | ||||||||
Direct cost of revenues | 29,530 | 49,153 | ||||||
Selling, general and administrative | 17,270 | 18,415 | ||||||
Depreciation and amortization | 252 | 286 | ||||||
Bad debt expense | 434 | 33 | ||||||
Total costs and expenses | 47,486 | 67,887 | ||||||
Loss from operations | (9,324) | (25,052) | ||||||
Interest expense, net | (46) | (173 | ||||||
Other income (expense), net | (318) | (15) | ||||||
Loss before income taxes | (9,688) | (25,240) | ||||||
(Provision for) benefit from income taxes | - | 42 | ||||||
Net loss from continuing operations | (9,688) | (25,198) | ||||||
(Loss) income from discontinued operations, net | (4,110) | (1,294) | ||||||
Net loss | (13,798) | (26,492) | ||||||
Net income attributable to non-controlling interests | - | 63 | ||||||
Net loss attributable to IDW Media Holdings, Inc | $ | (13,798) | $ | (26,429) | ||||
Basic and diluted income (loss) per share (note 3): | ||||||||
Continuing operations | $ | (1.08) | $ | (3.71) | ||||
Discontinued operations, net | (.46) | (0.19) | ||||||
Net loss | $ | (1.54) | $ | (3.90) | ||||
Weighted-average number of shares used in the calculation of basic and diluted loss per share: | 8,982 | 6,768 | ||||||
Dividend declared per common share: | $ | 0.00 | $ | 0.00 | ||||
Fiscal years ended October 31, (in thousands) | 2020 | 2019 | ||||||
Operating activities: | ||||||||
Net loss | $ | (13,798) | $ | (26,492 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 1,017 | 1,513 | ||||||
Amortization of finance leases | 411 | - | ||||||
Bad debt expense | 680 | 113 | ||||||
Stock based compensation | 722 | 3,123 | ||||||
Stock options | 409 | - | ||||||
Warrants issued | - | 118 | ||||||
Amortization of right-of-use asset | 1,557 | - | ||||||
Loss on deconsolidation of subsidiary | 35 | - | ||||||
Changes in assets and liabilities: | ||||||||
Trade accounts receivable | 20,807 | (28,960 | ) | |||||
Inventory | (442) | 297 | ||||||
Prepaid expenses and other assets | 760 | (443 | ) | |||||
Investment | (25) | - | ||||||
Television costs | 6,462 | 28,527 | ||||||
Operating lease liability | (1,597) | - | ||||||
Trade accounts payable, accrued expenses and other liabilities | (2,108) | (3,501 | ) | |||||
Deferred revenue | 795 | 715 | ||||||
Deconsolidation of subsidiary | 304 | - | ||||||
Net cash provided by (used in) operating activities | 15,989 | (24,990 | ) | |||||
Investing activities: | ||||||||
Business acquisitions | - | (12 | ) | |||||
Proceeds on disposition of long lived assets | 185 | - | ||||||
Disposition of subsidiary, net of cash received | (115) | - | ||||||
Capital expenditures | (420) | (1,113 | ) | |||||
Net cash used in investing activities | (350) | (1,125 | ) | |||||
Financing activities: | ||||||||
Proceeds from issuance of common stock | 14,596 | 22,663 | ||||||
Financing under capital leases | - | 360 | ||||||
Repayments of capital lease obligations | - | (410 | ) | |||||
Repayments of finance lease obligation | (404) | - | ||||||
Proceeds of related party loans | - | 9,050 | ||||||
Proceeds of government loans | 3,004 | - | ||||||
Proceeds of bank loans | 1,021 | 19,382 | ||||||
Repayments of related party loans | (5,300) | (19,000 | ) | |||||
Repayments of bank loans | (26,559) | (9,378 | ) | |||||
Net cash (used in) provided by financing activities | (13,642) | 22,667 | ||||||
Effect of exchange rate changes on cash and cash equivalents | - | 168 | ||||||
Net increase (decrease) in cash and cash equivalents | $ | 1,997 | $ | (3,280 | ) | |||
Cash and cash equivalents at beginning of period | 10,165 | 13,445 | ||||||
Cash and cash equivalents at end of period | $ | 12,162 | $ | 10,165 | ||||
Supplemental schedule of investing and financing activities | ||||||||
Cash paid for interest | $ | 200 | $ | 228 | ||||
Cash paid for income taxes | $ | 98 | $ | 25 | ||||
Purchases of property and equipment through capital lease obligations | $ | - | $ | 360 | ||||
Received from sale of long lived assets | $ | 154 | $ | - | ||||
SOURCE: IDW Media Holdings Inc.
