STAMFORD, CT and SAN DIEGO, CA–(Marketwired – Sep. 14, 2017) – IDW Media Holdings, Inc. (OTCQX: IDWM) (the “Company”), an integrated media company announced today its results for the third quarter ended July 31, 2017.
Major Highlights and Milestones:
- Wynonna Earp Television series renewed for Season 3 with Syfy Channel in the U.S. and Space Channel in Canada. The series continues to receive critical acclaim and awards from fans and press. With Netflix, Viacom and others, Wynonna Earp is available around the world.
- Dirk Gently TV series completed production of Season 2, with premiere scheduled for October 17 on BBC America, and in December on Netflix outside the U.S.
- Locke & Key is slated to be IDW Entertainment’s third television property, and the Company believes it has breakout potential. We are currently producing a one-hour television pilot for Hulu. Carlton Cuse, as showrunner, is creating a world class production with an all-star cast, and Director Andy Muschietti is coming off a tremendous premiere of his theatrical release of Stephen King’s IT.
- IDW Entertainment is developing several other major media programs based on IDW Publishing’s portfolio of books and comics, as well as third party content.
- IDW Publishing’s transition to Random House for distribution is leading to expansion of our sales channels which is expected to support growth for books in 2018 and beyond.
- The Company launched IDW Digital Studio which will focus on content development production, distribution and engagement, concentrating on building successful consumer franchises.
- The Company closed a $10.5 million private placement of stock strengthening its balance sheet to support growth initiatives.
Fiscal Third Quarter 2017 Financial Highlights:
- Revenue for the Company of $16.7 million for Q3-17 compared to $17.6 million for the year ago period (-5.1%) and $8.9 million in Q2-17 (+87.6%). The year over year decline in revenue and the sequential increase in revenue are discussed below for each segment of the Company.
- Gross profit margin for the Company of 46.2% for Q3-17compared to 50.6% for Q3-16 and 47.3% for Q2-17. The year over year decline was principally due to increasing printing costs at IDW Publishing, reduced revenue at CTM Media Group (where almost all direct costs are fixed costs), and a change in revenue mix in which a higher percentage of the total revenue were from relatively lower margin offerings, partially offset by an increase in gross margin at IDW Entertainment.
- Net income for the Company of $0.1 million for Q3-17 compared to $1.8 million for Q3-16 and a loss of $1.8 million for Q2-17. The decline in net income from the prior year was principally due to the decline in Company revenue and gross profit margin discussed above as well as an increase in SG&A expenses at IDW Entertainment associated with the launch of new programs and an increase of $0.7 million of non-cash compensation expense associated with the grant of stock to employees in 2016. The sequential improvement in net income was principally due to the increase revenue discussed above.
- IDW Entertainment Revenue of $5.2 million for Q3-17 compared to $4.0 million for Q3-16 and $0.04 million for Q2-17. The increase in revenue from the prior year was principally due to licens e fee increases for season 2 of Wynona Earp, and timing of delivery of episodes. The substantial increase in revenue from the prior quarter was impacted by the timing of the release of the Wynonna Earp series. IDW Entertainment is positioned for significant future growth with programs at various stages of development.
- IDW Publishing Revenue of $5.4 million for Q3-17 compared to $6.9 million for Q3-16 and $4.9 million for Q2-17. IDW Publishing’s revenue this year was impacted by a cyclically slow period in the comic book market, compounded by temporary disruption related to the transition in distributors to Random House. With the move to Random House complete and with the planned release of major titles including Star Wars Adventures, My Little Pony Movie Adaptation, and Star Trek: Discovery as well as new games including Atari: Centipede and Torres, we anticipate continued sequential growth in IDW Publishing.
- CTM Media Group Revenue of $6.1 million for Q3-17 compared to $6.7 million for Q3-16 and $4.0 million for Q2-17. The year over year decline is attributable to the loss of certain locations and customers including due to cyclical factors impacting the Broadway industry. The sequential increase is primarily attributable to seasonal factors. In the quarter, CTM made progress in engaging with new customers and channels, and re-engaging with some lost accounts, which is anticipated to contribute in 2018.
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. (OTCQX: IDWM) is an 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.