IDW Media Holdings Reports Fiscal Year 2016 Results

Record Fiscal Year 2016 gross revenue of $65.3mm resulting in an increase of 32% Year over Year led by IDW Entertainment

STAMFORD, CT and SAN DIEGO, CA–(Marketwired – Jan 30, 2017) – IDW Media Holdings, Inc. (OTCQX: IDWM), a fully integrated media company announced today its results for the fourth quarter and year ended October 31, 2016.

Gross Revenue of $23.6 million for the three months ended October 31, 2016 compared to $13.9 million for the three months ended October 31, 2015, and $65.3 million for the year ended October 31, 2016 compared to $49.5 million for the year ended October 31, 2015.The release of IDW Entertainment television shows was the primary driver of the increased revenue.

Year End Financial Highlights:

  • IDW Entertainment FY 2016 Revenue of $16 million or 24.5% of Gross Revenues compared to $187 thousand 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 $1.1 million or 53% to $3.2 million for the three months ended October 31, 2016 compared to $2.1 million for the three months ended October 31, 2015, primarily due to IDW Entertainment.
  • The increase in 2016 net income resulted from profit from the release of the first two IDW Entertainment television shows.

Management: Commenting on the results, Ted Adams, CEO stated, “Our FY16 performance reflects multi-faceted growth at IDW, and as we look to FY17, we’re expecting that growth to continue.

“Our publishing division — which includes IDW Publishing where we primarily publish comic books and graphic novels and IDW Games where we publish board games and card games, was led by the success of the March books and the Teenage Mutant Ninja Turtles board game. We are thrilled to have entered into a new partnership with leading book distributor Penguin Random House which we expect will contribute to the growth of IDW Publishing in 2017 and help further our ability to create new intellectual property. IDW Games has a number of new games in development — both using original intellectual property and existing entertainment brands — that we expect to have a positive impact on FY17.

“IDW Entertainment had a breakout year as it grew revenue from $0.2 million in 2015 to $16.0 million in 2016 driven by the successful first seasons of Wynonna Earp and Dirk Gently. Both shows will return to the air in 2017 for their second seasons. Joe Hill has also written the pilot script and series outline for a TV show based on our flagship title, Locke & Key, and we will be presenting it to potential networks this year.

“CTM Media group further expanded our distribution network for travel brochures in the Cape Cod and Washington D.C. regions.”

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.

About IDW Media Holdings
IDW Media Holdings, Inc. (OTCQX: IDWM, OTC:IDWM, OTCBB: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. 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 over 400 award-winning touch screen kiosks.

 

IDW MEDIA HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) October 31, 2016 October 31, 2015 (as reclassified – see note 13)
Assets
Current assets:
Cash and cash equivalents $ 6,203 $ 6,596
Trade accounts receivable, net 11,592 5,915
Inventory – print and production costs 13,652 5,688
Prepaid expenses 1,738 2,015
Note receivable – current portion 310 372
Total current assets 33,495 20,586
Property and equipment, net 3,394 3,039
Non-current assets
Trade accounts receivable – non-current portion 2,478
Note receivable – non-current portion 310
Deferred taxes 10,413 12,264
Intangible Assets, net 1,539 1,769
Goodwill 2,227 1,700
Other assets 392 498
Total non-current assets 17,049 16,541
Total assets $ 53,938 $ 40,166
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable 2,412 $ 1,302
Accrued expenses 8,730 3,907
Deferred revenue 1,809 2,131
Income taxes payable 1,037 736
Capital lease obligations – current portion 365 257
Bank loans payable – current portion 426 431
Other current liabilities 421 359
Total current liabilities 15,200 9,123
Non-current liabilities
Accrued liabilities – non-current 470
Capital lease obligations – long term portion 807 527
Bank loans payable – long term portion 749 1,199
Total non-current liabilities 2,026 1,726
Total liabilities 17,226 10,849
Commitments and contingencies (see notes 1 and 14)
Stockholders’ equity (see note 1):
IDW Media Holdings, Inc. stockholders’ equity:
Preferred stock, $.01 par value; authorized shares – 500; no shares issued at October 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 October 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 October 31, 2016 and October 31, 2015 5 5
Additional paid-in capital 53,208 47,419
Accumulated other comprehensive loss (250 ) (153 )
Accumulated deficit (15,111 ) (18,780 )
Treasury stock, at cost, consisting of 519 shares of Class B common stock at October 31, 2016 and October 31, 2015 (1,196 ) (1,196 )
Total IDW Media Holdings, Inc. stockholders’ equity 36,712 27,341
Non-controlling interests 1,976
Total stockholders’ equity 36,712 29,317
Total liabilities and stockholders’ equity $ 53,938 $ 40,166
IDW MEDIA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
October 31, (unaudited)
Fiscal Years Ended
October 31,
(in thousands, except per share data) 2016 2015 2016 2015
Revenues $ 23,632 $ 13,936 $ 65,267 $ 49,456
Costs and expenses:
Direct cost of revenues 13,691 5,847 34,444 21,759
Selling, general and administrative (i) 6,116 5,529 22,727 21,138
Depreciation and amortization 401 370 1,538 1,627
Bad debt expense 196 86 318 101
Total costs and expenses 20,404 11,832 59,027 44,625
Income from operations 3,228 2,104 6,240 4,831
Interest expense, net (18 ) (20 ) (75 ) (38 )
Other income (expense), net (1 ) 2 (23 ) (90 )
Income before income taxes 3,209 2,086 6,142 4,703
Provision for income taxes (1,244 ) (683 ) (2,473 ) (1,636 )
Net income 1,965 1,403 3,669 3,067
Net income attributable to non-controlling interests (217 ) (729 )
Net income attributable to IDW Media Holdings, Inc. $ 1,965 $ 1,186 $ 3,669 $ 2,338
Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders (see notes 1 and 3):
Net income per share $ 0.35 $ .26 $ 0.74 $ .50
Weighted-average number of shares used in the calculation of basic and diluted income per share: 5,579 4,649 4,976 4,640
Dividend declared per common share: $ 0.00 $ 0.163 $ 0.163 $ 0.652
Interest Expense $ 21 $ 22 $ 86 $ 79
(i) Stock-based compensation included in selling, general and administrative expenses $ 99 $ 93 $ 388 $ 367
IDW MEDIA HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
(Unaudited)
Fiscal Years Ended
October 31,
(in thousands) 2016 2015
Net income $ 3,669 $ 3,067
Depreciation and amortization 1,538 1,627
Provision for income taxes 2,473 1,636
Interest expense, net 75 38
EBITDA 7,755 6,368
Non-cash compensation 388 367
Adjusted EBITDA $ 8,143 $ 6,735

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