IDW Publishing Delivers Solid Quarter Despite COVID-19 Challenges
NEWARK, NJ and LOS ANGELES, CA / March 15, 2021 / IDW Media Holdings, Inc. (OTC PINK: IDWM), an integrated media company, today reported a net loss per share of $0.62 on revenue of $8.4 million for the three months ended January 31, 2021.
First Quarter Fiscal 2021 (1Q21) Highlights
- Consolidated revenue decreased to $8.4 from $10.3 million in 1Q20.
- COVID-19 Update: At IDWP, direct market sales recovering with year over year growth. Digital publishing revenue increased 68% year over year. IDWE impacted by industry-wide production / greenlight delays.
- Consolidated loss from operations improved to $5.1 million from $5.8 million in 1Q20.
- Loss per share narrowed to $0.62 from $0.92 in 1Q20
- TMNT: The Last Ronin became the most successful comic in IDWP history, has sold over 200,000 copies including third printing in February.
- Locke & Key, the Netflix series based on the IDW Comic and produced by IDWE was nominated by the Academy of Science Fiction, Fantasy & Horror Films for Best Fantasy Television Series.
- Following the quarter close, IDW completed the planned sale of its CTM subsidiary.
Comments from Ezra Rosensaft, Chief Executive Officer
“IDW again reported strong bottom-line improvement compared to the year ago quarter despite the remaining COVID-19 challenges. We are swiftly moving toward profitable operations as IDW Entertainment closes in on additional deals and we work through the last impacts of legacy production financing agreements.
“Our outlook for 2021 continues to improve with an exciting line-up of titles at IDWP. The streaming services are getting production schedules back on track now that some COVID-19 restrictions have been relaxed, and the IDWE team has done a terrific job of developing properties to take full advantage of the thaw. We have also picked up the pace of investment in new IP based on our capacity to develop and holistically monetize properties across publishing and entertainment.
“Following the quarter close, we updated our Form S-1 Statement to register our common stock with the SEC as we move closer to uplisting on a national exchange. The previously announced sale of our CTM subsidiary closed in February, greatly simplifying our story and strengthening our balance sheet.”
Consolidated P&L Highlights
|(In millions, except net loss per share, unaudited) (Numbers may not foot due to rounding)||1Q21||4Q20||1Q20|
|Direct cost of revenue||$9.2||$6.5||$11.6|
|SG&A including non-cash compensation||$4.2||$4.5||$4.4|
|Non-cash compensation included in SG&A||$0.1||$0.2||$0.6|
|Depreciation & amortization||$0.1||$0.1||$0.1|
|Bad debt expense||$0.0||$0.4||$0.0|
|Interest and other expense, net||$0.0||$0.3||$0.0|
|Loss from continuing operations||$(5.1)||$(1.7)||$(5.8)|
|Loss from discontinued operations||$(1.1)||$(0.3)||$(1.1)|
|Net loss attributable to IDW Media||$(6.3)||$(2.2)||$(6.8)|
|Loss per share – continuing operations||$(0.51)||$(0.17)||$(0.78)|
|Loss per share – discontinued operations, net||$(0.11)||$(0.03)||$(0.14)|
|Net loss per share||$(0.62)||$(0.20)||$(0.92)|
Segment P&L Highlights
(Does not include corporate overhead.)
|(in millions, unaudited)||1Q21||4Q20||1Q20|
|(Loss) income from operations*|
|Corporate (unallocated overhead)||$(0.2)||$(0.3)||$(0.3)|
*CTM’s bottom line results are reported as ‘Net (loss) income from discontinued operations’ in all periods presented.
- IDWP direct market recovering. Driven by strong sales of Star Wars: High Republic Adventures #1 and Teenage Mutant Ninja Turtles: The Last Ronin. Increases in digital and publishing revenues offset by decline in games sales.
- IDW Entertainment (IDWE) revenue generated entirely by the delivery of certain episodes of Wynonna Earp, Season 4. Revenue decreased from the year ago quarter when IDWE delivered certain October Faction episodes.
- Income (loss) from Operations:
- IDWP generated positive EBITDA with strong publishing and digital sales partially offset by increases in personnel expenses and royalties.
- IDWE costs principally are related to WE production. In addition, they include an impairment of $2.1 million as a result of a recently adopted accounting standard.
- CTM Media: CTM Media’s results were reported as discontinued operations reflecting the pending sale of the business. Following the quarter close, the sale closed.
- Balance Sheet Highlights: At January 31, 2021, IDW’s cash balance was $8.7 million. Working capital (current assets less current liabilities) totaled $13.3 million.
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 March 22, 2021 by dialing 1-844-512-2921 (toll free – U.S.) or 1-412-317-6671 (toll – international) and providing this replay PIN number: 13717453. A replay will also be available via streaming audio through the IDW investor relations website.
IDW (OTC PINK: 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.
IDW Media Investor Relations
To view the results, please see IDW Media Holdings’ Financial Reports: IDW Reports First Quarter Fiscal 2021 Results