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IDW Media Holdings Press Release

IDW MEDIA HOLDINGS, INC. Reports Record Third Quarter 2016 Results

Record Third Quarter gross revenue of $17.6mm resulting in an increase of 31% and record Nine Month gross revenue of $41.6mm resulting in an increase of 17% led by the success of IDW Entertainment.

Stamford, CT; San Diego, CA (September 14, 2016) – IDW Media Holdings, Inc. (OTC: IDWM), a fully integrated media company announced today its results for the third quarter ended July 31, 2016.

Gross Revenue of $17.6 million for the three months ended July 31, 2016 compared to $13.4 million for the three months ended July 31, 2015, and $41.6 million for the nine months ended July 31, 2016 compared to $35.5 million for the nine months ended July 31, 2015 is primarily due to IDW Entertainment which increased by $4 million and $7.5 million for those periods. The increase resulted from the release of IDW Entertainment television episodes.

Third Quarter Financial Highlights:

  • IDW Entertainment 3rd Quarter Revenue of $4 million or 23% of Total Revenues compared to $58k 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 $691,000 or 36% for the three months ended July 31, 2016 compared to the three months ended July 31, 2015, primarily due to IDW Entertainment.
  • The increase resulted from gross profit from the release of IDW Entertainment television episodes.

Management

Commenting on the results, Ted Adams, CEO stated, “our third quarter performance reflects record growth from the IDW Entertainment Division”.

Mr. Adams added, “In the fourth quarter of 2016, we expect continued revenue growth, led by the success of our March graphic novels and additional IDW Entertainment revenue from the premier of Dirk Gently airing on BBC America.”

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 within the meaning of the Private Securities Litigation Reform Act of 1995. 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 filings with the SEC provide detailed information on 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 (OTC: 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. a subsidiary of IDW Media Holdings (OTC:IDWM, OTCBB:IDWM, OTCPK:IDWM). 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 400 award-winning touch screen kiosks.

 

IDW MEDIA HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands) July 31, 2016 (Unaudited) October 31, 2015
Assets
Current assets:
    Cash and cash equivalents $ 8,160 $ 6,596
    Trade accounts receivable, net   9,948 5,915
    Inventory – print and production costs   13,938 5,688
    Prepaid expenses   1,762 2,015
    Deferred taxes – current portion   201 200
    Note receivable – current portion   372 372
Total current assets   34,381 20,786
Property and equipment, net   3,320 3,039
Non-current assets    
    Note receivable – non-current portion 31 310
    Deferred taxes – non-current portion 12,625 12,705
    Intangible Assets, net 1,639 1,769
    Goodwill 2,227 1,700
    Other assets 703 498
Total non-current assets   17,225 16,982
Total assets $ 54,926 $ 40,807
Liabilities and stockholders’ equity    
Current liabilities:    
    Trade accounts payable   1,974 $ 1,302
    Accrued expenses   9,772 3,907
    Deferred revenue   3,539 2,131
    Income taxes payable   1,742 936
    Deferred taxes payable   441 441
    Capital lease obligations – current portion   331 257
    Bank loans payable – current portion   460 431
    Other current liabilities   425 359
Total current liabilities 18,684 9,764
Non-current liabilities  
    Capital lease obligations – long term portion 686 527
    Bank loans payable – long term portion 856 1,199
Total non-current liabilities 1,542 1,726
Total liabilities 20,226 11,490
 

Stockholders’ equity (see note 1):

 
    IDW Media Holdings, Inc. stockholders’ equity:  
    Preferred stock, $.01 par value; authorized shares – 500; no shares issued at July 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 July 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 July 31, 2016 and October 31, 2015 5 5
    Additional paid-in capital 53,023 47,419
    Accumulated other comprehensive loss (197) (153)
    Accumulated deficit (16,991) (18,780)
    Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2016 and October 31, 2015 (1,196) (1,196)
    Total IDW Media Holdings, Inc. stockholders’ equity 34,700 27,341
    Non-controlling interests 1,976
Total stockholders’ equity 34,700 29,317
Total liabilities and stockholders’ equity $ 54,926 $ 40,807

IDW MEDIA HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended
July 31, 
Nine Months Ended
July 31,
(in thousands, except per share data) 2016   2015 2016 2015
Revenues $ 17,608   $ 13,454   $ 41,634 35,519  
Costs and expenses:          
    Direct cost of revenues   8,706   5,650   20,752 15,912
    Selling, general and administrative (i)   5,791   5,414   16,611 15,609
    Depreciation and amortization   395   442   1,137 1,256
    Bad debt expense   99   22 122 15
Total costs and expenses   14,991   11,528   38,622 32,792
Income from operations   2,617   1,926 3,012 2,727
Interest expense, net   (19 ) (17 ) (57 ) (19 )
Other income (expense), net   10   22   (22 ) (100 )
Income before income taxes   2,608   1,931 2,933 2,608
Provision for income taxes   (998 ) (705 ) (1,229 ) (952 )
Net income   1,610   1,226 1,704 1,656
       
Net income attributable to non-controlling interests   227   (112 ) (512 )
Net income attributable to IDW Media Holdings, Inc. $  1,837   $ 1,114 $ 1,704 $ 1,144
         
Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders (see notes 1 and 3):            
Net income (loss) per share $ .37   $ .24   $ .36 $ .25
         
Weighted-average number of shares used in the calculation of basic and diluted income per share:   5,007   4,649   4,772 4,637
         
Dividend declared per common share: $ 0.00   $ 0.163   $ 0.163 $ 0.489
         
Interest Expense $ 22   $ 20   $ 68 $ 57
         
 (i)   Stock-based compensation included in selling, general and administrative expenses $ 96   $ 91   $ 289 $ 274

 

Contact:

Les Rozner

lrozner@idwmediaholdings.com

(203) 716-8376

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