IDW Media Reports Second Quarter Fiscal Year 2019 Results

STAMFORD, CT / ACCESSWIRE / June 13, 2019 / IDW Media Holdings, Inc. (OTC: IDWM), an integrated media company, today reported a net loss per share of ($0.61) on revenue of $7.8 million for the second quarter of its 2019 fiscal year, the three months ended April 30, 2019.

Highlights

  • – Following quarter close, IDW Media successfully completed an offering raising $23 million in new capital and reduced long-term debt from $21 million to $9 million. The remaining debt is due to IDW Media’s Chairman and CEO;
  • – IDW Entertainment (IDWE) has three series scheduled for delivery to Netflix within the next twelve months. During 2Q19, IDWE:
    • – – Completed principal photography on October Faction and V-Wars. Both shows are currently in post-production with deliveries scheduled for Q4 CY2019;
    • – – Began principal photography of Locke & Key, which is scheduled to complete post-production in Q1 CY2020;
  • – IDWE has prioritized fifteen projects for early stage development based on IP developed at IDW Publishing (IDWP);
  • – During 2Q19, IDWP added twenty titles to its IP portfolio of over 400 creator-owned or IDWP-owned originals;
  • – Media veteran Allan Grafman, who previously held senior positions at Archie Comics, and Hallmark Entertainment, among others, has joined IDW Media’s Board of Directors;
  • – Management is reviewing strategic alternatives with the assistance of advisor, JP Morgan.

IDW Media Management Comments – Chairman and CEO, Howard Jonas

“The successful completion of our private placement has put IDW Media on a strong financial footing. We are working together to restore the company to profitability in fiscal 2020 and to realize the full potential of IDW Publishing’s extensive IP portfolio.

“IDW Entertainment’s October Faction and V-Wars are both in post-production and scheduled for delivery to Netflix in the fourth quarter of this year. With the initial seasons of those series concluded, we will pivot to production models that require less capital and minimize downside risk. Locke & Key, which is now in principal photography for delivery to Netflix early in fiscal

2020, is being developed under a production services agreement, for which IDW will receive a percentage of the production budget with limited risk.

“IDW Entertainment has also identified a robust pipeline of fifteen potential projects from IDW Publishing’s portfolio and is developing pitches and scripts for streaming and traditional broadcast TV networks as well as for feature film platforms. The pipeline represents a targeted array of genres. Looking further ahead, we intend to develop at least two new projects or feature films from our pipeline per year.”

Consolidated P&L Highlights

(in thousands, unaudited) 2Q19 1Q19 2Q18
Revenue $7,809 $9,349 $8,720
Direct cost of revenue $4,075 $5,103 $4,678
SG&A $6,977 $7,280 $6,597
Depreciation & amortization $365 $403 $398
Loss from operations ($3,633) ($3,993) ($2,983)
Net loss ($3,747) ($4,093) ($2,226)
Loss per share ($0.61) ($0.67) ($0.36)

Segment P&L Highlights

(in thousands, unaudited) 2Q19 1Q19 2Q18
Revenue
IDW Publishing $3,740 $5,212 $4,409
IDW Entertainment $43 $87 $353
CTM Media $4,025 $4,050 $3,958
Loss from operations
IDW Publishing ($1,631) ($1,470) ($1,394)
IDW Entertainment ($744) ($1,229) ($622)
CTM Media ($1,258) ($1,294) ($967)

Key Financial & Operational Take-Aways

  • – IDWP expects to counter soft secular comic and graphic book demand with release of strong titles in 2H 2019;
  • – In 4Q19, IDWE expects to deliver October Faction and V-Wars to Netflix;
  • – In 1H 2020, IDWE expects to generate approximately $2.5 million in income from operations upon delivery of Locke & Key to Netflix Worldwide;
  • – CTM’s brochure and tourism-driven sales were seasonally soft during winter months. Revenue and profitability are expected to rebound during 2H 2019;
  • – IDW Media’s cash balance at April 30th was $9 million.

Earnings Conference Call

IDW Media’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 toll-free 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 June 20, 2019 by dialing 1-844-512-2921 (toll-free – U.S.) or 1-412-317-6671 (toll – international) and providing this replay number: 13690994. A replay will also be available via streaming audio through the IDW Media investor relations website.

About IDW Media Holdings

IDW Media Holdings, Inc. (OTC: IDWM) is an integrated media company. IDWM’s businesses include IDW Publishing – a leading American publisher of comic books and graphic novels, IDW Games, IDW Entertainment – a producer and distributor of franchise content through television and other animated media, Top Shelf Productions, the San Diego Comic Art Gallery, and CTM Media Group Inc, one of North America’s largest distributors of information for tourists and travelers.

Investor Contact

IDW Media Holdings
Ezra Rosensaft, Chief Financial Officer ezra@idwmh.com

Download the Consolidated Balance Sheets

  IDW Media Holdings Annual Report – 2018