NEWARK, NJ / September 12, 2019: IDW Media Holdings, Inc. (OTC: IDWM), an integrated media company, today reported a net loss per share of ($0.20) on revenue of $11.5 million for the third quarter of its 2019 fiscal year, the three months ended July 31, 2019.
- • George Takei’s powerful graphic memoir, They Called Us Enemy, was published by IDW Publishing’s (IDWP) Top Shelf Productions imprint and climbed to #2 on the New York Times bestseller list for paperback nonfiction.
- • At IDW Entertainment (IDWE):
- o Season one of October Faction and V-Wars are in post-production and are scheduled for delivery to Netflix in Q4 CY2019;
- o Locke & Key has completed principal photography of season one and is scheduled for delivery to Netflix in Q1 CY2020;
- o Wynonna Earp has been greenlit for a fourth season.
- • IDW Media announced a new joint book publishing venture, Clover Press, led by IDWP’s co-founders — Ted Adams and Robbie Robbins. Clover Press will focus on the book market and direct-to-consumer prestige format publications as a new, progressive, eclectic, boutique publisher.
IDW Media Management Comments – Chairman and CEO, Howard Jonas
“We are driving fundamental change throughout IDW Media, bringing strategic focus and financial discipline to systematically enhance shareholder value and realize the full potential of our extensive IP library and creative capabilities.”
“At IDW Publishing, the extraordinary success of George Takei’s They Called Us Enemy reflects our focus on identifying and developing unique, powerful, creator-owned content that can reach new audiences. We are including with this release a picture from a standing-room-only book signing in Los Angeles that says more about the power of this book than words can convey”
“At IDW Entertainment, we are making good progress toward the delivery of October Faction and V-Wars in the fourth quarter of this calendar year and of Locke and Key in the first quarter of next year. Financing arrangements for Locke and Key represent our pivot to production finance models that limit our downside exposure while retaining upside potential.”
Consolidated P&L Highlights
|(in thousands, unaudited)||3Q19||2Q19||3Q18|
|Direct cost of revenue||($5,249)||($4,075)||($7,597)|
|Depreciation & amortization||($374)||($365)||($403)|
|Loss from operations||($1,512)||($3,633)||($604)|
|Net loss per share||($0.20)||($0.61)||($0.08)|
Segment P&L Highlights
|(in thousands, unaudited)||3Q19||2Q19||3Q18|
|Loss from operations|
*Includes revenue of $29,000 and SG&A expense of $171,000 generated by Clover Press, which operates independently of IDW Publishing
• Revenue increased to $11.5 million from $7.8 million in 2Q19 and decreased from $14.2 million in 3Q18. The sequential increase reflects sales of They Called Us Enemy at IDWP, and seasonally strong sales at CTM Media. The year-over-year decrease reflects licensing revenue at IDWE from season three of Wynonna Earp recognized in 3Q18 and, at IDWP, revenue from Zombies vs Robots recognized in 3Q18 as well as industry-wide softness in the direct market channel.
• Loss per share decreased to ($0.20) from ($0.61) in 2Q19 and increased from ($0.08) in 3Q18. The sequential improvement was driven primarily by seasonally stronger tourism-derived revenue at CTM and sales of They Called Us Enemy at IDWP. The year-over-year increase was driven primarily by the revenue decreases mentioned above and IDW Media Holdings’ initial investment in Clover Press.
• IDWE expects to recognize revenue and expenses from the productions of October Faction and V-Wars upon delivery to Netflix in Q4 CY2019.
• IDW Media’s cash balance at July 31st was $13.7 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 will be available approximately three hours after the call concludes through September 19, 2019 by dialing 1-844-512-2921 (toll free – U.S.) or 1-412-317-6671 (toll – international) and providing this replay number: 13693345.
About IDW Media Holdings
IDW Media Holdings, Inc. (OTC: IDWM) is an integrated media company. IDW Media’s businesses include IDW Publishing – a leading American publisher of comic books and graphic novels, IDW Entertainment – a producer and distributor of franchise content through television and other animated media, IDW Games, Top Shelf Productions, the San Diego Comic Art Gallery, and CTM Media Group Inc., one of the largest distributors of information for tourists and travelers in North America.
IDW Media Holdings
Ezra Rosensaft, Chief Financial Officer