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 | |||
Contact:
Les Rozner
[email protected]
(203) 716-8376