IDW Publishing Delivers Solid Quarter Despite COVID-19 Challenges
NEWARK, NJ and LOS ANGELES, CA / ACCESSWIRE / 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) |
|
1Q20
|
|
4Q20
|
|
1Q20
|
|
|
Revenue
|
|
$8.4
|
|
$10.1
|
|
$10.3
|
|
|
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
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
IDW Publishing
|
|
$5.6
|
|
$7.7
|
|
$6.3
|
|
|
IDW Entertainment
|
|
$2.8
|
|
$2.4
|
|
$4.0
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations*
|
|
|
|
|
|
|
|
|
IDW Publishing
|
|
$(0.4)
|
|
$0.5
|
|
$0.1
|
|
|
IDW Entertainment
|
|
$(4.6)
|
|
$(2.0)
|
|
$(5.6)
|
|
|
CTM*
|
|
$(1.1)
|
|
$(0.3)
|
|
$(1.1)
|
|
|
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.
Financial Take-Aways
- Revenue:
- 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.
About IDW
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.
Investor Contact
IDW Media Investor Relations
[email protected]
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except per share data)
|
January 31, 2021 (unaudited) |
October 31, 2020 |
||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 8,733 | $ | 10,541 | ||||
|
Trade accounts receivable, net
|
19,429 | 22,921 | ||||||
|
Inventory
|
3,596 | 3,754 | ||||||
|
Prepaid expenses
|
1,646 | 1,361 | ||||||
|
Current assets held for sale from discontinued operations
|
9,976 | 11,171 | ||||||
|
Total current assets
|
43,380 | 49,748 | ||||||
|
Property and equipment, net
|
396 | 410 | ||||||
|
Right-of-use assets, net
|
656 | 771 | ||||||
|
Non-current assets
|
||||||||
|
Investments
|
- | 25 | ||||||
|
Intangible assets, net
|
41 | 52 | ||||||
|
Goodwill
|
199 | 199 | ||||||
|
Television costs, net
|
1,087 | 2,926 | ||||||
|
Other assets
|
541 | 527 | ||||||
|
Total assets
|
$ | 46,300 | $ | 54,658 | ||||
|
Liabilities and stockholders' equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Trade accounts payable
|
$ | 912 | $ | 1,406 | ||||
|
Accrued expenses
|
6,288 | 3,953 | ||||||
|
Deferred revenue
|
1,850 | 2,385 | ||||||
|
Bank loans payable - current portion
|
11,127 | 14,204 | ||||||
|
Government loans- current portion
|
994 | 793 | ||||||
|
Operating lease obligations - current portion
|
584 | 562 | ||||||
|
Other current liabilities
|
110 | 69 | ||||||
|
Current liabilities held for sale from discontinued operations
|
8,223 | 8,540 | ||||||
|
Total current liabilities
|
30,088 | 31,912 | ||||||
|
Non-current liabilities
|
||||||||
|
Operating lease obligations - long term portion
|
214 | 368 | ||||||
|
Government loans - long term portion
|
201 | 403 | ||||||
|
Related party loans payable - long term portion
|
3,750 | 3,750 | ||||||
|
Total non-current liabilities
|
4,165 | 4,521 | ||||||
|
Total liabilities$
|
34,253 | $ | 36,433 | |||||
|
Stockholders' equity (see note 3):
|
||||||||
|
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at January 31, 2021 and October 31, 2020
|
- | |||||||
|
Class B common stock, $0.01 par value; authorized shares - 12,000; 10,008 and 9,987 shares issued and 9,489 and 9,467 shares outstanding at January 31, 2021 and October 31, 2020, respectively
|
94 | 93 | ||||||
|
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at January 31, 2021 and October 31, 2020
|
5 | 5 | ||||||
|
Additional paid-in capital
|
111,467 | 111,379 | ||||||
|
Accumulated other comprehensive loss
|
(72) | (60 | ) | |||||
|
Accumulated deficit
|
(98,251) | (91,996 | ) | |||||
|
Treasury stock, at cost, consisting of 519 shares of Class B common stock at January 31, 2021 and October 31, 2020
|
(1,196) | (1,196 | ) | |||||
|
Total stockholders' equity
|
12,047 | 18,225 | ||||||
|
Total liabilities and stockholders' equity
|
$ | 46,300 | $ | 54,658 | ||||
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Three months ended January 31, |
|||||||
|
(in thousands, except per share data)
|
2021 | 2020 | ||||||
|
|
||||||||
|
Revenues
|
$ | 8,413 | $ | 10,336 | ||||
|
|
||||||||
|
Costs and expenses:
|
||||||||
|
Direct cost of revenues
|
9,233 | 11,616 | ||||||
|
Selling, general and administrative
|
4,242 | 4,436 | ||||||
|
Depreciation and amortization
|
59 | 68 | ||||||
|
Bad debt expense
|
- | - | ||||||
|
Total costs and expenses
|
13,534 | 16,120 | ||||||
|
Loss from operations
|
(5,121) | (5,784 | ) | |||||
|
|
||||||||
|
Interest expense, net
|
(13) | (9 | ) | |||||
|
Other expense, net
|
- | (25 | ) | |||||
|
Loss before income taxes
|
(5,134) | (5,818 | ) | |||||
|
(Provision for) benefit from income taxes
|
- | - | ||||||
|
Net loss from continuing operations
|
(5,134) | (5,818 | ) | |||||
|
|
||||||||
|
Loss from discontinued operations, net
|
(1,121) | (1,054 | ) | |||||
|
|
||||||||
|
Net loss
|
(6,255) | (6,872 | ) | |||||
|
|
||||||||
|
Net income attributable to non-controlling interests
|
- | 84 | ||||||
|
|
||||||||
|
Net loss attributable to IDW Media Holdings, Inc
|
$ | (6,255) | $ | (6,788 | ) | |||
|
|
||||||||
|
Basic and diluted loss per share (note 2):
|
||||||||
|
Continuing operations
|
$ | (0.51) | $ | (0.78 | ) | |||
|
Discontinued operations, net
|
(0.11) | (0.14 | ) | |||||
|
Net loss
|
$ | (0.62) | $ | (0.92 | ) | |||
|
|
||||||||
|
Weighted-average number of shares used in the calculation of basic and diluted loss per share:
|
9,992 | 7,455 | ||||||
|
|
||||||||
|
Dividend declared per common share:
|
$ | 0.00 | $ | 0.00 | ||||
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
Three months ended January 31,
(in thousands) |
2021 | 2020 | ||||||
|
Operating activities:
|
||||||||
|
Net loss
|
$ | (6,255) | $ | (6,872 | ) | |||
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
218 | 316 | ||||||
|
Amortization of finance lease
|
92 | 104 | ||||||
|
Bad debt expense
|
(109) | 51 | ||||||
|
Stock based compensation
|
26 | 341 | ||||||
|
Stock options
|
38 | 304 | ||||||
|
Amortization of right-of-use asset
|
358 | 434 | ||||||
|
Changes in assets and liabilities:
|
||||||||
|
Trade accounts receivable
|
3,786 | (1,107 | ) | |||||
|
Inventory
|
159 | (269 | ) | |||||
|
Prepaid expenses and other assets
|
(229) | (193 | ) | |||||
|
Television costs
|
1,839 | 6,359 | ||||||
|
Trade accounts payable, accrued expenses and other current liabilities
|
2,091 | (1,660 | ) | |||||
|
Deferred revenue
|
(693) | (172 | ) | |||||
|
Gain on extinguishment of PPP loan
|
(68) | - | ||||||
|
Gain on sale of long lived assets
|
(8 | ) | ||||||
|
Operating lease liability
|
(367) | (408 | ) | |||||
|
Net cash provided by (used in) operating activities
|
886 | (2,780 | ) | |||||
|
Investing activities:
|
||||||||
|
Capital expenditures
|
(55) | (307 | ) | |||||
|
Proceeds on disposition of long lived assets
|
8 | |||||||
|
Net cash used in investing activities
|
(55) | (299 | ) | |||||
|
Financing activities:
|
||||||||
|
Proceeds from issuance of common stock
|
25 | 783 | ||||||
|
Non-controlling interest investment in subsidiary
|
- | 201 | ||||||
|
Repayments of finance lease obligations
|
(92) | (105 | ) | |||||
|
Proceeds of bank loans
|
17 | 1,195 | ||||||
|
Repayments of bank loans
|
(3,076) | (4,507 | ) | |||||
|
Net cash used in financing activities
|
(3,126) | (2,433 | ) | |||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(12) | (49 | ) | |||||
|
Net decrease in cash and cash equivalents
|
(2,307) | (5,561 | ) | |||||
|
Cash and cash equivalents at beginning of period
|
12,162 | 10,165 | ||||||
|
|
||||||||
|
Cash and cash equivalents at end of period
|
$ | 9,855 | $ | 4,604 | ||||
|
|
||||||||
|
Supplemental schedule of investing and financing activities
|
||||||||
|
Cash paid for interest
|
$ | 11 | $ | 19 | ||||
SOURCE: IDW Media Holdings Inc.