IDW Reports Third Quarter Fiscal 2021 Results
Back to Newsroom
Mentioned in this Article

IDW Reports Third Quarter Fiscal 2021 Results

Monday, September 13, 2021 4:15 PM
Share this article now
Topic:
Earnings

Resurgent Direct Market Sales Drove 30% Increase in Publishing Revenue
Proceeds from Capital Raise Slated Primarily for Investment in Original Content
Uplist to NYSE American Completed

NEWARK, NJ and LOS ANGELES, CA / ACCESSWIRE / September 13, 2021 / IDW Media Holdings, Inc. (NYSE America:IDW), an integrated media company, today reported a net loss per share of $0.09 on revenue of $6.8 million for the three months ended July 31, 2021.

Third Quarter Fiscal 2021 (3Q21) Highlights

  • The company successfully completed a capital raise generating net proceeds of $9.6 million following the quarter close. The Company intends to utilize the majority of the proceeds to enhance investment in outstanding original content through partnerships with authors and creators.
  • In conjunction with the capital raise, the company uplisted its Class B common stock from the OTC market to the NYSE American exchange with the ticker symbol ‘IDW'.
  • Consolidated revenue decreased to $6.8 million from $8.5 million in 3Q20.
  • IDW Publishing revenue increased 30% to $6.8 million - its highest third quarter revenue in five years -from $5.2 million in 3Q20. The increase was driven by direct market sales and sales of titles from licensing partners. IDW Entertainment reported no revenue in 3Q21, but expects to record revenue from Locke & Key S2 in 4Q21.
  • Consolidated loss from operations decreased to $2.1 million compared to $3.4 million in 3Q20.
  • Net loss per share narrowed to $0.09 from a net loss per share of $0.47 in 3Q20. The decreased net loss reflects the improved results from continuing operations, a gain on the forgiveness of one of the company's two PPP loans of $1.2 million and a loss from discontinued operations of $1.1 million in 3Q20.

Comments from Ezra Rosensaft, Chief Executive Officer

"We took important steps to accelerate our growth trajectory, strengthen our balance sheet, and enhance the visibility and liquidity of our stock during and immediately after the third quarter. Most notably, our successful capital raise will enable us to significantly enhance our pipeline of high-quality original content for development across our publishing and entertainment businesses. Our development of the Locke & Key franchise is a protype for how we will leverage the mutual synergies between publishing and entertainment to build fandoms based on original IP."

"IDW Publishing again operated in the black during the third quarter. The reviving direct market helped boost sales of some of our most popular licensed titles led by Teenage Mutant Ninja Turtles' The Last Ronin #3. In the book market, They Called Us Enemy continued to outperform expectations, while The Locke & Key Keyhouse Compendium was a strong seller for us in both the direct and indirect markets.

"At IDW Entertainment, we welcomed entertainment veteran Paul Davidson to lead the business. Paul is overseeing both development and production, and will drive the company's expansion on television and other entertainment platforms. And speaking of television, we are looking forward to the premiere of Locke & Key's second season on Netflix in October, and season three in 2022."

Consolidated P&L Highlights

(In millions, except income (loss) per share, unaudited)
 
  

3Q21

   

2Q21

   

3Q20

 
Revenue
 6.8  10.1  8.5 
Direct cost of revenue
 3.8  4.7  8.1 
SG&A including non-cash compensation
 5.0  4.9  3.7 
Non-cash compensation included in SG&A
 0.1  0.1  - 
Depreciation & amortization
 0.1  0.1  0.1 
(Loss) income from operations
 (2.1) 0.4  (3.4)
Net (loss) income from continuing operations
 (0.9) 0.6  (3.4)
(Loss) from discontinued operations, net
 -  (0.2) (1.1)
Gain on sale of discontinued operations
 -  2.1  - 
Net (loss) income
 (0.9) 2.5  (4.5)
(Loss) income per share - continuing operations
 (0.09) 0.27  (0.35)
Loss per share - discontinued operations
 -  (0.02) (0.12)
Net (loss) income per share
 (0.09) 0.25  (0.47)

Segment P&L Highlights
(Does not include corporate overhead.)

(in millions, unaudited)
  

3Q21

   

2Q21

   

3Q20

 
Revenue
            
IDW Publishing
 6.8  6.0  5.2 
IDW Entertainment
  -  4.2  3.3 
 
            
Income (loss) from operations*
            
IDW Publishing
 0.1  (0.5)  - 
IDW Entertainment
 (1.8) 1.2  (3.2)
CTM*
  -  (0.2)  - 
Corporate (unallocated overhead)
 (0.3) (0.3) (0.1)

*CTM's bottom-line results are reported as ‘Loss from discontinued operation, net' in all applicable periods prior to its sale on February 15, 2021.

Financial Take-Aways

(All results are for 3Q21 compared to 3Q20)

  • Revenue:
    • IDW Publishing (IDWP): Direct market recovery continued to drive publishing revenue growth, led by sales of titles from licensed partner properties including TMNT, Star Wars, Godzilla, GI Joe and Transformers. Trade market sales, which contributed nearly half of print revenue, were dominated by IDW originals including They Called Us Enemy, March and Locke & Key. Digital and game sales also contributed to the increase.
    • IDW Entertainment (IDWE): Generated no revenue in the third quarter, but, looking ahead, expects to recognize Locke & Key Season 2 revenue in 4Q21.
  • Income (loss) from Operations:
    • IDWP: Resurgent direct market sales drove an increase in gross profit substantially offset by increased SG&A expense.
    • IDWE: The loss from operations narrowed from the loss in the year ago quarter on recognition of Wynonna Earp and V-Wars associated expenses.
  • Balance Sheet Highlights: At July 31, 2021, prior to closing the capital raise, IDW's cash balance was $9.9 million. Working capital (current assets less current liabilities) totaled $11.9 million. Non-current liabilities totaled $1.1 million including the $1.0 million long-term portion of a $1.2 million PPP loan.

Earnings Conference Call

IDW's management will host an earnings conference call beginning at 5:00 PM Eastern time to present results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial 1-844-369-8770 (U.S. - toll free) or 1-862-298-0840 (international - toll) and request the ‘IDW Media call.'

A replay of the conference call can be accessed approximately three hours after the call concludes through September 27, 2021 by dialing 1-877-481-4010 (toll free - U.S.) or 1-919-882-2331 (toll - international) and providing this replay PIN number: 42753. A replay will also be available via streaming audio through the IDW investor relations website.

About IDW

IDW (NYSE American: IDW) 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 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)
 July 31,
2021 (unaudited)
  October 31,
2020
 
Assets
      
Current assets:
      
Cash and cash equivalents
 9,908  10,541 
Trade accounts receivable, net
  6,067   22,921 
Inventory
  3,327   3,754 
Prepaid expenses
  2,380   1,361 
Current assets held for sale from discontinued operations
  -   11,171 
Total current assets
  21,682   49,748 
Property and equipment, net
  368   410 
Right-of-use assets, net
  422   771 
 
        
Investments
  -   25 
Intangible assets, net
  19   52 
Goodwill
  199   199 
Television costs, net
  1,502   2,926 
Other assets
  463   527 
Total assets
 24,655  54,658 
Liabilities and stockholders' equity
        
Current liabilities:
        
Trade accounts payable
 1,026  1,406 
Accrued expenses
  2,930   2,458 
Production costs payable
  2,861   1,495 
Deferred revenue
  2,244   2,385 
Bank loans payable - current portion
  -   14,204 
Government loans- current portion
  190   793 
Operating lease obligations - current portion
  496   562 
Other current liabilities
  -   69 
Current liabilities held for sale from discontinued operations
  -   8,540 
Total current liabilities
  9,747   31,912 
Non-current liabilities
        
Operating lease obligations - long term portion
  24   368 
Government loans - long term portion
  1,005   403 
Related party loans payable - long term portion
  -   3,750 
Total liabilities
 10,776  36,433 
Stockholders' equity:
        
Preferred stock, $0.01 par value; authorized shares - 500; no shares issued and outstanding at July 31, 2021 and October 31, 2020, respectively
  -   - 
Class B common stock, $0.01 par value; authorized shares - 20,000; 10,033 and 9,986 shares issued and 9,514 and 9,467 shares outstanding at July 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 July 31, 2021 and October 31, 2020, respectively
  5   5 
Additional paid-in capital
  94,354   111,379 
Accumulated other comprehensive loss
  -   (60)
Accumulated deficit
  (79,378)  (91,996)
Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2021 and October 31, 2020
  (1,196)  (1,196)
Total stockholders' equity
  13,879   18,225 
Total liabilities and stockholders' equity
 24,655  54,658 
         

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)
 2021  2020  2021  2020 
 
            
Revenues
 6,779  8,487  25,332  28,093 
 
                
Costs and expenses:
                
Direct cost of revenues
  3,813   8,093   17,771   23,004 
Selling, general and administrative
  4,986   3,742   14,147   12,761 
Depreciation and amortization
  62   61   182   190 
Total costs and expenses
  8,861   11,896   32,100   35,955 
Loss from operations
  (2,082)  (3,409)  (6,768)  (7,862)
 
                
Interest (expense) income, net
  (13)  (13)  128   (33)
Other income (expense), net
  1,154   -   1,141   (61)
Net loss from continuing operations
  (941)  (3,422)  (5,499)  (7,956)
 
                
Loss from discontinued operations, net
  -   (1,126)  (1,280)  (3,818)
Gain on sale of discontinued operations
  -   -   2,123   - 
Net loss
 (941) (4,548) (4,656) (11,774)
 
                
Basic and diluted loss per share (note 2):
                
Continuing operations
 (0.09) (.35) (0.34) (.92)
Discontinued operations, net
  -   (.12)  (0.13)  (.44)
Net loss
 (0.09) (.47) (0.47) (1.36)
 
                
Weighted-average number of shares used in the calculation of basic and diluted loss per share:
  9,977   9,641   9,966   8,646 
 
                
Dividend declared per common share:
 0.00  0.00  0.00  0.00 
                 

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 
Nine months ended July 31,
(in thousands)
 2021  2020 
Operating activities:
      
Net loss
 (4,656) (11,774)
Adjustments to reconcile net loss to net cash provided by provided by operating activities:
        
Depreciation and amortization
  369   794 
Amortization of finance leases
  108   315 
Bad debt expense
  (91)  576 
Stock based compensation
  246   932 
Amortization of right-of-use asset
  631   1,210 
Gain on sale of discontinued operations
  (2,123)  - 
Loss on deconsolidation of subsidiary
  -   35 
Changes in operating assets and liabilities:
        
Trade accounts receivable
  16,837   15,136 
Inventory
  428   (410)
Prepaid expenses
  (929)  (33)
Television costs
  1,424   6,088 
Operating lease liability
  (411)  (1,243)
Trade accounts payable, accrued expenses, production costs payable and other current liabilities
  1,389   (767)
Deferred revenue
  (141)  649 
Gain on extinguishment of PPP loan
  (1,264)  - 
Gain on disposal of ROU assets
  (97)  - 
Deconsolidation of subsidiary
  -   304 
Net cash provided by operating activities
  11,720   11,812 
Investing activities:
        
Disposition of subsidiary, net of cash received
  -   (115)
Disposal of discontinued operations
  (902)  - 
Capital expenditures
  (128)  (372)
Net cash used in investing activities
  (1,030)  (487)
Financing activities:
        
Proceeds from issuance of common stock
  25   14,561 
Repayments of finance lease obligations
  -   (308)
Proceeds of government loans
  1,196   2,975 
Proceeds of bank loans
  -   1,021 
Repayments of related party loans
  -   (5,300)
Repayments of bank loans
  (14,204)  (19,726)
Net cash used in financing activities
  (12,983)  (6,777)
Effect of exchange rate changes on cash and cash equivalents
  39   (69)
Net (decrease) increase in cash and cash equivalents
  (2,254)  4,479 
Cash and cash equivalents at beginning of period
  12,162   10,165 
 
        
Cash and cash equivalents at end of period
 9,908  14,644 

# # #

SOURCE: IDW Media Holdings Inc.

IDW Media Holdings Inc.
Back to Newsroom
{{msgBox.title}}

that

Copyright 2021 © ACCESSWIRE. All rights reserved. Privacy Policy  |   Terms and Conditions