Twitter

Link your Twitter Account to Market Wire News


When you linking your Twitter Account Market Wire News Trending Stocks news and your Portfolio Stocks News will automatically tweet from your Twitter account.


Be alerted of any news about your stocks and see what other stocks are trending.

home / news releases / IDWM - IDW Reports Third Quarter Fiscal Year 2020 Results

IDWM - IDW Reports Third Quarter Fiscal Year 2020 Results

IDW Media Holdings Inc

Publishing Overcomes COVID-19 Challenges to Deliver Solid Operational and Financial Results
First Half of Wynonna Earp's Season 4 Airs on SYFY - Drives Year Over Year Revenue Increase

NEWARK, NJ and LOS ANGELES, CA / ACCESSWIRE / September 14, 2020 / IDW Media Holdings, Inc. (OTC PINK:IDWM), an integrated media company, today reported a third quarter net loss per share of $(0.47) on revenue of $8.5 million for the three months ended July 31, 2020.

Operational Highlights

  • SYFY has aired the first half of season four of IDW's live-action series Wynonna Earp. The balance of production - episodes 7-12 - resumed after a COVID-19 driven delay.
  • IDW and its Top Shelf imprint were again honored with multiple Will Eisner Comic Industry Awards in 2020. ‘They Called Us Enemy' by George Takei, Justin Eisinger, Steven Scott, and Harmony Becker was named the "Best Reality-Based Work." Stan Sakai was named "Best Letterer" for his work on the monthly full-color Usagi Yojimbo comic book series published by IDW. Sakai's ‘Usagi Yojimbo: Grasscutter Artist Select,' a hardcover collection edited by IDW's Scott Dunbier, was named "Best Archival Collection/Project - Comic Books."
  • IDW and Top Shelf were nominated for three Ignatz Awards, which recognizes exceptional works that challenge popular notions of what comics can achieve.
  • IDW's publishing operations welcomed the resumption of direct market distribution early in the third quarter. Subsequent sales have gradually strengthened, augmented by robust sales through the library, digital comic, and book markets as well as web store and foreign sales.
  • The sale of CTM, IDW's tourism-focused brochure distribution and marketing company, is pending lender and SBA approval related to its PPP loans.

Comments of Ezra Rosensaft, Chief Executive Officer

"First and foremost, a big thank you to my IDW colleagues across the Company for their extraordinary work and dedication. Thanks to them, IDW overcame the challenges of the COVID-19 pandemic to put together a solid quarter with minimal disruption to our customers and partners.

"In the third quarter, IDW's publishing operations continued to be impacted by the closure of many comic shops and our direct market distributor, Diamond, in the spring. On May 20th, Diamond resumed operations on a limited basis. However, direct market volumes have not yet recovered to pre-pandemic levels.

"Our publishing team, to its great credit, pivoted quickly… aggressively and successfully pursuing sales through the indirect market and direct-to-consumer channels. Sales of popular backlisted titles - including the late Congressman John Lewis' ‘March' trilogy, Alan Roberts' ‘Beauty of Horror' coloring books, ‘Teenage Mutant Ninja Turtles' titles and Joe Hill's and Gabriel Rodriquez's ‘Locke & Key' titles - were particularly strong. The latter have benefitted enormously from the success of season one of the eponymous Netflix series.

"We expect further improvement in the coming quarters as we secure better economics from our licensing deals while building our IP library to align with our entertainment division's development priorities. And I am very excited about the management team we have put in place to execute on those priorities.

"At IDW Entertainment, the first six episodes of Wynonna Earp season 4 have now aired on SYFY. Production of the second half of the season - delayed by COVID-19 - has resumed. The start of production of Locke & Key's season 2, which was ordered by Netflix this spring following the success of season one, is planned for later this month.

"At the corporate level, we continue to move forward toward re-registration with the SEC and will then seek a national exchange listing to increase IDW's visibility and liquidity in the capital markets.

"Wrapping up, I want to thank Howard Jonas and IDW's Board of Directors for entrusting me with the CEO position. It's a great honor to lead our talented team and I look forward to working with them to fulfill IDW's promise and potential."

Consolidated P&L Highlights
(Numbers may not foot due to rounding)

(in millions, except net loss per share, unaudited)

3Q20

2Q20

3Q19

Revenue

$8.5

$9.3

$5.4

Direct cost of revenue

$8.1

$3.3

$3.3

SG&A including non-cash compensation

$3.7

$4.6

$4.0

Non-cash compensation

$0.5

$0.2

$0.6

Depreciation & amortization

$0.1

$0.1

$0.1

(Loss) income from continuing operations

$(3.4)

$1.3

$(2.0)

(Loss) income from discontinued operations

$(1.1)

$(1.6)

$0.5

Net loss

$(4.5)

$(0.4)

$(1.5)

Net loss per share

$(0.47)

$(0.04)

$(0.20)


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

(in millions, unaudited)

3Q20

2Q20

3Q19

Revenue

IDW Publishing

$5.2

$4.7

$5.3

IDW Entertainment

$3.3

$4.6

-

CTM*

NA

NA

NA

Income (loss) from operations*

IDW Publishing

-

$(0.6)

$(1.2)

IDW Entertainment

$(3.2)

$2.2

$(0.8)

CTM - ((Loss) income from discontinued operations)*

$(1.1)

$(1.6)

$0.5

*CTM's results are reported as ‘Net (loss) income from discontinued operations' in the third quarter fiscal 2020 and all prior periods presented.

Financial Take-Aways

  • Revenue: The year over year increase in consolidated revenue reflected delivery of the first five episodes of Wynonna Earp's season four (S4) and an increase in accruals for certain tax credits.
  • Loss from Operations: IDW Publishing generated year over year improvement for the second consecutive quarter despite the challenges related to COVID-19. The year over year increase in IDW's consolidated loss from operations resulted from production expenses realized upon delivery of the first five Wynonna Earp S4 episodes and reversal of certain accruals partially offset by the improved results from IDW Publishing.
  • Balance Sheet Highlights: At July 31st, IDW's cash balance decreased to $12.5 million from $14.7 million at April 30th. Working capital (current assets less current liabilities) decreased to $15.1 million from $18.7 million over the same period.
  • CTM Media: Results from CTM Media were reported as a net loss from discontinued operations of $1.1 million in 3Q20 compared to net income from discontinued operations of $474 thousand in 3Q19.

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 beginning approximately three hours after the call concludes through September 21, 2020 by dialing 1-844-512-2921 (toll free - U.S.) or 1-412-317-6671 (toll - international) and providing this replay PIN number: 13708399. A replay will also be available via streaming audio through the IDW investor relations website.

About IDW
IDW Media Holdings, Inc. (OTC PINK:IDWM) is an integrated media company. IDW's businesses include IDW Publishing - a leading publisher of comic books and graphic novels, IDW Entertainment - a producer and distributor of franchise content through television and other media, and CTM Media Group - one of North America's largest distributors of information for tourists and travelers.

Investor Contact
IDW Media Investor Relations
investor.relations@idwmh.com

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data) (unaudited)
July 31,
2020
October 31,
2019
Assets
Current assets:
Cash and cash equivalents
$
12,488
$
7,543
Trade accounts receivable, net
28,354
43,462
Taxes receivable
513
-
Inventory
3,724
3,313
Prepaid expenses
1,449
1,319
Current assets held for sale from discontinued operations
12,635
5,186
Total current assets
59,163
60,823
Property and equipment, net
434
562
Right-of-use assets, net
884
-
Non-current assets
Taxes receivable
-
513
Investments
25
Intangible assets, net
63
115
Goodwill
199
199
Television costs
3,300
9,388
Other assets
633
372
Non-current assets held for sale from discontinued operations
-
5,165
Total assets
$
64,701
$
77,137
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable
$
786
$
2,145
Accrued expenses
5,452
3,036
Deferred revenue
1,915
1,058
Bank loans payable - current portion
21,037
29,242
Related party loans payable - current portion
-
4,550
Government loans- current portion
592
-
Operating lease obligations - current portion
541
-
Other current liabilities
33
2,007
Current liabilities held for sale from discontinued operations
9,526
3,344
Total current liabilities
39,882
45,382
Non-current liabilities
Operating lease obligations - long term portion
520
-
Bank loans payable - long term portion
-
10,500
Government loans - long term portion
603
-
Related party loans payable - long term portion
3,750
4,500
Non-current liabilities held for sale from discontinued operations
-
683
Total non-current liabilities
4,873
15,683
Total liabilities
$
44,755
$
61,065
Stockholders' equity (see note 3):
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2020 and October 31, 2019
-
-
Class B common stock, $0.01 par value; authorized shares - 12,000; 9,927 and 7,419 shares issued and 9,407 and 6,899 shares outstanding at July 31, 2020 and October 31, 2019, respectively
93
74
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July 31, 2020 and October 31, 2019
5
5
Stock subscription receivable
-
(1,000
)
Additional paid-in capital
111,145
96,671
Accumulated other comprehensive loss
(129)
(60
)
Accumulated deficit
(89,972)
(78,457
)
Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2020 and October 31, 2019
(1,196)
(1,196
)
Total IDW Media Holdings Inc. stockholders' equity
19,946
16,037
Non-controlling interest
-
35
Total stockholders' equity
19,946
16,072
Total liabilities and stockholders' equity
$
64,701
$
77,137

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)
2020
2019
2020
2019
Revenues
$
8,487
$
5,373
$
28,093
$
14,456
Costs and expenses:
Direct cost of revenues
8,093
3,299
23,004
8,998
Selling, general and administrative
3,742
3,999
12,761
12,280
Depreciation and amortization
61
72
190
217
Bad debt expense
-
-
-
33
Total costs and expenses
11,896
7,370
35,955
21,528
Loss from operations
(3,409)
(1,997
)
(7,862)
(7,072
)
Interest expense, net
(13)
(1
)
(33)
(160
)
Other income (expense), net
-
12
(61)
1
Loss before income taxes
(3,422)
(1,986
)
(7,956)
(7,231
)
(Provision for) benefit from income taxes
-
-
-
-
Net loss from continuing operations
(3,422)
(1,986
)
(7,956)
(7,231
)
(Loss) income from discontinued operations, net
(1,126)
474
(3,818)
(2,120
)
Net loss
(4,548)
(1,512
)
(11,774)
(9,351
)
Net income attributable to non-controlling interests
-
28
-
28
Net loss attributable to IDW Media Holdings, Inc
$
(4,548)
$
(1,484
)
$
(11,774)
$
(9,323
)
Basic and diluted income (loss) per share (note 3):
Continuing operations
$
(.35)
$
(.27
)
$
(.44)
$
(1.11
)
Discontinued operations, net
(.12)
.07
(.92)
(.32
)
Net loss
$
(.47)
$
(.20
)
$
(1.36)
$
(1.43
)
Weighted-average number of shares used in the calculation of basic and diluted loss per share:
9,641
7,339
8,646
6,541
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)
2020
2019
Operating activities:
Net loss
$
(11,774)
$
(9,351
)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization
794
1,141
Amortization of finance leases
315
-
Bad debt expense
576
82
Stock based compensation
567
2,518
Stock options
365
-
Amortization of right-of-use asset
1,210
-
Loss on deconsolidation of subsidiary
35
-
Changes in assets and liabilities:
Trade accounts receivable
15,136
9,195
Inventory
(410)
75
Prepaid expenses and other assets
(33)
(647
)
Television costs
6,088
(18,776
)
Operating lease liability
(1,243)
-
Trade accounts payable, accrued expenses and other current liabilities
(767)
(6,712
)
Deferred revenue
649
1,673
Deconsolidation of subsidiary
304
-
Net cash provided by (used in) operating activities
11,812
(20,802
)
Investing activities:
Disposition of subsidiary, net of cash received
(115)
Capital expenditures
(372)
(604
)
Business acquisitions
-
(12
)
Net cash used in investing activities
(487)
(616
)
Financing activities:
Proceeds from issuance of common stock
14,561
22,751
Repayments of finance lease obligations
(308)
6
Repayments of capital lease obligations
-
(304
)
Proceeds of related party loans
-
9,000
Proceeds of government loans
2,975
-
Proceeds of bank loans
1,021
18,438
Repayments of related party loans
(5,300)
(19,000
)
Repayments of bank loans
(19,726)
(9,378
)
Net cash provided by (used in) financing activities
(6,777)
21,513
Effect of exchange rate changes on cash and cash equivalents
(69)
145
Net increase in cash and cash equivalents
4,479
240
Cash and cash equivalents at beginning of period
10,165
13,445
Cash and cash equivalents at end of period
$
14,644
$
13,685
Supplemental schedule of investing and financing activities
Cash paid for interest
$
27
$
216
Cash paid for income taxes
$
-
$
18
Nine months ended July 31,
(in thousands)
2020
2019
Operating activities:
Net loss
$
(11,774)
$
(9,351
)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization
794
1,141
Amortization of finance leases
315
-
Bad debt expense
576
82
Stock based compensation
567
2,518
Stock options
365
-
Amortization of right-of-use asset
1,210
-
Loss on deconsolidation of subsidiary
35
-
Changes in assets and liabilities:
Trade accounts receivable
15,136
9,195
Inventory
(410)
75
Prepaid expenses and other assets
(33)
(647
)
Television costs
6,088
(18,776
)
Operating lease liability
(1,243)
-
Trade accounts payable, accrued expenses and other current liabilities
(767)
(6,712
)
Deferred revenue
649
1,673
Deconsolidation of subsidiary
304
-
Net cash provided by (used in) operating activities
11,812
(20,802
)
Investing activities:
Disposition of subsidiary, net of cash received
(115)
Capital expenditures
(372)
(604
)
Business acquisitions
-
(12
)
Net cash used in investing activities
(487)
(616
)
Financing activities:
Proceeds from issuance of common stock
14,561
22,751
Repayments of finance lease obligations
(308)
6
Repayments of capital lease obligations
-
(304
)
Proceeds of related party loans
-
9,000
Proceeds of government loans
2,975
-
Proceeds of bank loans
1,021
18,438
Repayments of related party loans
(5,300)
(19,000
)
Repayments of bank loans
(19,726)
(9,378
)
Net cash provided by (used in) financing activities
(6,777)
21,513
Effect of exchange rate changes on cash and cash equivalents
(69)
145
Net increase in cash and cash equivalents
4,479
240
Cash and cash equivalents at beginning of period
10,165
13,445
Cash and cash equivalents at end of period
$
14,644
$
13,685
Supplemental schedule of investing and financing activities
Cash paid for interest
$
27
$
216
Cash paid for income taxes
$
-
$
18

SOURCE: IDW Media Holdings, Inc.



View source version on accesswire.com:
https://www.accesswire.com/606039/IDW-Reports-Third-Quarter-Fiscal-Year-2020-Results
Stock Information
Company Name: IDW Media Holdings Inc
Stock Symbol: IDWM
Market: OTC
Website: idwmediaholdings.com
Menu
IDWM IDWM Quote IDWM Short IDWM News IDWM Articles IDWM Message Board
Get IDWM Alerts

News, Short Squeeze, Breakout and More Instantly...