LOS ANGELES, CA and NEWARK, NJ / ACCESSWIRE / June 14, 2023 / IDW Media Holdings, Inc., (the "Company" or "IDW") (OTC:IDWM), an integrated media company, today reported results for its second quarter and six months ended April 30, 2023.
Second Quarter Fiscal 2023 (2Q23) Financial Results
- Consolidated revenue decreased 9% to $5.5 million from $6.1 million in 2Q22, reflecting revenue decline at IDW Publishing ("IDWP").
- IDWP revenue decreased to $5.4 million from $6.1 million in 2Q22 primarily due to timing of print sales to Scholastic.
- IDW Entertainment (IDWE) reported no meaningful revenue in 2Q23.
- Consolidated loss from operations was $1.9 million compared to consolidated loss from operations of $2.2 million in 2Q22.
- Net loss was $1.9 million, or $0.15 per share, compared to net loss of $2.3 million, or $0.17 per share, in 2Q22.
Consolidated P&L Highlights*
(*In millions, except per share data. Quarterly results are unaudited. Numbers may not foot due to rounding) | 2Q23 | 1Q23 | 2Q22 | |||||||||
Revenue | $ | 5.5 | $ | 6.6 | $ | 6.1 | ||||||
Direct cost of revenue | $ | 2.9 | $ | 3.4 | $ | 3.6 | ||||||
SG&A including non-cash compensation | $ | 4.4 | $ | 4.9 | $ | 4.6 | ||||||
Non-cash compensation included in SG&A | $ | 0.2 | $ | 0.2 | $ | 0.2 | ||||||
Depreciation & amortization | $ | 0.1 | $ | 0.2 | $ | 0.1 | ||||||
Loss from operations | $ | (1.9 | ) | $ | (2.0 | ) | $ | (2.2 | ) | |||
Net loss | $ | (1.9 | ) | $ | (2.0 | ) | $ | (2.3 | ) | |||
Net loss per share | $ | (0.15 | ) | $ | (0.15 | ) | $ | (0.17 | ) |
Segment P&L Highlights*
| 2Q23 | 1Q23 | 2Q22 | ||||||||||
Revenue | ||||||||||||
IDW Publishing | $ | 5.4 | $ | 6.6 | $ | 6.1 | ||||||
IDW Entertainment | $ | - | $ | - | $ | - | ||||||
Loss from operations | ||||||||||||
IDW Publishing | $ | (0.2 | ) | $ | (0.3 | ) | $ | (0.3 | ) | |||
IDW Entertainment | $ | (0.4 | ) | $ | (0.5 | ) | $ | (1.7 | ) | |||
Corporate (unallocated overhead) | $ | (1.3 | ) | $ | (1.2 | ) | $ | (0.3 | ) |
Financial Take-Aways
(2Q23 compared to 2Q22)
- Revenue:
- IDWP: In 2Q23, revenue decreased primarily due to timing of print sales to Scholastic.
- IDWE: In 2Q23, IDWE reported no meaningful revenue. IDWE recognizes revenue upon the delivery of the entertainment products it develops.
- Loss from Operations:
- IDWP: In 2Q23, loss from operations was $0.2 million, compared to loss from operations of $0.3 million in 2Q22. SG&A as a percentage of revenue was 48.6% compared to 50.9% in 2Q22.
- IDWE: In 2Q23, loss from operations was $0.4 million, compared to loss from operations of $1.7 million in 2Q22. SG&A decreased to $0.5 million compared to $1.2 million in 2Q22.
- Balance Sheet Highlights: At April 30, 2023 IDW's cash balance was $5.6 million. Working capital (current assets less current liabilities) totaled $15.1 million.
Earnings Conference Call
IDW's management will host a conference call beginning at 5:00 PM Eastern time today solely to engage in Q&A with stockholders and potential investors. To listen to the call and participate in the Q&A, dial (888) 506-0062 (domestic) or (973) 528-0011 (international) and provide the following participant code: 280106. A recording of the call will be available via streaming audio through the IDW investor relations website following the call.
About IDW Media Holdings:
IDW (OTC: 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 and other entertainment platforms and leverage established stories from our creative partners.
Forward-Looking Statements:
In this press release, all statements 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, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year ended October 30, 2022 (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), and subsequent reports filed with the SEC and OTC Markets. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
Contact:
David Jonas
Chief Executive Officer
investor.relations@idwmh.com
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data) | April 30n, 2023 (unaudited) | October 31, 2022 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,603 | $ | 10,014 | ||||
Trade accounts receivable, net | 5,757 | 6,448 | ||||||
Inventory | 4,874 | 4,285 | ||||||
Prepaid expenses and other current assets | 3,276 | 2,714 | ||||||
Total current assets | 19,510 | 23,461 | ||||||
Non-current assets | ||||||||
Property and equipment, net | 638 | 725 | ||||||
Right-of-use assets, net | 1,018 | 1,157 | ||||||
Intangible assets, net | 715 | 859 | ||||||
Goodwill | 199 | 199 | ||||||
Television costs, net | 1,597 | 1,486 | ||||||
Other assets | 54 | 54 | ||||||
Total assets | $ | 23,731 | $ | 27,941 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 1,692 | $ | 1,321 | ||||
Accrued expenses | 2,410 | 3,353 | ||||||
Production costs payable | - | 33 | ||||||
Deferred revenue | 13 | - | ||||||
Operating lease obligations - current portion | 289 | 278 | ||||||
Total current liabilities | 4,404 | 4,985 | ||||||
Non-current liabilities | ||||||||
Operating lease obligations - long term portion | 764 | 911 | ||||||
Total liabilities | $ | 5,168 | $ | 5,896 | ||||
Stockholders' equity (see Note 3): | ||||||||
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at April 30, 2023 and October 31, 2022 | - | - | ||||||
Class B common stock, $0.01 par value; authorized shares - 20,000; 14,209 and 14,053 shares issued and 13,690 and 13,534 shares outstanding at April 30, 2023 and October 31, 2022, respectively | 135 | 134 | ||||||
Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at April 30, 2023 and October 31, 2022 | 5 | 5 | ||||||
Additional paid-in capital | 104,996 | 104,553 | ||||||
Accumulated deficit | (85,377 | ) | (81,451 | ) | ||||
Treasury stock, at cost, consisting of 519 shares of Class B common stock at April 30, 2023 and October 31, 2022 | (1,196 | ) | (1,196 | ) | ||||
Total stockholders' equity | 18,563 | 22,045 | ||||||
Total liabilities and stockholders' equity | $ | 23,731 | $ | 27,941 | ||||
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
(in thousands, except per share data) | April 30, 2023 | April 30, 2022 | April 30, 2023 | April 30, 2022 | ||||||||||||
Revenues | $ | 5,487 | $ | 6,053 | $ | 12,080 | $ | 17,902 | ||||||||
Costs and expenses: | ||||||||||||||||
Direct cost of revenues | 2,900 | 3,597 | 6,348 | 8,387 | ||||||||||||
Selling, general and administrative | 4,419 | 4,600 | 9,352 | 9,591 | ||||||||||||
Depreciation and amortization | 86 | 100 | 288 | 184 | ||||||||||||
Total costs and expenses | 7,405 | 8,297 | 15,988 | 18,162 | ||||||||||||
Loss from operations | (1,918 | ) | (2,244 | ) | (3,908 | ) | (260 | ) | ||||||||
Interest income (expense), net | 2 | - | 30 | (10 | ) | |||||||||||
Other (expense) income, net | (12 | ) | (9 | ) | (48 | ) | 6 | |||||||||
Net loss | $ | (1,928 | ) | $ | (2,253 | ) | $ | (3,926 | ) | $ | (264 | ) | ||||
Basic and diluted loss per share (see note 2): | ||||||||||||||||
Net Loss | $ | (0.15 | ) | $ | (0.17 | ) | $ | (0.30 | ) | $ | (0.02 | ) | ||||
Weighted-average number of shares used in the calculation of basic and diluted loss per share: | 13,061 | 12,906 | 12,996 | 12,895 | ||||||||||||
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Six Months Ended | ||||||||
(in thousands) | April 30, 2023 | April 30, 2022 | ||||||
Operating activities: | ||||||||
Net loss | $ | (3,926 | ) | $ | (264 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Amortization of television costs | (156 | ) | 999 | |||||
Impairment of television costs | 41 | 155 | ||||||
Depreciation and amortization | 288 | 184 | ||||||
Loss on disposal of property and equipment | 49 | - | ||||||
Bad debt expense | 13 | - | ||||||
Stock based compensation | 444 | 309 | ||||||
Amortization of right-of-use asset | 139 | 244 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable | 678 | 673 | ||||||
Inventory | (589 | ) | (201 | ) | ||||
Prepaid expenses and other assets | (562 | ) | 21 | |||||
Television costs | 4 | (1,205 | ) | |||||
Operating lease liability | (136 | ) | (308 | ) | ||||
Trade accounts payable, accrued expenses, production costs payable and other current liabilities | (605 | ) | (1,985 | ) | ||||
Deferred revenue | 13 | (2,037 | ) | |||||
Net cash used in operating activities | (4,305 | ) | (3,415 | ) | ||||
Investing activities: | ||||||||
Capital expenditures | (106 | ) | (436 | ) | ||||
Net cash used in investing activities | (106 | ) | (436 | ) | ||||
Financing activities: | ||||||||
Net cash provided by (used in) financing activities | - | - | ||||||
Net decrease in cash and cash equivalents | (4,411 | ) | (3,851 | ) | ||||
Cash and cash equivalents at beginning of period | 10,014 | 17,532 | ||||||
Cash and cash equivalents at end of period | $ | 5,603 | $ | 13,681 | ||||
SOURCE: IDW Media Holdings Inc.
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