Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries IDW Announces Results for Third Quarter of Fiscal 2022 By: ACCESSWIRE September 14, 2022 at 16:05 PM EDT LOS ANGELES, CA and NEWARK, NJ / ACCESSWIRE / September 14, 2022 / IDW Media Holdings , Inc., ("IDW") (NYSE American:IDW), an integrated media company, today reported results for its third quarter and nine months ended July 31, 2022.Third Quarter Fiscal 2022 (3Q22) Developments(3Q22 results are compared to 3Q21)Consolidated revenue increased 14% to $7.7 million from $6.8 million reflecting revenue growth of $1.2 million at IDW Entertainment (IDWE), offset by a modest decrease in revenue at IDW Publishing (IDWP).IDWP revenue of $6.6 million decreased 3% from $6.8 million, primarily related to a temporary decline in the direct market related to the strong comic release of TMNT The Last Ronin #3 in the prior year, fewer titles being released, and the Penguin Random House distributor transition, as well as a decline in digital sales, offset by strong exclusive Scholastic sales of Sonic the Hedgehog and They Called Us Enemy.IDWE generated revenue of $1.2 million, compared to generating no measurable revenue in 3Q21. During the quarter, IDWE recognized $1.1 million in revenue related to the delivery of 10 episodes of Surfside Girls . The Company expects to recognize revenue in 4Q22 from the delivery of season 3 of Locke & Key.Consolidated loss from operations was $0.8 million compared to a consolidated loss from operations of $2.1 million.IDW's net loss was $0.8 million, or $0.06 per share, compared to net loss of $0.9 million, or $0.09 per share.After the quarter close, IDWE announced that it has five television series in development with leading studios, networks, and streamers. The projects originated from IDWP graphic novels and comics series.On August 30, 2022, IDW announced its first co-development deal with writing team Matt Silverstein and Dave Jeser for the development and production of the sci-fi feature film comedy "Family Time" into a television series and original comic book property.Following the close of the quarter, IDW announced the appointment of Allan Grafman as CEO.First Nine Months Fiscal Year 2022 Developments(First nine months of fiscal 2022 results are compared to first nine months of fiscal 2021)Consolidated revenue increased to $25.6 million from $25.3 million.IDWP revenue increased 9% to $20.1 million from $18.4 million. The increase was driven primarily by an increase in games revenue from the direct-to-consumer games campaign for Batman Adventures and an increase in retailer exclusive revenue related to Sonic the Hedgehog and Transformers, as well as strong book market sales of TMNT The Last Ronin Collection Hardcover and They Called Us Enemy , offset by various decreases in direct market revenues due to TMNT The Last Ronin comic releases in the prior year, distributor transition to Penguin Random House, and fewer titles being released during the period compared to the prior year .IDWE revenue decreased to $5.5 million from $6.9 million. Revenue for the first nine months of 2022 included the full delivery of Locke & Key season two and the full delivery of Surfside Girls season one. In the nine months ended July 31, 2021, revenues included $3.4 million from the delivery of episodes of Wynonna Earp as well as tax credits of $3.3 million for V Wars and October Faction .IDW's net loss improved to $1.1 million or $0.09 per share from a net loss of $4.7 million or $0.47 per share. The improvement reflects the transition to media production financing models at IDWE that emphasize predictable returns.Comments from Allan Grafman, Chief Executive Officer"Our third quarter demonstrated continued progress and, as expected, revenue growth of 14%, primarily related to our delivery of the first season of Surfside Girls, which was offset slightly by a decrease in revenue from our publishing division due to fewer titles being released in the quarter. Looking forward, as we move toward the close of our fiscal year, we expect to realize revenue and bottom-line contributions from the fourth quarter delivery of season 3 of Locke & Key . With our heightened focus on original content, we're encouraged by the rate at which we're adding new entertainment properties to our roster. We have a lot of work to do, but I am confident that, as we build the development pipeline while at the same time completing and delivering projects, we will drive long term growth and a more predictable revenue cadence."We are committed to sharpening our focus on acquiring and developing original IP content and we are beginning to see solid traction from our efforts to expand our publishing library. To that end, in early August we announced five series development deals with a range of well-known studios, networks and streaming services, to develop television series based on our IDWP and Top-Shelf Productions graphic novels and comics. Our originals represent some of the most creative characters and stories available and we look forward to continuing to tap our robust library for adaptation into compelling series, feature films and podcasts with the industry's leading authors and content creators."Additionally, we recently announced our first co-development deal with Matt Silverstein and Dave Jeser for the launch of a comic book and television series based on the comedy sci-fi film Family Time . Through creative partnerships between our Entertainment and Publishing divisions, we can open up new distribution avenues for our projects with the goal of bringing compelling new content to the broadest audiences across multiple platforms. We are seeing tremendous response to our original titles as well as heightened industry recognition for our value as a collaborative and independent creative partner. We remain focused on driving strategic growth by partnering with creators to develop iconic characters and stories that will resonate across diverse media platforms."Consolidated P&L Highlights(In millions, except loss per share, unaudited. Numbers may not foot due to rounding) 3Q22 2Q22 3Q21 Revenue $7.7 $6.1 $6.8 Direct cost of revenue $3.7 $3.6 $3.8 SG&A, including non-cash compensation $4.7 $4.6 $5.0 Non-cash compensation included in SG&A $0.2 $0.2 $0.1 Depreciation & amortization $0.1 $0.1 $0.1 Loss from continuing operations $(0.8) $(2.2) $(2.1) Net loss $(0.8) $(2.3) $(0.9) Loss per share from continuing operations $(0.06) $(0.17) $(0.09) Net loss per share $(0.06) $(0.17) $(0.09) Segment P&L Highlights(in millions, unaudited. Numbers may not foot due to rounding) 3Q22 2Q22 3Q21 Revenue IDW Publishing $6.6 $6.1 $6.8 IDW Entertainment $1.2 $- $- (Loss) income from operations IDW Publishing $(0.6) $(0.3) $0.1 IDW Entertainment $- $(1.7) $(1.8)Corporate (unallocated overhead) $(0.2) $(0.3) $(0.3)Financial Take-Aways (3Q22 compared to 3Q21)Revenue:IDWP: In 3Q22, revenue decreased slightly due to lower direct market and digital sales. The Company continues to invest in original titles and expects increased revenue from new original titles through the balance of 2022 and beyond.IDWE: In 3Q22, IDWE reported revenue of $1.2 million primarily related to the full delivery of season one of Surfside Girls, compared to no meaningful revenue in the same period of 2021. The Company expects to recognize revenue in 4Q22 from the delivery of season 3 of Locke & Key .(Loss) Income from Operations:IDWP: In 3Q22, loss from operations was $0.6 million, compared to income from operations of $0.1 million 3Q21. SG&A as a percentage of revenue was 52.3% compared to 46.4% in 3Q21.IDWE: In 3Q22, income from operations was $48,000, compared to a loss from operations of $1.9 million in 3Q21. SG&A decreased to $1.0 million compared to $1.5 million in 3Q21 as IDWE reduced its salary and benefits and consulting expenses.Balance Sheet Highlights: At July 31, 2022, IDW's cash balance was $10.3 million. Working capital (current assets less current liabilities) totaled $18.1 million.Earnings Conference CallIDW's management will host an earnings conference call beginning at 5:00 PM Eastern time 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 (877) 704-4453 (domestic) or (201) 389-0920 (international) and request the ‘IDW Media call.'A replay of the conference call can be accessed approximately three hours after the call concludes through Wednesday, September 21, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and providing the replay pin: 13732635. A recording of the conference call will also be available via streaming audio through the IDW investor relations website .About IDW Media Holdings: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.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 within the meaning of the Private Securities Litigation Reform Act of 1995. 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, 2021 (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), and subsequent quarterly reports on Form 10-Q. 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:John Nesbett/Jennifer BelodeauIMS Investor Relationsidw@imsinvestorrelations.comIDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share data) July 31, 2022(unaudited) October 31, 2021 Assets Current assets: Cash and cash equivalents $10,249 $17,532 Trade accounts receivable, net 7,086 5,431 Inventory 3,564 3,090 Prepaid expenses and other current assets 2,593 2,270 Total current assets 23,492 28,323 Non-current assets Property and equipment, net 681 347 Right-of-use assets, net 417 302 Intangible assets, net 869 679 Goodwill 199 199 Television costs 1,451 1,487 Other assets 77 61 Total assets $27,186 $31,398 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $2,125 $1,141 Accrued expenses 3,070 3,786 Production costs payable 72 2,010 Deferred revenue - 2,045 Operating lease obligations - current portion 117 348 Total current liabilities 5,384 9,330 Non-current liabilities Operating lease obligations - long term portion 309 20 Total liabilities $5,693 $9,350 Stockholders' equity (see note 3): Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2022 and October 31, 2021 - - Class B common stock, $0.01 par value; authorized shares - 20,000; 14,053 and 12,938 shares issued and 13,534 and 12,419 shares outstanding at July 31, 2022 and October 31, 2021, respectively 134 123 Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July 31, 2022 and October 31, 2021 5 5 Additional paid-in capital 104,354 103,819 Accumulated deficit (81,804) (80,703)Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2022 and October 31, 2021 (1,196) (1,196)Total stockholders' equity 21,493 22,048 Total liabilities and stockholders' equity $27,186 $31,398 IDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended (in thousands, except per share data) July 31, 2022 July 31, 2021 July 31, 2022 July 31, 2021 Revenues $7,712 $6,779 $25,615 $25,332 Costs and expenses: Direct cost of revenues 3,734 3,813 12,121 17,771 Selling, general and administrative 4,672 4,986 14,264 14,147 Depreciation and amortization 74 62 258 182 Total costs and expenses 8,480 8,861 26,643 32,100 Loss from operations (768) (2,082) (1,028) (6,768) Interest expense, net - (13) (10) 128 Other (expense) income, net (69) 1,154 (63) 1,141 Net loss from continuing operations (837) (941) (1,101) (5,499) Loss from discontinued operations, net - - - (1,280)Gain on sale of discontinued operations - - - 2,123 Net gain on discontinued operations - - - 843 Net loss $(837) $(941) $(1,101) $(4,656) Basic and diluted (loss) income per share (see note 2): Continuing operations $(0.06) $(0.09) $(0.09) $(0.55)Discontinued operations, net - - 0.08 Net loss $(0.06) $(0.09) $(0.09) $(0.47) Weighted-average number of shares used in the calculation of basic and diluted (loss) income per share: 12,914 9,977 12,901 9,966 IDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended (in thousands) July 31, 2022 July 31, 2021 Operating activities: Net loss $(1,101) $(4,656)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 258 369 Amortization of finance leases - 108 Bad debt recovery - (91)Stock based compensation 546 246 Amortization of right-of-use asset 327 631 Gain on extinguishment of PPP Loans - (1,264)Gain on sale of discontinued operations - (2,123)Changes in operating assets and liabilities: Trade accounts receivable (1,655) 16,837 Inventory (474) 428 Prepaid expenses and other assets (339) (929)Television costs 36 1,424 Operating lease liability (384) (411)Trade accounts payable, accrued expenses, production costs payable and other current liabilities (1,670) 1,389 Deferred revenue (2,045) (141)Gain on disposal of ROU assets - (97)Net cash (used in) provided by in operating activities (6,501) 11,720 Investing activities: Disposal of discontinued operations - (902)Capital expenditures (782) (128)Net cash used in investing activities (782) (1,030)Financing activities: Proceeds from issuance of common stock - 25 Proceeds from government loans - 1,196 Repayments of bank loans - (14,204)Net cash used in financing activities - (12,983)Effect of exchange rate changes on cash and cash equivalents - 39 Net decrease in cash and cash equivalents (7,283) (2,254)Cash and cash equivalents at beginning of period 17,532 12,162 Cash and cash equivalents at end of period $10,249 $9,908 Supplemental schedule of investing and financing activities Cash paid for interest $- $1,277 Non-cash investing and financing activities Extinguishment of related party loan in exchange for sale of CTM (see note 14) $- $3,750 SOURCE: IDW Media Holdings Inc.View source version on accesswire.com: https://www.accesswire.com/716025/IDW-Announces-Results-for-Third-Quarter-of-Fiscal-2022 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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IDW Announces Results for Third Quarter of Fiscal 2022 By: ACCESSWIRE September 14, 2022 at 16:05 PM EDT LOS ANGELES, CA and NEWARK, NJ / ACCESSWIRE / September 14, 2022 / IDW Media Holdings , Inc., ("IDW") (NYSE American:IDW), an integrated media company, today reported results for its third quarter and nine months ended July 31, 2022.Third Quarter Fiscal 2022 (3Q22) Developments(3Q22 results are compared to 3Q21)Consolidated revenue increased 14% to $7.7 million from $6.8 million reflecting revenue growth of $1.2 million at IDW Entertainment (IDWE), offset by a modest decrease in revenue at IDW Publishing (IDWP).IDWP revenue of $6.6 million decreased 3% from $6.8 million, primarily related to a temporary decline in the direct market related to the strong comic release of TMNT The Last Ronin #3 in the prior year, fewer titles being released, and the Penguin Random House distributor transition, as well as a decline in digital sales, offset by strong exclusive Scholastic sales of Sonic the Hedgehog and They Called Us Enemy.IDWE generated revenue of $1.2 million, compared to generating no measurable revenue in 3Q21. During the quarter, IDWE recognized $1.1 million in revenue related to the delivery of 10 episodes of Surfside Girls . The Company expects to recognize revenue in 4Q22 from the delivery of season 3 of Locke & Key.Consolidated loss from operations was $0.8 million compared to a consolidated loss from operations of $2.1 million.IDW's net loss was $0.8 million, or $0.06 per share, compared to net loss of $0.9 million, or $0.09 per share.After the quarter close, IDWE announced that it has five television series in development with leading studios, networks, and streamers. The projects originated from IDWP graphic novels and comics series.On August 30, 2022, IDW announced its first co-development deal with writing team Matt Silverstein and Dave Jeser for the development and production of the sci-fi feature film comedy "Family Time" into a television series and original comic book property.Following the close of the quarter, IDW announced the appointment of Allan Grafman as CEO.First Nine Months Fiscal Year 2022 Developments(First nine months of fiscal 2022 results are compared to first nine months of fiscal 2021)Consolidated revenue increased to $25.6 million from $25.3 million.IDWP revenue increased 9% to $20.1 million from $18.4 million. The increase was driven primarily by an increase in games revenue from the direct-to-consumer games campaign for Batman Adventures and an increase in retailer exclusive revenue related to Sonic the Hedgehog and Transformers, as well as strong book market sales of TMNT The Last Ronin Collection Hardcover and They Called Us Enemy , offset by various decreases in direct market revenues due to TMNT The Last Ronin comic releases in the prior year, distributor transition to Penguin Random House, and fewer titles being released during the period compared to the prior year .IDWE revenue decreased to $5.5 million from $6.9 million. Revenue for the first nine months of 2022 included the full delivery of Locke & Key season two and the full delivery of Surfside Girls season one. In the nine months ended July 31, 2021, revenues included $3.4 million from the delivery of episodes of Wynonna Earp as well as tax credits of $3.3 million for V Wars and October Faction .IDW's net loss improved to $1.1 million or $0.09 per share from a net loss of $4.7 million or $0.47 per share. The improvement reflects the transition to media production financing models at IDWE that emphasize predictable returns.Comments from Allan Grafman, Chief Executive Officer"Our third quarter demonstrated continued progress and, as expected, revenue growth of 14%, primarily related to our delivery of the first season of Surfside Girls, which was offset slightly by a decrease in revenue from our publishing division due to fewer titles being released in the quarter. Looking forward, as we move toward the close of our fiscal year, we expect to realize revenue and bottom-line contributions from the fourth quarter delivery of season 3 of Locke & Key . With our heightened focus on original content, we're encouraged by the rate at which we're adding new entertainment properties to our roster. We have a lot of work to do, but I am confident that, as we build the development pipeline while at the same time completing and delivering projects, we will drive long term growth and a more predictable revenue cadence."We are committed to sharpening our focus on acquiring and developing original IP content and we are beginning to see solid traction from our efforts to expand our publishing library. To that end, in early August we announced five series development deals with a range of well-known studios, networks and streaming services, to develop television series based on our IDWP and Top-Shelf Productions graphic novels and comics. Our originals represent some of the most creative characters and stories available and we look forward to continuing to tap our robust library for adaptation into compelling series, feature films and podcasts with the industry's leading authors and content creators."Additionally, we recently announced our first co-development deal with Matt Silverstein and Dave Jeser for the launch of a comic book and television series based on the comedy sci-fi film Family Time . Through creative partnerships between our Entertainment and Publishing divisions, we can open up new distribution avenues for our projects with the goal of bringing compelling new content to the broadest audiences across multiple platforms. We are seeing tremendous response to our original titles as well as heightened industry recognition for our value as a collaborative and independent creative partner. We remain focused on driving strategic growth by partnering with creators to develop iconic characters and stories that will resonate across diverse media platforms."Consolidated P&L Highlights(In millions, except loss per share, unaudited. Numbers may not foot due to rounding) 3Q22 2Q22 3Q21 Revenue $7.7 $6.1 $6.8 Direct cost of revenue $3.7 $3.6 $3.8 SG&A, including non-cash compensation $4.7 $4.6 $5.0 Non-cash compensation included in SG&A $0.2 $0.2 $0.1 Depreciation & amortization $0.1 $0.1 $0.1 Loss from continuing operations $(0.8) $(2.2) $(2.1) Net loss $(0.8) $(2.3) $(0.9) Loss per share from continuing operations $(0.06) $(0.17) $(0.09) Net loss per share $(0.06) $(0.17) $(0.09) Segment P&L Highlights(in millions, unaudited. Numbers may not foot due to rounding) 3Q22 2Q22 3Q21 Revenue IDW Publishing $6.6 $6.1 $6.8 IDW Entertainment $1.2 $- $- (Loss) income from operations IDW Publishing $(0.6) $(0.3) $0.1 IDW Entertainment $- $(1.7) $(1.8)Corporate (unallocated overhead) $(0.2) $(0.3) $(0.3)Financial Take-Aways (3Q22 compared to 3Q21)Revenue:IDWP: In 3Q22, revenue decreased slightly due to lower direct market and digital sales. The Company continues to invest in original titles and expects increased revenue from new original titles through the balance of 2022 and beyond.IDWE: In 3Q22, IDWE reported revenue of $1.2 million primarily related to the full delivery of season one of Surfside Girls, compared to no meaningful revenue in the same period of 2021. The Company expects to recognize revenue in 4Q22 from the delivery of season 3 of Locke & Key .(Loss) Income from Operations:IDWP: In 3Q22, loss from operations was $0.6 million, compared to income from operations of $0.1 million 3Q21. SG&A as a percentage of revenue was 52.3% compared to 46.4% in 3Q21.IDWE: In 3Q22, income from operations was $48,000, compared to a loss from operations of $1.9 million in 3Q21. SG&A decreased to $1.0 million compared to $1.5 million in 3Q21 as IDWE reduced its salary and benefits and consulting expenses.Balance Sheet Highlights: At July 31, 2022, IDW's cash balance was $10.3 million. Working capital (current assets less current liabilities) totaled $18.1 million.Earnings Conference CallIDW's management will host an earnings conference call beginning at 5:00 PM Eastern time 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 (877) 704-4453 (domestic) or (201) 389-0920 (international) and request the ‘IDW Media call.'A replay of the conference call can be accessed approximately three hours after the call concludes through Wednesday, September 21, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and providing the replay pin: 13732635. A recording of the conference call will also be available via streaming audio through the IDW investor relations website .About IDW Media Holdings: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.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 within the meaning of the Private Securities Litigation Reform Act of 1995. 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, 2021 (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), and subsequent quarterly reports on Form 10-Q. 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:John Nesbett/Jennifer BelodeauIMS Investor Relationsidw@imsinvestorrelations.comIDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share data) July 31, 2022(unaudited) October 31, 2021 Assets Current assets: Cash and cash equivalents $10,249 $17,532 Trade accounts receivable, net 7,086 5,431 Inventory 3,564 3,090 Prepaid expenses and other current assets 2,593 2,270 Total current assets 23,492 28,323 Non-current assets Property and equipment, net 681 347 Right-of-use assets, net 417 302 Intangible assets, net 869 679 Goodwill 199 199 Television costs 1,451 1,487 Other assets 77 61 Total assets $27,186 $31,398 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $2,125 $1,141 Accrued expenses 3,070 3,786 Production costs payable 72 2,010 Deferred revenue - 2,045 Operating lease obligations - current portion 117 348 Total current liabilities 5,384 9,330 Non-current liabilities Operating lease obligations - long term portion 309 20 Total liabilities $5,693 $9,350 Stockholders' equity (see note 3): Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2022 and October 31, 2021 - - Class B common stock, $0.01 par value; authorized shares - 20,000; 14,053 and 12,938 shares issued and 13,534 and 12,419 shares outstanding at July 31, 2022 and October 31, 2021, respectively 134 123 Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July 31, 2022 and October 31, 2021 5 5 Additional paid-in capital 104,354 103,819 Accumulated deficit (81,804) (80,703)Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2022 and October 31, 2021 (1,196) (1,196)Total stockholders' equity 21,493 22,048 Total liabilities and stockholders' equity $27,186 $31,398 IDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended (in thousands, except per share data) July 31, 2022 July 31, 2021 July 31, 2022 July 31, 2021 Revenues $7,712 $6,779 $25,615 $25,332 Costs and expenses: Direct cost of revenues 3,734 3,813 12,121 17,771 Selling, general and administrative 4,672 4,986 14,264 14,147 Depreciation and amortization 74 62 258 182 Total costs and expenses 8,480 8,861 26,643 32,100 Loss from operations (768) (2,082) (1,028) (6,768) Interest expense, net - (13) (10) 128 Other (expense) income, net (69) 1,154 (63) 1,141 Net loss from continuing operations (837) (941) (1,101) (5,499) Loss from discontinued operations, net - - - (1,280)Gain on sale of discontinued operations - - - 2,123 Net gain on discontinued operations - - - 843 Net loss $(837) $(941) $(1,101) $(4,656) Basic and diluted (loss) income per share (see note 2): Continuing operations $(0.06) $(0.09) $(0.09) $(0.55)Discontinued operations, net - - 0.08 Net loss $(0.06) $(0.09) $(0.09) $(0.47) Weighted-average number of shares used in the calculation of basic and diluted (loss) income per share: 12,914 9,977 12,901 9,966 IDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended (in thousands) July 31, 2022 July 31, 2021 Operating activities: Net loss $(1,101) $(4,656)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 258 369 Amortization of finance leases - 108 Bad debt recovery - (91)Stock based compensation 546 246 Amortization of right-of-use asset 327 631 Gain on extinguishment of PPP Loans - (1,264)Gain on sale of discontinued operations - (2,123)Changes in operating assets and liabilities: Trade accounts receivable (1,655) 16,837 Inventory (474) 428 Prepaid expenses and other assets (339) (929)Television costs 36 1,424 Operating lease liability (384) (411)Trade accounts payable, accrued expenses, production costs payable and other current liabilities (1,670) 1,389 Deferred revenue (2,045) (141)Gain on disposal of ROU assets - (97)Net cash (used in) provided by in operating activities (6,501) 11,720 Investing activities: Disposal of discontinued operations - (902)Capital expenditures (782) (128)Net cash used in investing activities (782) (1,030)Financing activities: Proceeds from issuance of common stock - 25 Proceeds from government loans - 1,196 Repayments of bank loans - (14,204)Net cash used in financing activities - (12,983)Effect of exchange rate changes on cash and cash equivalents - 39 Net decrease in cash and cash equivalents (7,283) (2,254)Cash and cash equivalents at beginning of period 17,532 12,162 Cash and cash equivalents at end of period $10,249 $9,908 Supplemental schedule of investing and financing activities Cash paid for interest $- $1,277 Non-cash investing and financing activities Extinguishment of related party loan in exchange for sale of CTM (see note 14) $- $3,750 SOURCE: IDW Media Holdings Inc.View source version on accesswire.com: https://www.accesswire.com/716025/IDW-Announces-Results-for-Third-Quarter-of-Fiscal-2022
LOS ANGELES, CA and NEWARK, NJ / ACCESSWIRE / September 14, 2022 / IDW Media Holdings , Inc., ("IDW") (NYSE American:IDW), an integrated media company, today reported results for its third quarter and nine months ended July 31, 2022.Third Quarter Fiscal 2022 (3Q22) Developments(3Q22 results are compared to 3Q21)Consolidated revenue increased 14% to $7.7 million from $6.8 million reflecting revenue growth of $1.2 million at IDW Entertainment (IDWE), offset by a modest decrease in revenue at IDW Publishing (IDWP).IDWP revenue of $6.6 million decreased 3% from $6.8 million, primarily related to a temporary decline in the direct market related to the strong comic release of TMNT The Last Ronin #3 in the prior year, fewer titles being released, and the Penguin Random House distributor transition, as well as a decline in digital sales, offset by strong exclusive Scholastic sales of Sonic the Hedgehog and They Called Us Enemy.IDWE generated revenue of $1.2 million, compared to generating no measurable revenue in 3Q21. During the quarter, IDWE recognized $1.1 million in revenue related to the delivery of 10 episodes of Surfside Girls . The Company expects to recognize revenue in 4Q22 from the delivery of season 3 of Locke & Key.Consolidated loss from operations was $0.8 million compared to a consolidated loss from operations of $2.1 million.IDW's net loss was $0.8 million, or $0.06 per share, compared to net loss of $0.9 million, or $0.09 per share.After the quarter close, IDWE announced that it has five television series in development with leading studios, networks, and streamers. The projects originated from IDWP graphic novels and comics series.On August 30, 2022, IDW announced its first co-development deal with writing team Matt Silverstein and Dave Jeser for the development and production of the sci-fi feature film comedy "Family Time" into a television series and original comic book property.Following the close of the quarter, IDW announced the appointment of Allan Grafman as CEO.First Nine Months Fiscal Year 2022 Developments(First nine months of fiscal 2022 results are compared to first nine months of fiscal 2021)Consolidated revenue increased to $25.6 million from $25.3 million.IDWP revenue increased 9% to $20.1 million from $18.4 million. The increase was driven primarily by an increase in games revenue from the direct-to-consumer games campaign for Batman Adventures and an increase in retailer exclusive revenue related to Sonic the Hedgehog and Transformers, as well as strong book market sales of TMNT The Last Ronin Collection Hardcover and They Called Us Enemy , offset by various decreases in direct market revenues due to TMNT The Last Ronin comic releases in the prior year, distributor transition to Penguin Random House, and fewer titles being released during the period compared to the prior year .IDWE revenue decreased to $5.5 million from $6.9 million. Revenue for the first nine months of 2022 included the full delivery of Locke & Key season two and the full delivery of Surfside Girls season one. In the nine months ended July 31, 2021, revenues included $3.4 million from the delivery of episodes of Wynonna Earp as well as tax credits of $3.3 million for V Wars and October Faction .IDW's net loss improved to $1.1 million or $0.09 per share from a net loss of $4.7 million or $0.47 per share. The improvement reflects the transition to media production financing models at IDWE that emphasize predictable returns.Comments from Allan Grafman, Chief Executive Officer"Our third quarter demonstrated continued progress and, as expected, revenue growth of 14%, primarily related to our delivery of the first season of Surfside Girls, which was offset slightly by a decrease in revenue from our publishing division due to fewer titles being released in the quarter. Looking forward, as we move toward the close of our fiscal year, we expect to realize revenue and bottom-line contributions from the fourth quarter delivery of season 3 of Locke & Key . With our heightened focus on original content, we're encouraged by the rate at which we're adding new entertainment properties to our roster. We have a lot of work to do, but I am confident that, as we build the development pipeline while at the same time completing and delivering projects, we will drive long term growth and a more predictable revenue cadence."We are committed to sharpening our focus on acquiring and developing original IP content and we are beginning to see solid traction from our efforts to expand our publishing library. To that end, in early August we announced five series development deals with a range of well-known studios, networks and streaming services, to develop television series based on our IDWP and Top-Shelf Productions graphic novels and comics. Our originals represent some of the most creative characters and stories available and we look forward to continuing to tap our robust library for adaptation into compelling series, feature films and podcasts with the industry's leading authors and content creators."Additionally, we recently announced our first co-development deal with Matt Silverstein and Dave Jeser for the launch of a comic book and television series based on the comedy sci-fi film Family Time . Through creative partnerships between our Entertainment and Publishing divisions, we can open up new distribution avenues for our projects with the goal of bringing compelling new content to the broadest audiences across multiple platforms. We are seeing tremendous response to our original titles as well as heightened industry recognition for our value as a collaborative and independent creative partner. We remain focused on driving strategic growth by partnering with creators to develop iconic characters and stories that will resonate across diverse media platforms."Consolidated P&L Highlights(In millions, except loss per share, unaudited. Numbers may not foot due to rounding) 3Q22 2Q22 3Q21 Revenue $7.7 $6.1 $6.8 Direct cost of revenue $3.7 $3.6 $3.8 SG&A, including non-cash compensation $4.7 $4.6 $5.0 Non-cash compensation included in SG&A $0.2 $0.2 $0.1 Depreciation & amortization $0.1 $0.1 $0.1 Loss from continuing operations $(0.8) $(2.2) $(2.1) Net loss $(0.8) $(2.3) $(0.9) Loss per share from continuing operations $(0.06) $(0.17) $(0.09) Net loss per share $(0.06) $(0.17) $(0.09) Segment P&L Highlights(in millions, unaudited. Numbers may not foot due to rounding) 3Q22 2Q22 3Q21 Revenue IDW Publishing $6.6 $6.1 $6.8 IDW Entertainment $1.2 $- $- (Loss) income from operations IDW Publishing $(0.6) $(0.3) $0.1 IDW Entertainment $- $(1.7) $(1.8)Corporate (unallocated overhead) $(0.2) $(0.3) $(0.3)Financial Take-Aways (3Q22 compared to 3Q21)Revenue:IDWP: In 3Q22, revenue decreased slightly due to lower direct market and digital sales. The Company continues to invest in original titles and expects increased revenue from new original titles through the balance of 2022 and beyond.IDWE: In 3Q22, IDWE reported revenue of $1.2 million primarily related to the full delivery of season one of Surfside Girls, compared to no meaningful revenue in the same period of 2021. The Company expects to recognize revenue in 4Q22 from the delivery of season 3 of Locke & Key .(Loss) Income from Operations:IDWP: In 3Q22, loss from operations was $0.6 million, compared to income from operations of $0.1 million 3Q21. SG&A as a percentage of revenue was 52.3% compared to 46.4% in 3Q21.IDWE: In 3Q22, income from operations was $48,000, compared to a loss from operations of $1.9 million in 3Q21. SG&A decreased to $1.0 million compared to $1.5 million in 3Q21 as IDWE reduced its salary and benefits and consulting expenses.Balance Sheet Highlights: At July 31, 2022, IDW's cash balance was $10.3 million. Working capital (current assets less current liabilities) totaled $18.1 million.Earnings Conference CallIDW's management will host an earnings conference call beginning at 5:00 PM Eastern time 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 (877) 704-4453 (domestic) or (201) 389-0920 (international) and request the ‘IDW Media call.'A replay of the conference call can be accessed approximately three hours after the call concludes through Wednesday, September 21, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and providing the replay pin: 13732635. A recording of the conference call will also be available via streaming audio through the IDW investor relations website .About IDW Media Holdings: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.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 within the meaning of the Private Securities Litigation Reform Act of 1995. 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, 2021 (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), and subsequent quarterly reports on Form 10-Q. 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:John Nesbett/Jennifer BelodeauIMS Investor Relationsidw@imsinvestorrelations.comIDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share data) July 31, 2022(unaudited) October 31, 2021 Assets Current assets: Cash and cash equivalents $10,249 $17,532 Trade accounts receivable, net 7,086 5,431 Inventory 3,564 3,090 Prepaid expenses and other current assets 2,593 2,270 Total current assets 23,492 28,323 Non-current assets Property and equipment, net 681 347 Right-of-use assets, net 417 302 Intangible assets, net 869 679 Goodwill 199 199 Television costs 1,451 1,487 Other assets 77 61 Total assets $27,186 $31,398 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $2,125 $1,141 Accrued expenses 3,070 3,786 Production costs payable 72 2,010 Deferred revenue - 2,045 Operating lease obligations - current portion 117 348 Total current liabilities 5,384 9,330 Non-current liabilities Operating lease obligations - long term portion 309 20 Total liabilities $5,693 $9,350 Stockholders' equity (see note 3): Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 31, 2022 and October 31, 2021 - - Class B common stock, $0.01 par value; authorized shares - 20,000; 14,053 and 12,938 shares issued and 13,534 and 12,419 shares outstanding at July 31, 2022 and October 31, 2021, respectively 134 123 Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at July 31, 2022 and October 31, 2021 5 5 Additional paid-in capital 104,354 103,819 Accumulated deficit (81,804) (80,703)Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2022 and October 31, 2021 (1,196) (1,196)Total stockholders' equity 21,493 22,048 Total liabilities and stockholders' equity $27,186 $31,398 IDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended (in thousands, except per share data) July 31, 2022 July 31, 2021 July 31, 2022 July 31, 2021 Revenues $7,712 $6,779 $25,615 $25,332 Costs and expenses: Direct cost of revenues 3,734 3,813 12,121 17,771 Selling, general and administrative 4,672 4,986 14,264 14,147 Depreciation and amortization 74 62 258 182 Total costs and expenses 8,480 8,861 26,643 32,100 Loss from operations (768) (2,082) (1,028) (6,768) Interest expense, net - (13) (10) 128 Other (expense) income, net (69) 1,154 (63) 1,141 Net loss from continuing operations (837) (941) (1,101) (5,499) Loss from discontinued operations, net - - - (1,280)Gain on sale of discontinued operations - - - 2,123 Net gain on discontinued operations - - - 843 Net loss $(837) $(941) $(1,101) $(4,656) Basic and diluted (loss) income per share (see note 2): Continuing operations $(0.06) $(0.09) $(0.09) $(0.55)Discontinued operations, net - - 0.08 Net loss $(0.06) $(0.09) $(0.09) $(0.47) Weighted-average number of shares used in the calculation of basic and diluted (loss) income per share: 12,914 9,977 12,901 9,966 IDW MEDIA HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended (in thousands) July 31, 2022 July 31, 2021 Operating activities: Net loss $(1,101) $(4,656)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 258 369 Amortization of finance leases - 108 Bad debt recovery - (91)Stock based compensation 546 246 Amortization of right-of-use asset 327 631 Gain on extinguishment of PPP Loans - (1,264)Gain on sale of discontinued operations - (2,123)Changes in operating assets and liabilities: Trade accounts receivable (1,655) 16,837 Inventory (474) 428 Prepaid expenses and other assets (339) (929)Television costs 36 1,424 Operating lease liability (384) (411)Trade accounts payable, accrued expenses, production costs payable and other current liabilities (1,670) 1,389 Deferred revenue (2,045) (141)Gain on disposal of ROU assets - (97)Net cash (used in) provided by in operating activities (6,501) 11,720 Investing activities: Disposal of discontinued operations - (902)Capital expenditures (782) (128)Net cash used in investing activities (782) (1,030)Financing activities: Proceeds from issuance of common stock - 25 Proceeds from government loans - 1,196 Repayments of bank loans - (14,204)Net cash used in financing activities - (12,983)Effect of exchange rate changes on cash and cash equivalents - 39 Net decrease in cash and cash equivalents (7,283) (2,254)Cash and cash equivalents at beginning of period 17,532 12,162 Cash and cash equivalents at end of period $10,249 $9,908 Supplemental schedule of investing and financing activities Cash paid for interest $- $1,277 Non-cash investing and financing activities Extinguishment of related party loan in exchange for sale of CTM (see note 14) $- $3,750 SOURCE: IDW Media Holdings Inc.View source version on accesswire.com: https://www.accesswire.com/716025/IDW-Announces-Results-for-Third-Quarter-of-Fiscal-2022