IDW Surges With $3.4m Q4 2016 Profits Thanks To MARCH & TV Properties WYNONNA EARP & DIRK GENTLY

IDW logo
Credit: IDW Entertainment

Press Release

IDW Media Holdings, Inc. (OTCQX: IDWM), a fully integrated media company announced today its results for the fourth quarter and year ended October 31, 2016.

Gross Revenue of $23.6 million for the three months ended October 31, 2016 compared to $13.9 million for the three months ended October 31, 2015, and $65.3 million for the year ended October 31, 2016 compared to $49.5 million for the year ended October 31, 2015.The release of IDW Entertainment television shows was the primary driver of the increased revenue.

Year End Financial Highlights:

  • IDW Entertainment FY 2016 Revenue of $16 million or 24.5% of Gross Revenues compared to $187 thousand or 0.4% last year.

  • On June 21, 2016, IDWM acquired the remaining 17% non-controlling interest of IDW Inc. resulting in 100% ownership and no minority interest.

  • Income from operations increased by $1.1 million or 53% to $3.2 million for the three months ended October 31, 2016 compared to $2.1 million for the three months ended October 31, 2015, primarily due to IDW Entertainment. 

  • The increase in 2016 net income resulted from profit from the release of the first two IDW Entertainment television shows.

Management: Commenting on the results, Ted Adams, CEO stated, "Our FY16 performance reflects multi-faceted growth at IDW, and as we look to FY17, we're expecting that growth to continue.

"Our publishing division -- which includes IDW Publishing where we primarily publish comic books and graphic novels and IDW Games where we publish board games and card games, was led by the success of the March books and the Teenage Mutant Ninja Turtles board game. We are thrilled to have entered into a new partnership with leading book distributor Penguin Random House which we expect will contribute to the growth of IDW Publishing in 2017 and help further our ability to create new intellectual property. IDW Games has a number of new games in development -- both using original intellectual property and existing entertainment brands -- that we expect to have a positive impact on FY17.

"IDW Entertainment had a breakout year as it grew revenue from $0.2 million in 2015 to $16.0 million in 2016 driven by the successful first seasons of Wynonna Earp and Dirk Gently. Both shows will return to the air in 2017 for their second seasons. Joe Hill has also written the pilot script and series outline for a TV show based on our flagship title, Locke & Key, and we will be presenting it to potential networks this year.

"CTM Media group further expanded our distribution network for travel brochures in the Cape Cod and Washington D.C. regions."

Forward Looking Statements:
All statements above 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. Our public disclosures provide information on certain of such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

About IDW Media Holdings
IDW Media Holdings, Inc. (OTCQX: IDWM, OTC:IDWM, OTCBB:IDWM) is a fully integrated media company, which includes the award-winning IDW Publishing, IDW Games, IDW Entertainment, Top Shelf Productions, the San Diego Comic Art Gallery, and CTM Media Group Inc. CTM Media Group Inc. is one of North America's largest distributors of tourism information. Distributing over 100 million brochures last year, CTM's comprehensive visitor out of home marketing network includes over 14,000 brochure information displays and over 400 award-winning touch screen kiosks.

 

 

 

 

IDW MEDIA HOLDINGS, INC.

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

(in thousands)

 

October 31, 2016

 

 

October 31, 2015 (as reclassified - see note 13)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,203

 

 

$

6,596

 

 

Trade accounts receivable, net

 

 

11,592

 

 

 

5,915

 

 

Inventory - print and production costs

 

 

13,652

 

 

 

5,688

 

 

Prepaid expenses

 

 

1,738

 

 

 

2,015

 

 

Note receivable - current portion

 

 

310

 

 

 

372

 

Total current assets

 

 

33,495

 

 

 

20,586

 

Property and equipment, net

 

 

3,394

 

 

 

3,039

 

Non-current assets

 

 

 

 

 

 

 

 

 

Trade accounts receivable - non-current portion

 

 

2,478

 

 

 

-

 

 

Note receivable - non-current portion

 

 

-

 

 

 

310

 

 

Deferred taxes

 

 

10,413

 

 

 

12,264

 

 

Intangible Assets, net

 

 

1,539

 

 

 

1,769

 

 

Goodwill

 

 

2,227

 

 

 

1,700

 

 

Other assets

 

 

392

 

 

 

498

 

Total non-current assets

 

 

17,049

 

 

 

16,541

 

Total assets

 

$

53,938

 

 

$

40,166

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

 

2,412

 

 

$

1,302

 

 

Accrued expenses

 

 

8,730

 

 

 

3,907

 

 

Deferred revenue

 

 

1,809

 

 

 

2,131

 

 

Income taxes payable

 

 

1,037

 

 

 

736

 

 

Capital lease obligations - current portion

 

 

365

 

 

 

257

 

 

Bank loans payable - current portion

 

 

426

 

 

 

431

 

 

Other current liabilities

 

 

421

 

 

 

359

 

Total current liabilities

 

 

15,200

 

 

 

9,123

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

Accrued liabilities - non-current

 

 

470

 

 

 

-

 

 

Capital lease obligations - long term portion

 

 

807

 

 

 

527

 

 

Bank loans payable - long term portion

 

 

749

 

 

 

1,199

 

Total non-current liabilities

 

 

2,026

 

 

 

1,726

 

Total liabilities

 

 

17,226

 

 

 

10,849

 

Commitments and contingencies (see notes 1 and 14)

 

 

-

 

 

 

-

 

Stockholders' equity (see note 1):

 

 

 

 

 

 

 

 

 

IDW Media Holdings, Inc. stockholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock, $.01 par value; authorized shares - 500; no shares issued at October 31, 2016 and October 31, 2015

 

 

-

 

 

 

-

 

 

Class B common stock, $0.01 par value; authorized shares - 12,000; 5,553 shares and 4,623 shares issued and outstanding at October 31, 2016 and October 31, 2015, respectively

 

 

56

 

 

 

46

 

 

Class C common stock, $0.01 par value; authorized shares - 2,500; 545 shares issued and outstanding at October 31, 2016 and October 31, 2015

 

 

5

 

 

 

5

 

 

Additional paid-in capital

 

 

53,208

 

 

 

47,419

 

 

Accumulated other comprehensive loss

 

 

(250

)

 

 

(153

)

 

Accumulated deficit

 

 

(15,111

)

 

 

(18,780

)

 

Treasury stock, at cost, consisting of 519 shares of Class B common stock at October 31, 2016 and October 31, 2015

 

 

(1,196

)

 

 

(1,196

)

 

Total IDW Media Holdings, Inc. stockholders' equity

 

 

36,712

 

 

 

27,341

 

 

Non-controlling interests

 

 

-

 

 

 

1,976

 

Total stockholders' equity

 

 

36,712

 

 

 

29,317

 

Total liabilities and stockholders' equity

 

$

53,938

 

 

$

40,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IDW MEDIA HOLDINGS, INC.

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

Three Months Ended
October 31, (unaudited)

 

 

Fiscal Years Ended
October 31,

 

(in thousands, except per share data)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

23,632

 

 

$

13,936

 

 

$

65,267

 

 

$

49,456

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct cost of revenues

 

 

13,691

 

 

 

5,847

 

 

 

34,444

 

 

 

21,759

 

 

Selling, general and administrative (i)

 

 

6,116

 

 

 

5,529

 

 

 

22,727

 

 

 

21,138

 

 

Depreciation and amortization

 

 

401

 

 

 

370

 

 

 

1,538

 

 

 

1,627

 

 

Bad debt expense

 

 

196

 

 

 

86

 

 

 

318

 

 

 

101

 

Total costs and expenses

 

 

20,404

 

 

 

11,832

 

 

 

59,027

 

 

 

44,625

 

Income from operations

 

 

3,228

 

 

 

2,104

 

 

 

6,240

 

 

 

4,831

 

Interest expense, net

 

 

(18

)

 

 

(20

)

 

 

(75

)

 

 

(38

)

Other income (expense), net

 

 

(1

)

 

 

2

 

 

 

(23

)

 

 

(90

)

Income before income taxes

 

 

3,209

 

 

 

2,086

 

 

 

6,142

 

 

 

4,703

 

Provision for income taxes

 

 

(1,244

)

 

 

(683

)

 

 

(2,473

)

 

 

(1,636

)

Net income

 

 

1,965

 

 

 

1,403

 

 

 

3,669

 

 

 

3,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interests

 

 

-

 

 

 

(217

)

 

 

-

 

 

 

(729

)

Net income attributable to IDW Media Holdings, Inc.

 

$


1,965

 

 

$


1,186

 

 

$

3,669

 

 

$

2,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders (see notes 1 and 3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

$

0.35

 

 

$

.26

 

 

$

0.74

 

 

$

.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in the calculation of basic and diluted income per share:

 

 

5,579

 

 

 

4,649

 

 

 

4,976

 

 

 

4,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend declared per common share:

 

$

0.00

 

 

$

0.163

 

 

$

0.163

 

 

$

0.652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

21

 

 

$

22

 

 

$

86

 

 

$

79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(i) Stock-based compensation included in selling, general and administrative expenses

 

$

99

 

 

$

93

 

 

$

388

 

 

$

367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IDW MEDIA HOLDINGS, INC. AND SUBSIDIARIES

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

(Unaudited)

 

 

 

Fiscal Years Ended
October 31,

(in thousands)

 

2016

 

2015

Net income

 

$

3,669

 

$

3,067

 

Depreciation and amortization

 

 

1,538

 

 

1,627

 

Provision for income taxes

 

 

2,473

 

 

1,636

 

Interest expense, net

 

 

75

 

 

38

EBITDA

 

 

7,755

 

 

6,368

 

Non-cash compensation

 

 

388

 

 

367

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

8,143

 

$

6,735

 

 

 

 

 

 

 

Similar content
Twitter activity