IDW Reports First Quarter Fiscal 2021 Results

Rhea-AI Summary

IDW Media Holdings, Inc. (OTC PINK:IDWM) reported its first-quarter results for fiscal 2021, revealing a net loss per share of $0.62 on revenue of $8.4 million, down from $10.3 million in Q1 2020.

Despite challenges from COVID-19, digital publishing revenue soared by 68% year-over-year. Loss from operations improved to $5.1 million from $5.8 million last year. Highlights include the success of TMNT: The Last Ronin, selling over 200,000 copies.

Management expressed optimism for 2021, citing improvements in production timelines and a stronger lineup of titles.

Positive

• Digital publishing revenue increased by 68% year-over-year.
• TMNT: The Last Ronin became the most successful comic in IDWP history, selling over 200,000 copies.
• Loss from operations improved to $5.1 million from $5.8 million in Q1 2020.
• Management indicates improved outlook for 2021 with an exciting line-up of titles.

Negative

• Consolidated revenue fell to $8.4 million from $10.3 million in Q1 2020.
• Net loss per share widened to $0.62 from $0.92 in the previous year.
• IDW Entertainment revenue dropped due to fewer delivered episodes compared to the previous year.

IDW Publishing Delivers Solid Quarter Despite COVID-19 Challenges

NEWARK, NJ and LOS ANGELES, CA / ACCESSWIRE / March 15, 2021 / IDW Media Holdings, Inc. (OTC PINK:IDWM), an integrated media company, today reported a net loss per share of $0.62 on revenue of $8.4 million for the three months ended January 31, 2021.

First Quarter Fiscal 2021 (1Q21) Highlights

• Consolidated revenue decreased to $8.4 from $10.3 million in 1Q20.
• COVID-19 Update: At IDWP, direct market sales recovering with year over year growth. Digital publishing revenue increased 68% year over year. IDWE impacted by industry-wide production / greenlight delays.
• Consolidated loss from operations improved to $5.1 million from $5.8 million in 1Q20.
• Loss per share narrowed to $0.62 from $0.92 in 1Q20
• TMNT: The Last Ronin became the most successful comic in IDWP history, has sold over 200,000 copies including third printing in February.
• Locke & Key, the Netflix series based on the IDW Comic and produced by IDWE was nominated by the Academy of Science Fiction, Fantasy & Horror Films for Best Fantasy Television Series.
• Following the quarter close, IDW completed the planned sale of its CTM subsidiary.

Comments from Ezra Rosensaft, Chief Executive Officer

"IDW again reported strong bottom-line improvement compared to the year ago quarter despite the remaining COVID-19 challenges. We are swiftly moving toward profitable operations as IDW Entertainment closes in on additional deals and we work through the last impacts of legacy production financing agreements.

"Our outlook for 2021 continues to improve with an exciting line-up of titles at IDWP. The streaming services are getting production schedules back on track now that some COVID-19 restrictions have been relaxed, and the IDWE team has done a terrific job of developing properties to take full advantage of the thaw. We have also picked up the pace of investment in new IP based on our capacity to develop and holistically monetize properties across publishing and entertainment.

"Following the quarter close, we updated our Form S-1 Statement to register our common stock with the SEC as we move closer to uplisting on a national exchange. The previously announced sale of our CTM subsidiary closed in February, greatly simplifying our story and strengthening our balance sheet."

Consolidated P&L Highlights

(In millions, except net loss per share, unaudited) (Numbers may not foot due to rounding)		1Q20		4Q20		1Q20
Revenue		$8.4		$10.1		$10.3
Direct cost of revenue		$9.2		$6.5		$11.6
SG&A including non-cash compensation		$4.2		$4.5		$4.4
Non-cash compensation included in SG&A		$0.1		$0.2		$0.6
Depreciation & amortization		$0.1		$0.1		$0.1
Bad debt expense		$0.0		$0.4		$0.0
Interest and other expense, net		$0.0		$0.3		$0.0
Loss from continuing operations		$(5.1)		$(1.7)		$(5.8)
Loss from discontinued operations		$(1.1)		$(0.3)		$(1.1)
Net loss attributable to IDW Media		$(6.3)		$(2.2)		$(6.8)
Loss per share - continuing operations		$(0.51)		$(0.17)		$(0.78)
Loss per share - discontinued operations, net		$(0.11)		$(0.03)		$(0.14)
Net loss per share		$(0.62)		$(0.20)		$(0.92)

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

(in millions, unaudited)		1Q21		4Q20		1Q20
Revenue
IDW Publishing		$5.6		$7.7		$6.3
IDW Entertainment		$2.8		$2.4		$4.0
(Loss) income from operations*
IDW Publishing		$(0.4)		$0.5		$0.1
IDW Entertainment		$(4.6)		$(2.0)		$(5.6)
CTM*		$(1.1)		$(0.3)		$(1.1)
Corporate (unallocated overhead)		$(0.2)		$(0.3)		$(0.3)

*CTM's bottom line results are reported as ‘Net (loss) income from discontinued operations' in all periods presented.

Financial Take-Aways

• Revenue:
  • IDWP direct market recovering. Driven by strong sales of Star Wars: High Republic Adventures #1 and Teenage Mutant Ninja Turtles: The Last Ronin. Increases in digital and publishing revenues offset by decline in games sales.
  • IDW Entertainment (IDWE) revenue generated entirely by the delivery of certain episodes of Wynonna Earp, Season 4. Revenue decreased from the year ago quarter when IDWE delivered certain October Faction episodes.

• Income (loss) from Operations:
  • IDWP generated positive EBITDA with strong publishing and digital sales partially offset by increases in personnel expenses and royalties.
  • IDWE costs principally are related to WE production. In addition, they include an impairment of $2.1 million as a result of a recently adopted accounting standard.

• CTM Media: CTM Media's results were reported as discontinued operations reflecting the pending sale of the business. Following the quarter close, the sale closed.
• Balance Sheet Highlights: At January 31, 2021, IDW's cash balance was $8.7 million. Working capital (current assets less current liabilities) totaled $13.3 million.

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 approximately three hours after the call concludes through March 22, 2021 by dialing 1-844-512-2921 (toll free - U.S.) or 1-412-317-6671 (toll - international) and providing this replay PIN number: 13717453. A replay will also be available via streaming audio through the IDW investor relations website.

About IDW

IDW (OTC PINK: 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, games, merchandise and other entertainment platforms and leverage established stories from our creative partners.

Investor Contact

IDW Media Investor Relations
investor.relations@idwmh.com

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)		January 31, 2021 (unaudited)				October 31, 2020
Assets
Current assets:
Cash and cash equivalents		$	8,733			$	10,541
Trade accounts receivable, net			19,429				22,921
Inventory			3,596				3,754
Prepaid expenses			1,646				1,361
Current assets held for sale from discontinued operations			9,976				11,171
Total current assets			43,380				49,748
Property and equipment, net			396				410
Right-of-use assets, net			656				771
Non-current assets
Investments			-				25
Intangible assets, net			41				52
Goodwill			199				199
Television costs, net			1,087				2,926
Other assets			541				527
Total assets		$	46,300			$	54,658
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable		$	912			$	1,406
Accrued expenses			6,288				3,953
Deferred revenue			1,850				2,385
Bank loans payable - current portion			11,127				14,204
Government loans- current portion			994				793
Operating lease obligations - current portion			584				562
Other current liabilities			110				69
Current liabilities held for sale from discontinued operations			8,223				8,540
Total current liabilities			30,088				31,912
Non-current liabilities
Operating lease obligations - long term portion			214				368
Government loans - long term portion			201				403
Related party loans payable - long term portion			3,750				3,750
Total non-current liabilities			4,165				4,521
Total liabilities$			34,253			$	36,433
Stockholders' equity (see note 3):
Preferred stock, $.01 par value; authorized shares - 500; no shares issued at January 31, 2021 and October 31, 2020							-
Class B common stock, $0.01 par value; authorized shares - 12,000; 10,008 and 9,987 shares issued and 9,489 and 9,467 shares outstanding at January 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 January 31, 2021 and October 31, 2020			5				5
Additional paid-in capital			111,467				111,379
Accumulated other comprehensive loss			(72)				(60	)
Accumulated deficit			(98,251)				(91,996	)
Treasury stock, at cost, consisting of 519 shares of Class B common stock at January 31, 2021 and October 31, 2020			(1,196)				(1,196	)
Total stockholders' equity			12,047				18,225
Total liabilities and stockholders' equity		$	46,300			$	54,658

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

		Three months ended January 31,
(in thousands, except per share data)		2021				2020
Revenues		$	8,413			$	10,336
Costs and expenses:
Direct cost of revenues			9,233				11,616

FAQ

What were IDW Media's Q1 2021 earnings results?

IDW Media reported a net loss per share of $0.62 on revenue of $8.4 million for Q1 2021.

How did COVID-19 impact IDW Media's performance?

COVID-19 resulted in production delays, although digital publishing revenue grew by 68%.

What is the outlook for IDW Media in 2021?

Management is optimistic about 2021, citing a strong line-up of new titles and improving production schedules.

What significant comic sales were reported by IDW Media?

TMNT: The Last Ronin became IDW's most successful comic, selling over 200,000 copies.