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.
- 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)
Segment P&L Highlights
(Does not include corporate overhead.)
*CTM's results are reported as ‘Net (loss) income from discontinued operations' in the third quarter fiscal 2020 and all prior periods presented.
- 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.
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.
IDW Media Investor Relations
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
SOURCE: IDW Media Holdings, Inc.
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