Hollywood Media Corp. Reports Operating Results (10-Q)

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Nov 19, 2012
Hollywood Media Corp. (HOLL, Financial) filed Quarterly Report for the period ended 2012-09-30.

Hollywood Media Corporation has a market cap of $32.2 million; its shares were traded at around $1.39 with and P/S ratio of 8.6. Hollywood Media Corporation had an annual average earning growth of 3.8% over the past 5 years.

Highlight of Business Operations:

During the three months ended September 30, 2012, the Company determined that $3.6 million of the goodwill associated with its Ad Sales division should be written down after it was determined that the future cash flow of these assets is likely impaired, and the risk associated with previously expected cash flows has increased and accordingly recorded an impairment loss of $3.6 million. For additional Information see Note 6 - Segment Reporting in the Notes to Condensed Consolidated Financial Statements included in included in Item I, Part I of this quarterly report on Form 10-Q. At September 30, 2012 we are not aware of any additional items or events that would cause us to adjust the recorded value of Hollywood Media’s goodwill further. The goodwill recorded in the accompanying consolidated balance sheets as of September 30, 2012 and December 31, 2011 was $6,200,000 and $9,800,000, respectively. At September 30, 2012 and December 31, 2011 goodwill represented 44% and 54%, respectively, of total assets. Future changes in estimates used to conduct the impairment review, including revenue projections or market could cause the analysis to indicate that Hollywood Media’s goodwill is impaired in subsequent periods and result in a write-off of a portion or all of the goodwill. In order to evaluate the sensitivity of the fair value calculations of our reporting units on the impairment calculation, we applied a hypothetical decrease to the fair values of each reporting unit. The Company believes that the fair value of its remaining reporting unit that contains goodwill at September 30, 2012 and December 31, 2011 met or exceeded the book value of that reporting unit.

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