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Idw Media Holdings, Inc. (IDW) SEC Filing 10-K Annual Report for the fiscal year ending Sunday, October 31, 2021

Idw Media Holdings, Inc.

CIK: 1463833 Ticker: IDW

Exhibit 99.1

 

IDW Announces Results for Fourth Quarter and Full Fiscal Year 2021

 

-Turnaround Underway with New Management, Enhanced Balance Sheet and Revitalized Growth Strategy Heading into 2022
-$4.2 Million in Revenue from Locke & Key Shifted to1Q22
-40+ Original Publishing Titles Advancing through Pipeline Annually, a Significant Increase from Previous Years

 

LOS ANGELES, CA and NEWARK, NJ –January 20, 2022:  IDW Media Holdings, Inc., (“IDW”) (NYSE American: IDW), an integrated media company, today reported results for the three and twelve-months ended October 31, 2021.

 

Fourth Quarter Fiscal 2021 (4Q21) Developments

 

Consolidated revenue decreased to $7.1 million from $10.1 million in 4Q20 primarily reflecting decreased revenue at IDW Entertainment. Consolidated revenue increased sequentially from $6.8 million in 3Q21.
IDW Entertainment (IDWE) will recognize revenue of approximately $4.2 million for Locke & Key season 2 in 1Q22.
IDW Publishing (IDWP) revenue decreased to $6.9 million from $7.7 million in 4Q20. Revenue increased sequentially from $6.8 million in 3Q21.
Consolidated loss from operations increased to $1.9 million from $1.5 million in 4Q20.
Net loss improved to $0.7 million or $0.06 per share from a net loss of $2.0 million or $0.20 per share in 4Q20.

 

Full Fiscal Year 2021 Developments

 

Consolidated revenue decreased to $32.4 million in FY 2021 from $38.2 million in FY 2020.
IDWP revenue increased 6% to $25.3 million from $23.9 million in FY 2020. The increase was driven primarily by the recovery of IDWP’s direct market sales led by TMNT The Last Ronin titles.
IDWE revenue decreased to $7.1 million from $14.3 million in FY 2020. FY 2021 results include revenue from Wynonna Earp and production tax credits. In FY 2020, IDWE recognized revenue from Wynonna Earp, Locke & Key season one, and October Faction.
IDW’s net loss improved to $5.4 million or $0.51 per share from a net loss of $13.8 million or $1.54 per share in FY 2020. The improvement reflects strengthened results from continuing operations and gains on the forgiveness of the Company’s two PPP loans.
IDW completed a capital raise generating net proceeds of $9.6 million during fiscal 2021. Proceeds are being utilized to invest in original content and for other strategic priorities.
In conjunction with the capital raise, IDW uplisted its Class B common stock from the OTC market to the NYSE American exchange with the ticker symbol ‘IDW’.

 

 

 

 

Comments from Ezra Rosensaft, Chief Executive Officer

 

“IDW made tremendous operational progress during fiscal 2021, strengthening our balance sheet, enhancing our management team, and uplisting to the NYSE American exchange. We enter fiscal 2022 positioned to drive growth through partnerships with talented creators. Together, we are developing best-in-class original content to leverage across our publishing and entertainment businesses.

 

“We are excited about the franchises we’re bringing to market on the entertainment side of our business highlighted by the recent announcement of our deal with Apple+ for ten episodes of our original live-action series Surfside Girls, which we will develop and produce in conjunction with Endeavor Content. During calendar year 2022, we expect to realize revenue upon delivery of season 3 of Locke & Key to Netflix and season 1 of Surfside Girls to Apple TV. Also, in the first quarter of FY 2022, we will recognize $4.2 million in revenue from season 2 of Locke & Key providing a nice lift as we start the year.

 

“As we move into fiscal 2022, we see robust opportunities to efficiently and profitably bring unique content to our platforms. We are scaling up to develop approximately 40 original titles annually, which is more than double the levels of previous years, and we continue to aggressively pursue new creators and titles. We now have the people, processes, cost discipline, and enhanced balance sheet to best leverage those properties, and are excited and energized for the year ahead.”

 

Consolidated P&L Highlights*

 

(*In millions, except loss per share. Quarterly results are unaudited.

Numbers may not foot due to rounding)

   4Q21   3Q21   4Q20   FY21    FY20 
Revenue  $7.1   $6.8   $10.1   $32.4   $38.2 
Direct cost of revenue  $4.0   $3.8   $6.5   $21.8   $29.5 
SG&A including non-cash compensation  $4.9   $5.0   $4.9   $19.1   $17.7 
Non-cash compensation included in SG&A  $0.1   $0.1   $0.2   $0.3   $1.1 
Depreciation & amortization  $0.1   $0.1   $0.1   $0.2   $0.3 
Loss from operations  $(1.9)  $(2.1)  $(1.5)  $(8.7)  $(9.3)
Net loss from continuing operations  $(0.7)  $(0.9)  $(1.7)  $(6.2)  $(9.7)
Loss from discontinued operations, net  $-   $   $(0.3)  $(1.3)  $(4.1)
Gain on sale of discontinued operations  $-   $   $   $2.1   $ 
Net loss  $(0.7)  $(0.9)  $(2.0)  $(5.4)  $(13.8)
Loss per share from– continuing operations  $(0.06)  $(0.09)  $(0.17)  $(0.59)  $(1.08)
Gain (loss) per share – discontinued operations  $-   $   $(0.03)  $0.08   $(0.46)
Net loss per share  $(0.06)  $(0.09)  $(0.20)  $(0.51)  $(1.54)

 

2

 


 

Segment P&L Highlights*

 

    4Q21   3Q21   4Q20   FY21    FY20 
Revenue                         
IDW Publishing  $6.9   $6.8   $7.7   $25.3   $23.9 
IDW Entertainment  $0.2   $   $2.4   $7.1   $14.3 
                          
Income (loss) from operations                         
IDW Publishing  $-   $0.1   $0.5   $(0.8)  $(0.1)
IDW Entertainment  $(1.5)  $(1.8)  $(2.0)  $(6.7)  $(8.6)
Corporate  $(0.4)  $(0.3)  $-   $(1.2)  $(0.6)

 

Financial Take-Aways

 

(4Q21 compared to 4Q20. Full year fiscal 2021 results are compared to full year fiscal 2020.)

 

Revenue:

 

IDWP: In 4Q21, strong direct market sales were offset by a decrease in book market sales as a result of exceptional demand for Top Shelf titles in 4Q20. In FY 2021, surging direct market sales led by TMNT The Last Ronin titles were supplemented by a strong increase in game sales.

 

IDWE: In 4Q21, IDWE generated no significant revenue. Revenue from Locke & Key season 2 will be reported in 1Q22. FY 2021 revenue was comprised principally of tax credits for production of prior series and by revenue from season 4 of Wynonna Earp. In FY 2020, Wynonna Earp, Locke & Key Season 1, and October Faction were the primary revenue generators.

 

Income (loss) from Operations:

 

IDWP: In 4Q21, income from operations decreased to $0.04 million from $0.5 million. The decrease was primarily related to exceptionally strong sales of higher-margin backlisted books in 4Q20, and increased severance pay partially offset by a reduction in SG&A in 4Q21. For FY 2021, the loss from operations increased to $0.8 million from $0.1 million, primarily due to the decrease in sales of backlisted book titles and increased compensation and marketing expense in FY 2021.

 

IDWE: In 4Q21, the loss from operations improved to $1.5 million from a loss of $2.0 million. In the year-ago quarter, the legacy production financing deals that generated the majority of IDWE’s revenue incurred significant losses. For FY 2021, IDWE’s loss from operations improved to $6.7 million compared to a loss from operations of $8.6 million. IDWE had largely worked through the unfavorable impacts of legacy financing deals by year-end FY 2021. Additionally, in FY 2021, IDWE benefitted from production tax credits, partially offset by a $2.1 million impairment.

 

Balance Sheet Highlights: At October 31, 2021, IDW’s cash balance was $17.5 million. Working capital (current assets less current liabilities) totaled $19.6 million.

 

3

 

 

Earnings Conference Call

 

IDW’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) 705-6003 (domestic) or (201) 493-6725 (international) and request the ‘IDW Media call.’

 

A replay of the conference call can be accessed approximately three hours after the call concludes through Thursday, January 27, 2022, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and providing the replay pin: 13726050. 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 (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-K, 10-Q and 8-K. 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 Belodeau

IMS Investor Relations

idw@imsinvestorrelations.com

 

4

 

 

IDW MEDIA HOLDINGS, INC. 

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except per share data)  October 31,
2021
   October 31,
2020
 
Assets        
Current assets:        
Cash and cash equivalents  $17,532   $10,541 
Trade accounts receivable, net   5,431    22,921 
Inventory   3,090    3,754 
Prepaid expenses   2,270    1,361 
Current assets held for sale from discontinued operations   -    11,171 
Total current assets   28,323    49,748 
Non-current assets          
Property and equipment, net   347    410 
Right-of-use assets, net   302    771 
Investments   -    25 
Intangible assets, net   679    52 
Goodwill   199    199 
Television costs, net   1,487    2,926 
Other assets   61    527 
Total assets  $31,398   $54,658 
Liabilities and Stockholders’ Equity          
Current liabilities:          
Trade accounts payable  $1,141   $1,406 
Accrued expenses   3,197    2,458 
Production costs payable   2,010    1,495 
Deferred revenue   2,045    2,385 
Bank loans payable – current portion   -    14,204 
Government loans- current portion   -    793 
Operating lease obligations – current portion   348    562 
Other current liabilities   -    69 
Current liabilities held for sale from discontinued operations   -    8,540 
Total current liabilities   8,741    31,912 
Non-current liabilities          
Operating lease obligations – long term portion   20    368 
Government loans – long term portion   -    403 
Related party loans payable – long term portion   -    3,750 
Total liabilities  $8,761   $36,433 
Stockholders’ equity (see note 3):          
Preferred stock, $.01 par value; authorized shares – 500; no shares issued at October 31, 2021 and October 31, 2020   -    - 
Class B common stock, $0.01 par value; authorized shares – 20,000; 12,938 and 9,987 shares issued and 12,419 and 9,468 shares outstanding at October 31, 2021 and October 31, 2020, respectively   123    93 
Class C common stock, $0.01 par value; authorized shares – 2,500; 545 shares issued and outstanding at October 31, 2021 and October 31, 2020   5    5 
Additional paid-in capital   103,819    111,379 
Accumulated other comprehensive loss   -    (60)
Accumulated deficit   (80,114)   (91,996)
Treasury stock, at cost, consisting of 519 shares of Class B common stock at October 31, 2021 and October 31, 2020   (1,196)   (1,196)
Total stockholders’ equity   22,637    18,225 
Total liabilities and stockholders’ equity  $31,398   $54,658 

 

5

 

 

IDW MEDIA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Fiscal Years Ended 
(in thousands, except per share data)  October 31,
2021
   October 31,
2020
 
         
Revenues  $32,425   $38,162 
           
Costs and expenses:          
Direct cost of revenues   21,783    29,530 
Selling, general and administrative   19,082    17,704 
Depreciation and amortization   245    252 
Total costs and expenses   41,110    47,486 
Loss from operations   (8,685)   (9,324)
           
Interest income (expense), net   118    (46)
Other income (expense), net   2,333    (318)
Net loss from continuing operations   (6,234)   (9,688)
           
Loss from discontinued operations, net   (1,281)   (4,110)
Gain on sale of discontinued operations   2,123    - 
Net gain (loss) on discontinued operations   842    (4,110)
Net loss  $(5,392)  $(13,798)
           
Basic and diluted income (loss) per share (note 2):          
Continuing operations  $(0.59)  $(1.08)
Discontinued operations, net   0.08    (0.46)
Basic and diluted net loss per share  $(0.51)  $(1.54)
           
Weighted-average number of shares used in the calculation of basic and diluted loss per share:   10,655    8,982 

 

6

 

 

IDW MEDIA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Fiscal Years Ended 
(in thousands)  October 31,
2021
   October 31, 2020 
Operating activities:        
Net loss  $(5,392)  $(13,798)
Adjustments to reconcile net loss to net cash provided by provided by operating activities:          
Depreciation and amortization   433    1,017 
Amortization of finance leases   108    411 
Bad debt expense   (79)   680 
Stock based compensation   329    1,131 
Amortization of right-of-use asset   475    1,557 
Gain on extinguishment of PPP Loans   (2,460)   - 
Gain on sale of discontinued operations   (2,123)   - 
Loss on deconsolidation of subsidiary   -    35 
Changes in operating assets and liabilities:          
Trade accounts receivable   17,460    20,807 
Inventory   664    (442)
Prepaid expenses and other assets   (414)   735 
Television costs   1,439    6,462 
Operating lease liability   (287)   (1,597)
Trade accounts payable, accrued expenses, production costs payable  and other current liabilities   921    (2,108)
Deferred revenue   (340)   795 
Gain on disposal of ROU assets   (97)   - 
Deconsolidation of subsidiary   -    304 
Net cash provided by operating activities   10,637    15,989 
Investing activities:          
Proceeds on disposition of long lived assets   -    185 
Disposition of subsidiary, net of cash received   -    (115)
Disposal of discontinued operations   (902)   - 
Capital expenditures   (832)   (420)
Net cash used in investing activities   (1,734)   (350)
Financing activities:          
Proceeds from issuance of common stock   9,436    14,596 
Repayments of finance lease obligations   -    (404)
Proceeds of government loans   1,196    3,004 
Proceeds of bank loans   -    1,021 
Repayments of related party loans   -    (5,300)
Repayments of bank loans   (14,204)   (26,559)
Net cash used in financing activities   (3,572)   (13,642)
Effect of exchange rate changes on cash and cash equivalents   39    - 
Net increase in cash and cash equivalents   5,370    1,997 
Cash and cash equivalents at beginning of period   12,162    10,165 
Cash and cash equivalents at end of period  $17,532   $12,162 
           
Supplemental schedule of investing and financing activities          
Cash paid for interest  $1,277   $200 
Cash paid for income taxes   -    98 
Received from sale of long lived assets   -    154 
           
Non-cash investing and financing activities          
Extinguishment of related party loan in exchange for sale of CTM  $.3,750   $- 

 

 

7

 


The following information was filed by Idw Media Holdings, Inc. (IDW) on Thursday, January 20, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Idw Media Holdings, Inc.'s 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (Parentheticals)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive Loss
Consolidated Statements Of Operations
Consolidated Stockholders??? Equity
Accounting Policies, By Policy (Policies)
Accrued Expenses
Accrued Expenses (Details) - Schedule Of Accrued Expenses
Accrued Expenses (Tables)
Basis Of Presentation And Summary Of Significant Accounting Policies
Basis Of Presentation And Summary Of Significant Accounting Policies (Details)
Basis Of Presentation And Summary Of Significant Accounting Policies (Details) - Schedule Of Allowance For Doubtful Accounts
Basis Of Presentation And Summary Of Significant Accounting Policies (Details) - Schedule Of Depreciation Is Recognized Over The Estimated Useful Lives Or Lease Terms
Basis Of Presentation And Summary Of Significant Accounting Policies (Details) - Schedule Of Variable Interest Entities
Basis Of Presentation And Summary Of Significant Accounting Policies (Tables)
Business Segment Information
Business Segment Information (Details)
Business Segment Information (Details) - Schedule Of Operating Results For The Business Segments (Unaudited)
Business Segment Information (Tables)
Commitments
Commitments (Details)
Commitments (Details) - Schedule Of Future Minimum Lease Payments Required Under Operating Leases
Commitments (Tables)
Deconsolidation Of Subsidiary
Deconsolidation Of Subsidiary (Details)
Deconsolidation Of Subsidiary (Details) - Schedule Of Analysis Of Assets And Liabilities Over Which The Company Lost Control
Deconsolidation Of Subsidiary (Details) - Schedule Of Loss On Deconsolidation Of Subsidiary
Deconsolidation Of Subsidiary (Details) - Schedule Of Net Cash Outflow Arising From Deconsolidation Of The Subsidiary
Deconsolidation Of Subsidiary (Tables)
Defined Contribution Plans
Defined Contribution Plans (Details)
Defined Contribution Plans (Details) - Schedule Of Company???S Multiemployer Pension Plans
Defined Contribution Plans (Details) - Schedule Of Company???S Multiemployer Pension Plans (Parentheticals)
Defined Contribution Plans (Tables)
Discontinued Operations
Discontinued Operations (Details)
Discontinued Operations (Details) - Schedule Of Assets And Liabilities Of Discontinued Operations
Discontinued Operations (Details) - Schedule Of Cash Flows
Discontinued Operations (Details) - Schedule Of Statements Of Operations Including Discontinued Operations
Discontinued Operations (Tables)
Earnings Per Share
Earnings Per Share (Details)
Equity
Equity (Details)
Equity (Details) - Schedule Of Interest Payable On Loan
Equity (Details) - Schedule Of Outstanding Warrants To Related Party Loans
Equity (Details) - Schedule Of Status Of The Company???S Grants Of Restricted Shares
Equity (Tables)
Income Taxes
Income Taxes (Details)
Income Taxes (Details) - Schedule Of (Benefit From) Provision For Income Taxes
Income Taxes (Details) - Schedule Of Change In The Valuation Allowance
Income Taxes (Details) - Schedule Of Deferred Tax Assets And Deferred Tax Liabilities
Income Taxes (Details) - Schedule Of U.S. Federal Statutory Income Tax Rate And Income Taxes
Income Taxes (Tables)
Intangible Assets
Intangible Assets (Details)
Intangible Assets (Details) - Schedule Of Estimated Amortization Expense For Intangible Assets
Intangible Assets (Details) - Schedule Of Intangible Assets
Intangible Assets (Tables)
Inventory
Inventory (Details) - Schedule Of Inventory
Inventory (Tables)
Labor Agreements
Loans
Loans (Details)
Prepaid Expenses
Prepaid Expenses (Details) - Schedule Of Prepaid Expenses
Prepaid Expenses (Tables)
Property And Equipment
Property And Equipment (Details)
Property And Equipment (Details) - Schedule Of Property And Equipment Consist
Property And Equipment (Tables)
Related Party Transactions
Related Party Transactions (Details)
Stock Based Compensation
Stock Based Compensation (Details)
Stock Based Compensation (Details) - Schedule Of Fair Value Of Each Option Award Is Estimated
Stock Based Compensation (Details) - Schedule Of Stock Option Activity
Stock Based Compensation (Tables)
Subsequent Events
Subsequent Events (Details)
Television Costs And Amortization
Television Costs And Amortization (Details)
Television Costs And Amortization (Details) - Schedule Of Television Costs And Amortization
Television Costs And Amortization (Tables)
Trade Accounts Receivable And Deferred Revenue
Trade Accounts Receivable And Deferred Revenue (Details)
Trade Accounts Receivable And Deferred Revenue (Details) - Schedule Of Changes In Deferred Revenue
Trade Accounts Receivable And Deferred Revenue (Details) - Schedule Of Trade Accounts Receivable
Trade Accounts Receivable And Deferred Revenue (Tables)
Ticker: IDW
CIK: 1463833
Form Type: 10-K Annual Report
Accession Number: 0001213900-22-002857
Submitted to the SEC: Thu Jan 20 2022 5:01:34 PM EST
Accepted by the SEC: Thu Jan 20 2022
Period: Sunday, October 31, 2021
Industry: Advertising

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