IDW Media Holdings, Inc. Reports Record Third Quarter 2016 Results

STAMFORD, CT and SAN DIEGO, CA--(Marketwired - Sep 15, 2016) - IDW Media Holdings, Inc. (OTC PINK: IDWM), a fully integrated media company announced today its results for the third quarter ended July 31, 2016.

Gross Revenue of $17.6 million for the three months ended July 31, 2016 compared to $13.4 million for the three months ended July 31, 2015, and $41.6 million for the nine months ended July 31, 2016 compared to $35.5 million for the nine months ended July 31, 2015 is primarily due to IDW Entertainment which increased by $4 million and $7.5 million for those periods. The increase resulted from the release of IDW Entertainment television episodes.

Third Quarter Financial Highlights:

• IDW Entertainment 3rd Quarter Revenue of $4 million or 23% of Total Revenues compared to $58k 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 $691,000 or 36% for the three months ended July 31, 2016 compared to the three months ended July 31, 2015, primarily due to IDW Entertainment. 
• The increase resulted from gross profit from the release of IDW Entertainment television episodes.

Management
Commenting on the results, Ted Adams, CEO stated, "Our third quarter performance reflects record growth from the IDW Entertainment Division".

Mr. Adams added, "In the fourth quarter of 2016, we expect continued revenue growth, led by the success of our March graphic novels and additional IDW Entertainment revenue from the premier of Dirk Gently airing on BBC America."

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 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. Our filings with the SEC provide detailed information on 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 (OTC PINK: 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. a subsidiary of IDW Media Holdings (OTC: IDWM) (OTCBB: IDWM) (OTC PINK: IDWM). 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 400 award-winning touch screen kiosks.

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)			July 31, 2016 (Unaudited)				October 31, 2015
Assets
Current assets:
	Cash and cash equivalents		$	8,160			$	6,596
	Trade accounts receivable, net			9,948				5,915
	Inventory - print and production costs			13,938				5,688
	Prepaid expenses			1,762				2,015
	Deferred taxes - current portion			201				200
	Note receivable - current portion			372				372
Total current assets				34,381				20,786
Property and equipment, net				3,320				3,039
Non-current assets
	Note receivable - non-current portion			31				310
	Deferred taxes - non-current portion			12,625				12,705
	Intangible Assets, net			1,639				1,769
	Goodwill			2,227				1,700
	Other assets			703				498
Total non-current assets				17,225				16,982
Total assets			$	54,926			$	40,807
Liabilities and stockholders' equity
Current liabilities:
	Trade accounts payable			1,974			$	1,302
	Accrued expenses			9,772				3,907
	Deferred revenue			3,539				2,131
	Income taxes payable			1,742				936
	Deferred taxes payable			441				441
	Capital lease obligations - current portion			331				257
	Bank loans payable - current portion			460				431
	Other current liabilities			425				359
Total current liabilities				18,684				9,764
Non-current liabilities
	Capital lease obligations - long term portion			686				527
	Bank loans payable - long term portion			856				1,199
Total non-current liabilities				1,542				1,726
Total liabilities				20,226				11,490
Stockholders' equity (see note 1):
	IDW Media Holdings, Inc. stockholders' equity:
	Preferred stock, $.01 par value; authorized shares - 500; no shares issued at July 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 July 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 July 31, 2016 and October 31, 2015			5				5
	Additional paid-in capital			53,023				47,419
	Accumulated other comprehensive loss			(197	)			(153	)
	Accumulated deficit			(16,991	)			(18,780	)
	Treasury stock, at cost, consisting of 519 shares of Class B common stock at July 31, 2016 and October 31, 2015			(1,196	)			(1,196	)
	Total IDW Media Holdings, Inc. stockholders' equity			34,700				27,341
	Non-controlling interests			-				1,976
Total stockholders' equity				34,700				29,317
Total liabilities and stockholders' equity			$	54,926			$	40,807

IDW MEDIA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
			Three Months Ended July 31,								Nine Months Ended July 31,
(in thousands, except per share data)			2016				2015				2016						2015
Revenues			$	17,608			$	13,454			$	41,634			$	35,519
Costs and expenses:
	Direct cost of revenues			8,706				5,650				20,752				15,912
	Selling, general and administrative (i)			5,791				5,414				16,611				15,609
	Depreciation and amortization			395				442				1,137				1,256
	Bad debt expense			99				22				122				15
Total costs and expenses				14,991				11,528				38,622				32,792
Income from operations				2,617				1,926				3,012				2,727
Interest expense, net				(19	)			(17	)			(57	)			(19)
Other income (expense), net				10				22				(22	)			(100)
Income before income taxes				2,608				1,931				2,933				2,608
Provision for income taxes				(998	)			(705	)			(1,229	)			(952)
Net income				1,610				1,226				1,704				1,656
Net income attributable to non-controlling interests				227				(112	)			-				(512)
Net income attributable to IDW Media Holdings, Inc.			$	1,837			$	1,114			$	1,704			$	1,144
Basic and diluted income per share attributable to IDW Media Holdings, Inc. common stockholders (see notes 1 and 3):
Net income (loss) per share			$	.37			$	.24			$	.36			$	.25
Weighted-average number of shares used in the calculation of basic and diluted income per share:				5,007				4,649				4,772				4,637
Dividend declared per common share:			$	0.00			$	0.163			$	0.163			$	0.489
Interest Expense			$	22			$	20			$	68			$	57
(i) Stock-based compensation included in selling, general and administrative expenses			$	96			$	91			$	289			$	274