Hollywood Media Corp. Pro Forma Financial Information (Unaudited)
Exhibit 99.2
Introduction
On August 21, 2008, Hollywood Media Corp. (“Hollywood Media”) entered into a purchase agreement
(the “Purchase Agreement”) with R&S Investments, LLC (“Purchaser”) for the sale of Hollywood
Media’s subsidiaries Xxxxxxxxx.xxx, Inc. (“Xxxxxxxxx.xxx”) and Totally Hollywood TV, LLC
(collectively, the “Xxxxxxxxx.xxx Business”). Pursuant to the Purchase Agreement, Hollywood Media
sold the Xxxxxxxxx.xxx Business to Purchaser for a purchase price of $10,000,000, which includes $1
million, which was paid to Hollywood Media at closing, and earn-out payments expected to total $9
million. The following Unaudited Pro Forma Condensed Consolidated Financial Statements have been
prepared to illustrate the effect of the sale of the Xxxxxxxxx.xxx Business, as a discontinued
operation, on the historical financial position and results of operations of the Company.
The Unaudited Pro Forma Condensed Consolidated Statements of Operations for the six months ended
June 30, 2007 and 2008, and for the years ended December 31, 2005, 2006 and 2007, reflect the sale
of the Xxxxxxxxx.xxx Business that occurred on August 21, 2008, as if the sale had occurred as of
January 1 of each such year. The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of
June 30, 2008 reflects the sale of the Xxxxxxxxx.xxx Business as if the sale occurred on June 30,
2008.
The Unaudited Pro Forma Condensed Consolidated Financial Statements are based upon available
information and assumptions that the Company believes are reasonable under the circumstances. The
Unaudited Pro Forma Condensed Consolidated Financial Statements have been provided for information
purposes and are not necessarily indicative of the financial condition or results of operations
that would have been achieved had the sale of the Xxxxxxxxx.xxx Business occurred on the date
indicated. Assumptions underlying the pro forma adjustments are described in the accompanying
notes, which should be read in conjunction with the Unaudited Pro Forma Condensed Consolidated
Financial Statements. The Unaudited Pro Forma Condensed Consolidated Financial Statements,
including the notes thereto, should be read in conjunction with the historical financial statements
of the Company included in its Quarterly Report on Form 10-Q for the period ended June 30, 2008,
and its Annual Report on Form 10-K for the year ended December 31, 2007.
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended June 30, 2008
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended June 30, 2008
(Unaudited)
| Historical | Sale of | Pro Forma | ||||||||||
| Hollywood Media Corp.(8) | Xxxxxxxxx.xxx(7) | Hollywood Media Corp. | ||||||||||
NET REVENUES |
||||||||||||
Ticketing |
$ | 59,062,595 | $ | — | $ | 59,062,595 | ||||||
Other |
6,347,644 | (2,893,255 | ) | 3,454,389 | ||||||||
| 65,410,239 | (2,893,255 | ) | 62,516,984 | |||||||||
OPERATING COSTS AND EXPENSES: |
||||||||||||
Cost of revenues — ticketing |
49,782,868 | — | 49,782,868 | |||||||||
Editorial, production, development and technology (exclusive of
depreciation and amortization shown separately below) |
3,180,216 | (1,278,853 | ) | 1,901,363 | ||||||||
Selling, general and administrative (exclusive of depreciation and
amortization shown separately below) |
8,561,579 | (1,606,978 | ) | 6,954,601 | ||||||||
Payroll and benefits |
8,030,321 | (1,256,368 | ) | 6,773,953 | ||||||||
Depreciation and amortization |
1,255,694 | (270,428 | ) | 985,266 | ||||||||
Total operating costs and expenses |
70,810,678 | (4,412,627 | ) | 66,398,051 | ||||||||
Loss from operations |
(5,400,439 | ) | (1,519,372 | ) | (3,881,067 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES |
1,317,513 | — | 1,317,513 | |||||||||
OTHER INCOME (EXPENSE) |
||||||||||||
Interest, net |
300,333 | — | 300,333 | |||||||||
Other, net |
(34,985 | ) | 1,403 | (33,582 | ) | |||||||
Loss before minority interest |
(3,817,578 | ) | (1,520,775 | ) | (2,296,803 | ) | ||||||
MINORITY INTEREST IN INCOME OF SUBSIDIARIES |
(65,822 | ) | — | (65,822 | ) | |||||||
Net loss |
$ | (3,883,400 | ) | $ | (1,520,775 | ) | $ | (2,362,625 | ) | |||
Basic and diluted loss per common share |
||||||||||||
Continuing operations |
$ | (0.12 | ) | $ | (0.07 | ) | ||||||
Total basic and diluted net loss per share |
$ | (0.12 | ) | $ | (0.07 | ) | ||||||
Weighted average common and common equivalent shares
outstanding — basic and diluted |
31,909,540 | 31,909,540 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
2
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended June 30, 2007
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended June 30, 2007
(Unaudited)
| Historical | Sale of | Pro Forma | ||||||||||
| Hollywood Media Corp.(8) | Xxxxxxxxx.xxx(7) | Hollywood Media Corp. | ||||||||||
NET REVENUES |
||||||||||||
Ticketing |
$ | 58,851,282 | $ | — | $ | 58,851,282 | ||||||
Other |
5,786,994 | (2,826,213 | ) | 2,960,781 | ||||||||
| 64,638,276 | (2,826,213 | ) | 61,812,063 | |||||||||
OPERATING COSTS AND EXPENSES: |
||||||||||||
Cost of revenues — ticketing |
50,513,554 | — | 50,513,554 | |||||||||
Editorial, production, development and technology (exclusive of
depreciation and amortization shown separately below) |
2,669,638 | (1,000,844 | ) | 1,668,794 | ||||||||
Selling, general and administrative (exclusive of depreciation and
amortization shown separately below) |
7,794,311 | (856,804 | ) | 6,937,507 | ||||||||
Payroll and benefits |
8,074,525 | (1,361,347 | ) | 6,713,178 | ||||||||
Depreciation and amortization |
857,446 | (201,665 | ) | 655,781 | ||||||||
Total operating costs and expenses |
69,909,474 | (3,420,660 | ) | 66,488,814 | ||||||||
Loss from operations |
(5,271,198 | ) | (594,447 | ) | (4,676,751 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES |
875 | — | 875 | |||||||||
OTHER INCOME (EXPENSE) |
||||||||||||
Interest, net |
(319,621 | ) | — | (319,621 | ) | |||||||
Other, net |
39,262 | 1,695 | 40,957 | |||||||||
Loss before minority interest and discontinued operations |
(5,550,682 | ) | (596,142 | ) | (4,954,540 | ) | ||||||
MINORITY INTEREST IN INCOME OF SUBSIDIARIES |
(382 | ) | — | (382 | ) | |||||||
Loss from continuing operations |
(5,551,064 | ) | (596,142 | ) | (4,954,922 | ) | ||||||
Income from discontinued operations |
1,048,938 | — | 1,048,938 | |||||||||
Net loss |
$ | (4,502,126 | ) | $ | (596,142 | ) | $ | (3,905,984 | ) | |||
Basic and diluted income (loss) per common share |
||||||||||||
Continuing operations |
$ | (0.16 | ) | $ | (0.15 | ) | ||||||
Discontinued operations |
0.03 | 0.03 | ||||||||||
Total basic and diluted net income (loss) per share |
$ | (0.13 | ) | $ | (0.12 | ) | ||||||
Weighted average common and common equivalent shares
outstanding — basic and diluted |
33,351,780 | 33,351,780 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
3
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2007
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2007
(Unaudited)
| Historical | Sale of | Pro Forma | ||||||||||
| Hollywood Media Corp.(6) | Xxxxxxxxx.xxx(7) | Hollywood Media Corp. | ||||||||||
NET REVENUES |
||||||||||||
Ticketing |
$ | 111,792,068 | $ | — | $ | 111,792,068 | ||||||
Other |
12,089,155 | (5,719,999 | ) | 6,369,156 | ||||||||
| 123,881,223 | (5,719,999 | ) | 118,161,224 | |||||||||
OPERATING COSTS AND EXPENSES: |
||||||||||||
Cost of revenues — ticketing |
94,017,924 | — | 94,017,924 | |||||||||
Editorial, production, development and technology (exclusive of
depreciation and amortization shown separately below) |
5,635,742 | (2,045,550 | ) | 3,590,192 | ||||||||
Selling, general and administrative (exclusive of depreciation and
amortization shown separately below) |
16,321,373 | (2,051,399 | ) | 14,269,974 | ||||||||
Payroll and benefits |
16,072,400 | (2,703,583 | ) | 13,368,817 | ||||||||
Depreciation and amortization |
1,847,171 | (468,679 | ) | 1,378,492 | ||||||||
Total operating costs and expenses |
133,894,610 | (7,269,211 | ) | 126,625,399 | ||||||||
Loss from operations |
(10,013,387 | ) | (1,549,212 | ) | (8,464,175 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES |
4,747 | — | 4,747 | |||||||||
OTHER INCOME (EXPENSE) |
||||||||||||
Interest, net |
199,437 | — | 199,437 | |||||||||
Other, net |
(59,572 | ) | 8,637 | (50,935 | ) | |||||||
Loss before minority interest and discontinued operations |
(9,868,775 | ) | (1,557,849 | ) | (8,310,926 | ) | ||||||
MINORITY INTEREST IN INCOME OF SUBSIDIARIES |
3,241 | — | 3,241 | |||||||||
Loss from continuing operations |
(9,865,534 | ) | (1,557,849 | ) | (8,307,685 | ) | ||||||
Gain on sale of discontinued operations, net of income taxes |
10,254,287 | — | 10,254,287 | |||||||||
Income from discontinued operations |
1,345,856 | — | 1,345,856 | |||||||||
Income from discontinued operations |
11,600,143 | — | 11,600,143 | |||||||||
Net income (loss) |
$ | 1,734,609 | $ | (1,557,849 | ) | $ | 3,292,458 | |||||
Basic and diluted income (loss) per common share |
||||||||||||
Continuing operations |
$ | (0.30 | ) | $ | (0.25 | ) | ||||||
Discontinued operations |
0.35 | 0.35 | ||||||||||
Total basic and diluted net income (loss) per share |
$ | 0.05 | $ | 0.10 | ||||||||
Weighted average common and common equivalent shares
outstanding — basic and diluted |
33,303,886 | 33,303,886 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
4
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2006
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2006
(Unaudited)
| Historical | Sale of | Pro Forma | ||||||||||
| Hollywood Media Corp.(6) | Xxxxxxxxx.xxx(7) | Hollywood Media Corp. | ||||||||||
NET REVENUES |
||||||||||||
Ticketing |
$ | 98,661,705 | $ | — | $ | 98,661,705 | ||||||
Other |
10,755,277 | (4,892,562 | ) | 5,862,715 | ||||||||
| 109,416,982 | (4,892,562 | ) | 104,524,420 | |||||||||
OPERATING COSTS AND EXPENSES: |
||||||||||||
Cost of revenues — ticketing |
82,496,590 | — | 82,496,590 | |||||||||
Editorial, production, development and technology (exclusive of
depreciation and amortization shown separately below) |
4,763,860 | (1,598,477 | ) | 3,165,383 | ||||||||
Selling, general and administrative (exclusive of depreciation and
amortization shown separately below) |
14,884,268 | (1,529,473 | ) | 13,354,795 | ||||||||
Payroll and benefits |
14,117,379 | (2,016,563 | ) | 12,100,816 | ||||||||
Depreciation and amortization |
1,702,427 | (408,630 | ) | 1,293,797 | ||||||||
Total operating costs and expenses |
117,964,524 | (5,553,143 | ) | 112,411,381 | ||||||||
Loss from operations |
(8,547,542 | ) | (660,581 | ) | (7,886,961 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES |
12,227 | — | 12,227 | |||||||||
OTHER INCOME (EXPENSE) |
||||||||||||
Interest, net |
(1,787,735 | ) | — | (1,787,735 | ) | |||||||
Change in derivative liability |
640,536 | — | 640,536 | |||||||||
Other, net |
3,910 | (5,520 | ) | (1,610 | ) | |||||||
Loss before minority interest and discontinued operations |
(9,678,604 | ) | (666,101 | ) | (9,023,543 | ) | ||||||
MINORITY INTEREST IN INCOME OF SUBSIDIARIES |
4,910 | — | 4,910 | |||||||||
Loss from continuing operations |
(9,673,694 | ) | (666,101 | ) | (9,018,633 | ) | ||||||
Gain on sale of discontinued operations, net of income taxes |
16,328,241 | — | 16,328,241 | |||||||||
Income from discontinued operations |
2,867,966 | — | 2,867,966 | |||||||||
Income from discontinued operations |
19,196,207 | — | 19,196,207 | |||||||||
Net income (loss) |
$ | 9,522,513 | $ | (666,101 | ) | $ | 10,177,574 | |||||
Basic and diluted income (loss) per common share |
||||||||||||
Continuing operations |
$ | (0.30 | ) | $ | (0.28 | ) | ||||||
Discontinued operations |
0.59 | 0.58 | ||||||||||
Total basic and diluted net income (loss) per share |
$ | 0.29 | $ | 0.30 | ||||||||
Weighted average common and common equivalent shares
outstanding — basic and diluted |
32,761,848 | 32,761,848 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
5
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2005
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year ended December 31, 2005
(Unaudited)
| Historical | Sale of | Pro Forma | ||||||||||
| Hollywood Media Corp.(6) | Xxxxxxxxx.xxx(7) | Hollywood Media Corp. | ||||||||||
NET REVENUES |
||||||||||||
Ticketing |
$ | 79,189,987 | $ | — | $ | 79,189,987 | ||||||
Other |
5,805,821 | (3,780,045 | ) | 2,025,776 | ||||||||
| 84,995,808 | (3,780,045 | ) | 81,215,763 | |||||||||
OPERATING COSTS AND EXPENSES: |
||||||||||||
Cost of revenues — ticketing |
68,179,732 | — | 68,179,732 | |||||||||
Editorial, production, development and technology (exclusive of
depreciation and amortization shown separately below) |
2,326,893 | (1,304,043 | ) | 1,022,850 | ||||||||
Selling, general and administrative (exclusive of depreciation and
amortization shown separately below) |
10,818,088 | (1,346,004 | ) | 9,472,084 | ||||||||
Payroll and benefits |
13,586,986 | (2,160,987 | ) | 11,425,999 | ||||||||
Depreciation and amortization |
1,269,146 | (377,606 | ) | 891,540 | ||||||||
Total operating costs and expenses |
96,180,845 | (5,188,640 | ) | 90,992,205 | ||||||||
Loss from operations |
(11,185,037 | ) | (1,408,595 | ) | (9,776,442 | ) | ||||||
EQUITY IN EARNINGS OF UNCONSOLIDATED INVESTEES |
533,228 | — | 533,228 | |||||||||
OTHER INCOME (EXPENSE) |
||||||||||||
Interest, net |
(545,597 | ) | (2,662 | ) | (548,259 | ) | ||||||
Change in derivative liability |
87,037 | — | 87,037 | |||||||||
Other, net |
44,862 | 4,059 | 48,921 | |||||||||
Loss before minority interest and discontinued operations |
(11,065,507 | ) | (1,407,198 | ) | (9,655,515 | ) | ||||||
MINORITY INTEREST IN INCOME OF SUBSIDIARIES |
(168,107 | ) | — | (168,107 | ) | |||||||
Loss from continuing operations |
(11,233,614 | ) | (1,407,198 | ) | (9,823,622 | ) | ||||||
Gain on sale of discontinued operations, net of income taxes |
— | — | — | |||||||||
Income from discontinued operations |
2,320,432 | — | 2,320,432 | |||||||||
Income from discontinued operations |
2,320,432 | — | 2,320,432 | |||||||||
Net loss |
$ | (8,913,182 | ) | $ | (1,407,198 | ) | $ | (7,503,190 | ) | |||
Basic and diluted income (loss) per common share |
||||||||||||
Continuing operations |
$ | (0.36 | ) | $ | (0.31 | ) | ||||||
Discontinued operations |
0.08 | 0.07 | ||||||||||
Total basic and diluted net income (loss) per share |
$ | (0.28 | ) | $ | (0.24 | ) | ||||||
Weighted average common and common equivalent shares
outstanding — basic and diluted |
31,470,307 | 31,470,307 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
6
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2008
(Unaudited)
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2008
(Unaudited)
| Historical | Sale of | Pro Forma | ||||||||||||
| Hollywood Media Corp.(6) | Xxxxxxxxx.xxx | Hollywood Media Corp. | ||||||||||||
ASSETS |
||||||||||||||
CURRENT ASSETS: |
||||||||||||||
Cash and cash equivalents |
$ | 20,946,053 | $ | (2,000,000 | ) | (1), (4) | $ | 18,946,053 | ||||||
Receivables, net |
3,051,683 | (1,375,933 | ) | (2) | 1,675,750 | |||||||||
Inventories held for sale |
4,704,413 | — | 4,704,413 | |||||||||||
Deferred ticket costs |
12,832,064 | — | 12,832,064 | |||||||||||
Prepaid expenses |
1,972,518 | (124,106 | ) | (2) | 1,848,412 | |||||||||
Other receivables |
1,903,537 | (7,904 | ) | (2) | 1,895,633 | |||||||||
Dividend receivable |
1,311,100 | — | 1,311,100 | |||||||||||
Other current assets |
143,294 | — | 143,294 | |||||||||||
Restricted cash |
— | 2,600,000 | (4) | 2,600,000 | ||||||||||
Total current assets |
46,864,662 | (907,943 | ) | 45,956,719 | ||||||||||
PROPERTY AND EQUIPMENT, net |
5,238,071 | (712,795 | ) | (2) | 4,525,276 | |||||||||
INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED INVESTEES |
290,243 | — | 290,243 | |||||||||||
INTANGIBLE ASSETS, net |
1,620,594 | (385,220 | ) | (2) | 1,235,374 | |||||||||
GOODWILL |
29,822,422 | (893,697 | ) | (2) | 28,928,725 | |||||||||
OTHER ASSETS |
54,711 | (8,801 | ) | (2) | 45,910 | |||||||||
TOTAL ASSETS |
$ | 83,890,703 | $ | (2,908,456 | ) | $ | 80,982,247 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||
CURRENT LIABILITIES: |
||||||||||||||
Accounts payable |
$ | 4,004,313 | $ | (2,326,749 | ) | (2) | $ | 1,677,564 | ||||||
Accrued expenses and other |
3,767,873 | (179,805 | ) | (2),(3) | 3,588,068 | |||||||||
Escrow liability |
— | 2,600,000 | (4) | 2,600,000 | ||||||||||
Deferred revenue |
20,184,994 | (473,272 | ) | (2) | 19,711,722 | |||||||||
Customer deposits |
1,432,357 | — | 1,432,357 | |||||||||||
Current portion of capital lease obligations |
161,316 | (5,708 | ) | (2) | 155,608 | |||||||||
Current portion of notes payable |
59,463 | — | 59,463 | |||||||||||
Total current liabilities |
29,610,316 | (385,534 | ) | 29,224,782 | ||||||||||
DEFERRED REVENUE |
586,915 | — | 586,915 | |||||||||||
CAPITAL LEASE OBLIGATIONS, less current portion |
223,652 | (22,355 | ) | (2) | 201,297 | |||||||||
OTHER DEFERRED LIABILITY |
873,711 | (8,265 | ) | (2) | 865,446 | |||||||||
NOTES PAYABLE, less current portion |
79,699 | — | 79,699 | |||||||||||
COMMITMENTS AND CONTINGENCIES |
||||||||||||||
SHAREHOLDERS’ EQUITY: |
||||||||||||||
Preferred Stock, $.01 par value, 1,000,000 shares
authorized; none outstanding |
— | — | — | |||||||||||
Common stock, $.01 par value, 100,000,000 shares authorized; 32,095,552
and 31,897,983 shares issued and outstanding at June 30, 2008 and
December 31, 2007, respectively |
320,956 | — | 320,956 | |||||||||||
Additional paid-in capital |
310,917,962 | — | 310,917,962 | |||||||||||
Accumulated deficit |
(258,722,508 | ) | (2,492,302 | ) | (5) | (261,214,810 | ) | |||||||
Total shareholders’ equity |
52,516,410 | (2,492,302 | ) | 50,024,108 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 83,890,703 | $ | (2,908,456 | ) | $ | 80,982,247 | |||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
7
HOLLYWOOD MEDIA CORP. AND SUBSIDIARIES
Notes to the Pro Forma Condensed Consolidated Financial Statements
(Unaudited)
Notes to the Pro Forma Condensed Consolidated Financial Statements
(Unaudited)
| (1) | To record the cash proceeds of $1,000,000 less monies escrowed of $2,600,000 and $400,000 for working capital adjustment. | |
| (2) | Represents adjustments to eliminate assets and liabilities of the Xxxxxxxxx.xxx and Hollywood TV businesses. | |
| (3) | The amount includes an accrual for estimated transaction expenses, costs and fees associated with sale of $257,332. | |
| (4) | To record $2,600,000 liability for monies held in escrow. | |
| (5) | To record the loss on sale of the assets of the Xxxxxxxxx.xxx and Hollywood TV business based on cash consideration: |
Proceeds received |
$ | 1,000,000 | ||
Working capital deficit |
(400,000 | ) | ||
Net assets sold |
(234,970 | ) | ||
Accrued transaction expense |
(257,332 | ) | ||
Escrow liability |
(2,600,000 | ) | ||
Net loss |
$ | (2,492,302 | ) | |
| (6) | Represents the Consolidated Balance Sheet included in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2008 and the Consolidated Statements of Operations included in the Company’s Annual Report on Form 10-K for the years ended December 31, 2007, 2006 and 2005, as applicable. | |
| (7) | Represents adjustments to eliminate the results of operations of Xxxxxxxxx.xxx and Hollywood TV that the Company believes are directly attributable to the sale and are factually supportable and will not continue after sale. | |
| (8) | Represents the Consolidated Statements of Operations included in the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2008 and 2007, as applicable. |
8
