Tix Corporation Reports Third Quarter and First Nine Months 2017 Results

STUDIO CITY, CA., Nov. 14, 2017 (GLOBE NEWSWIRE) — Tix Corporation (the “Company” or “Tix”) (OTCQX:TIXC), a leading provider of discount ticketing services, today reported results for the third quarter and first nine months ended September 30, 2017. 

The Company’s third quarter and first nine months 2017 performance continued to feel the impact of increased aggressive competition from online ticket sellers, show producers, and hotel properties.  To mitigate the effects from competition, including the MGM Resorts International (“MGM”) impacts discussed below, the Company recently launched its first ever online platform, introduced new dining and shopping offers, and implemented significant expense reductions.       

The Company recently reported that it was notified by MGM of their plan to open their own discount ticket booths on their hotel properties in Las Vegas and restrict the Company’s ability to sell certain Cirque du Soleil (“Cirque”) shows at its Tix4Tonight booths.  MGM effected these changes in mid-to-late September 2017.  Cirque’s Mystère, the Company’s best-selling Cirque show, continue to be offered at its booths.  The new MGM booths sell discount tickets for all shows located within their Las Vegas hotel properties.  All shows located within the MGM Las Vegas hotel properties, including the four Cirque shows withdrawn from our Tix4Tonight booths, are available to purchase on the Company’s online website effective November 1, 2017.  Competition from MGM’s new discount ticket booths could have a material adverse effect on the Company’s future performance.

The Company experienced a significant and unusual decline in the volume of tickets sold during the month of October 2017.  While difficult to assess, the Company believes the recent October 1st Las Vegas Strip shooting and to a lesser extent, the opening of MGM booths discussed above, contributed to the decline.   

Third Quarter 2017 Results

Third quarter 2017 revenues were $4,754,000 as compared with $5,290,000 for the same period a year ago.  Revenues were negatively impacted by increased competition, particularly from online ticket sellers, as compared to the same period a year ago.   

Third quarter 2017 direct operating expenses, which includes payroll costs, rents, utilities and third party commission and fees, were $2,367,000 as compared with $2,644,000 for the same period a year ago.  The decrease in direct operating expenses was primarily the result of fewer locations in operation during this period as compared with the same period a year ago.       

Third quarter 2017 selling, general and administrative expenses were $1,993,000 as compared with $1,865,000 for the same period a year ago.           

Third quarter 2017 net income was $240,000, or $0.01 per diluted common share, as compared with a net income of $455,000, or $0.03 per diluted common share reported for the same period a year ago. 

First Nine Months 2017 Results

First nine months 2017 revenues were $13,839,000 as compared with $16,019,000 for the same period a year ago.  Revenues were negatively impacted by increased competition, particularly from online ticket sellers, as compared to the same period a year ago.

First nine months 2017 direct operating expenses were $7,162,000 as compared with $7,791,000 for the same period a year ago.  The decrease in direct operating expenses was primarily the result of fewer locations in operation during this period as compared with the same period a year ago.       

First nine months 2017 selling, general and administrative expenses were $5,756,000 as compared with $5,643,000 for the same period a year ago.           

First nine months 2017 net income was $515,000, or $0.03 per diluted common share, as compared with a net income of $1,473,000, or $0.08 per diluted common share reported for the same period a year ago. 

About Tix Corporation

Tix Corporation (OTCQX:TIXC) provides discount ticketing services. It currently operates nine discount ticket stores in Las Vegas under its Tix4Tonight marquee and two online properties www.tix4tonight.com and www.tix4.com, which offers up to a 50 percent discount for same-day shows, concerts, attractions and sporting events, as well as discount dining and shopping offers.  Tix4Tonight also serves as the Official Las Vegas Guest Services Partner for Expedia and its other brands. The co-branded Expedia Local Expert service provides both pre-arrival concierge-type services and in-market concierge-type desk services and related customer service support at physical locations and online in Las Vegas, featuring Tix4Tonight’s inventory of discount show and attraction tickets, along with discount dining reservations.

Safe Harbor Statement

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the Company’s filings with the OTCQX. The Company assumes no obligation to update these forward-looking statements. A copy of the Company’s reports for the twelve months ended December 31, 2016 can be found on the Company website at www.tixcorp.com or www.otcmarkets.com.

Investor Contacts:    

Steve Handy, CFO, (818)761-1002

TIX CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS
               
          September 30, 2017   December 31, 2016
          (Unaudited)    
Assets
Current assets:
  Cash   $ 5,662,000   $ 7,336,000  
  Accounts receivable   8,000     36,000  
  Prepaid expenses and other current assets   174,000     131,000  
    Total current assets   5,844,000     7,503,000  
         
Property and equipment, net   205,000     264,000  
         
Other assets:        
  Goodwill   3,120,000     3,120,000  
  Deferred tax asset   10,220,000     10,508,000  
  Deposits and other assets   70,000     61,000  
    Total other assets   13,410,000     13,689,000  
      Total assets $ 19,459,000   $ 21,456,000  
               
Liabilities and Stockholders’ Equity
Current liabilities:        
  Accounts payable – shows and events $ 808,000   $ 1,097,000  
  Accounts payable and accrued expenses   669,000     1,090,000  
  Deferred revenue   30,000     44,000  
  Note payable – short term and net of discount   194,000     200,000  
    Total current liabilities   1,701,000     2,431,000  
               
Deferred rent obligations   17,000     28,000  
Note payable – net of current portion and discount       176,000  
Total liabilities   1,718,000     2,635,000  
         
Stockholders’ equity:        
  Preferred stock, $.01 par value; 500,000 shares authorized; none issued        
  Common stock, $.08 par value; 100,000,000 shares authorized;
17,342,175 shares net of 16,644,814 treasury shares, and 17,349,583
shares net of 16,637,406 treasury shares issued and outstanding at
September 30, 2017 and December 31, 2016, respectively
  2,720,000     2,720,000  
  Additional paid-in capital   94,976,000     94,655,000  
  Cost of stock held in treasury   (28,164,000 )   (28,154,000 )
  Accumulated deficit   (51,791,000 )   (50,400,000 )
    Total stockholders’ equity   17,741,000     18,821,000  
      Total liabilities and stockholders’ equity $ 19,459,000   $ 21,456,000  

 

TIX CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
         
 

 

  Three Months Ended September 30,
    2017   2016
    (Unaudited)   (Unaudited)
         
Revenues $ 4,754,000 $ 5,290,000
Operating expenses:        
Direct costs of revenues   2,367,000   2,644,000
Selling, general and administrative expenses   1,993,000   1,865,000
Depreciation and amortization   29,000   87,000
Total operating expenses   4,389,000   4,596,000
Operating income   365,000   694,000
Other expense , net   2,000   5,000
Income before provision for income taxes   363,000   689,000
Provision for income taxes   123,000   234,000
Net income $ 240,000 $ 455,000
         
Net income per common share        
Net income per common share – basic $ 0.01 $ 0.03
Net income per common share – diluted $ 0.01 $ 0.03
         
Weighted average common shares outstanding – basic   17,342,175   17,349,583
Weighted average common shares outstanding – diluted   17,342,175   18,041,036

 

TIX CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
         
 

 

  Nine Months Ended September 30,
    2017   2016
    (Unaudited)   (Unaudited)
         
Revenues $ 13,839,000 $ 16,019,000
Operating expenses:        
Direct costs of revenues   7,162,000   7,791,000
Selling, general and administrative expenses   5,756,000   5,643,000
Depreciation and amortization   129,000   337,000
Total operating expenses   13,047,000   13,771,000
Operating income   792,000   2,248,000
Other expense, net   12,000   16,000
Income before provision for income taxes   780,000   2,232,000
Provision for income taxes   265,000   759,000
Net income $ 515,000 $ 1,473,000
         
Net income per common share        
Net income per common share – basic $ 0.03 $ 0.09
Net income per common share – diluted $ 0.03 $ 0.08
         
Weighted average common shares outstanding – basic   17,344,156   17,327,516
Weighted average common shares outstanding – diluted   17,344,156   18,111,752