SOURCE: Tix Corporation

May 16, 2011 09:20 ET

Tix Corporation Reports First Quarter 2011 Results

STUDIO CITY, CA--(Marketwire - May 16, 2011) - Tix Corporation (the "Company") (OTCQX: TIXC) (PINKSHEETS: TIXC), a leading entertainment company providing discount ticketing services and branded event merchandising, today reported results for the first quarter 2011.

First quarter 2011 revenues decreased 12% to $6.4 million, compared with $7.3 million for the same period in 2010. Our Ticketing Services segment reported increased revenues which were offset by a decline in revenues from our Exhibit Merchandising segment in the first quarter of 2011 compared to the same period in 2010.

First quarter 2011 income from continuing operations decreased to $118,000 or $0.00 per diluted common share compared to $244,000 or $0.01 per diluted common share for the same period in 2010. The decline in income from continuing operations was due to our 12% decline in revenues, an increase in direct costs as a percentage of revenues offset by an improvement in our consolidated selling, general and administrative expenses of $569,000 as compared to the same period in 2010. Included in the cost savings of $569,000 is a reduction in corporate expenses, excluding stock based compensation expense, of approximately $450,000 related to cost savings on governance and regulatory costs associated with moving our stock listing to the OTCQX exchange, deregistering our common stock under the Securities Exchange Act of 1934, and other expense reduction efforts.

First Quarter Segmental Operating Results

Ticketing Services Segment

Our Ticketing Services are carried out by our wholly owned subsidiary Tix4Tonight, which offers for sale discount show and discount dinner reservations. When selling last minute discounted tickets, Tix4Tonight sells them under short-term exclusive and non-exclusive agreements with the majority of Las Vegas shows and attractions running at any one time. Ticketing Services also offers under the name Tix4Dinner, discounted dinner reservations at various restaurants surrounding the Las Vegas strip and downtown, with dining at specific times on the same day or in some cases after the day of sale.

First quarter 2011 revenues from our Ticketing Services segment increased to $5.1 million, or 7%, during the first quarter compared to $4.7 million for the same period in 2010. The increase in revenues was the result of additional locations established through our acquisitions as well as increased brand awareness.

First quarter 2011 operating income from Ticketing Services increased to $1.4 million, or 12%, during the quarter compared to $1.3 million for the same period in 2010. Our operating income increased due to the 7% increase in revenues offset by an increase in direct costs as a percentage of revenues to 46%, as compared to 42%, in the same period in 2010. Our selling, general and administrative expenses decreased by $301,000 which was primarily related to a reduction in professional services fees related to ongoing litigation during the same period in 2010. No similar level of professional service fees were incurred during the first quarter 2011.

Exhibit Merchandising Segment

We provide branded event merchandising through our wholly owned subsidiary Exhibit Merchandising. Exhibit Merchandising provides retail specialty stores with branded merchandise for touring museum exhibitions and touring theatrical productions. Exhibit Merchandising owns and operates complete turnkey retail stores with commercially available and extensive custom branded products for sale.

First quarter 2011 revenues from our Exhibit Merchandising segment decreased 46% to $1.4 million compared to $2.5 million for the same period in 2010. The decrease in revenues was a result of an increase in the number of days in which exhibitions were closed due to the relocation of exhibits as compared to the same period in 2010. Revenue is primarily derived from the four current exhibits titled, 'Tutankhamun and The Golden Age of the Pharaohs,' 'Tutankhamun the Golden King and the Great Pharaohs,' 'Real Pirates: The Untold Story of the Whydah from Slave Ship to Pirate Ship' and our newest exhibit 'Cleopatra: The Search for the Last Queen of Egypt.'

First quarter 2011 operating loss from Exhibit Merchandising was $488,000 compared to an operating income of $169,000 in the same period in 2010. The first quarter 2011 operating loss was due to the 46% decrease in revenues, as well as the increase in our direct costs as a percentage of revenues to 69% as compared to 57% in the same period in 2010. This increase in direct costs as a percentage of revenues was predominantly related to merchandise which was sold at a discount for promotional purposes at the King Tutankhamun exhibit which recently opened in Melbourne, Australia. Our selling, general and administrative costs increased by $78,000, or 12%, as compared to the same period in 2010, which was related to travel costs associated with the movement of our specialty stores.

Conclusion

Mitch Francis, Chief Executive Officer of the Company stated, "Our consolidated performance was impacted by the planned movement of exhibitions which impacted the performance of our Exhibit Merchandising segment. While the movement of exhibits is common place for this segment, all of the exhibitions moved during the first quarter of 2011 which was unusual." Mr. Francis continued, "We continue to realize revenue growth from our Ticketing Services segment and we just recently announced a strategic acquisition that we expect will bring us increased revenues and profits while also settling our outstanding litigation. This development, coupled with our realized corporate cost savings, will continue to enhance overall shareholder value."

Investor Relations

Investors are welcome to contact the Company's investor relations officer, Steve Handy, CFO, at (818)761-1002 with any questions.

About TIX Corporation

Tix Corporation (OTCQX: TIXC) is an entertainment company providing discount ticketing services, and event and branded merchandising. It currently operates eleven discount ticket stores in Las Vegas under the Tix4Tonight marquee, which offer up to a 50 percent discount for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining. The Company is also engaged in branded merchandise development and sales activities related to museum exhibitions and other events, including the King Tutankhamun, Cleopatra and Real Pirates tours as well as selling themed souvenir memorabilia and collectors' items in specialty stores in conjunction with the specific events and venues.

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. 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 various filings with the Securities and Exchange Commission and the OTCQX. The Company assumes no obligation to update these forward-looking statements. A copy of the Company's report for the twelve months ended December 31, 2010 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.



                     TIX CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                                  March 31,   December 31,
                                                    2011          2010
                                                ------------  ------------
                                                 (Unaudited)
                               Assets
Current assets:
  Cash                                          $  7,972,000  $  8,816,000
  Accounts receivable                                193,000       251,000
  Inventory, net                                   1,719,000     1,792,000
  Prepaid expenses and other current assets          604,000       777,000
                                                ------------  ------------
     Total current assets                         10,488,000    11,636,000
                                                ------------  ------------

Property and equipment, net                        2,370,000     1,512,000
                                                ------------  ------------

Other assets:
  Intangible assets:
     Goodwill                                      4,679,000     2,879,000
     Intangibles, net                              3,211,000     2,457,000
                                                ------------  ------------
     Total intangible assets                       7,890,000     5,336,000
  Deposits and other assets                          341,000       360,000
                                                ------------  ------------
     Total other assets                            8,231,000     5,696,000
                                                ------------  ------------
        Total assets                            $ 21,089,000  $ 18,844,000
                                                ============  ============

         Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                              $  2,037,000  $  2,603,000
  Accrued expenses                                 2,048,000       900,000
  Deferred revenue                                   115,000       107,000
  Other current liabilities                          121,000       106,000
  Share repurchase obligation - net                2,297,000     1,707,000
  Note payable - net                                 467,000             -
                                                ------------  ------------
     Total current liabilities                     7,085,000     5,423,000
                                                ------------  ------------
Long term liabilities:
  Share repurchase obligation - net                1,738,000     2,313,000
  Note payable - net                               1,333,000             -
                                                ------------  ------------
     Total long term liabilities                   3,071,000     2,313,000
                                                ------------  ------------
       Total liabilities                          10,156,000     7,736,000
                                                ------------  ------------
Commitments and contingencies

Stockholders' equity:
  Preferred stock, $.01 par value; 500,000
   shares authorized; none issued
  Common Stock, $.08 par value; 100,000,000
   shares authorized; 24,606,833 shares net of
   8,856,627 treasury shares, and 24,856,833
   shares net of 8,606,627 treasury shares
   issued and outstanding at March 31, 2011 and
   December 31, 2010, respectively                 2,678,000     2,678,000
  Additional paid-in capital                      90,580,000    90,434,000
  Cost of shares held in treasury                (12,459,000)  (12,084,000)
  Accumulated deficit                            (69,852,000)  (69,922,000)
  Accumulated other comprehensive gain               (14,000)        2,000
                                                ------------  ------------
     Total stockholders' equity                   10,933,000    11,108,000
                                                ------------  ------------
        Total liabilities and stockholders'
         equity                                 $ 21,089,000  $ 18,844,000
                                                ============  ============










                     TIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)


                                              Three Months Ended March 31,
                                              ----------------------------
                                                  2011           2010
                                              -------------  -------------

Revenues                                      $   6,449,000  $   7,288,000
                                              -------------  -------------
Operating expenses:
 Direct costs of revenues                         3,303,000      3,427,000
 Selling, general and administrative expenses     2,615,000      3,184,000
 Depreciation and amortization                      432,000        421,000
                                              -------------  -------------
Total costs and expenses                          6,350,000      7,032,000
                                              -------------  -------------
  Operating income                                   99,000        256,000
                                              -------------  -------------
Other:
 Other income (expense)                              32,000        (15,000)
 Interest income                                      3,000          5,000
 Interest expense                                   (16,000)        (2,000)
                                              -------------  -------------
Other income (expense), net                          19,000        (12,000)
                                              -------------  -------------
  Income from continuing operations                 118,000        244,000
Loss from discontinued operations                   (48,000)      (158,000)
                                              -------------  -------------
Net income                                           70,000         86,000
 Other comprehensive income (loss)
  Foreign currency translation adjustments          (16,000)        21,000
                                              -------------  -------------
Comprehensive income                          $      54,000  $     107,000
                                              =============  =============
Net income per common share - continuing
 operations
 Net income per common share - continuing
  operations - basic                          $        0.00  $        0.01
 Net income per common share - continuing
  operations - diluted                        $        0.00  $        0.01

Net loss per common share - discontinued
 operations
 Net loss per common share - discontinued
  operations - basic                          $       (0.00) $       (0.01)
 Net loss per common share - discontinued
  operations - diluted                        $       (0.00) $       (0.01)
                                              -------------  -------------

Net income per common share
 Net income per common share - basic          $        0.00  $        0.00
                                              =============  =============
 Net income per common share - diluted        $        0.00  $        0.00
                                              =============  =============

Weighted average common shares outstanding -
 basic                                           24,798,500     31,123,357
                                              =============  =============
Weighted average common shares outstanding -
 diluted                                         25,211,580     31,217,494
                                              =============  =============











                     TIX CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (UNAUDITED)

                                              Three Months Ended March 31,
                                              ----------------------------
                                                  2011           2010
                                              -------------  -------------
Cash flows from operating activities:
  Net income                                  $      70,000  $      86,000
    Adjustments to reconcile net income to cash
     provided by operating activities:
    Loss from discontinued operations                48,000        158,000
    Depreciation                                    186,000        128,000
    Amortization of intangible assets               246,000        293,000
    Non-cash imputed interest expense                15,000              -
    Fair value of options issued to employee and
     directors                                      146,000         35,000
    Change in allowance of inventory                (14,000)        10,000
    (Increase) decrease in:
      Accounts receivable                            58,000       (157,000)
      Advances to vendors                                 -         50,000
      Inventory                                      87,000        439,000
      Prepaid expenses and other current assets     192,000         24,000
    Increase (decrease) in:
      Accounts payable and accrued expenses         582,000      1,793,000
      Deferred revenue                                8,000          1,000
      Other current liabilities                      15,000          2,000
                                              -------------  -------------
        Net cash provided by operating
         activities from continuing
         operations                               1,639,000      2,862,000
        Net cash used in discontinued
         operations                                 (48,000)      (462,000)
                                              -------------  -------------
        Net cash provided by operating
         activities                               1,591,000      2,400,000
                                              -------------  -------------

Cash flows from investing activities:
  Purchases of property and equipment               (44,000)      (172,000)
  Cash used for acquisitions                     (2,000,000)    (1,500,000)
                                              -------------  -------------
        Net cash used in investing activities
         from continuing operations              (2,044,000)    (1,672,000)
                                              -------------  -------------
        Net cash used in investing activities    (2,044,000)    (1,672,000)
                                              -------------  -------------

Cash flows from financing activities:
  Cost of Treasury Stock                           (375,000)             -
                                              -------------  -------------
        Net cash used in financing activities
         from continuing operations                (375,000)             -
                                              -------------  -------------
        Net cash used in financing activities      (375,000)             -
                                              -------------  -------------

Effect of exchange rate changes on cash             (16,000)        21,000

Change in Cash:
  Net (decrease) increase                          (844,000)       749,000
  Balance at beginning of period                  8,816,000      9,885,000
                                              -------------  -------------
  Balance at end of period                    $   7,972,000  $  10,634,000
                                              =============  =============
Supplemental disclosures of cash flow
 information:
Cash paid for:
  Income taxes                                $           -  $           -
  Interest                                    $       1,000  $       2,000
Non-cash investing activities
Issuance of secured note payable related to
 acquisitions                                 $   2,000,000  $   1,000,000
                                              =============  =============











                     TIX CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                     FINANCIAL INFORMATION BY SEGMENT
                                (UNAUDITED)

                                                               Consolidated
                      Ticketing      Exhibit                       and
                      Services    Merchandising   Corporate      Combined
                    ------------- ------------  ------------  -------------

2011
Revenue             $   5,066,000 $  1,383,000  $          -  $   6,449,000
Direct cost of
 revenues               2,349,000      954,000             -      3,303,000
Selling, general
 and administrative
 expenses               1,059,000      716,000       840,000      2,615,000
Depreciation and
 amortization             222,000      201,000         9,000        432,000
                    ------------- ------------  ------------  -------------
Operating income
 (loss) from
 continuing
 operations         $   1,436,000 $   (488,000) $   (849,000) $      99,000
                    ============= ============  ============  =============

Current assets      $   5,415,000 $  2,422,000  $  2,651,000  $  10,488,000
Fixed assets            1,787,000      471,000       112,000      2,370,000
Intangible assets
 and goodwill           4,941,000    2,949,000             -      7,890,000
Other non-current
 assets                    58,000      269,000        14,000        341,000
                    ------------- ------------  ------------  -------------
Total assets        $  12,201,000 $  6,111,000  $  2,777,000  $  21,089,000
                    ============= ============  ============  =============

2010
Revenue             $   4,743,000 $  2,545,000  $          -  $   7,288,000
Direct cost of
 revenues               1,980,000    1,447,000             -      3,427,000
Selling, general
 and administrative
 expenses               1,360,000      638,000     1,186,000      3,184,000
Depreciation and
 amortization             123,000      291,000         7,000        421,000
                    ------------- ------------  ------------  -------------
Operating income
 (loss) from
 continuing
 operations         $   1,280,000 $    169,000  $ (1,193,000) $     256,000
                    ============= ============  ============  =============




Contact Information

  • Contact:
    Steve Handy
    CFO
    818-761-1002