SOURCE: Tix Corporation

Tix Corporation

May 15, 2014 09:00 ET

Tix Corporation Reports First Quarter 2014 Results

STUDIO CITY, CA--(Marketwired - May 15, 2014) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2014.

Tix Corporation's business is operated by its wholly owned subsidiary Tix4Tonight, which sells discount show tickets from eleven locations in Las Vegas. Tix4Tonight obtains its inventory of discount tickets under short-term exclusive and non-exclusive agreements with nearly every Las Vegas show along with numerous attractions and tours. The majority of our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas Strip and downtown.

First quarter 2014 revenues decreased 2% to $5.2 million compared with $5.3 million for the same period a year ago. Revenues were negatively impacted by CONEXPO-CON/AGG 2014, a tradeshow attended by approximately 130,000 people and held in Las Vegas every three years. Additionally, the Easter holiday season, which is generally beneficial to our business, occurred in April of this year compared to March of the prior year.

First quarter 2014 direct operating expenses, which includes payroll costs, rents, and utilities, were $2.4 million compared with $2.3 million for the same period a year ago. The increase in expense was due to the increase in the average number of discount ticket locations as compared to the same period a year ago.

First quarter 2014 selling, general and administrative expenses were $1.9 million compared with $2.4 million for the same period a year ago. Included in these expenses are $109,000 of expenses during the first three months of 2014 and $400,000 of expenses during the same period a year ago, in each case relating to certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation. Excluding these expenses, selling, general and administrative expenses decreased $166,000, or 8%, to $1.8 million compared to $2.0 million for same period of the prior year. The decrease in expense was due to a decrease in stock based compensation expense of $167,000.

First quarter 2014 net income was $491,000, or $0.03 per diluted common share, as compared to a net income of $237,000, or $0.01 per diluted common share reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the first quarter 2014 was $1.1 million, or $0.06 per diluted common share, as compared to Adjusted Earnings of $1.2 million, or $0.05 per diluted common share, reported for the same period a year ago.

Conclusion

Mitch Francis, Chief Executive Officer of the Company, stated, "Our first quarter revenues were impacted by one large trade show and the timing of the Easter holiday. However, with Easter in April of this year, our second quarter revenues should benefit. We also received County approval to continue operating our temporary booth at Bally's, now our highest sales facility, and believe we will be able to do so until the opening of our nearby permanent booth, currently under construction."

Investor Conference Call

The Company does not host a conference call following its earnings release. Investors are encouraged to contact the Company's investor relations officer, Steve Handy, CFO, at (818) 761-1002 with any questions.

Non-GAAP Financial Measure

Included in this press release is a "non-GAAP financial measure," which is a measure of the Company's historical or future performance that is different from measures calculated and presented in accordance with GAAP but that the Company believes is useful to investors. The Company defines Adjusted Earnings as net income plus (a) other expense, net, (b) income taxes, (c) depreciation and amortization charges, (d) stock based compensation expense, (e) loss on disposition of property and equipment, (f) unusual litigation, and (g) expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters. The Company believes that Adjusted Earnings is a useful measure of the Company's operating performance because a significant portion of its assets consists of goodwill and intangible assets and property and equipment that are amortized and depreciated as non-cash items over their remaining useful lives in accordance with GAAP. The Company's presentation of Adjusted Earnings may help investors assess the Company's performance before the effect of various items that do not directly affect the Company's ongoing operating performance. The Company also believes that measures similar to the Company's measurement of Adjusted Earnings are widely used in similar entertainment companies to measure operating performance, although Adjusted Earnings as calculated by the Company is not necessarily comparable to similarly titled measures by such other companies. Adjusted Earnings (a) does not represent net income or cash flows from operations as defined by GAAP, (b) is not necessarily indicative of cash available to fund the Company's cash flow needs, and (c) should not be considered as an alternative to net income, operating income, cash flows from operating activities or the Company's other financial information as determined under GAAP.

About Tix Corporation

Tix Corporation (OTCQX: TIXC) provides discount ticketing services. It currently operates eleven discount ticket stores in Las Vegas under its Tix4Tonight marquee, which offers up to a 50 percent discount for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining.

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 the expected operations and sales, potential improvements in consumer spending in Las Vegas, and 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 various historical filings with the Securities and Exchange Commission and, since November 2010, 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, 2013 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.

   
   
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED BALANCE SHEETS  
   
    March 31, 2014     December 31, 2013  
    (Unaudited)        
   
Assets  
Current assets:  
  Cash   $ 4,630,000     $ 3,176,000  
  Accounts receivable     69,000       63,000  
  Prepaid expenses and other current assets     412,000       268,000  
    Total current assets     5,111,000       3,507,000  
                 
Property and equipment, net     1,055,000       884,000  
                 
Other assets:                
  Intangible assets:                
    Goodwill     3,120,000       3,120,000  
    Intangibles, net     389,000       498,000  
    Total intangible assets     3,509,000       3,618,000  
  Deposits and other assets     68,000       71,000  
    Total other assets     3,577,000       3,689,000  
      Total assets   $ 9,743,000     $ 8,080,000  
                 
Liabilities and Stockholders' Equity                
Current liabilities:                
  Accounts payable - shows and events   $ 2,122,0000     $ 693,000  
  Accounts payable and accrued expenses     779,000       939,000  
  Deferred revenue     69,000       29,000  
  Notes payable - short term and net of discount     3,813,000       3,726,000  
  Obligation for share purchase - short term     81,000       84,000  
    Total current liabilities     6,864,000       5,471,000  
                 
Deferred rent obligations     113,000       133,000  
Note payable - net of current portion and discount     534,000       728,000  
Obligation for share purchases - net of current portion     78,000       160,000  
Total liabilities     7,589,000       6,492,000  
                 
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; 18,219,774 shares net of 15,406,803 treasury shares, and 18,218,572 shares net of 15,406,803 treasury shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively     2,691,000       2,691,000  
  Additional paid-in capital     93,449,000       93,356,000  
  Obligation for share purchases     (2,106,000 )     (2,088,000 )
  Cost of shares held in treasury     (25,413,000 )     (25,413,000 )
  Accumulated deficit     (66,467,000 )     (66,958,000 )
    Total stockholders' equity     2,154,000       1,588,000  
      Total liabilities and stockholders' equity   $ 9,743,000     $ 8,080,000  
                       
                       
   
   
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
 
   
    Three Months Ended March 31,  
    2014     2013  
    (Unaudited)     (Unaudited)  
                 
Revenues   $ 5,173,000     $ 5,283,000  
Operating expenses:                
  Direct costs of revenues     2,363,000       2,335,000  
  Selling, general and administrative expenses     1,936,000       2,393,000  
  Depreciation and amortization     260,000       275,000  
    Total costs and expenses     4,559,000       5,003,000  
Operating income     614,000       280,000  
Other expense:                
  Other expense     -       (5,000 )
  Interest income     -       6,000  
  Interest expense     (93,000 )     (6,000 )
    Other expense, net     (93,000 )     (5,000 )
Income before income tax expense     521,000       275,000  
Income tax expense     30,000       38,000  
Net income     491,000       237,000  
Other comprehensive loss:                
  Unrealized gain on available-for-sale securities     -       1,000  
Comprehensive income   $ 491,000     $ 238,000  
                 
Net income per common share                
  Net income per common share - basic   $ 0.03     $ 0.01  
  Net income per common share - diluted   $ 0.03     $ 0.01  
                 
Weighted average common shares outstanding - basic     18,218,793       23,669,831  
Weighted average common shares outstanding - diluted     18,324,458       23,723,976  
                 
                 
   
   
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
       
    Three Months Ended March 31,  
    2014     2013  
    (Unaudited)     (Unaudited)  
Cash flows from operating activities:                
  Net income   $ 491,000     $ 237,000  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation     151,000       148,000  
    Non-cash and accrued interest     93,000       6,000  
    Realized loss on available-for-sale securities arising during the period     -       5,000  
    Amortization of intangible assets     109,000       127,000  
    Fair value of options and warrants issued to employees and directors     80,000       247,000  
    (Increase) decrease in:                
      Accounts receivable     (6,000 )     (1,000 )
      Prepaid expenses and other assets     (141,000 )     159,000  
    Increase (decrease) in:                
      Accounts payable - shows and events     1,429,000       (389,000 )
      Accounts payable and accrued expenses     (160,000 )     (270,000 )
      Deferred revenue     40,000       (14,000 )
      Deferred rent obligations     (20,000 )     (10,000 )
        Net cash provided by operating activities     2,066,000       245,000  
                 
Cash flows from investing activities:                
  Purchases of property and equipment     (322,000 )     (53,000 )
  Purchase of short-term investments     -       (9,000 )
    Net cash used in investing activities     (322,000 )     (62,000 )
                 
Cash flows from financing activities:                
  Repayment of acquisition note     (200,000 )     -  
  Obligation for share purchases     (90,000 )     (211,000 )
    Net cash used in financing activities     (290,000 )     (211,000 )
                 
  Net increase (decrease)     1,454,000       (28,000 )
  Balance at beginning of period     3,176,000       6,017,000  
  Balance at end of period   $ 4,630,000     $ 5,989,000  
                   
                   
 
 
TIX CORPORATION AND SUBSIDIARY
TIX RECONCILIATION OF NET INCOME TO ADJUSTED EARNINGS
(UNAUDITED)
 
The following table set forth a reconciliation of consolidated net income to consolidated Adjusted Earnings:
 
    Three Months Ended   Three Months Ended
    March 31, 2014   March 31, 2013
    (Unaudited)   (Unaudited)
Net income   $ 491,000   $ 237,000
Income tax expense     30,000     38,000
Other expense, net     93,000     5,000
Depreciation and amortization     260,000     275,000
Stock based compensation expense     80,000     247,000
Litigation expense and non-routine legal and advisory services for corporate and governance matters     109,000     400,000
Adjusted Earnings   $ 1,063,000   $ 1,202,000
             
             

Contact Information

  • Contact:
    Steve Handy
    CFO
    818-761-1002