SOURCE: Tix Corporation

Tix Corporation

July 27, 2015 09:00 ET

Tix Corporation Reports Second Quarter and First Six Months 2015 Results

STUDIO CITY, CA--(Marketwired - Jul 27, 2015) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the second quarter and first six months ended June 30, 2015. 

SECOND QUARTER 2015 HIGHLIGHTS

  • Announced quarterly cash dividend program equating to $0.20 per share annually. 
  • Paid first quarterly cash dividend of $0.05 per common share. 

Tix Corporation's business is operated by its wholly owned subsidiary Tix4Tonight, which sells discount show tickets from ten 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. Our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas Strip and downtown.

Second Quarter 2015 and 2014

Second quarter 2015 revenues increased to $5.9 million compared with $5.7 million for the same period a year ago. 

Second quarter 2015 direct operating expenses, which includes payroll costs, rents, and utilities, was $2.3 million compared to $2.3 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, improved to 39% compared to 40% for the same period a year ago. 

Second quarter 2015 selling, general and administrative expenses was $1.8 million compared to $1.8 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, improved to 31% compared to 32% for the same period a year ago. 

Second quarter 2015 net income increased to $1.6 million compared with $1.2 million for the same period a year ago. Net income per diluted common share increased to $0.09 compared with $0.07 per diluted common share reported for the same period a year ago.

First Six Months 2015 and 2014

First six months 2015 revenues increased to $11.4 million compared with $10.9 million for the same period a year ago. 

First six months 2015 direct operating expenses, which includes payroll costs, rents, and utilities, declined slightly to $4.6 million compared to $4.7 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, improved to 40% compared to 43% for the same period a year ago. 

First six months 2015 selling, general and administrative expenses was $3.8 million compared to $3.8 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, improved to 34% compared to 35% for the same period a year ago. 

First six months 2015 net income increased to $2.5 million compared with $1.7 million for the same period a year ago. Net income per diluted common share increased to $0.14 compared with $0.09 per diluted common share reported for the same period a year ago.

Conclusion 

Mitch Francis, Chief Executive Officer of the Company, stated, "We had a solid first six months of 2015. I'm encouraged by our expectation that the remaining six months of 2015 will build on our recent performance. Our financial performance, coupled with our recently announced quarterly cash dividend program of $0.05 per share, ($0.20 per share annually), reflects both the continued strength of our business and our continued efforts to return capital to our shareholders." 

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.

Stockholder Rights Agreement

On January 2, 2014, the Company announced that its Board of Directors adopted an amendment of the Company's Stockholder Rights Agreement (the "Rights Agreement") to protect the interests of all Company stockholders by lowering the beneficial ownership threshold to a level that could help preserve the value of the Federal Net Operating Loss Carry Forwards ("NOLs"). The Company's ability to use the NOLs would be substantially limited if there were an "ownership change" as defined under Section 382 of the U.S. Internal Revenue Code and related U.S. Treasury regulations ("Section 382"). In general, an "ownership change" would occur under Section 382 if the Company's "5-percent shareholders," as defined under Section 382, collectively increase their ownership in the Company by more than 50 percentage points over a rolling three-year period.

Under the terms of the amended and restated Rights Agreement, subject to certain exceptions, in the event a person or group, without Board approval, acquires beneficial ownership of 4.95% or more of the outstanding Common Stock or announces a tender or exchange offer which would result in such person or group's beneficial ownership of 4.95% or more of the outstanding Common Stock (a "Triggering Stockholder"), then all stockholders of the Company (other than the Triggering Stockholder) will be entitled to acquire shares of Common Stock at a 50% discount (a "Dilution Event"). 

A person or group that owns 4.95% or more of the outstanding Common Stock at the time of the adoption of the amended and restated Rights Agreement (an "Existing Major Stockholder") will not trigger a Dilution Event. However, a Dilution Event will be triggered if an Existing Major Stockholder, without Board approval, acquires any additional shares of Common Stock. 

The 4.95% beneficial ownership threshold under the amended and restated Rights Agreement will remain applicable until March 31, 2021, or earlier, if the Board determines that the reduced threshold is no longer necessary for the preservation of the NOLs.

The foregoing description of the amended and restated Rights Agreement is qualified in its entirety by reference to the full text of the amended and restated Rights Agreement, a copy of which is available on the Company's website.

About Tix Corporation

Tix Corporation (OTCQX: TIXC) provides discount ticketing services. It currently operates ten 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 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, 2014 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.

   
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED BALANCE SHEETS  
           
  June 30, 2015     December 31, 2014  
  (Unaudited)        
Assets  
Current assets:  
  Cash $ 7,413,000     $ 4,866,000  
  Accounts receivable   43,000       54,000  
  Prepaid expenses and other current assets   256,000       148,000  
    Total current assets   7,712,000       5,068,000  
               
Property and equipment, net   735,000       918,000  
               
Other assets:              
  Intangible assets:              
    Goodwill   3,120,000       3,120,000  
    Intangibles, net   67,000       153,000  
    Total intangible assets   3,187,000       3,273,000  
  Deposits and other assets   66,000       68,000  
    Total other assets   3,253,000       3,341,000  
      Total assets $ 11,700,000     $ 9,327,000  
               
Liabilities and Stockholders' Equity  
Current liabilities:              
  Accounts payable - shows and events $ 1,965,000     $ 938,000  
  Accounts payable and accrued expenses   1,062,000       1,236,000  
  Deferred revenue   52,000       25,000  
  Note payable - short term and net of discount   176,000       176,000  
  Obligation for share purchase - short term   -       81,000  
    Total current liabilities   3,255,000       2,456,000  
               
Deferred rent obligations   62,000       133,000  
Note payable - net of current portion and discount   364,000       552,000  
Obligation for share purchases - net of current portion   -       78,000  
Total liabilities   3,681,000       3,219,000  
               
Stockholders' equity:              
  Preferred stock, $.01 par value; 500,000 shares authorized; none issued   -       -  
  Common Stock, $.08 par value; 100,000,000 shares authorized; 16,941,598 shares net of 16,394,393 treasury shares, and 17,864,744 shares net of 15,451,803 treasury shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively   2,668,000       2,666,000  
  Additional paid-in capital   94,083,000       93,865,000  
  Obligation for share purchases   -       (2,148,000 )
  Cost of shares held in treasury   (27,620,000 )     (25,465,000 )
  Accumulated deficit   (61,112,000 )     (62,810,000 )
    Total stockholders' equity   8,019,000       6,108,000  
      Total liabilities and stockholders' equity $ 11,700,000     $ 9,327,000  
   
   
   
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
           
  Three Months Ended June 30,  
  2015     2014  
  (Unaudited)     (Unaudited)  
               
Revenues $ 5,889,000     $ 5,726,000  
Operating expenses:              
  Direct costs of revenues   2,271,000       2,314,000  
  Selling, general and administrative expenses   1,802,000       1,847,000  
  Depreciation and amortization   136,000       203,000  
    Total costs and expenses   4,209,000       4,364,000  
Operating income   1,680,000       1,362,000  
Other income (expense):              
  Other income, net   7,000       -  
  Interest expense, net   (5,000 )     (73,000 )
    Other income (expense), net   2,000       (73,000 )
Income before income tax expense   1,682,000       1,289,000  
Income tax expense   100,000       51,000  
Net income $ 1,582,000     $ 1,238,000  
               
Net income per common share              
  Net income per common share - basic $ 0.09     $ 0.07  
  Net income per common share - diluted $ 0.09     $ 0.07  
               
Weighted average common shares outstanding - basic   16,939,461       18,204,799  
Weighted average common shares outstanding - diluted   18,116,058       18,273,174  
               
               
               
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
           
  Six Months Ended June 30,  
  2015     2014  
  (Unaudited)     (Unaudited)  
               
Revenues $ 11,439,000     $ 10,899,000  
Operating expenses:              
  Direct costs of revenues   4,577,000       4,677,000  
  Selling, general and administrative expenses   3,837,000       3,783,000  
  Depreciation and amortization   315,000       463,000  
    Total costs and expenses   8,729,000       8,923,000  
Operating income   2,710,000       1,976,000  
Other expense:              
  Other income, net   7,000       -  
  Interest expense, net   (11,000 )     (166,000 )
    Other expense, net   (4,000 )     (166,000 )
Income before income tax expense   2,706,000       1,810,000  
Income tax expense   161,000       81,000  
Net income $ 2,545,000     $ 1,729,000  
               
  Net income per common share              
  Net income per common share - basic $ 0.15     $ 0.09  
Net income per common share - diluted $ 0.14     $ 0.09  
               
Weighted average common shares outstanding - basic   17,248,524       18,211,758  
Weighted average common shares outstanding - diluted   17,962,235       18,294,632  
   
   
   
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
     
  Six Months Ended June 30,  
  2015     2014  
  (Unaudited)     (Unaudited)  
Cash flows from operating activities:              
  Net income $ 2,545,000     $ 1,729,000  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation   229,000       275,000  
    Non-cash and accrued interest   12,000       20,000  
    Amortization of intangible assets   86,000       188,000  
    Fair value of options and warrants issued to employees and directors   188,000       160,000  
    (Increase) decrease in:              
      Accounts receivable   11,000       10,000  
      Prepaid expenses and other assets   (106,000 )     27,000  
    Increase (decrease) in:              
      Accounts payable - shows and events   1,027,000       1,144,000  
      Accounts payable and accrued expenses   (174,000 )     (294,000 )
      Deferred revenue   27,000       32,000  
      Deferred rent obligations   (71,000 )     (25,000 )
        Net cash provided by operating activities   3,774,000       3,266,000  
               
Cash flows from investing activities:              
  Purchases of property and equipment   (46,000 )     (392,000 )
        Net cash used in investing activities   (46,000 )     (392,000 )
               
Cash flows from financing activities:              
  Cash received on exercise of stock options   25,000       -  
  Payment of cash dividends   (847,000 )     -  
  Payment on notes payable   (200,000 )     (3,743,000 )
  Obligation for share purchases   (159,000 )     (90,000 )
  Proceed received on senior secured notes payable   -       4,000,000  
  Purchase of treasury shares   -       (44,000 )
        Net cash provided by (used in) financing activities   (1,181,000 )     123,000  
               
Net increase   2,547,000       2,997,000  
Cash, balance at beginning of period   4,866,000       3,176,000  
Cash, balance at end of period $ 7,413,000     $ 6,173,000  
               

Contact Information

  • Contact:
    Steve Handy
    CFO
    818-761-1002