SOURCE: Tix Corporation

Tix Corporation

October 26, 2015 09:00 ET

Tix Corporation Reports Third Quarter and First Nine Months 2015 Results

STUDIO CITY, CA--(Marketwired - Oct 26, 2015) -  Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the third quarter and first nine months ended September 30, 2015. 

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. Our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas Strip and downtown.

Third Quarter 2015 and 2014

Third quarter 2015 revenues increased to $6.0 million compared with $5.9 million for the same period a year ago. 

Third quarter 2015 direct operating expenses, which includes payroll costs, rents, and utilities, was $2.4 million compared to $2.3 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, decreased to 39% compared to 40% for the same period a year ago. 

Third quarter 2015 selling, general and administrative expenses was $1.9 million compared to $1.7 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, was 31% compared to 29% for the same period a year ago. 

Third quarter 2015 net income increased to $1.6 million compared with $1.5 million for the same period a year ago. Net income per diluted common share increased to $0.09 compared with $0.08 per diluted common share reported for the same period a year ago.

First Nine Months 2015 and 2014

First nine months 2015 revenues increased to $17.5 million compared with $16.8 million for the same period a year ago. 

First nine months 2015 direct operating expenses, which includes payroll costs, rents, and utilities, was $7.0 million compared to $7.0 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, decreased to 40% compared to 42% for the same period a year ago. 

First nine months 2015 selling, general and administrative expenses was $5.7 million compared to $5.5 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, was 33% compared to 33% for the same period a year ago. 

First nine months 2015 net income increased to $4.1 million compared with $3.3 million for the same period a year ago. Net income per diluted common share increased to $0.23 compared with $0.18 per diluted common share reported for the same period a year ago.

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 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 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  
             
    September 30, 2015     December 31, 2014  
    (Unaudited)        
Assets  
Current assets:  
  Cash   $ 8,806,000     $ 4,866,000  
  Accounts receivable     45,000       54,000  
  Prepaid expenses and other current assets     148,000       148,000  
    Total current assets     8,999,000       5,068,000  
                 
Property and equipment, net     690,000       918,000  
                 
Other assets:                
  Intangible assets:                
    Goodwill     3,120,000       3,120,000  
    Intangibles, net     42,000       153,000  
    Total intangible assets     3,162,000       3,273,000  
  Deposits and other assets     66,000       68,000  
    Total other assets     3,228,000       3,341,000  
      Total assets   $ 12,917,000     $ 9,327,000  
                 
Liabilities and Stockholders' Equity  
Current liabilities:                
  Accounts payable - shows and events   $ 2,476,000     $ 938,000  
  Accounts payable and accrued expenses     1,422,000       1,236,000  
  Deferred revenue     54,000       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     4,128,000       2,456,000  
                 
Deferred rent obligations     66,000       133,000  
Note payable - net of current portion and discount     370,000       552,000  
Obligation for share purchases - net of current portion     -       78,000  
Total liabilities     4,564,000       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; 17,280,009 shares net of 16,619,953 treasury shares, and 17,864,744 shares net of 15,451,803 treasury shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively     2,713,000       2,666,000  
  Additional paid-in capital     94,129,000       93,865,000  
  Obligation for share purchases     -       (2,148,000 )
  Cost of stock held in treasury     (28,115,000 )     (25,465,000 )
  Accumulated deficit     (60,374,000 )     (62,810,000 )
    Total stockholders' equity     8,353,000       6,108,000  
      Total liabilities and stockholders' equity   $ 12,917,000     $ 9,327,000  
                       
                       
                       
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
             
    Three Months Ended
September 30,
 
    2015     2014  
    (Unaudited)     (Unaudited)  
                 
Revenues   $ 6,042,000     $ 5,855,000  
Operating expenses:                
  Direct costs of revenues     2,353,000       2,325,000  
  Selling, general and administrative expenses     1,884,000       1,727,000  
  Depreciation and amortization     140,000       198,000  
    Total costs and expenses     4,377,000       4,250,000  
Operating income     1,665,000       1,605,000  
Other income (expense):                
  Other income, net     -       3,000  
  Interest expense, net     (6,000 )     (38,000 )
    Other income (expense), net     (6,000 )     (35,000 )
Income before income tax expense     1,659,000       1,570,000  
Income tax expense     74,000       39,000  
Net income   $ 1,585,000     $ 1,531,000  
                 
Net income per common share                
  Net income per common share - basic   $ 0.09     $ 0.08  
  Net income per common share - diluted   $ 0.09     $ 0.08  
                 
Weighted average common shares outstanding - basic     17,023,522       18,179,744  
Weighted average common shares outstanding - diluted     17,740,924       18,272,313  
                 
                 
                 
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
             
    Nine Months Ended
September 30,
 
    2015     2014  
    (Unaudited)     (Unaudited)  
                 
Revenues   $ 17,481,000     $ 16,754,000  
Operating expenses:                
  Direct costs of revenues     6,930,000       7,002,000  
  Selling, general and administrative expenses     5,721,000       5,510,000  
  Depreciation and amortization     455,000       661,000  
    Total costs and expenses     13,106,000       13,173,000  
Operating income     4,375,000       3,581,000  
Other expense:                
  Other income, net     7,000       3,000  
  Interest expense, net     (17,000 )     (204,000 )
    Other expense, net     (10,000 )     (201,000 )
Income before income tax expense     4,365,000       3,380,000  
Income tax expense     235,000       120,000  
Net income   $ 4,130,000     $ 3,260,000  
                 
Net income per common share                
  Net income per common share - basic   $ 0.24     $ 0.18  
  Net income per common share - diluted   $ 0.23     $ 0.18  
                 
Weighted average common shares outstanding - basic     17,172,699       18,204,799  
Weighted average common shares outstanding - diluted     17,643,741       18,297,368  
                 
                 
                 
TIX CORPORATION AND SUBSIDIARY  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
       
    Nine Months Ended
September 30,
 
    2015     2014  
    (Unaudited)     (Unaudited)  
Cash flows from operating activities:                
  Net income   $ 4,130,000     $ 3,260,000  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation     344,000       394,000  
    Non-cash and accrued interest     18,000       18,000  
    Amortization of intangible assets     111,000       266,000  
    Fair value of options and warrants issued to employees and directors     279,000       267,000  
    Gain on sale of property and equipment     4,000       -  
    (Increase) decrease in:                
      Accounts receivable     9,000       (4,000 )
      Prepaid expenses and other assets     2,000       72,000  
    Increase (decrease) in:                
      Accounts payable - shows and events     1,538,000       1,545,000  
      Accounts payable and accrued expenses     186,000       (405,000 )
      Deferred revenue     29,000       32,000  
      Deferred rent obligations     (67,000 )     (47,000 )
        Net cash provided by operating activities     6,583,000       5,398,000  
                 
Cash flows from investing activities:                
  Purchases of property and equipment     (120,000 )     (435,000 )
        Net cash used in investing activities     (120,000 )     (435,000 )
                 
Cash flows from financing activities:                
  Cash received on exercise of stock options     25,000       -  
  Payment of cash dividends     (1,694,000 )     -  
  Purchase of treasury stock     (495,000 )     (44,000 )
  Payment on notes payable     (200,000 )     (3,743,000 )
  Obligation for share purchases     (159,000 )     (90,000 )
  Proceeds received on senior secured notes payable     -       4,000,000  
  Payment on senior secured notes payable     -       (2,500,000 )
        Net cash used in financing activities     (2,523,000 )     (2,377,000 )
                 
  Net increase     3,940,000       2,586,000  
  Cash, balance at beginning of period     4,866,000       3,176,000  
  Cash, balance at end of period   $ 8,806,000     $ 5,762,000  

Contact Information

  • Contact:
    Steve Handy
    CFO
    818-761-1002