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Tix Corporation Reports Full Year 2018 Results

STUDIO CITY, CA, March 26, 2019 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (TIXC), a leading provider of discount ticketing services, today reported results for the full year ended December 31, 2018.   

Full Year 2018 Business Highlights:

  • CIRQUE DU SOLEIL, THE PREMIER ENTERTAINMENT OFFERING IN LAS VEGAS, IS BACK AT TIX4TONIGHT. On December 2, 2018, the Company’s Tix4Tonight Las Vegas booths resumed selling MGM Resorts resident Cirque du Soleil shows, which for a period had only been offered on the Company’s website.

  • FOURTH QUARTER 2018 OPERATING INCOME, EXCLUDING A ONE-TIME NON-CASH GOODWILL IMPAIRMENT CHARGE, RETURNED TO POSITIVE AS DID CASH FLOWS FROM OPERATIONS. Q4 2018 saw the Company return to positive cash flows from operations as a result of the successful execution of its growth and cost reduction initiatives. This achievement occurred prior to Tix4Tonight’s resumption of selling tickets for the Cirque shows. Fourth quarter 2018 operating income, after adjusting for a one-time non-cash goodwill impairment charge, was $250,000 and cash flows from operations were $142,000 during the fourth quarter of 2018. 

Tix Corporation’s Chief Executive Officer, Mitch Francis, commented, “Fiscal year 2018 was a highly unusual year for us in that for almost the entire year, we couldn’t offer certain Cirque du Soleil tickets from our multiple retail locations on the Las Vegas Strip.  As previously discussed, MGM Resorts and Cirque du Soleil began in November 2017 to withhold certain Cirque du Soleil show tickets from our retail booths while at the same time, constructing and operating competing booths on MGM Resorts’ properties.  The impact from these events, as well as a general continued decline in interest for shows in Las Vegas, hurt our financial results. We implemented significant cost reductions throughout this year, leading to a return to quarterly operating income and positive cash flows from operations in the fourth quarter of 2018, excluding a one-time non-cash goodwill impairment charge.  With our recently announced new agreement with MGM Resorts and Cirque du Soleil, we are once again selling Cirque du Soleil show tickets, as well as MGM Resorts headliners, at our retail booths, which we anticipate will lead to improved operating results in 2019.” 

Revenue for the years ended December 31, 2018 and 2017 was $12,969,000 and $17,395,000, respectively, a decrease of $4,426,000, or 25%. The decrease was due to several negative factors during the year ended December 31, 2018, as compared to the prior year period.  Such factors included, increased aggressive competition from online ticket sellers, show producers, and hotel properties; MGM Resorts managing five of their own discount ticket booths and removing tickets of four of their Cirque du Soleil shows from Tix4Tonight booths beginning in October 2017; and, the robust Las Vegas convention activity, whose participants, the Company believes, attend fewer shows than casual tourists.

About Tix Corporation

Tix Corporation (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 shows, concerts, attractions, and tours, as well as discount dining and shopping offers. 

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 OTC Markets. 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, 2018, 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
CONSOLIDATED BALANCE SHEETS 
    December 31, 2018     December 31, 2017
Assets
Current assets:          
Cash $ 3,870,000     $ 5,129,000  
Prepaid expenses and other current assets   381,000       289,000  
Total current assets   4,251,000       5,418,000  
           
Property and equipment, net   186,000       268,000  
           
Other assets:          
Goodwill   -       3,120,000  
Deferred tax asset   1,653,000       5,048,000  
Deposits and other assets   215,000       215,000  
Total other assets   1,868,000       8,383,000  
 Total assets $ 6,305,000     $ 14,069,000  
           
Liabilities and Stockholders’ Equity
Current liabilities:          
Accounts payable – shows and events $ 660,000     $ 711,000  
Accounts payable and accrued expenses   412,000       520,000  
Deferred revenue   59,000       23,000  
Notes payable   -       200,000  
Total current liabilities   1,131,000       1,454,000  
           
Deferred rent obligations   75,000       49,000  
Total liabilities   1,206,000       1,503,000  
           
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; 17,342,175 shares net of 16,644,814 treasury shares issued and outstanding at December 31, 2018 and 2017, respectively   2,720,000       2,720,000  
Additional paid-in capital   95,113,000       95,003,000  
Treasury stock   (28,164,000 )     (28,164,000 )
Accumulated deficit   (64,570,000 )     (56,993,000 )
Total stockholders’ equity   5,099,000       12,566,000  
Total liabilities and stockholders’ equity $ 6,305,000     $ 14,069,000  
 


 
TIX CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2018 AND 2017
   
  Years Ended December 31,
  2018   2017
           
Revenues $ 12,969,000     $ 17,395,000  
Operating expenses:          
Direct costs of revenues   8,319,000       10,361,000  
Selling, general and administrative expenses   5,759,000       6,220,000  
Impairment of Goodwill   3,120,000       -  
Depreciation and amortization   133,000       167,000  
Total costs and expenses   17,331,000       16,748,000  
Operating income (loss)   (4,362,000 )     647,000  
Other (income) expense:          
Interest income   (14,000 )     (10,000 )
Interest expense   -       24,000  
Other (income) expense, net   (14,000 )     14,000  
Income (loss) before provision for income tax expense   (4,348,000 )     633,000  
Provision for income tax expense   3,229,000       5,320,000  
Net loss $ (7,577,000 )   $ (4,687,000 )
           
Net loss per common share – basic and diluted $ (0.44 )   $ (0.27 )
           
Weighted average common shares outstanding – basic and diluted   17,342,175       17,343,657