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Tix Corporation Reports Third Quarter and First Nine Months 2018 Results

STUDIO CITY, CA, Nov. 14, 2018 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (TIXC), a leading provider of discount ticketing services, today reported results for the third quarter and first nine months ended September 30, 2018.  

The Company’s operating results for the third quarter 2018 improved over the previous two quarters, however, the Company’s first nine months 2018 operating results remained lower than the same period a year ago as the Company believes it continued to be adversely impacted by the following external factors, which were previously reported:

  1. Increased aggressive competition from online ticket sellers, show producers, and hotel properties. 
  2. MGM managing five of their own discount ticket booths and removing tickets of four of their Cirque du Soleil (“Cirque”) shows from Tix4Tonight booths in October 2017. 
  3. Continued increase in hotel rooms reserved for Las Vegas conventions, whose participants, the Company believes, attend fewer shows than casual tourists.

The Company has been diligently focused on addressing the changing landscape, by implementing various growth and cost saving initiatives, including but not limited to the following:

  1. The Company is in the process of opening two new high pedestrian off-Strip locations at the Las Vegas North Premium Outlets and the McCarran International Airport baggage claim terminal. We anticipate both locations to open for business during the fourth quarter of 2018.
  2. The Company launched its first ever full-service Las Vegas ticketing website, Tix4.com, offering discount show tickets, attractions, tours, and dining. Tix4.com also includes MGM’s Cirque du Soleil shows withdrawn from our booths mentioned above. Tix4.com opened in late 2017 and during the first nine months of 2018, represented approximately 5% of total tickets sold during the period. The Company is encouraged by the potential revenue growth within the online space.
  3. The Company redesigned its discount Las Vegas dining program and relaunched it in mid-2017 as the Vegas Dining Card with approximately 60 discounted restaurant offerings. 
  4. The Company launched the Vegas Local Expert Planning Guide in early May 2018, an online tourist magazine, enabling Las Vegas tourists to easily navigate within their specific interests and view all categories of shows, tours, attractions and dining. Customers can see detailed information on any show, including a description, reviews, pictures, videos, and ultimately, book their tickets at very competitive prices. In keeping with the Company’s relationship as the Las Vegas Guest Services Partner for Expedia, Expedia exclusively distributes the Vegas Local Expert Planning Guide to many of its customers who have booked travel to Las Vegas.
  5. Lastly, the Company implemented significant expense reductions commencing in late 2017, including reductions in workforce, voluntary reductions in executive compensation, voluntary elimination of executive bonuses, elimination of staff bonuses and various other operating expense reductions. 

The Company continues its efforts to position itself for future growth by improving its online sales performance and strengthening partnerships that will yield additional revenue opportunities, while continuing to implement further long term operating cost reductions. 

The Company will continue its proactive efforts and focus on innovative measures to counter the negative developments outlined above towards stabilization of its business.

Reclassification of Prior Year Presentation

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. For the three and nine months ended September 30, 2017, a reclassification has been made to the Condensed Consolidated Statements of Operations to reclassify merchant credit card processing fees of approximately $321,000 and $949,000, respectively, from selling, general and administrative expenses to direct cost of revenues. This change in classification does not affect previously reported cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.

Third Quarter 2018 Results

Third quarter 2018 revenues were $3,343,000 as compared with $4,754,000 in the same period a year ago. Revenues were negatively impacted by the events discussed above.

Third quarter 2018 direct costs of revenues, which include payroll costs, rents, merchant credit card processing fees, utilities, and third-party commission and fees, decreased to $2,092,000 as compared with $2,688,000 for the same period a year ago. The decrease in direct costs of revenues was due to decreased locations in operation, decreased headcount, decreased merchant credit card processing fees, and expense reduction efforts mentioned above, as compared to the same period a year ago.   

Third quarter 2018 selling, general and administrative expenses decreased to $1,509,000 as compared with $1,672,000 for the same period a year ago. 

Third quarter 2018 net loss was $(286,000), or $(0.02) per diluted common share, as compared with a net income of $240,000, or $0.01 per diluted common share reported for the same period a year ago. 

First Nine Months 2018 Results

First nine months 2018 revenues were $9,558,000 as compared with $13,839,000 in the same period a year ago. Revenues were negatively impacted by the events discussed above.

First nine months 2018 direct costs of revenues, which include payroll costs, rents, merchant credit card processing fees, utilities, and third-party commission and fees, decreased to $6,328,000 as compared with $8,111,000 for the same period a year ago. The decrease in direct costs of revenues was due to decreased locations in operation, decreased headcount, decreased merchant credit card processing fees, and expense reduction efforts mentioned above, as compared to the same period a year ago.   

First nine months 2018 selling, general and administrative expenses decreased to $4,620,000 as compared with $4,807,000 for the same period a year ago. 

First nine months 2018 net loss was $(1,461,000), or $(0.08) per diluted common share, as compared with a net income of $515,000, or $0.03 per diluted common share reported for the same period a year ago. 

About Tix Corporation

Tix Corporation (TIXC) provides discount ticketing services. It currently operates ten 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. Tix4Tonight also serves as the Official Las Vegas Guest Services Partner for Expedia and its other brands. The co-branded Expedia Local Expert service provides both pre-arrival concierge-type services and in-market concierge-type desk services and related customer service support at physical locations in Las Vegas and online, featuring Tix4Tonight's inventory of discount show and attraction tickets, along with discount dining programs.

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, 2017, 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  
CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
    September 30, 2018     December 31, 2017  
    (Unaudited)        
Assets  
Current assets:            
  Cash $ 3,776,000     $ 5,129,000    
  Prepaid expenses and other current assets   196,000       289,000    
    Total current assets   3,972,000       5,418,000    
             
Property and equipment, net   169,000       268,000    
             
Other assets:            
  Goodwill   3,120,000       3,120,000    
  Deferred tax asset   5,048,000       5,048,000    
  Deposits and other assets   215,000       215,000    
    Total other assets   8,383,000       8,383,000    
      Total assets $ 12,524,000     $ 14,069,000    
                   
Liabilities and Stockholders’ Equity  
Current liabilities:            
  Accounts payable – shows and events $ 645,000     $ 711,000    
  Accounts payable and accrued expenses   586,000       520,000    
  Deferred revenue   39,000       23,000    
  Notes payable   -       200,000    
    Total current liabilities   1,270,000       1,454,000    
                 
Deferred rent obligations   66,000       49,000    
Total liabilities   1,336,000       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, and 17,342,175 shares net of 16,644,814 treasury shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively   2,720,000       2,720,000    
  Additional paid-in capital   95,086,000       95,003,000    
  Cost of shares held in treasury   (28,164,000 )     (28,164,000 )  
  Accumulated deficit   (58,454,000 )     (56,993,000 )  
    Total stockholders’ equity   11,188,000       12,566,000    
      Total liabilities and stockholders’ equity $ 12,524,000     $ 14,069,000    


TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
  Three Months Ended September 30,
  2018    2017
   (Unaudited)
   (Unaudited)
           
Revenues $ 3,343,000     $ 4,754,000
Operating expenses:          
Direct costs of revenues   2,092,000       2,688,000
Selling, general and administrative expenses   1,509,000       1,672,000
Depreciation and amortization   29,000       29,000
Total costs and expenses   3,630,000       4,389,000
Operating income (loss)   (287,000 )     365,000
Other (income) expense   (1,000 )     2,000
Income (loss) before provision for income tax expense   (286,000 )     363,000
Provision for income tax expense   -       123,000
Net income (loss) $ (286,000 )   $ 240,000
           
Net loss per common share – basic and diluted $ (0.02 )   $ 0.01
           
Weighted average common shares outstanding – basic and diluted   17,342,175       17,342,175


TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
  
  Nine Months Ended September 30,
  2018    2017
   (Unaudited)
   (Unaudited)
           
Revenues $ 9,558,000     $ 13,839,000
Operating expenses:          
Direct costs of revenues   6,328,000       8,111,000
Selling, general and administrative expenses   4,620,000       4,807,000
Depreciation and amortization   102,000       129,000
Total costs and expenses   11,050,000       13,047,000
Operating income (loss)   (1,492,000 )     792,000
Other (income) expense   (14,000 )     12,000
Income (loss) before provision for income tax expense (benefit)   (1,478,000 )     780,000
Provision for income tax expense (benefit)   (17,000 )     265,000
Net income (loss) $ (1,461,000 )   $ 515,000
           
Net loss per common share – basic and diluted $ (0.08 )   $ 0.03
           
Weighted average common shares outstanding – basic and diluted   17,342,175       17,344,156