STUDIO CITY, CA--(Marketwired - Mar 31, 2015) - Tix Corporation (the "Company") (OTCQX: TIXC)
FULL YEAR 2014 HIGHLIGHTS
- Net income for 2014 increased 164% to a record $4.1 million
- Earnings per share for 2014 increased 229% to a record $0.23 per share
- Net cash provided by operating activities for 2014 increased 173% to $6.1 million
- Working capital for 2014 increased 233% to $2.6 million
- Debt reduced by $3.7 million
- Federal Net Operating Losses (NOL) of $4.7 million were utilized in 2014 leaving a balance of $37.6 million
Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the fourth quarter and full year ended December 31, 2014.
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.
Fourth Quarter 2014 and 2013
Fourth quarter 2014 revenues were $5.9 million, comparable with the same period a year ago. The Company operated one less location compared to the same period a year ago.
Fourth quarter 2014 direct operating expenses, which includes payroll costs, rents, and utilities, were $2.4 million compared with $2.5 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, were 41% and 42% for the fourth quarter 2014 and 2013, respectively. The Company recorded a direct operating expense of $176,000 in the fourth quarter 2014 representing its remaining lease obligation on a recently closed location, less anticipated future sublease receipts.
Fourth quarter 2014 selling, general and administrative expenses were $2.4 million compared with $2.9 million for the same period a year ago. Included in the same period a year ago are $740,000 of expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation expenses. Excluding these expenses, selling, general and administrative expenses increased $251,000, or 12%, to $2.4 million compared to $2.2 million for the same period a year ago. The increase in expenses was primarily related to compensation expense.
Fourth quarter 2014 net income was $888,000, or $0.05 per diluted common share, as compared to a net income of $109,000, or $0.00 per diluted common share reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the fourth quarter 2014, which include adjustments for items such as certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation expenses described below, were $1.2 million, or $0.07 per diluted common share, as compared to Adjusted Earnings of $1.5 million, or $0.06 per diluted common share, reported for the same period a year ago.
Full Year 2014 and 2013
For the full year of 2014, revenues increased 2% to $22.7 million compared with $22.2 million for the prior year. The increase in revenues of $542,000 is attributed to the increased locations in operation as compared to the prior year.
For the full year of 2014, direct operating expenses were $9.4 million compared with $9.4 million for the prior year. Direct operating expenses, as a percentage of revenues, were 42% for both full year 2014 and 2013.
For the full year of 2014, selling, general and administrative expenses were $7.9 million compared with $9.8 million for the prior year. Included in these expenses are $109,000 of expenses during the full year of 2014 and $1.7 million of expenses during the prior year, in each case relating to expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation expenses. Excluding these expenses, selling, general and administrative expenses decreased $220,000, or 3%, to $7.8 million compared to $8.1 million for the prior year. The decrease in expenses of $220,000 was realized from a reduction in stock based compensation expense offset by increased compensation expense, increased fees associated with our senior secured promissory note and increased professional services fees. These increases were offset by a reduction in expenses over our remaining operating accounts.
For the full year of 2014, net income was $4.1 million, or $0.23 per diluted common share, as compared to a net income of $1.6 million, or $0.07 per diluted common share, reported for prior year. Adjusted Earnings (as defined and explained below) for the full year of 2014, which include adjustments for items such as certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation expenses described below, were $5.9 million, or $0.32 per diluted common share, as compared to Adjusted Earnings of $5.7 million, or $0.24 per diluted common share, reported for the prior year.
Conclusion
Mitch Francis, Chief Executive Officer of the Company, stated, "We are pleased with our performance in 2014. We returned to revenue growth, significantly reduced our legal costs, and reported record net income and earnings per share. I'm encouraged about 2015 and hopeful we will build on our recent performance."
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 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 | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| December 31, 2014 | December 31, 2013 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash | $ | 4,866,000 | $ | 3,176,000 | |||||||
| Accounts receivable | 54,000 | 63,000 | |||||||||
| Prepaid expenses and other current assets | 148,000 | 268,000 | |||||||||
| Total current assets | 5,068,000 | 3,507,000 | |||||||||
| Property and equipment, net | 918,000 | 884,000 | |||||||||
| Other assets: | |||||||||||
| Intangible assets: | |||||||||||
| Goodwill | 3,120,000 | 3,120,000 | |||||||||
| Intangibles, net | 153,000 | 498,000 | |||||||||
| Total intangible assets | 3,273,000 | 3,618,000 | |||||||||
| Deposits and other assets | 68,000 | 71,000 | |||||||||
| Total other assets | 3,341,000 | 3,689,000 | |||||||||
| Total assets | $ | 9,327,000 | $ | 8,080,000 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable - shows and events | $ | 938,000 | $ | 693,000 | |||||||
| Accounts payable and accrued expenses | 1,236,000 | 939,000 | |||||||||
| Deferred revenue | 25,000 | 29,000 | |||||||||
| Notes payable - short term and net of discount | 176,000 | 3,726,000 | |||||||||
| Obligation for share purchases - short term | 81,000 | 84,000 | |||||||||
| Total current liabilities | 2,456,000 | 5,471,000 | |||||||||
| Deferred rent obligations | 133,000 | 133,000 | |||||||||
| Note payable - net of current portion and discount | 552,000 | 728,000 | |||||||||
| Obligation for share purchases - net of current portion | 78,000 | 160,000 | |||||||||
| Total liabilities | 3,219,000 | 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; 17,864,744 shares net of 15,451,803 treasury shares, and 18,218,572 shares net of 15,406,803 treasury shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 2,666,000 | 2,691,000 | |||||||||
| Additional paid-in capital | 93,865,000 | 93,356,000 | |||||||||
| Obligation for share purchases | (2,148,000 | ) | (2,088,000 | ) | |||||||
| Cost of shares held in treasury | (25,465,000 | ) | (25,413,000 | ) | |||||||
| Accumulated deficit | (62,810,000 | ) | (66,958,000 | ) | |||||||
| Total stockholders' equity | 6,108,000 | 1,588,000 | |||||||||
| Total liabilities and stockholders' equity | $ | 9,327,000 | $ | 8,080,000 | |||||||
| TIX CORPORATION AND SUBSIDIARY | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||
| Three Months Ended December 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Revenues | $ | 5,942,000 | $ | 5,952,000 | ||||||
| Operating expenses: | ||||||||||
| Direct costs of revenues | 2,439,000 | 2,484,000 | ||||||||
| Selling, general and administrative expenses | 2,433,000 | 2,922,000 | ||||||||
| Loss on disposition of property and equipment | - | 171,000 | ||||||||
| Depreciation and amortization | 194,000 | 303,000 | ||||||||
| Total costs and expenses | 5,066,000 | 5,880,000 | ||||||||
| Operating income | 876,000 | 72,000 | ||||||||
| Other expense: | ||||||||||
| Other expense | - | (69,000 | ) | |||||||
| Interest income | - | 3,000 | ||||||||
| Interest expense | (8,000 | ) | (13,000 | ) | ||||||
| Other expense, net | (8,000 | ) | (79,000 | ) | ||||||
| Income (loss) from operations before income tax expense | 868,000 | (7,000 | ) | |||||||
| Income tax benefit | (20,000 | ) | (116,000 | ) | ||||||
| Net income | $ | 888,000 | $ | 109,000 | ||||||
| Net income per common share | ||||||||||
| Net income per common share - basic | $ | 0.05 | $ | 0.00 | ||||||
| Net income per common share - basic and diluted | $ | 0.05 | $ | 0.00 | ||||||
| Weighted average common shares outstanding - basic | 18,176,337 | 23,250,503 | ||||||||
| Weighted average common shares outstanding - diluted | 18,558,582 | 23,398,632 | ||||||||
| TIX CORPORATION AND SUBSIDIARY | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||
| Years Ended December 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Revenues | $ | 22,696,000 | $ | 22,154,000 | ||||||
| Operating expenses: | ||||||||||
| Direct costs of revenues | 9,441,000 | 9,365,000 | ||||||||
| Selling, general and administrative expenses | 7,943,000 | 9,790,000 | ||||||||
| Loss on disposition of property and equipment | - | 171,000 | ||||||||
| Depreciation and amortization | 855,000 | 1,141,000 | ||||||||
| Total costs and expenses | 18,239,000 | 20,467,000 | ||||||||
| Operating income | 4,457,000 | 1,687,000 | ||||||||
| Other expense: | ||||||||||
| Other income (expense) | 3,000 | (69,000 | ) | |||||||
| Interest income | 1,000 | 16,000 | ||||||||
| Interest expense | (213,000 | ) | (55,000 | ) | ||||||
| Other expense, net | (209,000 | ) | (108,000 | ) | ||||||
| Income before income tax expense | 4,248,000 | 1,579,000 | ||||||||
| Income tax expense | 100,000 | 5,000 | ||||||||
| Net income | $ | 4,148,000 | $ | 1,574,000 | ||||||
| Unrealized gain on available-for-sale securities | - | 16,000 | ||||||||
| Comprehensive income | $ | 4,148,000 | $ | 1,590,000 | ||||||
| Net income per common share | ||||||||||
| Net income per common share - basic | $ | 0.23 | $ | 0.07 | ||||||
| Net income per common share - basic and diluted | $ | 0.23 | $ | 0.07 | ||||||
| Weighted average common shares outstanding - basic | 18,194,770 | 23,565,286 | ||||||||
| Weighted average common shares outstanding - diluted | 18,347,168 | 23,641,083 | ||||||||
| TIX CORPORATION AND SUBSIDIARY | ||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| Years Ended December 31, | ||||||||||||
| 2014 | 2013 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 4,148,000 | $ | 1,574,000 | ||||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||
| Depreciation | 510,000 | 633,000 | ||||||||||
| Non-cash interest | 17,000 | 32,000 | ||||||||||
| Realized loss on sale of short-term investments | - | 24,000 | ||||||||||
| Amortization of intangible assets | 345,000 | 508,000 | ||||||||||
| Loss on disposition of property and equipment | - | 171,000 | ||||||||||
| Fair value of options and warrants issued to employees and directors | 429,000 | 937,000 | ||||||||||
| (Increase) decrease in: | ||||||||||||
| Accounts receivable | 9,000 | (18,000 | ) | |||||||||
| Prepaid expenses and other assets | 123,000 | 267,000 | ||||||||||
| Increase (decrease) in: | ||||||||||||
| Accounts payable - shows and events | 245,000 | (1,742,000 | ) | |||||||||
| Accounts payable and accrued expenses | 297,000 | 2,000 | ||||||||||
| Deferred revenue | (4,000 | ) | (122,000 | ) | ||||||||
| Deferred rent obligation | - | (23,000 | ) | |||||||||
| Net cash provided by operating activities | 6,119,000 | 2,243,000 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of property and equipment | (544,000 | ) | (641,000 | ) | ||||||||
| Purchases of short-term investments | - | (1,199,000 | ) | |||||||||
| Maturity of short-term investments | - | 4,184,000 | ||||||||||
| Net cash provided by (used in) investing activities | (544,000 | ) | 2,344,000 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds received from issuance of senior secured note payable | 4,000,000 | - | ||||||||||
| Payment of senior secured note payable | (4,000,000 | ) | - | |||||||||
| Payment of notes payable | (3,743,000 | ) | - | |||||||||
| Cost of treasury shares, net of fees | (52,000 | ) | (7,216,000 | ) | ||||||||
| Obligation for share purchases | (90,000 | ) | (212,000 | ) | ||||||||
| Net cash used in financing activities | (3,885,000 | ) | (7,428,000 | ) | ||||||||
| Net increase (decrease) | 1,690,000 | (2,841,000 | ) | |||||||||
| Balance at beginning of period | 3,176,000 | 6,017,000 | ||||||||||
| Balance at end of period | $ | 4,866,000 | $ | 3,176,000 | ||||||||
| TIX CORPORATION AND SUBSIDIARIES |
| 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 | |||||||
| December 31, 2014 | December 31, 2013 | |||||||
| Net income | $ | 888,000 | $ | 109,000 | ||||
| Income tax benefit | (20,000 | ) | (116,000 | ) | ||||
| Other expense, net | 8,000 | 79,000 | ||||||
| Depreciation and amortization | 194,000 | 303,000 | ||||||
| Stock based compensation expense | 162,000 | 187,000 | ||||||
| Loss on disposition of property and equipment | - | 171,000 | ||||||
| Litigation expense and non-routine legal and advisory services for corporate and governance matters | - | 740,000 | ||||||
| Adjusted Earnings | $ | 1,232,000 | $ | 1,473,000 | ||||
| Twelve months ended | Twelve months ended | |||||||
| December 31, 2014 | December 31, 2013 | |||||||
| Net income | $ | 4,148,000 | $ | 1,574,000 | ||||
| Income tax expense | 100,000 | 5,000 | ||||||
| Other expense, net | 209,000 | 108,000 | ||||||
| Depreciation and amortization | 855,000 | 1,141,000 | ||||||
| Stock based compensation expense | 429,000 | 937,000 | ||||||
| Litigation expense and non-routine legal and advisory services for corporate and governance matters | 109,000 | 1,736,000 | ||||||
| Loss on disposition of property and equipment | - | 171,000 | ||||||
| Adjusted Earnings | $ | 5,850,000 | $ | 5,672,000 | ||||
Contact:
Steve Handy
CFO
818-761-1002