STUDIO CITY, CA, Aug. 08, 2018 (GLOBE NEWSWIRE) -- 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, 2018.
The Company’s operating results for the second quarter 2018 improved over the previous quarter, however, the Company’s first six 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:
- Increased aggressive competition from online ticket sellers, show producers, and hotel properties.
- 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.
- 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:
- 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 Tix4.com also includes MGM’s Cirque du Soleil shows withdrawn from our booths mentioned above.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 six 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.
- 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. Dining revenue during the first six months of 2018 increased in excess of 31% as compared with the same period a year ago.
- 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.
- Lastly, the Company implemented significant expense reductions 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. However, the Company is anticipating a significant increase in selling, general and administrative expenses for the remainder of this fiscal year. The anticipated increase in selling, general and administrative expenses will be for legal and other professional fees related to potential transactions and other extraordinary shareholder and governance related matters.
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 six months ended June 30, 2017, a reclassification has been made to the Condensed Consolidated Statements of Operations to reclassify merchant credit card processing fees of approximately $331,000 and $628,000, 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.
Second Quarter 2018 Results
Second quarter 2018 revenues were $3,154,000 as compared with $4,761,000 in the same period a year ago. Revenues were negatively impacted by the events discussed above.
Second 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 $2,097,000 as compared with $2,687,000 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.
Second quarter 2018 selling, general and administrative expenses decreased to $1,508,000 as compared with $1,528,000 for the same period a year ago.
Second quarter 2018 net loss was $(458,000), or $(0.03) per diluted common share, as compared with a net income of $333,000, or $0.02 per diluted common share reported for the same period a year ago.
First Six Months 2018 Results
First six months 2018 revenues were $6,215,000 as compared with $9,085,000 in the same period a year ago. Revenues were negatively impacted by the events discussed above.
First six 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 $4,236,000 as compared with $5,423,000 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 six months 2018 selling, general and administrative expenses decreased to $3,111,000 as compared with $3,135,000 for the same period a year ago.
First six months 2018 net loss was $(1,175,000), or $(0.07) per diluted common share, as compared with a net income of $275,000, or $0.02 per diluted common share reported for the same period a year ago.
Other Matters
It was recently reported that MGM Resorts International has expressed an interest in acquiring the Company. The Company is actively pursuing the matter.
On July 6, 2017 the Company announced that Mitch Francis was authorized to purchase up to 2 million shares of the Company’s common stock. Since then Mr. Francis has not acquired any Company securities and on July 12, 2018, the Board revoked such authority.
About Tix Corporation
Tix Corporation (OTCQX: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. 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 | ||||||||||
| June 30, 2018 | December 31, 2017 | |||||||||
| (Unaudited) | ||||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 3,757,000 | $ | 5,129,000 | ||||||
| Prepaid expenses and other current assets | 268,000 | 289,000 | ||||||||
| Total current assets | 4,025,000 | 5,418,000 | ||||||||
| Property and equipment, net | 195,000 | 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 | $ | 12,603,000 | $ | 14,069,000 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable – shows and events | $ | 540,000 | $ | 711,000 | ||||||
| Accounts payable and accrued expenses | 525,000 | 520,000 | ||||||||
| Deferred revenue | 25,000 | 23,000 | ||||||||
| Notes payable | - | 200,000 | ||||||||
| Total current liabilities | 1,090,000 | 1,454,000 | ||||||||
| Deferred rent obligations | 67,000 | 49,000 | ||||||||
| Total liabilities | 1,157,000 | 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 June 30, 2018 and December 31, 2017, respectively | 2,720,000 | 2,720,000 | ||||||||
| Additional paid-in capital | 95,058,000 | 95,003,000 | ||||||||
| Cost of shares held in treasury | (28,164,000 | ) | (28,164,000 | ) | ||||||
| Accumulated deficit | (58,168,000 | ) | (56,993,000 | ) | ||||||
| Total stockholders’ equity | 11,446,000 | 12,566,000 | ||||||||
| Total liabilities and stockholders’ equity | $ | 12,603,000 | $ | 14,069,000 | ||||||
| TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||
| 2018 | 2017 | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues | $ | 3,154,000 | $ | 4,761,000 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Direct costs of revenues | 2,097,000 | 2,687,000 | ||||||||||||||
| Selling, general and administrative expenses | 1,508,000 | 1,528,000 | ||||||||||||||
| Depreciation and amortization | 33,000 | 38,000 | ||||||||||||||
| Total costs and expenses | 3,638,000 | 4,253,000 | ||||||||||||||
| Operating income (loss) | (484,000 | ) | 508,000 | |||||||||||||
| Other (income) expense | (8,000 | ) | 4,000 | |||||||||||||
| Income (loss) before provision for income tax expense (benefit) | (476,000 | ) | 504,000 | |||||||||||||
| Provision for income tax expense (benefit) | (18,000 | ) | 171,000 | |||||||||||||
| Net income (loss) | $ | (458,000 | ) | $ | 333,000 | |||||||||||
| Net loss per common share – basic and diluted | $ | (0.03 | ) | $ | 0.02 | |||||||||||
| Weighted average common shares outstanding – basic and diluted | 17,342,175 | 17,342,175 | ||||||||||||||
| TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||
| 2018 | 2017 | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues | $ | 6,215,000 | $ | 9,085,000 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Direct costs of revenues | 4,236,000 | 5,423,000 | ||||||||||||||
| Selling, general and administrative expenses | 3,111,000 | 3,135,000 | ||||||||||||||
| Depreciation and amortization | 73,000 | 100,000 | ||||||||||||||
| Total costs and expenses | 7,420,000 | 8,658,000 | ||||||||||||||
| Operating income (loss) | (1,205,000 | ) | 427,000 | |||||||||||||
| Other (income) expense | (13,000 | ) | 10,000 | |||||||||||||
| Income (loss) before provision for income tax expense (benefit) | (1,192,000 | ) | 417,000 | |||||||||||||
| Provision for income tax expense (benefit) | (17,000 | ) | 142,000 | |||||||||||||
| Net income (loss) | $ | (1,175,000 | ) | $ | 275,000 | |||||||||||
| Net loss per common share – basic and diluted | $ | (0.07 | ) | $ | 0.02 | |||||||||||
| Weighted average common shares outstanding – basic | 17,342,175 | 17,348,184 | ||||||||||||||
| Weighted average common shares outstanding – diluted | 17,342,175 | 17,376,904 | ||||||||||||||
