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:
Steve Handy
CFO
818-761-1002