STUDIO CITY, CA., Nov. 14, 2017 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company” or “Tix”) (OTCQX:TIXC), a leading provider of discount ticketing services, today reported results for the third quarter and first nine months ended September 30, 2017.
The Company’s third quarter and first nine months 2017 performance continued to feel the impact of increased aggressive competition from online ticket sellers, show producers, and hotel properties. To mitigate the effects from competition, including the MGM Resorts International (“MGM”) impacts discussed below, the Company recently launched its first ever online platform, introduced new dining and shopping offers, and implemented significant expense reductions.
The Company recently reported that it was notified by MGM of their plan to open their own discount ticket booths on their hotel properties in Las Vegas and restrict the Company’s ability to sell certain Cirque du Soleil (“Cirque”) shows at its Tix4Tonight booths. MGM effected these changes in mid-to-late September 2017. Cirque’s Mystère, the Company’s best-selling Cirque show, continue to be offered at its booths. The new MGM booths sell discount tickets for all shows located within their Las Vegas hotel properties. All shows located within the MGM Las Vegas hotel properties, including the four Cirque shows withdrawn from our Tix4Tonight booths, are available to purchase on the Company’s online website effective November 1, 2017. Competition from MGM’s new discount ticket booths could have a material adverse effect on the Company’s future performance.
The Company experienced a significant and unusual decline in the volume of tickets sold during the month of October 2017. While difficult to assess, the Company believes the recent October 1st Las Vegas Strip shooting and to a lesser extent, the opening of MGM booths discussed above, contributed to the decline.
Third Quarter 2017 Results
Third quarter 2017 revenues were $4,754,000 as compared with $5,290,000 for the same period a year ago. Revenues were negatively impacted by increased competition, particularly from online ticket sellers, as compared to the same period a year ago.
Third quarter 2017 direct operating expenses, which includes payroll costs, rents, utilities and third party commission and fees, were $2,367,000 as compared with $2,644,000 for the same period a year ago. The decrease in direct operating expenses was primarily the result of fewer locations in operation during this period as compared with the same period a year ago.
Third quarter 2017 selling, general and administrative expenses were $1,993,000 as compared with $1,865,000 for the same period a year ago.
Third quarter 2017 net income was $240,000, or $0.01 per diluted common share, as compared with a net income of $455,000, or $0.03 per diluted common share reported for the same period a year ago.
First Nine Months 2017 Results
First nine months 2017 revenues were $13,839,000 as compared with $16,019,000 for the same period a year ago. Revenues were negatively impacted by increased competition, particularly from online ticket sellers, as compared to the same period a year ago.
First nine months 2017 direct operating expenses were $7,162,000 as compared with $7,791,000 for the same period a year ago. The decrease in direct operating expenses was primarily the result of fewer locations in operation during this period as compared with the same period a year ago.
First nine months 2017 selling, general and administrative expenses were $5,756,000 as compared with $5,643,000 for the same period a year ago.
First nine months 2017 net income was $515,000, or $0.03 per diluted common share, as compared with a net income of $1,473,000, or $0.08 per diluted common share reported for the same period a year ago.
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 same-day shows, concerts, attractions and sporting events, 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 and online in Las Vegas, featuring Tix4Tonight's inventory of discount show and attraction tickets, along with discount dining reservations.
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, 2016 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, 2017 | December 31, 2016 | ||||||||
| (Unaudited) | |||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 5,662,000 | $ | 7,336,000 | |||||
| Accounts receivable | 8,000 | 36,000 | |||||||
| Prepaid expenses and other current assets | 174,000 | 131,000 | |||||||
| Total current assets | 5,844,000 | 7,503,000 | |||||||
| Property and equipment, net | 205,000 | 264,000 | |||||||
| Other assets: | |||||||||
| Goodwill | 3,120,000 | 3,120,000 | |||||||
| Deferred tax asset | 10,220,000 | 10,508,000 | |||||||
| Deposits and other assets | 70,000 | 61,000 | |||||||
| Total other assets | 13,410,000 | 13,689,000 | |||||||
| Total assets | $ | 19,459,000 | $ | 21,456,000 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable – shows and events | $ | 808,000 | $ | 1,097,000 | |||||
| Accounts payable and accrued expenses | 669,000 | 1,090,000 | |||||||
| Deferred revenue | 30,000 | 44,000 | |||||||
| Note payable – short term and net of discount | 194,000 | 200,000 | |||||||
| Total current liabilities | 1,701,000 | 2,431,000 | |||||||
| Deferred rent obligations | 17,000 | 28,000 | |||||||
| Note payable – net of current portion and discount | - | 176,000 | |||||||
| Total liabilities | 1,718,000 | 2,635,000 | |||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, $.01 par value; 500,000 shares authorized; none issued | - | ||||||||
| Common stock, $.08 par value; 100,000,000 shares authorized; 17,342,175 shares net of 16,644,814 treasury shares, and 17,349,583 shares net of 16,637,406 treasury shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 2,720,000 | 2,720,000 | |||||||
| Additional paid-in capital | 94,976,000 | 94,655,000 | |||||||
| Cost of stock held in treasury | (28,164,000 | ) | (28,154,000 | ) | |||||
| Accumulated deficit | (51,791,000 | ) | (50,400,000 | ) | |||||
| Total stockholders’ equity | 17,741,000 | 18,821,000 | |||||||
| Total liabilities and stockholders’ equity | $ | 19,459,000 | $ | 21,456,000 | |||||
| TIX CORPORATION AND SUBSIDIARY | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
| Three Months Ended September 30, | ||||
| 2017 | 2016 | |||
| (Unaudited) | (Unaudited) | |||
| Revenues | $ | 4,754,000 | $ | 5,290,000 |
| Operating expenses: | ||||
| Direct costs of revenues | 2,367,000 | 2,644,000 | ||
| Selling, general and administrative expenses | 1,993,000 | 1,865,000 | ||
| Depreciation and amortization | 29,000 | 87,000 | ||
| Total operating expenses | 4,389,000 | 4,596,000 | ||
| Operating income | 365,000 | 694,000 | ||
| Other expense , net | 2,000 | 5,000 | ||
| Income before provision for income taxes | 363,000 | 689,000 | ||
| Provision for income taxes | 123,000 | 234,000 | ||
| Net income | $ | 240,000 | $ | 455,000 |
| Net income per common share | ||||
| Net income per common share – basic | $ | 0.01 | $ | 0.03 |
| Net income per common share – diluted | $ | 0.01 | $ | 0.03 |
| Weighted average common shares outstanding – basic | 17,342,175 | 17,349,583 | ||
| Weighted average common shares outstanding – diluted | 17,342,175 | 18,041,036 | ||
| TIX CORPORATION AND SUBSIDIARY | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
| Nine Months Ended September 30, | ||||
| 2017 | 2016 | |||
| (Unaudited) | (Unaudited) | |||
| Revenues | $ | 13,839,000 | $ | 16,019,000 |
| Operating expenses: | ||||
| Direct costs of revenues | 7,162,000 | 7,791,000 | ||
| Selling, general and administrative expenses | 5,756,000 | 5,643,000 | ||
| Depreciation and amortization | 129,000 | 337,000 | ||
| Total operating expenses | 13,047,000 | 13,771,000 | ||
| Operating income | 792,000 | 2,248,000 | ||
| Other expense, net | 12,000 | 16,000 | ||
| Income before provision for income taxes | 780,000 | 2,232,000 | ||
| Provision for income taxes | 265,000 | 759,000 | ||
| Net income | $ | 515,000 | $ | 1,473,000 |
| Net income per common share | ||||
| Net income per common share – basic | $ | 0.03 | $ | 0.09 |
| Net income per common share – diluted | $ | 0.03 | $ | 0.08 |
| Weighted average common shares outstanding – basic | 17,344,156 | 17,327,516 | ||
| Weighted average common shares outstanding – diluted | 17,344,156 | 18,111,752 | ||