STUDIO CITY, CA, Nov. 14, 2019 (GLOBE NEWSWIRE) -- 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, 2019.
Third Quarter 2019 Business Highlights:
- REVENUE – Revenue declined 6% over the prior year period.
- ADJUSTED EARNINGS – Adjusted Earnings, as defined below, and adjusted for non-routine legal and advisory services for corporate and governance matters, declined slightly to $91,000 as compared to $103,000 in the prior year period.
First Nine Months 2019 Business Highlights:
- REVENUE GROWTH - Revenue improved 2% over the prior year period.
- ADJUSTED EARNINGS – Adjusted Earnings, as defined below, and which includes an adjustment for non-routine legal and advisory services for corporate and governance matters, improved to $625,000 as compared to ($503,000) in the prior year period.
- IMPROVED CASH FLOWS - Cash flows used in operations improved to ($121,000), compared to cash used in operations of ($1,150,000) in the prior year period.
- NEW VENTURE FOR ONLINE GLOBAL ACTIVITY BOOKING – In July 2019, the Company announced its partnership with Reservations Gateway in forming TixRez, LLC (“TixRez”). TixRez, which anticipates sales to begin in the first quarter of next year, will provide online booking of activities throughout the world, driven by proprietary software. This new venture diversifies the Company’s current business that is geographically concentrated in the Las Vegas, Nevada marketplace with a new global online portal.
As announced on October 7, 2019, the Company reached an agreement with HSB Capital Partners, L.P., stockholder of the Company, resolving certain disputes regarding the election of directors at the 2019 annual meeting of stockholders of the Company.
Tix Corporation’s Chief Executive Officer, Mitch Francis, commented, “Our third quarter revenue was impacted by a softer than anticipated Las Vegas show ticket market. We continue to aggressively address the difficult Las Vegas show ticket market conditions experienced over the past two years. We entered into a new five-year agreement with MGM Resorts and Cirque du Soleil; increased service fees; and we effected significant operating cost savings. We achieved year-over-year revenue growth, improved cash flow, and have no debt. We continue to focus on the business of the Company and devote our full attention to the implementation of our strategic plan and delivering value to stockholders.”
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 (loss) plus (a) income taxes, (b) loss on equity investment, (c) other income or expense, net, (d) depreciation expense, (e) stock-based compensation expense, and (f) 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 of the significant amount of non-recurring legal and advisory services related to corporate and governance matters that have been recorded over the periods being reported. 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 nine discount ticket stores in Las Vegas under its Tix4Tonight marquee and its online ticket sales site, www.tix4tonight.com, which offer up to a 50 percent discount for shows, concerts, attractions, and tours, as well as discount dining and shopping offers.
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 OTC Markets. 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, 2018, can be found on the Company website at www.tixcorp.com or www.otcmarkets.com.
| TIX CORPORATION AND SUBSIDIARY | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| September 30, 2019 | December 31, 2018 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 3,494,000 | $ | 3,870,000 | |||
| Prepaid expenses and other current assets | 334,000 | 381,000 | |||||
| Total current assets | 3,828,000 | 4,251,000 | |||||
| Property and equipment, net | 143,000 | 186,000 | |||||
| Right of use asset, net | 2,746,000 | - | |||||
| Other assets: | |||||||
| Deferred tax asset | 1,653,000 | 1,653,000 | |||||
| Equity investment | 166,000 | - | |||||
| Deposits and other assets | 407,000 | 215,000 | |||||
| Total other assets | 2,226,000 | 1,868,000 | |||||
| Total assets | $ | 8,943,000 | $ | 6,305,000 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable – shows and events | $ | 729,000 | $ | 660,000 | |||
| Accounts payable and accrued expenses | 1,146,000 | 412,000 | |||||
| Leases payable, current portion | 1,472,000 | - | |||||
| Deferred revenue | 71,000 | 59,000 | |||||
| Total current liabilities | 3,418,000 | 1,131,000 | |||||
| Leases payable, net of current portion | 1,345,000 | - | |||||
| Deferred rent obligations | - | 75,000 | |||||
| Total liabilities | 4,763,000 | 1,206,000 | |||||
| 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, 2019 and December 31, 2018, respectively | 2,720,000 | 2,720,000 | |||||
| Additional paid-in capital | 95,179,000 | 95,113,000 | |||||
| Cost of shares held in treasury | (28,164,000 | ) | (28,164,000 | ) | |||
| Accumulated deficit | (65,555,000 | ) | (64,570,000 | ) | |||
| Total stockholders’ equity | 4,180,000 | 5,099,000 | |||||
| Total liabilities and stockholders’ equity | $ | 8,943,000 | $ | 6,305,000 | |||
| TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues | $ | 3,136,000 | $ | 3,343,000 | $ | 9,703,000 | $ | 9,558,000 | ||||||||
| Operating expenses: | ||||||||||||||||
| Direct costs of revenues | 1,997,000 | 2,092,000 | 6,061,000 | 6,328,000 | ||||||||||||
| Selling, general and administrative expenses | 2,090,000 | 1,509,000 | 4,498,000 | 4,620,000 | ||||||||||||
| Depreciation expense | 27,000 | 29,000 | 88,000 | 102,000 | ||||||||||||
| Total operating expenses | 4,114,000 | 3,630,000 | 10,647,000 | 11,050,000 | ||||||||||||
| Operating loss | (978,000 | ) | (287,000 | ) | (944,000 | ) | (1,492,000 | ) | ||||||||
| Loss on equity investment | (44,000 | ) | - | (44,000 | ) | - | ||||||||||
| Other income | - | 1,000 | 4,000 | 14,000 | ||||||||||||
| Loss before income taxes | (1,022,000 | ) | (286,000 | ) | (984,000 | ) | (1,478,000 | ) | ||||||||
| Income tax benefit (expense) | - | - | (1,000 | ) | 17,000 | |||||||||||
| Net loss | $ | (1,022,000 | ) | $ | (286,000 | ) | $ | (985,000 | ) | $ | (1,461,000 | ) | ||||
| Net loss per common share – basic and diluted | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.08 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 17,342,175 | 17,342,175 | 17,342,175 | 17,342,175 | ||||||||||||
TIX CORPORATION AND SUBSIDIARY
RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS
(UNAUDITED)
The following is a reconciliation of loss to Adjusted Earnings for the three and nine months ended September 30, 2019 and 2018, respectively:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net loss | $ | (1,022,000 | ) | $ | (286,000 | ) | $ | (985,000 | ) | $ | (1,461,000 | ) | ||||
| Income tax (benefit) expense | - | - | 1,000 | (17,000 | ) | |||||||||||
| Loss on equity investment | 44,000 | - | 44,000 | - | ||||||||||||
| Other income, net | - | (1,000 | ) | (4,000 | ) | (14,000 | ) | |||||||||
| Depreciation expense | 27,000 | 29,000 | 88,000 | 102,000 | ||||||||||||
| Stock-based compensation expense | 19,000 | 28,000 | 66,000 | 83,000 | ||||||||||||
| Non-routine legal and advisory services for corporate and governance matters | 1,023,000 | 333,000 | 1,415,000 | 804,000 | ||||||||||||
| Adjusted Earnings (Unaudited) | $ | 91,000 | $ | 103,000 | $ | 625,000 | $ | (503,000 | ) | |||||||
Investor Contact: Steve Handy, CFO, (818)761-1002
