Tix Corporation Reports First Quarter 2014 Results

Tix Corporation Reports First Quarter 2014 Results
  
 

STUDIO CITY, CA--(Marketwired - May 15, 2014) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2014.

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. The majority of our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas Strip and downtown.

First quarter 2014 revenues decreased 2% to $5.2 million compared with $5.3 million for the same period a year ago. Revenues were negatively impacted by CONEXPO-CON/AGG 2014, a tradeshow attended by approximately 130,000 people and held in Las Vegas every three years. Additionally, the Easter holiday season, which is generally beneficial to our business, occurred in April of this year compared to March of the prior year.

First quarter 2014 direct operating expenses, which includes payroll costs, rents, and utilities, were $2.4 million compared with $2.3 million for the same period a year ago. The increase in expense was due to the increase in the average number of discount ticket locations as compared to the same period a year ago.

First quarter 2014 selling, general and administrative expenses were $1.9 million compared with $2.4 million for the same period a year ago. Included in these expenses are $109,000 of expenses during the first three months of 2014 and $400,000 of expenses during the same period a year ago, in each case relating to certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation. Excluding these expenses, selling, general and administrative expenses decreased $166,000, or 8%, to $1.8 million compared to $2.0 million for same period of the prior year. The decrease in expense was due to a decrease in stock based compensation expense of $167,000.

First quarter 2014 net income was $491,000, or $0.03 per diluted common share, as compared to a net income of $237,000, or $0.01 per diluted common share reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the first quarter 2014 was $1.1 million, or $0.06 per diluted common share, as compared to Adjusted Earnings of $1.2 million, or $0.05 per diluted common share, reported for the same period a year ago.

Conclusion

Mitch Francis, Chief Executive Officer of the Company, stated, "Our first quarter revenues were impacted by one large trade show and the timing of the Easter holiday. However, with Easter in April of this year, our second quarter revenues should benefit. We also received County approval to continue operating our temporary booth at Bally's, now our highest sales facility, and believe we will be able to do so until the opening of our nearby permanent booth, currently under construction."

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 [phone] 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 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 the expected operations and sales, potential improvements in consumer spending in Las Vegas, and 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 various historical filings with the Securities and Exchange Commission and, since November 2010, 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, 2013 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
					March 31, 2014				December 31, 2013
					(Unaudited)
Assets
Current assets:
	Cash				$	4,630,000			$	3,176,000
	Accounts receivable					69,000				63,000
	Prepaid expenses and other current assets					412,000				268,000
		Total current assets				5,111,000				3,507,000
Property and equipment, net						1,055,000				884,000
Other assets:
	Intangible assets:
		Goodwill				3,120,000				3,120,000
		Intangibles, net				389,000				498,000
		Total intangible assets				3,509,000				3,618,000
	Deposits and other assets					68,000				71,000
		Total other assets				3,577,000				3,689,000
			Total assets		$	9,743,000			$	8,080,000
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable - shows and events				$	2,122,0000			$	693,000
	Accounts payable and accrued expenses					779,000				939,000
	Deferred revenue					69,000				29,000
	Notes payable - short term and net of discount					3,813,000				3,726,000
	Obligation for share purchase - short term					81,000				84,000
		Total current liabilities				6,864,000				5,471,000
Deferred rent obligations						113,000				133,000
Note payable - net of current portion and discount						534,000				728,000
Obligation for share purchases - net of current portion						78,000				160,000
Total liabilities						7,589,000				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; 18,219,774 shares net of 15,406,803 treasury shares, and 18,218,572 shares net of 15,406,803 treasury shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively					2,691,000				2,691,000
	Additional paid-in capital					93,449,000				93,356,000
	Obligation for share purchases					(2,106,000	)			(2,088,000	)
	Cost of shares held in treasury					(25,413,000	)			(25,413,000	)
	Accumulated deficit					(66,467,000	)			(66,958,000	)
		Total stockholders' equity				2,154,000				1,588,000
			Total liabilities and stockholders' equity		$	9,743,000			$	8,080,000

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
				Three Months Ended March 31,
				2014				2013
				(Unaudited)				(Unaudited)
Revenues				$	5,173,000			$	5,283,000
Operating expenses:
	Direct costs of revenues				2,363,000				2,335,000
	Selling, general and administrative expenses				1,936,000				2,393,000
	Depreciation and amortization				260,000				275,000
		Total costs and expenses			4,559,000				5,003,000
Operating income					614,000				280,000
Other expense:
	Other expense				-				(5,000	)
	Interest income				-				6,000
	Interest expense				(93,000	)			(6,000	)
		Other expense, net			(93,000	)			(5,000	)
Income before income tax expense					521,000				275,000
Income tax expense					30,000				38,000
Net income					491,000				237,000
Other comprehensive loss:
	Unrealized gain on available-for-sale securities				-				1,000
Comprehensive income				$	491,000			$	238,000
Net income per common share
	Net income per common share - basic			$	0.03			$	0.01
	Net income per common share - diluted			$	0.03			$	0.01
Weighted average common shares outstanding - basic					18,218,793				23,669,831
Weighted average common shares outstanding - diluted					18,324,458				23,723,976

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
						Three Months Ended March 31,
						2014				2013
						(Unaudited)				(Unaudited)
Cash flows from operating activities:
	Net income					$	491,000			$	237,000
		Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation					151,000				148,000
		Non-cash and accrued interest					93,000				6,000
		Realized loss on available-for-sale securities arising during the period					-				5,000
		Amortization of intangible assets					109,000				127,000
		Fair value of options and warrants issued to employees and directors					80,000				247,000
		(Increase) decrease in:
			Accounts receivable				(6,000	)			(1,000	)
			Prepaid expenses and other assets				(141,000	)			159,000
		Increase (decrease) in:
			Accounts payable - shows and events				1,429,000				(389,000	)
			Accounts payable and accrued expenses				(160,000	)			(270,000	)
			Deferred revenue				40,000				(14,000	)
			Deferred rent obligations				(20,000	)			(10,000	)
				Net cash provided by operating activities			2,066,000				245,000
Cash flows from investing activities:
	Purchases of property and equipment						(322,000	)			(53,000	)
	Purchase of short-term investments						-				(9,000	)
		Net cash used in investing activities					(322,000	)			(62,000	)
Cash flows from financing activities:
	Repayment of acquisition note						(200,000	)			-
	Obligation for share purchases						(90,000	)			(211,000	)
		Net cash used in financing activities					(290,000	)			(211,000	)
	Net increase (decrease)						1,454,000				(28,000	)
	Balance at beginning of period						3,176,000				6,017,000
	Balance at end of period					$	4,630,000			$	5,989,000

TIX CORPORATION AND SUBSIDIARY
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
		March 31, 2014			March 31, 2013
		(Unaudited)			(Unaudited)
Net income		$	491,000		$	237,000
Income tax expense			30,000			38,000
Other expense, net			93,000			5,000
Depreciation and amortization			260,000			275,000
Stock based compensation expense			80,000			247,000
Litigation expense and non-routine legal and advisory services for corporate and governance matters			109,000			400,000
Adjusted Earnings		$	1,063,000		$	1,202,000

Contact: Steve Handy CFO 818-761-1002