Tix Corporation Reports First Quarter 2017 Results

STUDIO CITY, CA, May 15, 2017 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (OTCQX:TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2017.

Mitch Francis, Chief Executive Officer of the Company, stated, “Our first quarter performance continued to be negatively impacted by last year’s significant number of permanent show closures and increased aggressive marketing from online ticket brokers, show producers and hotel properties. Performance was also negatively impacted by the return of a major triannual tradeshow and the Easter holiday being in April of this year compared to March of last year. We anticipate our future operating results will improve by our continuing to collaborate with Expedia Local Expert on several new programs and by our implementing multiple new growth initiatives this year,” concluded Mr. Francis.

First Quarter 2017 Results

First quarter 2017 revenues were $4,324,000 as compared with $5,417,000 for the same period a year ago. Revenues were negatively impacted by last year’s significant number of permanent show closures, increased competition, a large triannual tradeshow, and the timing of the Easter holiday as compared to same period a year ago.

First quarter 2017 direct operating expenses, which includes payroll costs, rents, utilities and third party commission and fees, decreased to $2,439,000 as compared with $2,595,000 for the same period a year ago. The decrease in direct operating expenses was primarily the result of one less location in operation during the first quarter 2017 as compared with the same period a year ago.

First quarter 2017 selling, general and administrative expenses decreased to $1,904,000 as compared with $1,944,000 for the same period a year ago.

First quarter 2017 net loss was ($58,000), or ($0.00) per diluted common share, as compared with a net income of $488,000, or $0.03 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 ten 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. 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, featuring Tix4Tonight's inventory of discount show and attraction tickets, along with discount dining reservations.

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.

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 at www.otcmarkets.com.

March 31, 2017 December 31, 2016
Current assets:
Cash $5,749,000 $7,336,000
Accounts receivable 33,000 36,000
Prepaid expenses and other current assets 350,000 131,000
Total current assets 6,132,000 7,503,000
Property and equipment, net 203,000 264,000
Other assets:
Goodwill 3,120,000 3,120,000
Deferred tax asset 10,381,000 10,508,000
Deposits and other assets 61,000 61,000
Total other assets 13,562,000 13,689,000
Total assets$19,897,000 $21,456,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable – shows and events$1,047,000 $1,097,000
Accounts payable and accrued expenses 642,000 1,090,000
Deferred revenue 64,000 44,000
Note payable – short term and net of discount 182,000 200,000
Total current liabilities 1,935,000 2,431,000
Deferred rent obligations 24,000 28,000
Note payable – net of current portion and discount - 176,000
Total liabilities 1,959,000 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 March 31, 2017 and December 31, 2016, respectively
2,720,000 2,720,000
Additional paid-in capital 94,791,000 94,655,000
Cost of stock held in treasury (28,164,000) (28,154,000)
Accumulated deficit (51,409,000) (50,400,000)
Total stockholders’ equity 17,938,000 18,821,000
Total liabilities and stockholders’ equity$19,897,000 $21,456,000

Three Months Ended March 31,
2017 2016
(Unaudited) (Unaudited)
Revenues$4,324,000 $5,417,000
Operating expenses:
Direct costs of revenues 2,439,000 2,595,000
Selling, general and administrative expenses 1,904,000 1,944,000
Depreciation and amortization 62,000 133,000
Total costs and expenses 4,405,000 4,672,000
Operating income (loss) (81,000) 745,000
Other expense:
Interest expense 6,000 5,000
Other expense, net 6,000 5,000
Income (loss) before provision for income taxes (87,000) 740,000
Provision for (benefit from) income taxes (29,000) 252,000
Net income (loss)$(58,000)$488,000
Net income (loss) per common share
Net income (loss) per common share – basic$(0.00)$0.03
Net income (loss) per common share – diluted$(0.00)$0.03
Weighted average common shares outstanding – basic 17,342,175 17,292,304
Weighted average common shares outstanding – diluted 17,342,175 17,993,116

Three Months Ended March 31,
2017 2016
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net (loss) income$(58,000)$488,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Imputed interest 6,000 6,000
Depreciation 61,000 116,000
Amortization of intangible assets - 17,000
Stock based compensation 136,000 93,000
Deferred tax asset 127,000 251,000
(Increase) decrease in:
Accounts receivable 3,000 2,000
Prepaid expenses and other assets (219,000) (119,000)
Increase (decrease) in:
Accounts payable – shows and events (50,000) 166,000
Accounts payable and accrued expenses (448,000) (645,000)
Deferred revenue 20,000 19,000
Deferred rent obligations (4,000) (7,000)
Net cash provided by (used in) operating activities (426,000) 387,000
Cash flows from investing activities:
Purchases of property and equipment - (22,000)
Net cash used in investing activities - (22,000)
Cash flows from financing activities:
Dividends paid (951,000) (865,000)
Payment on note payable (200,000) (200,000)
Cost of treasury stock (10,000) (16,000)
Net cash used in financing activities (1,161,000) (1,081,000)
Net (decrease) increase in cash (1,587,000) (716,000)
Cash, beginning of period 7,336,000 7,921,000
Cash, end of period$5,749,000 $7,205,000

Investor Contacts: Steve Handy, CFO, (818)761-1002

Source:Tix Corporation