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.
|TIX CORPORATION AND SUBSIDIARY|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|March 31, 2017||December 31, 2016|
|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|
|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|
|Liabilities and Stockholders’ Equity|
|Accounts payable – shows and events||$||1,047,000||$||1,097,000|
|Accounts payable and accrued expenses||642,000||1,090,000|
|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|
|Preferred stock, $.01 par value; 500,000 shares authorized; none issued||-||-|
|Common stock, $.08 par value; 100,000,000 shares authorized; 17,342,175 shares net of 16,644,814 treasury shares, and 17,349,583 shares net of 16,637,406 |
treasury shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
|Additional paid-in capital||94,791,000||94,655,000|
|Cost of stock held in treasury||(28,164,000||)||(28,154,000||)|
|Total stockholders’ equity||17,938,000||18,821,000|
|Total liabilities and stockholders’ equity||$||19,897,000||$||21,456,000|
|TIX CORPORATION AND SUBSIDIARY|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended March 31,|
|Direct costs of revenues||2,439,000||2,595,000|
|Selling, general and administrative expenses||1,904,000||1,944,000|
|Depreciation and amortization||62,000||133,000|
|Total costs and expenses||4,405,000||4,672,000|
|Operating income (loss)||(81,000||)||745,000|
|Other expense, net||6,000||5,000|
|Income (loss) before provision for income taxes||(87,000||)||740,000|
|Provision for (benefit from) income taxes||(29,000||)||252,000|
|Net income (loss)||$||(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||)||$||0.03|
|Weighted average common shares outstanding – basic||17,342,175||17,292,304|
|Weighted average common shares outstanding – diluted||17,342,175||17,993,116|
|TIX CORPORATION AND SUBSIDIARY|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Three Months Ended March 31,|
|Cash flows from operating activities:|
|Net (loss) income||$||(58,000||)||$||488,000|
|Adjustments to reconcile net income (loss) to net cash provided by operating activities:|
|Amortization of intangible assets||-||17,000|
|Stock based compensation||136,000||93,000|
|Deferred tax asset||127,000||251,000|
|(Increase) decrease in:|
|Prepaid expenses and other assets||(219,000||)||(119,000||)|
|Increase (decrease) in:|
|Accounts payable – shows and events||(50,000||)||166,000|
|Accounts payable and accrued expenses||(448,000||)||(645,000||)|
|Deferred rent obligations||(4,000||)||(7,000||)|
|Net cash provided by (used in) operating activities||(426,000||)||387,000|
|Cash flows from investing activities:|
|Purchases of property and equipment||-||(22,000||)|
|Net cash used in investing activities||-||(22,000||)|
|Cash flows from financing activities:|
|Payment on note payable||(200,000||)||(200,000||)|
|Cost of treasury stock||(10,000||)||(16,000||)|
|Net cash used in financing activities||(1,161,000||)||(1,081,000||)|
|Net (decrease) increase in cash||(1,587,000||)||(716,000||)|
|Cash, beginning of period||7,336,000||7,921,000|
|Cash, end of period||$||5,749,000||$||7,205,000|
Investor Contacts: Steve Handy, CFO, (818)761-1002