STUDIO CITY, CA, March 26, 2019 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the full year ended December 31, 2018.
Full Year 2018 Business Highlights:
- CIRQUE DU SOLEIL, THE PREMIER ENTERTAINMENT OFFERING IN LAS VEGAS, IS BACK AT TIX4TONIGHT. On December 2, 2018, the Company’s Tix4Tonight Las Vegas booths resumed selling MGM Resorts resident Cirque du Soleil shows, which for a period had only been offered on the Company’s website.
- FOURTH QUARTER 2018 OPERATING INCOME, EXCLUDING A ONE-TIME NON-CASH GOODWILL IMPAIRMENT CHARGE, RETURNED TO POSITIVE AS DID CASH FLOWS FROM OPERATIONS. Q4 2018 saw the Company return to positive cash flows from operations as a result of the successful execution of its growth and cost reduction initiatives. This achievement occurred prior to Tix4Tonight’s resumption of selling tickets for the Cirque shows. Fourth quarter 2018 operating income, after adjusting for a one-time non-cash goodwill impairment charge, was $250,000 and cash flows from operations were $142,000 during the fourth quarter of 2018.
Tix Corporation’s Chief Executive Officer, Mitch Francis, commented, “Fiscal year 2018 was a highly unusual year for us in that for almost the entire year, we couldn’t offer certain Cirque du Soleil tickets from our multiple retail locations on the Las Vegas Strip. As previously discussed, MGM Resorts and Cirque du Soleil began in November 2017 to withhold certain Cirque du Soleil show tickets from our retail booths while at the same time, constructing and operating competing booths on MGM Resorts’ properties. The impact from these events, as well as a general continued decline in interest for shows in Las Vegas, hurt our financial results. We implemented significant cost reductions throughout this year, leading to a return to quarterly operating income and positive cash flows from operations in the fourth quarter of 2018, excluding a one-time non-cash goodwill impairment charge. With our recently announced new agreement with MGM Resorts and Cirque du Soleil, we are once again selling Cirque du Soleil show tickets, as well as MGM Resorts headliners, at our retail booths, which we anticipate will lead to improved operating results in 2019.”
Revenue for the years ended December 31, 2018 and 2017 was $12,969,000 and $17,395,000, respectively, a decrease of $4,426,000, or 25%. The decrease was due to several negative factors during the year ended December 31, 2018, as compared to the prior year period. Such factors included, increased aggressive competition from online ticket sellers, show producers, and hotel properties; MGM Resorts managing five of their own discount ticket booths and removing tickets of four of their Cirque du Soleil shows from Tix4Tonight booths beginning in October 2017; and, the robust Las Vegas convention activity, whose participants, the Company believes, attend fewer shows than casual tourists.
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 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.
Investor Contacts:
Steve Handy, CFO, (818)761-1002
| TIX CORPORATION AND SUBSIDIARY | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| December 31, 2018 | December 31, 2017 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 3,870,000 | $ | 5,129,000 | |||||
| Prepaid expenses and other current assets | 381,000 | 289,000 | |||||||
| Total current assets | 4,251,000 | 5,418,000 | |||||||
| Property and equipment, net | 186,000 | 268,000 | |||||||
| Other assets: | |||||||||
| Goodwill | - | 3,120,000 | |||||||
| Deferred tax asset | 1,653,000 | 5,048,000 | |||||||
| Deposits and other assets | 215,000 | 215,000 | |||||||
| Total other assets | 1,868,000 | 8,383,000 | |||||||
| Total assets | $ | 6,305,000 | $ | 14,069,000 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable – shows and events | $ | 660,000 | $ | 711,000 | |||||
| Accounts payable and accrued expenses | 412,000 | 520,000 | |||||||
| Deferred revenue | 59,000 | 23,000 | |||||||
| Notes payable | - | 200,000 | |||||||
| Total current liabilities | 1,131,000 | 1,454,000 | |||||||
| Deferred rent obligations | 75,000 | 49,000 | |||||||
| Total liabilities | 1,206,000 | 1,503,000 | |||||||
| 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 issued and outstanding at December 31, 2018 and 2017, respectively | 2,720,000 | 2,720,000 | |||||||
| Additional paid-in capital | 95,113,000 | 95,003,000 | |||||||
| Treasury stock | (28,164,000 | ) | (28,164,000 | ) | |||||
| Accumulated deficit | (64,570,000 | ) | (56,993,000 | ) | |||||
| Total stockholders’ equity | 5,099,000 | 12,566,000 | |||||||
| Total liabilities and stockholders’ equity | $ | 6,305,000 | $ | 14,069,000 | |||||
| TIX CORPORATION AND SUBSIDIARY | |||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| YEARS ENDED DECEMBER 31, 2018 AND 2017 | |||||||||||||
| Years Ended December 31, | |||||||||||||
| 2018 | 2017 | ||||||||||||
| Revenues | $ | 12,969,000 | $ | 17,395,000 | |||||||||
| Operating expenses: | |||||||||||||
| Direct costs of revenues | 8,319,000 | 10,361,000 | |||||||||||
| Selling, general and administrative expenses | 5,759,000 | 6,220,000 | |||||||||||
| Impairment of Goodwill | 3,120,000 | - | |||||||||||
| Depreciation and amortization | 133,000 | 167,000 | |||||||||||
| Total costs and expenses | 17,331,000 | 16,748,000 | |||||||||||
| Operating income (loss) | (4,362,000 | ) | 647,000 | ||||||||||
| Other (income) expense: | |||||||||||||
| Interest income | (14,000 | ) | (10,000 | ) | |||||||||
| Interest expense | - | 24,000 | |||||||||||
| Other (income) expense, net | (14,000 | ) | 14,000 | ||||||||||
| Income (loss) before provision for income tax expense | (4,348,000 | ) | 633,000 | ||||||||||
| Provision for income tax expense | 3,229,000 | 5,320,000 | |||||||||||
| Net loss | $ | (7,577,000 | ) | $ | (4,687,000 | ) | |||||||
| Net loss per common share – basic and diluted | $ | (0.44 | ) | $ | (0.27 | ) | |||||||
| Weighted average common shares outstanding – basic and diluted | 17,342,175 | 17,343,657 | |||||||||||