STUDIO CITY, CA, Aug. 12, 2019 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the second quarter and first six months ended June 30, 2019.
Second Quarter 2019 Business Highlights:
- REVENUE GROWTH – The Company recorded sequential quarterly and year-over-year revenue growth. Revenue improved 9% over the first quarter 2019, and 8% over the prior year period.
- ADJUSTED EBITDA – Adjusted EBITDA, as defined below, and adjusted for non-routine legal and advisory services for corporate and governance matters, improved to $379,000 as compared to ($132,000) in the prior year period.
- NEW VENTURE FOR ONLINE GLOBAL ACTIVITY BOOKING – The Company announced its partnership with Reservations Gateway in forming TixRez, LLC (“TixRez”). TixRez 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.
First Six Months 2019 Business Highlights:
- REVENUE GROWTH - Returned to year-over-year revenue growth. Revenue improved 6% over the prior year period.
- ADJUSTED EBITDA – Adjusted EBITDA, as defined below, and which includes an adjustment for non-routine legal and advisory services for corporate and governance matters, improved to $547,000 as compared to ($606,000) in the prior year period.
- OPERATING INCOME GROWTH - Operating income was $34,000 compared to an operating loss of ($1,205,000) in the prior year period.
- POSITIVE NET INCOME - Net income was $37,000 compared to a net loss of ($1,175,000) in the prior year period.
- POSITIVE CASH FLOW - Cash flows from operations improved to $147,000, compared to cash used in operations of ($1,172,000) in the prior year period.
- 200% SHARE PRICE GAIN - The Company’s share price has increased approximately 200% this year since reporting the return of the MGM Cirque du Soleil shows and profitable operations.
Tix Corporation’s Chief Executive Officer, Mitch Francis, commented, “We have aggressively addressed 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. As a result, we are proud to report a return to year-over-year revenue growth; positive cash flow; and have maintained cash reserves with no debt. In July of this year, we developed a new venture with Reservations Gateway to form TixRez, which will provide online booking of activities throughout the world from a truly state-of-the-art web portal. We are particularly excited about this venture as it moves the Company’s sale of activities well beyond Las Vegas and portends a powerhouse online opportunity.”
Mr. Francis continued, “These efforts have led to improved operating results that we anticipate will continue throughout 2019. However, the Company has been the target of an ongoing activist campaign over the past 2-plus years by an inexperienced and unqualified activist stockholder, Mr. Haren S. Bhakta (individually, “Mr. Bhakta”) and his fund HSB Capital Partners, L.P. (“HSB”), whose interests are not aligned with, and who has a total disregard for, the interests of Tix stockholders at large. During the past two-plus years, Mr. Bhakta’s and HSB’s actions towards the Company, its employees, management and business have caused the Company to incur significant expenses, which have undermined the Company’s bottom line performance, together with lost opportunity costs arising from these distractions. Such actions have adversely affected our past and current financial results, including a reduction of the positive results described above. We urge Tix stockholders to ignore any communications from Mr. Bhakta and HSB and to allow the Company to continue its fruitful efforts to improve its operating results for all 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 EBITDA as net income (loss) plus (a) income taxes, (b) other income or expense, net, (c) depreciation expense, (d) stock based compensation expense, and (e) expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters. The Company believes that Adjusted EBITDA 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 EBITDA 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 EBITDA are widely used in similar entertainment companies to measure operating performance, although Adjusted EBITDA as calculated by the Company is not necessarily comparable to similarly titled measures by such other companies. Adjusted EBITDA (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.
Investor Contacts:
Steve Handy, CFO, (818)761-1002
| TIX CORPORATION AND SUBSIDIARY | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| June 30, 2019 | December 31, 2018 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash | $ | 3,868,000 | $ | 3,870,000 | |||
| Prepaid expenses and other current assets | 310,000 | 381,000 | |||||
| Total current assets | 4,178,000 | 4,251,000 | |||||
| Property and equipment, net | 190,000 | 186,000 | |||||
| Right of use asset, net | 3,293,000 | - | |||||
| Other assets: | |||||||
| Deferred tax asset | 1,653,000 | 1,653,000 | |||||
| Investment in unconsolidated affiliate | 84,000 | - | |||||
| Deposits and other assets | 407,000 | 215,000 | |||||
| Total other assets | 2,144,000 | 1,868,000 | |||||
| Total assets | $ | 9,805,000 | $ | 6,305,000 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable – shows and events | $ | 638,000 | $ | 660,000 | |||
| Accounts payable and accrued expenses | 566,000 | 412,000 | |||||
| Leases payable, current portion | 1,758,000 | - | |||||
| Deferred revenue | 44,000 | 59,000 | |||||
| Total current liabilities | 3,006,000 | 1,131,000 | |||||
| Leases payable, net of current portion | 1,616,000 | - | |||||
| Deferred rent obligations | - | 75,000 | |||||
| Total liabilities | 4,622,000 | 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 June 30, 2019 and December 31, 2018, respectively | 2,720,000 | 2,720,000 | |||||
| Additional paid-in capital | 95,160,000 | 95,113,000 | |||||
| Cost of shares held in treasury | (28,164,000 | ) | (28,164,000 | ) | |||
| Accumulated deficit | (64,533,000 | ) | (64,570,000 | ) | |||
| Total stockholders’ equity | 5,183,000 | 5,099,000 | |||||
| Total liabilities and stockholders’ equity | $ | 9,805,000 | $ | 6,305,000 | |||
TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Revenues | $ | 3,422,000 | $ | 3,154,000 | $ | 6,567,000 | $ | 6,215,000 | |||||||
| Operating expenses: | |||||||||||||||
| Direct costs of revenues | 2,101,000 | 2,097,000 | 4,064,000 | 4,236,000 | |||||||||||
| Selling, general and administrative expenses | 1,354,000 | 1,508,000 | 2,408,000 | 3,111,000 | |||||||||||
| Depreciation expense | 30,000 | 33,000 | 61,000 | 73,000 | |||||||||||
| Total operating expenses | 3,485,000 | 3,638,000 | 6,533,000 | 7,420,000 | |||||||||||
| Operating income (loss) | (63,000 | ) | (484,000 | ) | 34,000 | (1,205,000 | ) | ||||||||
| Other income | (50,000 | ) | (8,000 | ) | (4,000 | ) | (13,000 | ) | |||||||
| Income (loss) before income taxes | (13,000 | ) | (476,000 | ) | 38,000 | (1,192,000 | ) | ||||||||
| Income tax (benefit) expense | - | (18,000 | ) | 1,000 | (17,000 | ) | |||||||||
| Net income (loss) | $ | (13,000 | ) | $ | (458,000 | ) | $ | 37,000 | $ | (1,175,000 | ) | ||||
| Net income (loss) per common share – basic and diluted | $ | (0.00 | ) | $ | (0.03 | ) | $ | 0.00 | $ | (0.07 | ) | ||||
| 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 INCOME (LOSS) TO ADJUSTED EBITDA
(UNAUDITED)
The following is a reconciliation of net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2019 and 2018, respectively:
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net income (loss) | $ | (13,000 | ) | $ | (458,000 | ) | $ | 37,000 | $ | (1,175,000 | ) | |||||
| Provision for income taxes | - | (18,000 | ) | 1,000 | (17,000 | ) | ||||||||||
| Other income, net | (50,000 | ) | (8,000 | ) | (4,000 | ) | (13,000 | ) | ||||||||
| Depreciation expense | 30,000 | 33,000 | 61,000 | 73,000 | ||||||||||||
| Stock based compensation expense | 20,000 | 27,000 | 47,000 | 55,000 | ||||||||||||
| Non-routine legal and advisory services for corporate and governance matters | 392,000 | 292,000 | 405,000 | 471,000 | ||||||||||||
| Adjusted EBITDA (Unaudited) | $ | 379,000 | $ | (132,000 | ) | $ | 547,000 | $ | (606,000 | ) | ||||||