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Tix Corporation Reports First Quarter 2017 Results

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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
          (Unaudited)    
Assets
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  

 


TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
         
    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



TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
   
    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
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