Tix Corporation Reports Third Quarter and First Nine Months 2015 Results
/EINPresswire.com/ -- STUDIO CITY, CA -- (Marketwired) -- 10/26/15 -- Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the third quarter and first nine months ended September 30, 2015.
Tix Corporation's business is operated by its wholly owned subsidiary Tix4Tonight, which sells discount show tickets from eleven locations in Las Vegas. Tix4Tonight obtains its inventory of discount tickets under short-term exclusive and non-exclusive agreements with nearly every Las Vegas show along with numerous attractions and tours. Our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas Strip and downtown.
Third Quarter 2015 and 2014
Third quarter 2015 revenues increased to $6.0 million compared with $5.9 million for the same period a year ago.
Third quarter 2015 direct operating expenses, which includes payroll costs, rents, and utilities, was $2.4 million compared to $2.3 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, decreased to 39% compared to 40% for the same period a year ago.
Third quarter 2015 selling, general and administrative expenses was $1.9 million compared to $1.7 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, was 31% compared to 29% for the same period a year ago.
Third quarter 2015 net income increased to $1.6 million compared with $1.5 million for the same period a year ago. Net income per diluted common share increased to $0.09 compared with $0.08 per diluted common share reported for the same period a year ago.
First Nine Months 2015 and 2014
First nine months 2015 revenues increased to $17.5 million compared with $16.8 million for the same period a year ago.
First nine months 2015 direct operating expenses, which includes payroll costs, rents, and utilities, was $7.0 million compared to $7.0 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, decreased to 40% compared to 42% for the same period a year ago.
First nine months 2015 selling, general and administrative expenses was $5.7 million compared to $5.5 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, was 33% compared to 33% for the same period a year ago.
First nine months 2015 net income increased to $4.1 million compared with $3.3 million for the same period a year ago. Net income per diluted common share increased to $0.23 compared with $0.18 per diluted common share reported for the same period a year ago.
Investor Conference Call
The Company does not host a conference call following its earnings release. Investors are encouraged to contact the Company's investor relations officer, Steve Handy, CFO, at (818) 761-1002 with any questions.
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.
About Tix Corporation
Tix Corporation (OTCQX: TIXC) provides discount ticketing services. It currently operates eleven 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.
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, 2014 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.
TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2015 2014
------------- -------------
(Unaudited)
Assets
Current assets:
Cash $ 8,806,000 $ 4,866,000
Accounts receivable 45,000 54,000
Prepaid expenses and other current assets 148,000 148,000
------------- -------------
Total current assets 8,999,000 5,068,000
------------- -------------
Property and equipment, net 690,000 918,000
------------- -------------
Other assets:
Intangible assets:
Goodwill 3,120,000 3,120,000
Intangibles, net 42,000 153,000
------------- -------------
Total intangible assets 3,162,000 3,273,000
Deposits and other assets 66,000 68,000
------------- -------------
Total other assets 3,228,000 3,341,000
------------- -------------
Total assets $ 12,917,000 $ 9,327,000
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable - shows and events $ 2,476,000 $ 938,000
Accounts payable and accrued expenses 1,422,000 1,236,000
Deferred revenue 54,000 25,000
Note payable - short term and net of
discount 176,000 176,000
Obligation for share purchase - short term - 81,000
------------- -------------
Total current liabilities 4,128,000 2,456,000
Deferred rent obligations 66,000 133,000
Note payable - net of current portion and
discount 370,000 552,000
Obligation for share purchases - net of
current portion - 78,000
------------- -------------
Total liabilities 4,564,000 3,219,000
------------- -------------
Stockholders' equity:
Preferred stock, $.01 par value; 500,000
shares authorized; none issued - -
Common stock, $.08 par value; 100,000,000
shares authorized; 17,280,009 shares net of
16,619,953 treasury shares, and 17,864,744
shares net of 15,451,803 treasury shares
issued and outstanding at September 30,
2015 and December 31, 2014, respectively 2,713,000 2,666,000
Additional paid-in capital 94,129,000 93,865,000
Obligation for share purchases - (2,148,000)
Cost of stock held in treasury (28,115,000) (25,465,000)
Accumulated deficit (60,374,000) (62,810,000)
------------- -------------
Total stockholders' equity 8,353,000 6,108,000
------------- -------------
Total liabilities and stockholders'
equity $ 12,917,000 $ 9,327,000
============= =============
TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
September 30,
----------------------------
2015 2014
------------- -------------
(Unaudited) (Unaudited)
Revenues $ 6,042,000 $ 5,855,000
------------- -------------
Operating expenses:
Direct costs of revenues 2,353,000 2,325,000
Selling, general and administrative expenses 1,884,000 1,727,000
Depreciation and amortization 140,000 198,000
------------- -------------
Total costs and expenses 4,377,000 4,250,000
------------- -------------
Operating income 1,665,000 1,605,000
------------- -------------
Other income (expense):
Other income, net - 3,000
Interest expense, net (6,000) (38,000)
------------- -------------
Other income (expense), net (6,000) (35,000)
------------- -------------
Income before income tax expense 1,659,000 1,570,000
Income tax expense 74,000 39,000
------------- -------------
Net income $ 1,585,000 $ 1,531,000
============= =============
Net income per common share
Net income per common share - basic $ 0.09 $ 0.08
============= =============
Net income per common share - diluted $ 0.09 $ 0.08
============= =============
Weighted average common shares outstanding -
basic 17,023,522 18,179,744
============= =============
Weighted average common shares outstanding -
diluted 17,740,924 18,272,313
============= =============
TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Nine Months Ended
September 30,
----------------------------
2015 2014
------------- -------------
(Unaudited) (Unaudited)
Revenues $ 17,481,000 $ 16,754,000
------------- -------------
Operating expenses:
Direct costs of revenues 6,930,000 7,002,000
Selling, general and administrative expenses 5,721,000 5,510,000
Depreciation and amortization 455,000 661,000
------------- -------------
Total costs and expenses 13,106,000 13,173,000
------------- -------------
Operating income 4,375,000 3,581,000
------------- -------------
Other expense:
Other income, net 7,000 3,000
Interest expense, net (17,000) (204,000)
------------- -------------
Other expense, net (10,000) (201,000)
------------- -------------
Income before income tax expense 4,365,000 3,380,000
Income tax expense 235,000 120,000
------------- -------------
Net income $ 4,130,000 $ 3,260,000
============= =============
Net income per common share
Net income per common share - basic $ 0.24 $ 0.18
============= =============
Net income per common share - diluted $ 0.23 $ 0.18
============= =============
Weighted average common shares outstanding -
basic 17,172,699 18,204,799
============= =============
Weighted average common shares outstanding -
diluted 17,643,741 18,297,368
============= =============
TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
September 30,
----------------------------
2015 2014
------------- -------------
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $ 4,130,000 $ 3,260,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 344,000 394,000
Non-cash and accrued interest 18,000 18,000
Amortization of intangible assets 111,000 266,000
Fair value of options and warrants issued
to employees and directors 279,000 267,000
Gain on sale of property and equipment 4,000 -
(Increase) decrease in:
Accounts receivable 9,000 (4,000)
Prepaid expenses and other assets 2,000 72,000
Increase (decrease) in:
Accounts payable - shows and events 1,538,000 1,545,000
Accounts payable and accrued expenses 186,000 (405,000)
Deferred revenue 29,000 32,000
Deferred rent obligations (67,000) (47,000)
------------- -------------
Net cash provided by operating
activities 6,583,000 5,398,000
------------- -------------
Cash flows from investing activities:
Purchases of property and equipment (120,000) (435,000)
------------- -------------
Net cash used in investing activities (120,000) (435,000)
------------- -------------
Cash flows from financing activities:
Cash received on exercise of stock options 25,000 -
Payment of cash dividends (1,694,000) -
Purchase of treasury stock (495,000) (44,000)
Payment on notes payable (200,000) (3,743,000)
Obligation for share purchases (159,000) (90,000)
Proceeds received on senior secured notes
payable - 4,000,000
Payment on senior secured notes payable - (2,500,000)
------------- -------------
Net cash used in financing activities (2,523,000) (2,377,000)
------------- -------------
Net increase 3,940,000 2,586,000
------------- -------------
Cash, balance at beginning of period 4,866,000 3,176,000
------------- -------------
Cash, balance at end of period $ 8,806,000 $ 5,762,000
============= =============
Contact:
Steve Handy
CFO
818-761-1002
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