STUDIO CITY, Calif., May 15, 2018 (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, 2018.  

The Company’s first quarter 2018 operating results were lower than the same period in the prior year as the Company believes it continued to be adversely impacted by the following external factors, which were previously reported:

1. Increased aggressive competition from online ticket sellers, show producers, and hotel properties. 
2. MGM opened, for the first time, five of their own discount ticket booths on their properties in Las Vegas beginning in September 2017.
3. MGM withdrew tickets of four of their Cirque du Soleil (“Cirque”) shows from Tix4Tonight booths in October 2017.  Cirque’s Mystère (owned by Treasure Island and Cirque), the Company’s best-selling Cirque show, continues to be offered at the Company’s booths. 
4. Increase in hotel rooms reserved for Las Vegas conventions, whose participants, the Company believes, attend fewer shows than casual tourists.
5. Las Vegas tourism in general experienced a significant and sustained decline in its business since the October 1, 2017, Las Vegas Strip mass shooting.  Public data confirms that visitation and tourism fell materially and that revenues on the Las Vegas strip and casinos fell significantly since that shooting.

The Company has been diligently focused on addressing the changing landscape, by implementing various growth and cost saving initiatives, including but not limited to the following:

1. The Company launched its first ever full-service Las Vegas ticketing website, Tix4.com, offering discount show tickets, attractions, tours, and dining.  Tix4.com also includes MGM’s Cirque du Soleil shows withdrawn from our booths mentioned above.  Tix4.com opened in late 2017 and during the first quarter of 2018, represented approximately 5% of total tickets sold during the period.  The Company is encouraged by the potential revenue growth within the online space and is working to add additional offerings.
2. The Company redesigned its discount Las Vegas dining program and relaunched it in mid-2017 as the Vegas Dining Card with approximately 60 discounted restaurant offerings. Dining revenue during the first quarter of 2018 increased in excess of 50% as compared with the same period a year ago. 
3. The Company has developed an online Vegas Local Expert Planning Guide.  It is an online tourist magazine, where Las Vegas tourists can easily navigate to their specific interests to view all categories of shows, tours, attractions and dining. Customers are able to see more information on any show including a detailed description, reviews, pictures, videos, and ultimately, book their tickets at very competitive prices.  In keeping with the Company’s relationship as the Las Vegas Guest Services Partner for Expedia, Expedia exclusive distributes the Vegas Local Expert Planning Guide to many of its customers who have booked travel to Las Vegas.  The Company launched the Vegas Local Expert Planning Guide earlier this month.      
4. Lastly, the Company implemented significant expense reductions in late 2017.  The expense reductions include reductions in workforce, voluntary reductions in executive compensation, voluntary elimination of executive bonuses, elimination of staff bonuses and various other operating expense reductions. 

The Company’s first quarter 2018 which, like historical first quarters, is seasonally the weakest due to a large number of conventions convened in Las Vegas at such times, was further impacted by the external factors discussed above.  The Company believes that with the continued improvement in online sales, sales generated from the recent launch of the Vegas Local Expert Planning Guide, cost reductions, and the eventual return of historical level of tourism, financial results will improve throughout this year.  The Company will continue its proactive efforts and focus on innovative measures to counter the negative developments outlined above towards stabilization of its business.

Reclassification of Prior Year Presentation

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. For the three months ended March 31, 2017, a reclassification has been made to the Condensed Consolidated Statements of Operations to reclassify merchant credit card processing fees of approximately $297,000 from selling, general and administrative expenses to direct cost of revenues. This change in classification does not affect previously reported cash flows from operating activities in the Consolidated Statements of Cash Flows.

First Quarter 2018 Results

First quarter 2018 revenues were $3,061,000 as compared with $4,324,000 in the same period a year ago.  Revenues were negatively impacted by the events discussed above.

First quarter 2018 direct costs of revenues, which include payroll costs, rents, merchant credit card processing fees, utilities, and third-party commission and fees, decreased to $2,139,000 as compared with $2,736,000 for the same period a year ago.  The decrease in direct costs of revenues was due to decreased locations in operation, decreased headcount, decreased merchant credit card processing fees, and expense reduction efforts mentioned above, as compared to the same period a year ago.   

First quarter 2018 selling, general and administrative expenses decreased to $1,603,000 as compared with $1,607,000 for the same period a year ago.  Selling, general and administrative expenses included an increase in advertising expense of $28,000, which was required to promote the Company’s new offerings and to counter increased competition as discussed above.      

First quarter 2018 net loss was $717,000, or $(0.04) per diluted common share, as compared with a net loss of $58,000, or $(0.00) 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 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.  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 and online, featuring Tix4Tonight's inventory of discount show and attraction tickets, along with discount dining deals.

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, 2017, 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
					March 31, 2018				December 31, 2017
					(Unaudited)
Assets
Current assets:
	Cash			$	4,290,000			$	5,129,000
	Prepaid expenses and other current assets				395,000				289,000
		Total current assets			4,685,000				5,418,000
Property and equipment, net					228,000				268,000
Other assets:
	Goodwill				3,120,000				3,120,000
	Deferred tax asset				5,048,000				5,048,000
	Deposits and other assets				215,000				215,000
		Total other assets			8,383,000				8,383,000
			Total assets	$	13,296,000			$	14,069,000
Liabilities and Stockholders’ Equity
Current liabilities:
	Accounts payable – shows and events			$	720,000			$	711,000
	Accounts payable and accrued expenses				589,000				520,000
	Deferred revenue				42,000				23,000
	Notes payable				-				200,000
		Total current liabilities			1,351,000				1,454,000
Deferred rent obligations					68,000				49,000
Total liabilities					1,419,000				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, and 17,342,175 shares net of 16,644,814 treasury shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively				2,720,000				2,720,000
	Additional paid-in capital				95,031,000				95,003,000
	Cost of shares held in treasury				(28,164,000	)			(28,164,000	)
	Accumulated deficit				(57,710,000	)			(56,993,000	)
		Total stockholders’ equity			11,877,000				12,566,000
			Total liabilities and stockholders’ equity	$	13,296,000			$	14,069,000

TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
					Three Months Ended March 31,
					2018							2017
						(Unaudited)							(Unaudited)
Revenues					$	3,061,000						$	4,324,000
Operating expenses:
Direct costs of revenues						2,139,000							2,736,000
Selling, general and administrative expenses						1,603,000							1,607,000
Depreciation and amortization						40,000							62,000
Total costs and expenses						3,782,000							4,405,000
Operating loss						(721,000				)			(81,000				)
Other (income) expense						(5,000				)			6,000
Loss before provision for income tax expense (benefit)						(716,000				)			(87,000				)
Provision for income tax expense (benefit)						1,000							(29,000				)
Net loss					$	(717,000				)		$	(58,000				)
Net loss per common share – basic and diluted					$	(0.04				)		$	(0.00				)
Weighted average common shares outstanding – basic and diluted						17,342,175							17,342,175

 

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