Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider
of discount ticketing services, today reported results for the
fourth quarter and full year ended December 31, 2012.
Tix Corporation's business is operated by its wholly owned
subsidiary Tix4Tonight, which sells discount show tickets from nine
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. The majority of our discount ticket
locations also offer discount dinner reservations at various
restaurants surrounding the Las Vegas strip and downtown.
In July 2012, the Company announced that it completed the sale
of principally all of the assets of its subsidiary, Exhibit
Merchandising, LLC. In prior periods, the Company had reported its
financial results in two operating segments -- Discount Ticketing
Services and Exhibit Merchandising. The financial statements for
the fourth quarter and full year ended December 31, 2012 and 2011
reflect the reclassification of the Exhibit Merchandising segment
to discontinued operations. As the Company now operates under only
one operating segment, Discount Ticketing Services, it will no
longer provide segment reporting.
Fourth Quarter 2012 and 2011
Fourth quarter 2012 revenues decreased 14% to $5.9 million
compared with $6.9 million for the same period a year ago. The
decline in revenues of $950,000 is due to a general overall
decrease in consumer spending in Las Vegas; the permanent and
temporary closing of some of our bestselling shows; and recent
demolition work on the Las Vegas strip requiring us to close one of
our discount ticket locations at the end of April 2012.
Fourth quarter 2012 direct operating expenses decreased 7% to
$2.5 million compared with $2.7 million for the same period a year
ago. Included in these expenses are payroll costs, rents, and
utilities. The decrease in expense of $189,000 was primarily due to
reduced rents realized from the closure of one of our discount
ticket locations in April 2012 and the recent successful
negotiation of reduced rents at one of our largest discount ticket
locations.
Fourth quarter 2012 selling, general and administrative expenses
were $2.4 million compared with $3.1 million for the same period a
year ago. Included in these expenses are $270,000 of aggregate
expenses during the fourth quarter of 2012 and $722,000 of
aggregate expenses during the same period a year ago, in each case
relating to expenses for certain non-recurring matters requiring
legal and advisory services relating to corporate and governance
matters and litigation expenses. Excluding these expenses, selling,
general and administrative expenses decreased $268,000, or 11%, to
$2.1 million compared to $2.4 million for the same period of the
prior year.
Fourth quarter 2012 net income was $807,000, or $0.03 per
diluted common share, as compared to a net loss of ($2.2 million),
or ($0.09) per diluted common share, reported for the same period a
year ago. Adjusted Earnings (as defined and explained below) for
the fourth quarter 2012, which includes adjustments for items such
as discontinued operations and expenses related to litigation and
related legal matters described below, decreased $576,000, or 27%,
to $1.5 million, or $0.06 per diluted common share, as compared to
Adjusted Earnings of $2.1 million, or $0.09 per diluted common
share, reported for the same period a year ago.
Full Year 2012 and 2011
For the full year of 2012, revenues decreased 5% to $24.3
million compared to $25.7 million for the same period a year ago.
The decrease in revenues of $1.3 million is due to a general
overall decrease in consumer spending in Las Vegas; the permanent
and temporary closing of some of our bestselling shows; and recent
demolition work on the Las Vegas strip requiring us to close one of
our discount ticket locations at the end of April 2012.
For the full year of 2012, direct operating expenses increased
1% to $10.4 million compared to $10.3 million for the same period a
year ago. Included in these expenses are payroll costs, rents, and
utilities. The increase in expense of $57,000 was due to increases
in payroll costs of $355,000, due primarily to the expansion of the
number of locations at the end of the first quarter of 2011 leading
to a higher year-over-year expense. Rents and utilities expense
decreased $298,000 primarily due to reduced rents realized from the
closure of one of our discount ticket locations in April 2012 and
the recent successful negotiation of reduced rents at one of our
largest discount ticket locations.
For the full year of 2012, selling, general and administrative
expenses were $10.8 million compared with $11.4 million for the
same period a year ago. Included in these expenses are $2.3 million
of aggregate expenses during the full year of 2012 and $2.9 million
of aggregate expenses during the same period a year ago, in each
case relating to expenses for certain non-recurring matters
requiring legal and advisory services relating to corporate and
governance matters and litigation expenses. Excluding these
expenses, selling, general and administrative expenses decreased
$19,000 to $8.5 million compared to $8.5 million for same period of
the prior year.
For the full year of 2012, loss from discontinued operations was
$544,000 compared to a loss from discontinued operations of $2.6
million for the same period a year ago. In July 2012, the Company
announced that it completed the sale of principally all of the
assets and certain of the liabilities of its subsidiary, Exhibit
Merchandising, LLC, for a total consideration of $125,000. The sale
led to the recording of a loss on sale of discontinued operations
of $244,000 and Exhibit Merchandising realized a loss from
operations of $300,000 which included $162,000 of depreciation
expense, for the full year of 2012.
For the full year of 2012, net income was $1.4 million, or $0.06
per diluted common share, as compared to a net income of $29,000,
or $0.00 per diluted common share, reported for the same period a
year ago. Adjusted Earnings (as defined and explained below) for
the full year of 2012, which includes adjustments for items such as
discontinued operations, expenses related to the litigation and
related legal matters and non-routine corporate expenses related
primarily to certain non-recurring matters requiring legal and
advisory services described below, decreased $1.3 million, or 16%,
to $6.5 million, or $0.27 per diluted common share, as compared to
Adjusted Earnings of $7.8 million, or $0.31 per diluted common
share, reported for the same period a year ago.
Conclusion
Mitch Francis, Chief Executive Officer of the Company, stated,
"Despite full year 2012 being a challenging year for the Las Vegas
economy in general and for us in particular, we posted our second
best year in terms of both revenues and Adjusted Earnings. There
are a number of large scale construction and renovation projects
negatively impacting foot traffic along the Strip, which
necessitated the closure of one of our locations in April 2012 and
more recently, one of our locations in February 2013, which
generated about 17% of our total sales in 2012. We are managing
through these unusual short term disruptions to our business by
pursuing new locations that will hopefully start opening in the
middle to end of 2013. We expect these new locations, coupled with
an improvement in consumer spending in 2013, to return us to
continued revenue growth."
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.
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 Earnings as net
income plus (a) loss on discontinued operations, (b) interest
expense, net, (c) income taxes, (d) depreciation and amortization
charges, (e) stock based compensation expense, (f) unusual
litigation, and (g) expenses for certain non-recurring matters
requiring legal and advisory services relating to corporate and
governance matters. The Company believes that Adjusted Earnings is
a useful measure of the Company's operating performance because a
significant portion of its assets consists of goodwill and
intangible assets and property and equipment that are amortized and
depreciated as non-cash items over their remaining useful lives in
accordance with GAAP. The Company's presentation of Adjusted
Earnings 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
Earnings are widely used in similar entertainment companies to
measure operating performance, although Adjusted Earnings as
calculated by the Company is not necessarily comparable to
similarly titled measures by such other companies. Adjusted
Earnings (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, 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. 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 various historical filings with the Securities and
Exchange Commission and, since November 2010, the Company's filings
with the OTCQX. The Company assumes no obligation to update these
forward-looking statements. A copy of the Company's report for the
twelve months ended December 31, 2012 can be found on the Company
website at www.tixcorp.com or at www.otcqx.com.
TIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
------------ ------------
December 31, December 31,
2012 2011
------------ ------------
Assets
Current assets:
Cash $ 6,017,000 $ 8,077,000
Short-term investments 2,993,000 -
Accounts receivable 45,000 55,000
Prepaid expenses and other current assets 419,000 624,000
Current assets of discontinued operations - 1,210,000
------------ ------------
Total current assets 9,474,000 9,966,000
------------ ------------
Property and equipment, net 1,047,000 1,399,000
------------ ------------
Other assets:
Intangible assets:
Goodwill 3,120,000 3,120,000
Intangibles, net 1,006,000 1,520,000
------------ ------------
Total intangible assets 4,126,000 4,640,000
Deposits and other assets 187,000 319,000
Long term assets of discontinued operations - 12,000
------------ ------------
Total other assets 4,313,000 4,971,000
------------ ------------
Total assets $ 14,834,000 $ 16,336,000
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 3,372,000 $ 3,286,000
Deferred revenue 151,000 111,000
Other current liabilities 156,000 133,000
Note payable - short term - 584,000
Obligation for share purchases - short term 209,000 417,000
Share repurchase obligation - short term - 2,313,000
Current liabilities of discontinued operations - 663,000
------------ ------------
Total current liabilities 3,888,000 7,507,000
Note payable - net of current portion 879,000 879,000
Obligation for share purchases - net of current
portion 244,000 453,000
------------ ------------
Total liabilities 5,011,000 8,839,000
------------ ------------
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; 23,669,831 shares net of
9,955,544 treasury shares, and 23,669,831
shares net of 9,943,247 treasury shares issued
and outstanding at December 31, 2012 and
December 31, 2011, respectively 2,691,000 2,690,000
Additional paid-in capital 92,366,000 91,313,000
Obligation for share purchases (2,032,000) (1,968,000)
Cost of shares held in treasury (14,654,000) (14,631,000)
Accumulated deficit (68,532,000) (69,907,000)
Accumulated other comprehensive loss (16,000) -
------------ ------------
Total stockholders' equity 9,823,000 7,497,000
------------ ------------
Total liabilities and stockholders' equity $ 14,834,000 $ 16,336,000
============ ============
TIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three Months Ended
December 31,
------------------------
2012 2011
----------- -----------
Revenues $ 5,902,000 $ 6,852,000
----------- -----------
Operating expenses:
Direct costs of revenues 2,498,000 2,687,000
Selling, general and administrative expenses 2,383,000 3,103,000
Depreciation and amortization 275,000 286,000
----------- -----------
Total costs and expenses 5,156,000 6,076,000
----------- -----------
Income from continuing operations 746,000 776,000
----------- -----------
Other expense:
Other expense (1,000) -
Interest income 6,000 9,000
Interest expense (25,000) (26,000)
----------- -----------
Other expense, net (20,000) (17,000)
----------- -----------
Income from continuing operations before income tax
expense 726,000 759,000
Income tax benefit (81,000) (7,000)
----------- -----------
Income from continuing operations 807,000 766,000
----------- -----------
Discontinued operations:
Loss from operations of discontinued operations - (2,805,000)
Loss on sale of discontinued operations - (150,000)
----------- -----------
Loss on discontinued operations - (2,955,000)
----------- -----------
Net income (loss) $ 807,000 $(2,189,000)
=========== ===========
Other comprehensive loss:
Unrealized loss on available-for-sale securities (3,000) -
----------- -----------
Comprehensive income $ 804,000 $(2,189,000)
=========== ===========
Net income per common share - continuing operations
Net income per common share - continuing
operations - basic $ 0.03 $ 0.03
Net income per common share - continuing
operations - diluted $ 0.03 $ 0.03
Net loss per common share - discontinued operations
Net loss per common share - discontinued
operations - basic $ - $ (0.12)
Net loss per common share - discontinued
operations - diluted $ - $ (0.13)
----------- -----------
Net income per common share
Net income per common share - basic $ 0.03 $ (0.09)
=========== ===========
Net income per common share - basic and diluted $ 0.03 $ (0.09)
=========== ===========
Weighted average common shares outstanding - basic 23,669,831 23,629,945
=========== ===========
Weighted average common shares outstanding -
diluted 23,802,712 23,629,945
=========== ===========
TIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
------------------------
2012 2011
----------- -----------
Revenues $24,325,000 $25,665,000
----------- -----------
Operating expenses:
Direct costs of revenues 10,383,000 10,326,000
Selling, general and administrative expenses 10,773,000 11,398,000
Depreciation and amortization 1,147,000 1,154,000
----------- -----------
Total costs and expenses 22,303,000 22,878,000
----------- -----------
Income from continuing operations 2,022,000 2,787,000
----------- -----------
Other expense:
Interest income 29,000 26,000
Interest expense (103,000) (101,000)
----------- -----------
Other expense, net (74,000) (75,000)
----------- -----------
Income from continuing operations before income tax
expense 1,948,000 2,712,000
Income tax expense 29,000 43,000
----------- -----------
Income from continuing operations 1,919,000 2,669,000
----------- -----------
Discontinued operations:
Loss from operations of discontinued operations (300,000) (2,490,000)
Loss on sale of discontinued operations (244,000) (150,000)
----------- -----------
Loss on discontinued operations (544,000) (2,640,000)
----------- -----------
Net income $ 1,375,000 $ 29,000
=========== ===========
Other comprehensive loss:
Unrealized loss on available-for-sale securities (16,000) -
----------- -----------
Comprehensive income $ 1,359,000 $ 29,000
=========== ===========
Net income per common share - continuing operations
Net income per common share - continuing
operations - basic $ 0.08 $ 0.11
Net income per common share - continuing
operations - diluted $ 0.08 $ 0.11
Net loss per common share - discontinued operations
Net loss per common share - discontinued
operations - basic $ (0.02) $ (0.10)
Net loss per common share - discontinued
operations - diluted $ (0.02) $ (0.11)
----------- -----------
Net income per common share
Net income per common share - basic $ 0.06 $ 0.00
=========== ===========
Net income per common share - basic and diluted $ 0.06 $ 0.00
=========== ===========
Weighted average common shares outstanding - basic 23,670,505 24,345,324
=========== ===========
Weighted average common shares outstanding -
diluted 24,374,724 25,080,822
=========== ===========
TIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
------------------------
2012 2011
----------- -----------
Cash flows from operating activities:
Net income $ 1,375,000 $ 29,000
Adjustments to reconcile net income to cash
provided by operating activities:
Loss on discontinued operations 544,000 2,640,000
Depreciation 633,000 630,000
Non-cash interest 88,000 80,000
Amortization of intangible assets 514,000 521,000
Fair value of options and warrants issued to
employees and directors 997,000 891,000
(Increase) decrease in:
Accounts receivable 10,000 113,000
Prepaid expenses and other assets 344,000 (314,000)
Increase (decrease) in:
Accounts payable and accrued expenses 86,000 1,017,000
Deferred revenue 40,000 4,000
Other current liabilities 23,000 29,000
----------- -----------
Net cash provided by operating activities
from continuing operations 4,654,000 5,640,000
Net cash provided by operating activities
from discontinued operations 15,000 1,555,000
----------- -----------
Net cash provided by operating activities 4,669,000 7,195,000
----------- -----------
Cash flows from investing activities:
Purchases of property and equipment (281,000) (159,000)
Purchases of short-term investments, net (3,009,000) -
Acquisitions, net of cash acquired - (2,000,000)
----------- -----------
Net cash used in investing activities (3,290,000) (2,159,000)
Net cash used in investing activities from
discontinued operations - (7,000)
----------- -----------
Net cash used in investing activities (3,290,000) (2,166,000)
----------- -----------
Cash flows from financing activities:
Cost of treasury shares, net of fees (23,000) (2,546,000)
Payment of repurchase obligation (2,360,000) (1,770,000)
Repayment of acquisition note (625,000) (375,000)
Obligation for share purchases (431,000) (1,077,000)
----------- -----------
Net cash used in financing activities (3,439,000) (5,768,000)
----------- -----------
Net decrease (2,060,000) (739,000)
----------- -----------
Balance at beginning of period 8,077,000 8,816,000
----------- -----------
Balance at end of period $ 6,017,000 $ 8,077,000
=========== ===========
TIX CORPORATION AND SUBSIDIARIES
TIX RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EARNINGS
(UNAUDITED)
The following table set forth a reconciliation of consolidated
net income (loss) to consolidated Adjusted Earnings:
Three months Three months
ended ended
December 31, December 31,
2012 2011
-------------- --------------
Net income (loss) $ 807,000 $ (2,189,000)
Loss from discontinued operations - 2,955,000
Income tax benefit (81,000) (7,000)
Interest expense, net 19,000 17,000
Depreciation and amortization 275,000 286,000
Stock based compensation expense 232,000 314,000
Litigation expense and non-routine legal and
advisory services for corporate and
governance matters 270,000 722,000
-------------- --------------
Adjusted Earnings $ 1,522,000 $ 2,098,000
============== ==============
Twelve months Twelve months
ended ended
December 31, December 31,
2012 2011
-------------- --------------
Net income $ 1,375,000 $ 29,000
Loss from discontinued operations 544,000 2,640,000
Income tax expense 29,000 43,000
Interest expense, net 74,000 75,000
Depreciation and amortization 1,147,000 1,154,000
Stock based compensation expense 997,000 891,000
Litigation expense and non-routine legal and
advisory services for corporate and
governance matters 2,314,000 2,920,000
-------------- --------------
Adjusted Earnings $ 6,480,000 $ 7,752,000
============== ==============
Contact: Steve Handy CFO 818-761-1002
Tix (CE) (USOTC:TIXC)
Historical Stock Chart
From May 2024 to Jun 2024
Tix (CE) (USOTC:TIXC)
Historical Stock Chart
From Jun 2023 to Jun 2024
