301 0 Kommentare Tix Corporation Reports First Quarter 2016 Results

STUDIO CITY, CA--(Marketwired - May 10, 2016) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2016.

Mitch Francis, Chief Executive Officer of the Company, stated, "Our financial performance during the period, which has historically been our slowest period of the year, included two timing differences, which we have now anniversaried and should no longer impact our year-over-year comparisons. During the second quarter of 2015 we began selling tickets to two low-priced attractions that have proved very successful with our customers, but resulted in lower average revenue per ticket. Additionally, our direct operating expenses for the first quarter of 2016 included higher hourly payroll expenses, following a wage increase implemented late in the first quarter last year."

Mr. Francis continued, "We are focused on providing our customers with a variety of discount tickets to the most popular shows and attractions in Las Vegas. We anticipate this focus will result in another year of solid financial performance and cash generation following a successful 2015. Our positive outlook allowed us to recently announce a 10% increase to our quarterly dividend program with the goal of enhancing the total return for our shareholders. At the same time, we remain focused on executing prudent growth strategies that capitalize on our Company's leadership position in the Las Vegas market, such as the Agreement we announced last week with Expedia LX Partner Business, Inc., doing business as Expedia Local Expert, a division of Expedia, Inc., one of the world's largest online travel agencies. Our role as Expedia's Official Las Vegas Guest Services Partner capitalizes on our existing operations and will cater to the large number of Las Vegas visitors who book their travel through Expedia brands."

First Quarter 2016 Results

First quarter 2016 revenues were $5,417,000 compared with $5,550,000 in the same period a year ago.

First quarter 2016 direct operating expenses, which includes payroll costs, rents, and utilities, increased $289,000 to $2,595,000 compared with $2,306,000 for the same period a year ago. The increase in direct operating expenses was due to increased locations in operation as compared to the same period a year ago and higher hourly payroll costs reflecting a wage increase implemented in late February 2015.

First quarter 2016 selling, general and administrative expenses decreased $91,000 to $1,944,000 compared with $2,035,000 for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, improved to 36% compared with 37% for the same period a year ago.

First quarter 2016 provision for income taxes was $252,000, as compared to $61,000 reported for the same period a year ago. In December 2015, the Company recorded a deferred tax asset in the amount of $11,531,000 and began recording a provision for income taxes in the first quarter of 2016 using a federal income tax rate of 34% which reduced the Company's deferred tax asset balance accordingly. During the same period of the prior year, the Company's provision for income taxes included only estimated corporate alternative minimum taxes under the federal tax code.

First quarter 2016 net income was $488,000, or $0.03 per diluted common share, as compared to net income of $963,000, or $0.05 per diluted common share reported for the same period a year ago. Excluding the impact of our provision for income taxes discussed above, net income was approximately $710,000, or $0.04 per diluted share, as compared to net income of $963,000, or $0.05 per diluted share, reported for the same period a year ago. Adjusted EBITDA (as defined and explained below) for the first quarter of 2016, decreased $335,000 to $971,000, or $0.05 per diluted common share, as compared to Adjusted EBITDA of $1,306,000, or $0.07 per diluted common share, reported for the same period a year ago.

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 plus (a) income taxes (b) other expenses, net, (c) depreciation and amortization charges, (d) stock based compensation expense, (e) loss on disposition of property and equipment, (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 EBITDA 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 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 11 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.

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, 2015 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.


TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS

				March 31, 2016			December 31, 2015
				(Unaudited)
Assets
Current assets:
	Cash			$	7,205,000		$	7,921,000
	Accounts receivable				45,000			47,000
	Prepaid expenses and other current assets				241,000			122,000
		Total current assets			7,491,000			8,090,000

Property and equipment, net					485,000			579,000

Other assets:
	Intangible assets:
		Goodwill			3,120,000			3,120,000
		Intangibles, net			-			17,000
		Total intangible assets			3,120,000			3,137,000
	Deferred tax asset				11,280,000			11,531,000
	Deposits and other assets				66,000			66,000
		Total other assets			14,466,000			14,734,000
			Total assets	$	22,442,000		$	23,403,000

Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable - shows and events			$	1,306,000		$	1,140,000
	Accounts payable and accrued expenses				745,000			1,390,000
	Deferred revenue				44,000			25,000
	Note payable - short term and net of discount				176,000			176,000
		Total current liabilities			2,271,000			2,731,000

Deferred rent obligations					51,000			58,000
Note payable - net of current portion and discount					182,000			376,000
Total liabilities					2,504,000			3,165,000

Stockholders' equity:
	Preferred stock, $.01 par value; 500,000 shares authorized; none issued							-
	Common stock, $.08 par value; 100,000,000 shares authorized; 17,293,172 shares net of 16,627,245 treasury shares, and 17,280,009 shares net of 16,619,953 treasury shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively				2,715,000			2,713,000
	Additional paid-in capital				94,307,000			94,216,000
	Cost of stock held in treasury				(28,131,000	)		(28,115,000	)
	Accumulated deficit				(48,953,000	)		(48,576,000	)
		Total stockholders' equity			19,938,000			20,238,000
			Total liabilities and stockholders' equity	$	22,442,000		$	23,403,000

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

			Three Months Ended March 31,
			2016		2015
			(Unaudited)		(Unaudited)

Revenues			$	5,417,000	$	5,550,000
Operating expenses:
	Direct costs of revenues			2,595,000		2,306,000
	Selling, general and administrative expenses			1,944,000		2,035,000
	Depreciation and amortization			133,000		179,000
		Total costs and expenses		4,672,000		4,520,000
Operating income				745,000		1,030,000
Other expense:
	Interest expense			5,000		6,000
		Other expense, net		5,000		6,000
Income before provision for income taxes				740,000		1,024,000
Provision for income taxes				252,000		61,000
Net income			$	488,000	$	963,000

Net income per common share
	Net income per common share - basic		$	0.03	$	0.05
	Net income per common share - diluted		$	0.03	$	0.05

Weighted average common shares outstanding - basic				17,292,304		17,561,021
Weighted average common shares outstanding - diluted				17,993,116		17,975,424

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

					Three Months Ended March 31,
					2016			2015
					(Unaudited)			(Unaudited)
Cash flows from operating activities:
	Net income				$	488,000		$	963,000
		Adjustments to reconcile net income to net cash provided by operating activities:
		Imputed interest				6,000			6,000
		Depreciation				116,000			119,000
		Amortization of intangible assets				17,000			61,000
		Stock based compensation				93,000			97,000
		Deferred tax asset				251,000			-
		(Increase) decrease in:
			Accounts receivable			2,000			(23,000	)
			Prepaid expenses and other assets			(119,000	)		(136,000	)
		Increase (decrease) in:
			Accounts payable - shows and events			166,000			1,291,000
			Accounts payable and accrued expenses			(645,000	)		(393,000	)
			Deferred revenue			19,000			29,000
			Deferred rent obligations			(7,000	)		(36,000	)
				Net cash provided by operating activities		387,000			1,978,000

Cash flows from investing activities:
	Purchases of property and equipment					(22,000	)		(26,000	)
				Net cash used in investing activities		(22,000	)		(26,000	)

Cash flows from financing activities:
	Dividends paid					(865,000	)		-
	Payment on note payable					(200,000	)		(200,000	)
	Cost of treasury stock					(16,000	)		-
	Obligation for share purchases					-			(159,000	)
				Net cash used in financing activities		(1,081,000	)		(359,000	)

	Net (decrease) increase in cash					(716,000	)		1,593,000
	Cash, beginning of period					7,921,000			4,866,000
	Cash, end of period				$	7,205,000		$	6,459,000

Supplemental disclosures of cash flow information:
Cash paid for:
	Income taxes				$	1,000		$	87,000
	Interest				$	-		$	-

TIX CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(UNAUDITED)

The following is a reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2016 and 2015, respectively:


	Three Months Ended March 31,
	2016		2015
	(Unaudited)		(Unaudited)
Net income	$	488,000	$	963,000
Provision for income taxes		252,000		61,000
Other expense, net		5,000		6,000
Depreciation and amortization expense		133,000		179,000
Stock based compensation expense		93,000		97,000
Adjusted EBITDA	$	971,000	$	1,306,000