STUDIO CITY, Calif., March 31, 2008 (PRIME NEWSWIRE) -- TIX Corporation (OTCBB:TIXC) today reported results for the year ended December 31, 2007, reflecting continued sales strength derived from its core discount ticketing operation in Las Vegas and the benefits of two strategic acquisitions to broaden its entertainment business.
Revenue for the 2007 fourth quarter increased almost fourfold to $6.4 million from $1.6 million a year earlier. For the same period, the company reported a net loss of $1.1 million, or $0.04 per share, compared with a net loss of $177,000, or $0.01 per share, last year. Factors contributing to the revenue increase and net loss are discussed below.
Revenue for the twelve months increased more than threefold to $18.6 million from $5.4 million a year earlier, reflecting strength of its discount and premium ticketing businesses and contributions from the company's acquisition of Exhibit Merchandising, completed in August 2007. For the year, the company reported a net loss of $16.3 million, or $0.70 per share, compared with net income of $39,000, or $0.0 per share, a year earlier. Financial results for 2007 include $14.2 million related to non-cash equity compensation, of which $10.9 million was recorded as selling and marketing expenses and primarily associated with two-to-four year consulting contracts intended to assist in developing strategic relationships with producers, presenters and entertainment events to support current and future operations. The remaining $3.3 million was recorded in general and administrative expenses related to stock and stock options to employees and consultants.
"Revenue growth for 2007 reflects solid performance derived from the company's Tix4Tonight same-day, discount ticket operation in the Las Vegas market, as well as additional value-added products of providing new services to customers -- such as discount dining reservations and discount golf tee-times purchases. Sales activity in 2007 was bolstered by an expanding roster of discount shows and five high-pedestrian traffic locations in Las Vegas," said Mitch Francis, chief executive officer of Tix Corporation.
He noted the company's acquisition in March 2007 of John's Tickets, a national premium ticket brokerage, has now been integrated, enabling Tix Corporation to expand its ticket services beyond the Las Vegas market, operating under the Tix4AnyEvent.com banner.
The company's newest division, Tix Productions, is comprised of Magic Arts and Entertainment, acquired in February 2008, and New Space Entertainment, acquired in March 2008. This division produces and promotes live entertainment throughout the United States and Canada. "Tix Corporation has developed into an integrated entertainment company, operating three complementary business units -- Tix4Tonight, Exhibit Merchandising and Tix Productions. We are aggressively beginning to capitalize on the available opportunities derived from these complementary businesses in order to further enhance each division and benefit the growth potential of our entire organization," Francis said.
He noted that the value of discount tickets sold through its discount ticket operation in Las Vegas increased 45 percent to $33.2 million in 2007, with the number of tickets purchased climbing 24 percent to 714,000 -- representing $7.5 million in fees and commissions for the company. He added that the company opened its fifth ticket location in Las Vegas in 2007 near the MGM Grand Hotel and just behind the world famous giant glass Coke bottle site.
He also highlighted the incremental revenue contributions derived from its Exhibit Merchandising acquisition -- which operates retail specialty stores for touring museum exhibitions, citing the successful opening of its first foreign exhibit gift shop for the touring Tutankhamum and the Golden Age of Pharaohs at the O2 Dome in London and a second King Tut exhibit recently opened in Vienna.
Business Outlook*
2008 2009
-------------------------- --------------------------
Gross
revenues $42,000,000 to $47,000,000 $58,000,000 to $62,000,000
=========== =========== =========== ===========
Net income $ 2,750,000 to $ 3,250,000 $ 7,500,000 to $ 8,500,000
----------- ----------- ----------- -----------
Adjustments:
Income
taxes 859,000 1,016,000 2,344,000 2,656,000
Amortiz-
ation
and
depreci-
ation 3,670,000 3,670,000 3,670,000 3,670,000
Interest
income 200,000 200,000 400,000 400,000
----------- ----------- ----------- -----------
Earnings
before
interest,
taxes
depreciation
and amort-
ization $ 7,479,000 to $ 8,136,000 $13,914,000 to $15,226,000
=========== =========== =========== ===========
Estimated
basic
weighted
average
shares
outstanding 33,000,000 33,000,000 34,000,000 34,000,000
=========== =========== =========== ===========
The company indicated that 2008 projections are based solely on its current business activities.
* The above Business Outlook discussion is based on the following
key assumptions:
-- The level of economic activity in the United States will not
significantly deteriorate beyond current levels.
-- The company's Las Vegas discount ticket operation will
maintain its market position.
-- The company will be able to utilize a portion of its net
operating loss carry forwards to offset its projected tax
liabilities in the United States.
-- The exhibitions associated with the company's activities will
meet projected levels of attendance.
-- The company will be able to retain and add to its current list
of touring Broadway plays it promotes, as well as retain and
expand the live entertainment it represents.
Teleconference and Web Cast
Mitch Francis, president and chief executive officer, and Matt Natalizio, chief financial officer, will host an investor conference call today at 8:30 a.m. Pacific Time to discuss the company's operations, growth strategy and guidance for 2008.
The call will be open to all interested investors either through a live audio Web broadcast via the Internet at www.tixcorp.com or live by calling (877)-627-6566 (domestic) or (719)-325-4934 (international). For those who are not available to listen to the live broadcast, the call will be archived on Tix Corporation's website.
About TIX Corporation
Tix Corporation is an integrated entertainment organization offering ticketing services, event merchandising and concert and theatrical productions. It currently operates five prime locations in Las Vegas under the Tix4Tonight marquee- offering up to a 50 percent discount for same-day shows, concerts, attractions and sporting events. It also offers discount products for golf and dining at its sales locations in Las Vegas. The company also offers premium tickets to concerts, theater and sporting events throughout the United States. Its Exhibit Merchandising operation is engaged in branding, product merchandise development and sales activities related to museum exhibitions and other events -- including the King Tutankhamen and Real Pirates tours, selling themed souvenir memorabilia and collector's items in specialty stores in conjunction with the specific events and venues. The company's newest division is dedicated to concert and live theatrical promotion and production of events throughout the United States, Canada and Europe.
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 filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.
TIX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Operations:
Three Months Ended Year Ended
December 31, December 31,
-------------------------- --------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
(unaudited) (audited)
Revenue $ 6,406,000 $ 1,626,000 $ 18,567,000 $ 5,388,000
------------ ------------ ------------ ------------
Cost of
Revenue 3,554,000 655,000 11,672,000 2,173,000
Operating
Expenses:
Direct
operating
expenses
Selling,
general and
administrative,
corporate 2,935,000 1,115,000 21,592,000 3,773,000
Depreciation and
Amortization 1,051,000 45,000 1,668,000 164,000
------------ ------------ ------------ ------------
7,540,000 1,815,000 34,932,000 6,110,000
------------ ------------ ------------ ------------
Operating
income (loss) (1,134,000) (189,000) (16,365,000) (722,000)
------------ ------------ ------------ ------------
Operating
margin
Other income (4,000) -- 28,000 37,000
Gain on
settlement
with lender -- (1,000) -- 1,078,000
Gain on
settlement
of debt -- 12,000 -- 12,000
Write-off
deferred
offering costs -- -- -- (58,000)
Interest
income 24,000 8,000 96,000 16,000
Interest
expense (5,000) (7,000) (104,000) (329,000)
------------ ------------ ------------ ------------
Other expense
(income) - net 15,000 12,000 20,000 756,000
------------ ------------ ------------ ------------
Income (loss)
before income
taxes (1,119,000) (177,000) (16,345,000) 34,000
------------ ------------ ------------ ------------
Income tax
expense
(benefit):
Income from
discontinued
operations,
primarily
non-cash gain
resulting from
settlement of
debts -- -- -- 5,000
------------ ------------ ------------ ------------
-- -- -- 5,000
------------ ------------ ------------ ------------
Net Income
(loss) $ (1,119,000) $ (177,000) $(16,345,000) $ 39,000
============ ============ ============ ============
Net Income
(loss) per
common share
- basic $ (0.04) $ (0.01) $ (0.70) $ --
============ ============ ============ ============
Net Income
(loss) per
common share
- diluted $ (0.04) $ (0.01) $ (0.70) $ --
============ ============ ============ ============
Weighted
average
common shares
outstanding
Basic 30,274,752 18,308,654 23,446,349 14,886,334
============ ============ ============ ============
Diluted 30,274,752 18,308,654 23,446,349 15,999,473
============ ============ ============ ============
TIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2007 AND 2006
ASSETS
2007 2006
------------ ------------
Current assets:
Cash $ 7,417,000 $ 1,943,000
Other receivable 345,000 --
Accounts receivable, net 129,000 --
Inventory 3,938,000 --
Prepaid expenses and other current assets 178,000 40,000
------------ ------------
Total current assets 12,007,000 1,983,000
------------ ------------
Property and equipment:
Office equipment and furniture 1,413,000 222,000
Equipment under capital lease 386,000 386,000
Leasehold improvements 313,000 261,000
------------ ------------
2,112,000 869,000
Less accumulated depreciation and
amortization (664,000) (370,000)
------------ ------------
Total property and equipment, net 1,448,000 499,000
------------ ------------
Other assets:
Intangible assets:
Goodwill 27,115,000 --
Intangible assets, net 14,524,000 83,000
Deposits and other assets 74,000 67,000
------------ ------------
Total other assets 41,713,000 150,000
------------ ------------
$ 55,168,000 $ 2,632,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
2007 2006
------------ ------------
Current liabilities:
Accounts payable and accrued liabilities $ 3,027,000 $ 1,886,000
Current portion of capital lease
obligations 45,000 53,000
Deferred revenue 54,000 --
------------ ------------
Total current liabilities 3,126,000 1,939,000
------------ ------------
Non-current liabilities:
Capital lease obligations, less current
portion 108,000 140,000
Deferred rent 188,000 175,000
------------ ------------
Total non-current liabilities 296,000 315,000
------------ ------------
Stockholders' equity (deficiency):
Preferred stock, $0.01 par value;
500,000 shares authorized; none issued -- --
Common stock, $0.08 par value;
100,000,000 shares authorized;
30,402,325 shares and 18,440,305 shares
issued and outstanding at December 31,
2007 and 2006, respectively 2,432,000 1,475,000
Additional paid-in capital 81,034,000 14,278,000
Accumulated deficit (31,720,000) (15,375,000)
------------ ------------
Total stockholders' equity 51,746,000 378,000
------------ ------------
$ 55,168,000 $ 2,632,000
============ ============