Ticketing Services Achieved a 39% Year-Over-Year Increase in First
Quarter Revenue Growth, with Gross Discount Show Ticket Sales,
Commissions and Fees Increasing 66% to $17.6 million; Exhibit
Merchandising and Live Entertainment Revenues were
In Line with Expectations
Company Generated $1.9 million of Net Cash from Operations
All Three Business Segments were Profitable in the First Quarter
with Exhibit Merchandising Returning to Profitability
The Company Increased its Cash Balance to $10.6 million as of
March 31, 2009 Compared to $9.2 million as of December 31, 2008;
The Company Has No Debt
Company Expects Continued Revenue Growth and Improved Profitability
for Full Year 2009
STUDIO CITY, Calif., May 6, 2009 (GLOBE NEWSWIRE) -- Tix Corporation (Nasdaq:TIXC), a leading integrated entertainment company providing discount and premium ticketing services, event and branded merchandising, and production/promotion of live concert and theatrical events, today reported results for the three months ended March 31, 2009.
First quarter 2009 revenue was $20.2 million, compared to $23.2 million recorded in the comparable period last year. In the first quarter 2009 ticketing service revenues, commissions and fees from Ticketing Services were $4.2 million, revenue from Exhibit Merchandising was $2.8 million and revenue from Live Entertainment was $13.2 million. Net income for the first quarter was $295,000, or $0.01 per diluted common share, compared to net income of $461,000, or $0.01 per diluted common share, reported in the first quarter of 2008.
The Company generated $1.9 million of net cash provided by operating activities during the first quarter of 2009, compared to $2.6 million for the same period last year. The Company increased its cash balance to $10.6 million as of March 31, 2009 compared to $9.2 million as of December 31, 2008. In addition, the Company has no debt.
Mitch Francis, President and CEO of Tix Corporation, commented, "We achieved profitability and strong operating cash flow in the first quarter despite a challenging macro-economic environment. These positive results are due to the inherent strengths of our business model as well as strategic decisions implemented in 2008. We grew our discount show ticketing revenue by 60% during the quarter with improved margins, positioned our ticketing business for national expansion with our new Costco partnership, and returned our Exhibit Merchandising business to profitability."
First Quarter Segmental Operating Results
Overall revenue from the Company's Ticketing Services segment, which includes revenue from discount, premium ticket sales and membership group sales, increased 39% to $4.2 million for the quarter compared to $3.0 million in the prior year period. The increase in Ticketing Service revenues is primarily the result of a $1.4 million increase in discount show ticket sales as well as an increase in ancillary revenues, offset by a decline in premium ticket revenues. Operating income improved 107% to $1.7 million during the quarter compared to operating income of $817,000 in the prior year period.
The Company's discount ticketing division, Tix4Tonight, increased the number of discount show tickets sold by 44% to 319,000 tickets and revenues from the sale of discount show tickets increased by 66%, to $17.6 million. The increase in revenue reflects a greater demand for discount tickets as well as an increase in the average selling price per ticket. The average selling price per ticket increased $7.55 to $55.10 in 2009 as compared an average selling price per ticket of $47.55 for the comparable time frame in 2008. Revenue for the discount show ticket division grew 60% to $3.8 million during the quarter ended March 31, 2009 compared to $2.4 million in the prior year period. Miscellaneous revenue from discount golf and dinner reservations increased 54% to $298,000 from $194,000 in the prior year period. Revenue from the Company's premium ticketing division, Tix4AnyEvent, was $59,000 compared to $429,000 in the prior year period. The revenue decline reflects the strategic decision taken in 2008 to change from a retail ticket seller to the public to a wholesaler of tickets, which was designed to reduce business risk and improve profitability. In February 2009, Tix4Tonight launched its internet based ticketing operation, Tix4Members.com, that offers a nationwide marketing channel through a co-branded website with Costco for producers, presenters, artists, arenas and theaters. Tix4Members.com ticket sales revenue for the first quarter was immaterial.
Exhibit Merchandising (EM), which operates retail specialty stores for touring museum exhibitions, generated revenue of $2.8 million during the quarter, a decrease of 10% compared to $3.1 million in the prior year period. Revenue was derived from the Company's retail outlets associated with the sale of merchandise related to touring exhibits, and was primarily derived from "Tutankhamun and The Golden Age of the Pharaohs." The decline in revenues was due to a corresponding decline in visitor attendance at the exhibits in 2009 as compared to 2008, and were in line with management's expectations. As a result of reduced amortization and cost cutting measures implemented by management in the fourth quarter of 2008 and the first quarter of 2009, EM recorded operating income of $163,000, as compared to an operating loss of $(399,000) in the prior year period. Management's cost cutting measures include the renegotiation of a 25% reduction in the exhibit producer royalty rate, which is an estimated savings of $30,000 per month.
Tix Productions (TPI), which produces and presents live entertainment events, generated revenue of $13.2 million, compared to $17.1 million in the prior year period. Operating income decreased to $148,000 compared to $1.5 million in the prior year period. Revenue and operating income were lower primarily due to management's decision to produce fewer shows in 2009 than in 2008 in order to focus on shows with proven franchises in light of the poor economic climate. Additionally, in 2008, performances were impacted by a shift in timing as tours began earlier and later in the year to avoid the presidential campaign season when advertising prices were at their highest. In the first quarter of 2009, TPI presented or produced 302 show dates as compared to 437 show dates in 2008. Shows produced by TPI such as David Copperfield, Rain - The Beatles Experience and Lord of the Dance continue to perform in line with expectations.
Mr. Francis concluded, "We expect to achieve strong revenue growth in 2009 as we further leverage the integrated nature of our businesses and explore new growth opportunities. We continue to experience high demand for quality discount entertainment and believe we will continue to benefit from a consumer that is cost conscious and looking for quality entertainment in local theaters and venues. We believe the strong cash flow generation of our businesses and debt-free balance sheet will support our continued growth."
Investor Conference Call
The company will host a conference call for investors today, Wednesday, May 6, 2009, beginning at 1:30 p.m. Pacific / 4:30 p.m. Eastern. Participants may access the call by dialing 877-941-6010 (domestic) or 480-629-9774 (international). In addition, the call will be webcast via the company's Web site at www.tixcorp.com, Investor Relations, where it will also be archived. A telephone replay will be available through Wednesday, May 20, 2009. To access the replay, please dial 800-406-7325 (domestic) or 303-590-3030 (international), passcode 4068671.
About TIX Corporation
Tix Corporation is an integrated entertainment company providing discount and premium ticketing services, event and branded merchandising, and production/promotion of live concert and theatrical events. It currently operates six 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, as well as discount reservations for golf and dining. The Company also offers premium tickets to concerts, theater and sporting events throughout the United States under its Tix4AnyEvent.com brand. Newly launched Tix4Members.com offers closed groups both discount and premium tickets for nationwide events through a co-branded website with Costco. The Company's Exhibit Merchandising operation is engaged in branded merchandise development and sales activities related to museum exhibitions and other events, including the King Tutankhamun and Real Pirates tours; selling themed souvenir memorabilia and collector's items in specialty stores in conjunction with the specific events and venues. Tix Productions is dedicated to live concert and theatrical promotion and production throughout the United States, Canada and Europe and operates under the banners of Magic Arts & Entertainment and NewSpace Entertainment.
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 filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements.
TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
Three Months Ended March 31,
----------------------------
2009 2008
------------- -------------
(Unaudited) (Unaudited)
Revenues $ 20,170,000 $ 23,163,000
------------- -------------
Operating expenses:
Direct costs of revenues 14,926,000 16,730,000
Selling and marketing expenses 606,000 1,377,000
General and administrative expenses,
including non-cash equity-based costs
of $413,000 and $602,000 in 2009 and
2008 respectively (including $390,000
and $414,000 for officers, directors
and employees in 2009 and 2008,
respectively). 3,756,000 3,462,000
Depreciation and amortization 621,000 1,122,000
------------- -------------
Total costs and expenses 19,909,000 22,691,000
------------- -------------
Operating Income 261,000 472,000
------------- -------------
Other:
Other income (expense) 25,000 43,000
Interest income 13,000 34,000
Interest expense (4,000) (6,000)
------------- -------------
Other income (expense), net 34,000 71,000
------------- -------------
Net income before income tax expense 295,000 543,000
Current income tax expense -- 82,000
------------- -------------
Net income 295,000 461,000
Other comprehensive income
Foreign currency translation
adjustments 5,000 --
------------- -------------
Comprehensive income $ 300,000 $ 461,000
============= =============
Net income per common share -
Basic $ 0.01 $ 0.02
============= =============
Diluted $ 0.01 $ 0.01
============= =============
Weighted average common shares
outstanding -
Basic 32,304,286 30,642,823
============= =============
Diluted 32,429,891 32,493,343
============= =============
Consolidating Statement of Operations (unaudited)
Three months ended March 31
Segmental Information
Ticketing Exhibit Live
Services Merchandising Entertainment
-------------------------------------------
2009
Revenue $ 4,155,000 $ 2,789,000 $ 13,226,000
Direct operating expenses 1,534,000 1,705,000 11,687,000
Selling, general and
administrative expenses 871,000 625,000 1,194,000
Depreciation and
amortization 58,000 296,000 197,000
------------- ------------- -------------
Operating income (loss) $ 1,692,000 $ 163,000 $ 148,000
============= ============= =============
Total assets $ 3,344,000 $ 10,509,000 $ 9,435,000
============= ============= =============
2008
Revenue $ 2,995,000 $ 3,102,000 $ 17,065,000
Direct operating expenses 1,529,000 1,877,000 13,325,000
Selling, general and
administrative expenses 599,000 838,000 2,026,000
Depreciation and
amortization 50,000 786,000 187,000
------------- ------------- -------------
Operating income (loss) $ 817,000 $ (399,000) $ 1,527,000
============= ============= =============
Total assets $ 2,527,000 $ 47,176,000 $ 13,691,000
============= ============= =============
Corporate Consolidated
Expenses and Combined
----------------------------
2009
Revenue $ -- $ 20,170,000
Direct operating expenses -- 14,926,000
Selling, general and administrative
expenses 1,672,000 4,362,000
Depreciation and amortization 70,000 621,000
------------- -------------
Operating income (loss) $ (1,742,000) $ 261,000
============= =============
Total assets $ 5,487,000 $ 28,775,000
============= =============
2008
Revenue $ -- $ 23,162,000
Direct operating expenses -- 16,731,000
Selling, general and administrative
expenses 1,373,000 4,836,000
Depreciation and amortization 100,000 1,123,000
------------- -------------
Operating income (loss) $ (1,473,000) $ 472,000
============= =============
Total assets $ 2,638,000 $ 66,032,000
============= =============
TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2009 2008
------------- -------------
(Unaudited)
Assets
Current assets:
Cash $ 10,621,000 $ 9,192,000
Accounts receivable, including show
revenues earned but not billed 725,000 1,104,000
Inventory, net 2,759,000 3,320,000
Prepaid expenses and other current
assets 634,000 867,000
------------- -------------
Total current assets 14,739,000 14,483,000
------------- -------------
Property and equipment
Office equipment and furniture 1,860,000 1,816,000
Equipment under capital lease 408,000 408,000
Leasehold improvements 365,000 364,000
------------- -------------
Property and equipment, cost basis 2,633,000 2,588,000
Less accumulated depreciation (1,286,000) (1,155,000)
------------- -------------
Total property and equipment, net 1,347,000 1,433,000
------------- -------------
Other assets:
Intangible assets:
Goodwill 5,895,000 5,639,000
Intangibles, net 6,261,000 6,751,000
------------- -------------
Total intangible assets 12,156,000 12,390,000
Capitalized theatrical costs 400,000 459,000
Deposits and other assets 133,000 83,000
------------- -------------
Total other assets 12,689,000 12,932,000
------------- -------------
------------- -------------
Total assets $ 28,775,000 $ 28,848,000
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,073,000 $ 4,822,000
Accrued expenses 1,448,000 1,515,000
Current portion of capital lease
obligations 51,000 51,000
Deferred revenue 281,000 100,000
------------- -------------
Total current liabilities 5,853,000 6,488,000
------------- -------------
Non-current liabilities:
Capital lease obligations, less
current portion 65,000 78,000
Deferred rent 69,000 85,000
------------- -------------
Total non-current liabilities 134,000 163,000
------------- -------------
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;
33,311,070 shares and 33,078,233
shares issued at March 31, 2009 and
December 31, 2008 respectively 2,664,000 2,646,000
Additional paid-in capital 88,713,000 88,062,000
Cost of shares held in treasury
(958,170 shares at March 31, 2009 and
732,370 shares at December 31, 2008
respectively) (2,476,000) (2,098,000)
Accumulated deficit (66,089,000) (66,384,000)
Accumulated other comprehensive loss (24,000) (29,000)
------------- -------------
Total stockholders' equity 22,788,000 22,197,000
------------- -------------
------------- -------------
Total liabilities and stockholders'
equity $ 28,775,000 $ 28,848,000
============= =============
TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
THREE MONTHS ENDED MARCH 31,
----------------------------
2009 2008
------------- -------------
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $ 295,000 $ 461,000
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation 131,000 117,000
Amortization of intangible assets 490,000 1,006,000
Fair valued common stock issued for
services to employees and consultants 13,000 188,000
Fair value of options issued to
employees and directors 382,000 414,000
Fair value of warrants issued to
consultants 18,000 --
Change in allowance of inventory (30,000) 115,000
(Increase) decrease in:
Accounts receivable 379,000 (3,719,000)
Inventory 590,000 (3,000)
Prepaid expenses and other current
assets 233,000 101,000
Capitalized theatrical costs,
deposits and other assets 9,000 (2,000)
Increase (decrease) in:
Accounts payable and accrued expenses (816,000) 3,482,000
Deferred revenue 181,000 484,000
Deferred rent (16,000) (61,000)
------------- -------------
Net cash provided by operating
activities 1,859,000 2,583,000
------------- -------------
Cash flows from investing activities:
Purchases of property and equipment (45,000) (131,000)
Purchase of Magic Arts & Entertainment,
net of cash acquired -- (2,133,000)
Purchase of NewSpace Entertainment, net
of cash acquired -- (1,456,000)
------------- -------------
Net cash used in investing
activities (45,000) (3,720,000)
------------- -------------
Cash flows from financing activities:
Cost of Treasury Stock (378,000) --
Payments on capital lease obligations (12,000) (9,000)
------------- -------------
Net cash used in financing
activities (390,000) (9,000)
------------- -------------
Effect of exchange rate changes on cash 5,000 --
Change in Cash:
Net increase 1,429,000 (1,146,000)
Balance at beginning of period 9,192,000 7,769,000
------------- -------------
Balance at end of period $ 10,621,000 $ 6,623,000
============= =============
Supplemental disclosures of cash flow
information:
Cash paid for:
Income taxes $ -- $ --
Interest $ 4,000 $ 6,000
Non-cash investing activities:
Issuance of earn-out shares of 190,476
and originally issued 476,190 shares
of common stock in conjunction with
the acquisition of Magic Arts &
Entertainment - Florida, Inc. in
2009 and 2008 respectively. $ 256,000 $ 2,257,000
Issuance of 571,428 shares of common
stock in conjunction with the
acquisition of NewSpace Entertainment,
Inc. $ -- $ 2,595,000
============= =============