STUDIO CITY, Calif., May 20, 2008 (PRIME NEWSWIRE) -- TIX Corporation (Nasdaq:TIXC) today reported results for its first quarter ended March 31, 2008, reflecting continued sales strength derived from its core discount ticketing operation in Las Vegas and contributions from its two new divisions -- Exhibit Merchandising, which provides branded merchandise sales and services, and a newly formed subsidiary Tix Productions Inc., offering live entertainment.
Revenue for the 2008 first quarter increased to a record $23.2 million from $1.75 million a year earlier. For the same period, the company reported net income of $461,000, or $0.01 per diluted share, calculated on a 65 percent increase in the weighted average common shares outstanding, compared with a net loss of $520,000, or $0.03 per share, last year.
"First quarter results highlight the success of the company's strategic plan to leverage its core Las Vegas-based discount ticketing operation with the addition of entertainment businesses that offer significant synergistic domestic and international opportunities," said Mitch Francis, chief executive officer of Tix Corporation.
He highlighted the company's commencement of trading earlier this month on The NASDAQ Capital Market and the expected benefits of improved trading liquidity and greater potential to attract a broader shareholder base.
Francis noted the company's Tix4Tonight same-day, discount ticket operation in the Las Vegas market, including value-added services such as discount dining reservations and golf tee-time purchases, achieved record 2008 quarterly sales performance. Gross ticket sales for the quarter increased 46 percent to $10.9 million from $7.5 million in the same period a year earlier. Francis added that sales activity for the quarter was bolstered by an expanding roster of discount shows and its new (fifth) high-pedestrian traffic location at the giant Coke bottle in Las Vegas.
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 -- contributing revenue of approximately $17 million for the 2008 first quarter.
He also highlighted its Exhibit Merchandising acquisition, which operates retail specialty stores for touring museum exhibitions -- contributing revenue of approximately $3.1 million for the first quarter of 2008. He cited 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.
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 STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31,
2008 2007
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(Unaudited) (Unaudited)
Revenues $23,163,000 $ 1,747,000
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Operating expenses:
Direct costs of revenues 16,730,000 714,000
Selling and marketing expenses 1,377,000 192,000
General and administrative expenses,
including non-cash equity-based
costs of $602,000 and $395,000 in
2008 and 2007, respectively
(including $277,000 and $43,000 for
officers and directors in 2008 and
2007, respectively) 3,462,000 1,298,000
Depreciation and amortization 1,122,000 64,000
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Total costs and expenses 22,691,000 2,268,000
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Operating income (loss) 472,000 (521,000)
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Other income (expense):
Other income 43,000 --
Interest income 34,000 8,000
Interest expense (6,000) (7,000)
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Other income (expense), net 71,000 1,000
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Income (loss) from operations 543,000 (520,000)
Current income tax expense 82,000 --
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Net income (loss) $ 461,000 $ (520,000)
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Net income (loss) per common share -
Basic $ 0.02 $ (0.03)
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Diluted $ 0.01 $ (0.03)
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Weighted average common shares
outstanding -
Basic 30,642,823 18,705,939
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Diluted 32,493,343 18,705,939
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TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2008 2007
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Assets (Unaudited)
Current assets:
Cash $ 6,623,000 $ 7,417,000
Other receivable -- 345,000
Accounts receivable, net 4,312,000 129,000
Inventory 4,240,000 3,938,000
Prepaid expenses and other current
assets 498,000 178,000
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Total current assets 15,673,000 12,007,000
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Property and equipment:
Office equipment and furniture 1,544,000 1,413,000
Equipment under capital lease 386,000 386,000
Leasehold improvements 313,000 313,000
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2,243,000 2,112,000
Less accumulated depreciation and
amortization (781,000) (664,000)
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Total property and equipment, net 1,462,000 1,448,000
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Other assets:
Intangible assets:
Goodwill 31,692,000 27,115,000
Intangible assets, net 17,130,000 14,524,000
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Total intangible assets 48,822,000 41,639,000
Deposits and other assets 75,000 74,000
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Total other assets 48,897,000 41,713,000
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Total assets $66,032,000 $55,168,000
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,829,000 $ 1,945,000
Accrued expenses 4,726,000 1,082,000
Current portion of capital lease
obligations 46,000 45,000
Deferred revenue 547,000 54,000
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Total current liabilities 8,148,000 3,126,000
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Non-current liabilities:
Capital lease obligations, less
current portion 127,000 108,000
Deferred rent 96,000 188,000
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Total non-current liabilities 223,000 296,000
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Stockholders' equity:
Preferred stock, $0.01 par value;
500,000 shares authorized; none
issued -- --
Common stock, $0.08 par value;
100,000,000 shares authorized;
30,642,823 shares and 30,402,325
shares at March 31, 2008 and
December 31, 2007, respectively 2,531,000 2,432,000
Additional paid-in capital 86,389,000 81,034,000
Accumulated deficit (31,259,000) (31,720,000)
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Total stockholders' equity 57,661,000 51,746,000
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Total liabilities and
Stockholders' Equity $66,032,000 $55,168,000
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