Tix Corporation Reports First Quarter 2009 Results




    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
                                          =============  =============

            

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