STUDIO CITY, Calif., May 01, 2020 (GLOBE NEWSWIRE) -- Tix Corporation (the “Company”) (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2020.
First Quarter 2020 Summary Results:
The Company’s first quarter 2020 revenues decreased to $1,957,000, or 38%, as compared to $3,145,000 in the first quarter 2019, and first quarter 2020 net loss was $927,000, as compared to a $50,000 net income in the first quarter 2019. The Company’s first quarter 2020 financial results were significantly impacted by the closure of entertainment on the Las Vegas Strip, and therefore the cessation of revenue for our business, as discussed below.
The Current Las Vegas Marketplace:
Our Tix4Tonight business is located in Las Vegas where we sell shows, attractions, tours, and dining from our nine ticket booths that are strategically located on the Strip. As previously announced, due to efforts to mitigate the impact of COVID-19, virtually all Las Vegas entertainment, restaurants, bars, and major hotel properties have recently closed. With the closure of entertainment on the Las Vegas Strip, and therefore the cessation of revenue for our business, we effected a layoff of the majority of our employees, closed our ticket booths, and continue to significantly reduce our operating costs, including our CEO, Mitch Francis, who volunteered to stop receiving compensation at this time.
We intend to issue updated press releases as the COVID-19 situation, and its impact on entertainment and dining becomes clear. We also plan to seek available disaster assistance, as well as forms of financing to help with liquidity during this disruption to our business.
Paycheck Protection Program
On April 10, 2020, the Company obtained a Paycheck Protection Program loan in the amount of $980,000 pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). Interest on the loan is at the rate of 1% per year, and all loan payments are deferred for six months, at which time the balance is payable in 18 monthly installments if not forgiven in accordance with the Cares Act and the terms of the Promissory Note executed by the Company in connection with the loan.
As required, the Company intends to use the Paycheck Protection Program loan proceeds for payroll, healthcare benefits, rents, and utilities. The Company will apply for forgiveness for the portion of the loan proceeds used during the next two months, as permitted under the CARES Act and the terms of the loan. Any remaining loan proceeds will continue to be used as required, for payroll, healthcare benefits, rents, and utilities to support our operations.
About Tix Corporation
Tix Corporation (OTCQX:TIXC) provides discount ticketing services. It currently operates nine discount ticket stores in Las Vegas under its Tix4Tonight marquee and its online ticket sales site, www.tix4tonight.com, which offer up to a 50 percent discount for shows, concerts, attractions, and tours, as well as discount dining and shopping offers.
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 OTC Markets. 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, 2019, can be found on the Company website at www.tixcorp.com or www.otcmarkets.com.
Investor Contact:
Steve Handy, CFO, (818)761-1002
TIX CORPORATION AND SUBSIDIARY | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| March 31, 2020 | December 31, 2019 | ||||||||||
| (Unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash | $ | 1,079,000 | $ | 2,251,000 | |||||||
| Prepaid expenses and other current assets | 201,000 | 212,000 | |||||||||
| Total current assets | 1,280,000 | 2,463,000 | |||||||||
| Property and equipment, net | 109,000 | 123,000 | |||||||||
| Right of use asset, net | 2,645,000 | 3,086,000 | |||||||||
| Other assets: | |||||||||||
| Deposits and other assets | 310,000 | 487,000 | |||||||||
| Total other assets | 310,000 | 487,000 | |||||||||
| Total assets | $ | 4,344,000 | $ | 6,159,000 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable – shows and events | $ | 28,000 | $ | 267,000 | |||||||
| Accounts payable and accrued expenses | 306,000 | 487,000 | |||||||||
| Leases payable, current portion | 1,476,000 | 1,601,000 | |||||||||
| Deferred revenue | 6,000 | 42,000 | |||||||||
| Total current liabilities | 1,816,000 | 2,397,000 | |||||||||
| Leases payable | 1,225,000 | 1,550,000 | |||||||||
| Total liabilities | 3,041,000 | 3,947,000 | |||||||||
| 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; 17,337,175 shares net of 16,649,814 treasury shares issued and outstanding at March 31, 2020, and 17,342,175 shares net of 16,644,814 treasury shares issued and outstanding at December 31, 2019. | 2,720,000 | 2,720,000 | |||||||||
| Additional paid-in capital | 95,220,000 | 95,199,000 | |||||||||
| Treasury stock at cost | (28,167,000) | (28,164,000) | |||||||||
| Accumulated deficit | (68,470,000) | (67,543,000) | |||||||||
| Total stockholders’ equity | 1,303,000 | 2,212,000 | |||||||||
| Total liabilities and stockholders’ equity | $ | 4,344,000 | $ | 6,159,000 | |||||||
| TIX CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2020 AND 2019 (UNUDITED) | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2020 | 2019 | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Revenues | $ | 1,957,000 | $ | 3,145,000 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Direct costs of revenues | 1,742,000 | 1,963,000 | |||||||||||||||
| Selling, general and administrative expenses | 1,043,000 | 1,054,000 | |||||||||||||||
| Depreciation | 15,000 | 31,000 | |||||||||||||||
| Total costs and expenses | 2,800,000 | 3,048,000 | |||||||||||||||
| Operating income (loss) | (843,000) | 97,000 | |||||||||||||||
| Loss on equity investment | (84,000) | - | |||||||||||||||
| Other expense | - | (46,000) | |||||||||||||||
| Loss before provision for income tax expense | (927,000 | ) | 51,000 | ||||||||||||||
| Provision for income tax expense | - | (1,000) | |||||||||||||||
| Net Income (Loss) | $ | (927,000) | $ | 50,000 | |||||||||||||
| Net income (loss) per common share – basic and diluted | $ | (0.05) | $ | 0.00 | |||||||||||||
| Weighted average common shares outstanding – basic and diluted | 17,337,897 | 17,342,175 | |||||||||||||||