Tix Corporation Reports Second Quarter and First Six Months 2012 Results
(firmenpresse) - STUDIO CITY, CA -- (Marketwire) -- 08/15/12 -- Tix Corporation (the "Company") (OTCQX: TIXC) (PINKSHEETS: TIXC), a leading provider of discount ticketing services, today reported results for the second quarter and first six months ended June 30, 2012.
The Company recently announced that it completed the sale of principally all of the assets of its subsidiary, Exhibit Merchandising, LLC. In prior periods, the Company had reported its financial results in two operating segments -- Discount Ticketing Services and Exhibit Merchandising. The financial statements for the second quarter and first six months ended June 30, 2012 reflect the reclassification of the Exhibit Merchandising segment to discontinued operations. As the Company now operates under only one operating segment, Discount Ticketing Services, it will no longer provide segment reporting.
Our business is operated by our wholly owned subsidiary Tix4Tonight, which sells discount show tickets from ten locations in Las Vegas. Tix4Tonight obtains its inventory of discount tickets under short-term exclusive and non-exclusive agreements with nearly every Las Vegas show along with numerous attractions and tours. Each of our discount ticket locations also offers discount dinner reservations at various restaurants surrounding the Las Vegas strip and downtown, with dining at specific times on the same day or advance in some cases.
Second quarter 2012 revenues decreased 7% to $6.2 million compared with $6.7 million for the same period a year ago. The decline in revenue is due to a general overall decrease in travel to, and consumer spending in, Las Vegas. In addition, we closed one of our discount ticket locations at the end of April 2012 due to planned demolition work being performed by the property owner.
Second quarter 2012 direct operating expenses were $2.6 million compared with $2.6 million for the same period a year ago. Included in these expenses are payroll costs, rents, and utilities.
Second quarter 2012 selling, general and administrative expenses were $2.7 million compared with $2.9 million for the same period a year ago. Included in these expenses are $532,000 of aggregate expenses during the second quarter of 2012 and $875,000 of aggregate expenses during the same period a year ago, in each case relating to litigation expenses, ordinary course legal expenses and expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters. Excluding these expenses, selling, general and administrative expenses increased $89,000, or 4%, to $2.1 million compared to $2.0 million for the same period of the prior year. The increase in expense of $89,000 was due to an increase of $63,000 in Board of Directors' fees, an increase of $57,000 in general legal expenses, and an increase in non-cash stock based compensation expense of $92,000. These increases were offset by a decrease of $122,000 in expenses across our remaining operating accounts.
Second quarter 2012 loss from discontinued operations was $525,000 compared to a gain from discontinued operations of $649,000 for the same period a year ago. The Company recently announced that it completed the sale of principally all of the assets and certain of the liabilities of its subsidiary, Exhibit Merchandising, LLC, for a total consideration of $125,000. The sale led to the recording of a loss on sale of discontinued operations of $244,000 and Exhibit Merchandising realized a loss from operations of $281,000, which included $77,000 of depreciation expense, for the second quarter of 2012.
Second quarter 2012 net income was $95,000, or $0.00 per diluted common share, as compared to a net income of $1.5 million, or $0.06 per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the second quarter 2012, which includes adjustments for items such as discontinued operations and expenses related to the litigation and related legal matters described below, were $1.8 million, or $0.07 per diluted common share, as compared to Adjusted Earnings of $2.2 million, or $0.09 per diluted common share, reported for the same period a year ago.
For the first six months of 2012, revenues increased 3% to $12.1 million compared with $11.8 million for the same period a year ago. The increase in revenues reflects an expansion of the number of discount ticket locations as part of our acquisition of VegasTix4Less in the first calendar quarter of 2011 offset by a general overall decrease in travel to, and consumer spending in, Las Vegas. In addition, we closed one of our discount ticket locations at the end of April 2012 due to planned demolition work being performed by the property owner.
For the first six months of 2012, direct operating expenses were $5.4 compared to $4.9 million for the same period a year ago. Included in these expenses are payroll costs, rents, and utilities. The increase in expense of $455,000 was due to planned increases in staff payroll expense and increased rent expenses related to the expansion of the number of discount ticket locations due to our acquisition of VegasTix4Less in the middle of the first calendar quarter of 2011.
For the first six months of 2012, selling, general and administrative expenses were $5.6 million compared with $4.8 million for the same period a year ago. Included in these expenses are $1.4 million of aggregate expenses during the first six months of 2012 and $875,000 of aggregate expenses during the same period a year ago, in each case relating to litigation expenses, ordinary course legal expenses and expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters. Excluding these expenses, selling, general and administrative expenses increased $292,000, or 7%, to $4.2 million compared to $3.9 million for same period of the prior year. The increase in expense of $292,000 was due to an increase of $81,000 in Board of Directors' fees, an increase of $114,000 in general legal expenses, and an increase in non-cash stock based compensation expense of $201,000. These increases were offset by a decrease of $104,000 in expenses across our remaining operating accounts.
For the first six months of 2012, loss from discontinued operations was $599,000 compared to a gain from discontinued operations of $145,000 for the same period a year ago. The Company recently announced that it completed the sale of principally all of the assets and certain of the liabilities of its subsidiary, Exhibit Merchandising, LLC, for a total consideration of $125,000. The sale led to the recording of a loss on sale of discontinued operations of $244,000 and Exhibit Merchandising realized a loss from operations of $355,000 which included $153,000 of depreciation expense, for the first six months of 2012.
For the first six months of 2012, net loss was ($200,000), or ($0.01) per diluted common share, as compared to a net income of $1.6 million, or $0.06 per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the first six months of 2012, which includes adjustments for items such as discontinued operations, expenses related to the litigation and related legal matters and non-routine corporate expenses related primarily to certain non-recurring matters requiring legal and advisory services described below, were $3.0 million, or $0.13 per diluted common share, as compared to Adjusted Earnings of $3.2 million, or $0.13 per diluted common share, reported for the same period a year ago.
Mitch Francis, Chief Executive Officer of the Company, stated, "Our second quarter 2012 revenues reflect a recent general decline in travel to, and consumer spending in, Las Vegas. In addition, we closed one of our discount ticket locations due to demolition work being performed at the site of our location by the land owner. We will continue to monitor our performance and profitability and will adjust our operations as much as possible to meet the expectations of both our customers and shareholders."
The Company does not host a conference call following its earnings release. Investors are encouraged to contact the Company's investor relations officer, Steve Handy, CFO, at (818) 761-1002 with any questions.
Included in this press release is a "non-GAAP financial measure," which is a measure of the Company's historical or future performance that is different from measures calculated and presented in accordance with GAAP but that the Company believes is useful to investors. The Company defines Adjusted Earnings as net income plus (a) loss on discontinued operations, (b) interest expense, net, (c) income taxes, (d) depreciation and amortization charges, (e) stock based compensation expense and (f) unusual litigation, and (g) expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters. The Company believes that Adjusted Earnings is a useful measure of the Company's operating performance because a significant portion of its assets consists of goodwill and intangible assets and property and equipment that are amortized and depreciated as non-cash items over their remaining useful lives in accordance with GAAP. The Company's presentation of Adjusted Earnings may help investors assess the Company's performance before the effect of various items that do not directly affect the Company's ongoing operating performance. The Company also believes that measures similar to the Company's measurement of Adjusted Earnings are widely used in similar entertainment companies to measure operating performance, although Adjusted Earnings as calculated by the Company is not necessarily comparable to similarly titled measures by such other companies. Adjusted Earnings (a) does not represent net income or cash flows from operations as defined by GAAP, (b) is not necessarily indicative of cash available to fund the Company's cash flow needs, and (c) should not be considered as an alternative to net income, operating income, cash flows from operating activities or the Company's other financial information as determined under GAAP.
Tix Corporation (OTCQX: TIXC) is a company providing discount ticketing services. It currently operates ten discount ticket stores in Las Vegas under the Tix4Tonight marquee, which offer up to a 50 percent discount for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining.
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 historical filings with the Securities and Exchange Commission and, since November 2010, the Company's filings with the OTCQX. The Company assumes no obligation to update these forward-looking statements. A copy of the Company's report for the twelve months ended December 31, 2011 can be found on the Company website at or at .
The following table set forth a reconciliation of consolidated net income to consolidated Adjusted Earnings:
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Datum: 15.08.2012 - 13:00 Uhr
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