Tix Corporation Reports Record Second Quarter and First Six Months 2011 Results
Adjusted Earnings Is $3.1 Million for the Second Quarter 2011; Six Month Cash Flows From Operations Improves to $5.0 Million
(firmenpresse) - STUDIO CITY, CA -- (Marketwire) -- 07/14/11 -- Tix Corporation (the "Company") (OTCQX: TIXC) (PINKSHEETS: TIXC), a leading entertainment company providing
discount ticketing services and branded event merchandising, today reported
results for the second quarter and six months ended June 30, 2011.
Consolidated second quarter 2011 revenue increased 45% to a record $10.0
million compared with $6.9 million for the same period a year ago. Both of
the Company's operating segments reported increased revenues in the second
quarter of fiscal year 2011 as compared to 2010. Ticketing Services
commissions and fees revenue increased 31% to a record $6.7 million while
Exhibit Merchandising revenue increased 85% to $3.4 million. Consolidated
net income for the second quarter 2011 was $1.5 million, or $0.06 per
diluted common share as compared to a net loss of $1.3 million or ($0.04)
per diluted common share reported for the same period a year ago.
For the first six months of 2011, revenue increased 16% to $16.5 million
compared with $14.2 million in the same period a year ago. Both of the
Company's operating segments reported increased revenues in the first six
months of fiscal year 2011 as compared to 2010. Ticketing Services
increased 19% to $11.7 million while Exhibit Merchandising increased 9% to
$4.8 million. Consolidated net income for the first six months of 2011 was
$1.6 million, or $0.06 per diluted common share as compared to a net loss
of $1.3 million or ($0.04) per diluted common share reported for the same
period a year ago.
In our letter to our shareholders, dated June 30, 2011,(1) we noted that
Baker Street, a neophyte activist hedge fund, was engaged in reckless
behavior that was destructive of our shareholder value. Despite our
continued success in achieving record revenue and earnings, Baker Street's
self-interested efforts are clearly depleting the Company resources and
thereby reducing shareholder value by forcing the Company to incur
significant amounts of legal and other expenses and forcing management to
spend enormous amounts of time and resources on the Baker Street campaign
rather than continue to further improve results.
Excluding approximately $875,000 in Baker Street-related expenses in the
second quarter of 2011, total corporate expenses decreased by approximately
$356,000 for the second quarter of 2011, or 31% compared to the same period
a year ago and $700,000 for the first six months of 2011, or 30% as
compared to the same period a year ago. Had such Baker Street-related
expenses not been incurred, the Company would have reported record
quarterly net income of approximately $2.4 million or $0.09 per diluted
common share for the second quarter of 2011 as compared to a net loss of
$1.3 million or ($0.04) per diluted common share reported for the same
period a year ago and record net income for the first six months of 2011 of
approximately $2.4 million or $0.10 per diluted common share as compared to
a net loss of $1.3 million or ($0.04) per diluted common share reported for
the same period a year ago. These wasteful expenditures, necessitated by
Baker Street's reckless actions, have not only been a significant drain on
the Company's financial resources but have been a severe distraction to
management's ability to operate the business, all at the expense of our
shareholders. The lawsuit and proxy fight initiated by Baker Street will
likely cost the Company at least another $1 million.
The Company's exceptional recent success, as evidenced by the record
earnings described above, has been and continues to be highly dependent on
carefully cultivated close personal relationships between members of
current management and the Company's significant business partners,
including Las Vegas hotels, show producers, restaurants and landlords.
While Tix has had outstanding growth over the past several years, during
the same period several other companies have attempted and failed to
compete in this market. Tix believes that one of the principal reasons
that it has succeeded where others have failed is as a direct result of
these close personal relationships. Baker Street's threat to take control
of the Company poses a substantial risk to our shareholders' investment as
it threatens to tear apart these relationships that have provided the
foundation for the Company's success and are crucial for the Company's
future growth.
All per share information for the three and six month periods ended June
30, 2011 above and in the summary financial information set forth below is
based solely on calculations of shares of common stock of the Company
outstanding for purposes of GAAP but not for any other corporate, state law
or other purpose, any of which may differ as applicable. Such calculation
provided herein is as of June 30, 2011.
Second Quarter 2011 Segmental Operating Results
Ticketing Services Segment
Our Ticketing Services are carried out by our wholly owned subsidiary
Tix4Tonight, which sells discount show tickets and discount dinner
reservations from its eleven stores 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. Ticketing Services also offers under the name Tix4Dinner,
discounted dinners 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 2011 revenues from our Ticketing Services segment increased
31% to $6.7 million compared to $5.1 million for the same period a year
ago. This was an exciting milestone quarter for Tix4Tonight, as each of the
three months constituted the highest grossing ticket and dinner sales
results in our history. We attribute much of this increase to our recent
acquisition of Vegas.com's two discount ticket booths as well as overall
brand awareness. Tix4Tonight has experienced dramatic growth from $6
million in 2004, to tracking well over $100 million for 2011. Tix4Tonight
currently sells approximately 150,000 show tickets per month and
approximately 43,000 dinner reservations per month. Although discounts
for shows and dining are offered utilizing other marketing channels,
Tix4Tonight is now the only company in Las Vegas offering discount tickets
and discount dinner reservations from dedicated booths and is typically
able to provide the best discounts to our customers.
Second quarter 2011 operating income from Ticketing Services improved to
$2.6 million, or 554%, during the quarter compared to $391,000 for the same
period a year ago. Our operating income improved due to the increase in
revenues, a decrease in direct costs as a percentage of revenues, offset by
an increase in selling, general and administrative expenses after excluding
certain unusual bad debt and litigation expenses that were incurred in the
second quarter of 2010. Our improved margins reflect our focus on managing
costs and leveraging our infrastructure as we continue to grow our
revenues.
Exhibit Merchandising Segment
We provide branded event merchandising through our wholly owned subsidiary
Exhibit Merchandising. Exhibit Merchandising provides retail specialty
stores with branded merchandise for touring museum exhibitions and touring
theatrical productions. Exhibit Merchandising's biggest claim to fame is
that the company owns and operates the stores that tour the world with the
two KING TUT exhibitions, produced by the exhibit arm of AEG. The Company
owns and operates complete turnkey retail stores with commercially
available and extensive custom branded products for sale and offers exhibit
and theatrical producers the opportunity for additional revenue streams
without adding the retail expertise required to manage the operations,
thereby leveraging the use of Exhibit Merchandising's expertise and
knowledge in the specialized retail world.
Second quarter 2011 revenues from our Exhibit Merchandising segment
increased 85% to $3.4 million compared to $1.8 million for the same period
a year ago. The increase in revenues was a result of increased exhibitions
as well as a decrease in the number of days in which exhibitions were
closed due to the relocation of exhibits as compared to the same period a
year ago. Revenue is primarily derived from the four current exhibits
titled, 'Tutankhamun and The Golden Age of the Pharaohs,' 'Tutankhamun the
Golden King and the Great Pharaohs,' 'Real Pirates: The Untold Story of the
Whydah from Slave Ship to Pirate Ship' and our exhibit 'Cleopatra: The
Search for the Last Queen of Egypt.'
Second quarter 2011 operating income from Exhibit Merchandising increased
to $628,000 compared to a loss of $326,000 in the same period a year ago.
The improved operating income was due to the increase in revenues, an
improvement in our direct costs as a percentage of revenues, offset by a
slight increase in our selling, general and administrative expenses as
compared to the same period of the prior year.
Conclusion
Mitch Francis, Chief Executive Officer of the Company, stated, "We are
particularly pleased with the results generated in Q2 as they reflect the
nearly immediate benefits and enhanced shareholder value from our series of
initiatives over the past twelve months. Specifically, we deregistered the
common stock from the Securities and Exchange Commission and moved our
common stock listing to the OTCQX saving us approximately $1.0 million
annually; we divested our underperforming division, Tix Productions, Inc.;
and we completed a strategic acquisition that has significantly increased
our revenues, profits and market position."
Mr. Francis continued, "This impressive growth has been the result of a
carefully executed strategy which is totally dependent upon extremely close
personal relationships between members of current management and the
Company's business partners (including Las Vegas hotels, show producers,
restaurants and landlords), a fully engaged management team and 180
hard-working employees, many of whom work in extreme Las Vegas conditions
to provide our customers with superb customer service. Your Board and
management team look forward to continuing to execute on this growth
strategy into the future, which includes additional product lines,
expansion into new cities and online marketing platforms for discount show
tickets and dinner reservations. If Baker Street moves forward with their
planned slate of hand-picked nominees in an effort to seize control of the
Company, they would be incapable of continuing the Company's success. They
could impair the value of our shareholders' investments in the Company by
deviating from the current Board's proven strategy which continues to build
value for all of our shareholders and has the Company poised for continued
future success. Rather, any Baker Street nominee, if elected, will work
solely to advance Baker Street's interests and not the interests of all of
our shareholders.
"I would like to thank our Board of Directors comprised, other than myself,
of Norman Feirstein, lawyer, Sam Georges, lawyer/CEO, Ben Frankel, CPA and
Andy Pells, co-founder of one of the most successful travel websites.
These Directors all work tirelessly and with the conviction to make sound
business decisions for Tix Corporation that are in the best interests of
our shareholders.
"I must also acknowledge and thank our shareholders who, for seventeen
years have been amazingly supportive and have trusted us to protect and
grow their hard-earned investment dollars."
Investor Conference Call
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.
Non-GAAP Financial Measure
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 Tix Corporation believes is useful to investors. The following
discussion defines Adjusted Earnings and presents the reasons the Company
believes it is a useful measure of the Company's performance. Tix
Corporation 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 bad debt related expenses. Adjusted
Earnings as calculated by the Company is not necessarily comparable to
similarly titled measures by other companies. In addition, 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. Management believes Adjusted Earnings is useful to an investor in
evaluating 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 over their
remaining useful lives in accordance with GAAP. Because amortization and
depreciation are non-cash items, management believes that presentation of
Adjusted Earnings is a useful measure of the Company's operating
performance. Also, management believes measures such as Adjusted Earnings
are widely used in the entertainment industries to measure operating
performance. Therefore, the Company presents Adjusted Earnings because it
may help investors to compare Tix Corporation's ongoing performance before
the effect of various items that do not directly affect the Company's
ongoing operating performance.
About TIX Corporation
Tix Corporation (OTCQX: TIXC) is an entertainment company providing
discount ticketing services, and event and branded merchandising. It
currently operates eleven 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. The Company is also engaged in branded merchandise
development and sales activities related to museum exhibitions and other
events, including the King Tutankhamun, Cleopatra and Real Pirates tours as
well as selling themed souvenir memorabilia and collectors' items in
specialty stores in conjunction with the specific events and venues.
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 and 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, 2010 can be found on the Company website at or
at .
(1)
Contact:
Steve Handy
CFO
818-761-1002
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Datum: 14.07.2011 - 13:00 Uhr
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