Tix Corporation Reports Fourth Quarter and Full Year 2011 Results
Full Year 2011 Revenues Increased 12% While Adjusted Earnings Increased 40%
(firmenpresse) - STUDIO CITY, CA -- (Marketwire) -- 03/15/12 -- 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 fourth quarter and full year ended December 31, 2011.
Consolidated fourth quarter 2011 revenues from continuing operations increased 2% to $8.6 million compared with $8.4 million for the same period a year ago. Revenues from the Company's Ticketing Services segment, which are comprised of commissions and fees, increased 16% to $6.9 million while revenues from the Company's Exhibit Merchandising segment decreased 29% to $1.7 million compared to the same period a year ago. Net loss for the fourth quarter 2011 was ($2.2 million), or ($0.09) per diluted common share, as compared to a net income of $1.5 million, or $0.05 per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the fourth quarter 2011, which includes adjustments for items such as goodwill and intangible asset impairment charges, discontinued operations and expenses related to the litigation and related legal matters described below, were $2.0 million, or $0.08 per diluted common share, as compared to Adjusted Earnings of $2.1 million, or $0.07 per diluted common share, reported for the same period a year ago.
For the full year of 2011, revenues from continuing operations increased 12% to $34.5 million compared with $30.9 million in the same period a year ago. Revenues from the Company's Ticketing Services segment increased 18% to $25.7 million. Revenues from the Company's Exhibit Merchandising segment decreased 4% to $8.9 million compared to the same period a year ago. Net income for the full year of 2011 was $29,000, or $0.00 per diluted common share, as compared to a net loss of ($3.0 million), or ($0.10) per diluted common share, reported for the same period a year ago. Adjusted Earnings for the full year of 2011, which includes adjustments for items such as goodwill and intangible asset impairment charges, discontinued operations and expenses related to litigation and related legal matters described below, were $8.6 million, or $0.34 per diluted common share, as compared to Adjusted Earnings of $6.2 million, or $0.20 per diluted common share, reported for the same period a year ago.
In our press release dated July 27, 2011, the Company announced that it had reached an agreement with stockholder Baker Street Capital, L.P. In connection with the foregoing, the Company incurred legal and other expenses of $2.3 million which is included in the $2.9 million total litigation and related legal expense incurred for the full year 2011. Excluding the expenses incurred in connection with litigation and related matters with Baker Street Capital as well as others, corporate expenses, excluding non-cash stock based compensation expense, decreased approximately $690,000, or 20%, during the full year of 2011 as compared to the same period a year ago.
Our Ticketing Services segment is operated 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 discounted dinners reservations at various restaurants surrounding the Las Vegas strip and downtown, with dining at specific times on the same day or, in some cases, the day after the sale.
Fourth quarter 2011 revenues from our Ticketing Services segment increased 16% to $6.9 million compared to $5.9 million for the same period a year ago. We attribute much of this increase to our recent acquisition of Vegas.com's two discount ticket booths as well as overall brand awareness. Although discounts for shows and dining are offered utilizing other marketing channels, Tix4Tonight is now the only company in Las Vegas offering both discount tickets and discount dinner reservations from the same dedicated booths.
Fourth quarter 2011 operating income from our Ticketing Services segment improved to $2.6 million, or 7%, during the quarter compared to $2.5 million for the same period a year ago. Our operating income improved due to the increase in revenues offset by a slight increase in direct costs as a percentage of revenues, an increase in selling, general and administrative expenses of $136,000 to support our revenue growth, and an increase in depreciation and amortization expense of $103,000 related to fixed assets and intangible assets acquired as part of an acquisition we completed in the first quarter of 2011.
Our Exhibit Merchandising segment generates the majority of its revenues from the King Tutankhamun Exhibit Tour and, to a lesser extent, from its Cleopatra and Real Pirates Tours. Tix's management was recently informed by the producer of the KING TUT exhibitions that it has been unable to secure the renewal of its current expiring agreements with the Egyptian government to manage its two King Tutankhamun exhibits. We determined that because the King Tutankhamun exhibits generated the majority of Exhibit Merchandising's merchandising revenue and operating profit in calendar year 2011, the failure of Exhibit Merchandising to provide the merchandising for the King Tutankhamun exhibits would materially and negatively impact its ability to generate operating income in the foreseeable future, barring any new business opportunities. We are currently evaluating alternatives for this business, including its potential sale. There are no assurances that we will be successful in completing such a transaction in calendar year 2012, if at all.
Our Exhibit Merchandising segment provides branded event merchandising through our wholly-owned subsidiary Exhibit Merchandising. Our Exhibit Merchandising segment provides retail specialty stores with branded merchandise for touring museum exhibitions and touring theatrical productions. Exhibit Merchandising 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.
Fourth quarter 2011 revenues from our Exhibit Merchandising segment declined to $1.7 million compared to $2.4 million for 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." Fourth quarter 2011 operating loss from Exhibit Merchandising was ($2.8 million) compared to ($104,000) in the same period a year ago. In the fourth quarter 2011, we recorded a goodwill and intangible asset impairment charge of $2.6 million. Excluding this charge, we would have recorded an operating loss in the fourth quarter of 2011 of ($166,000), compared to an operating loss of ($104,000) in the same period a year ago. Excluding the charge, our operating loss increased due to the decrease in revenues and an increase in direct costs as a percentage of revenues, offset by a decrease of $255,000 in selling, general and administration expenses associated with expense reduction efforts and the closure of our location in Cairo, Egypt due to the recent political uncertainty within Egypt. Additionally, our depreciation and amortization expense decreased $58,000 as certain intangible assets became fully amortized in 2010 leaving no comparable expense to be recorded in 2011.
Mitch Francis, Chief Executive Officer of the Company, stated, "We are particularly pleased with the results generated for the full year of 2011 as they reflect the nearly immediate benefits and enhanced stockholder value resulting from our series of initiatives over the past twelve months. During the full year 2011 specifically, we significantly improved our Adjusted Earnings, repurchased approximately 1.3 million shares of common stock for $2.5 million and reduced our outstanding share repurchase obligation and acquisition note by $2.1 million. As I've stated before, I look forward to continuing the execution of our strategic plan, which aims to deliver value to all of our stockholders."
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, net, (c) income taxes, (d) depreciation and amortization charges, (e) stock based compensation expense, (f) impairment of goodwill and intangible assets, and (g) unusual litigation and bad debt related expenses. 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 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.
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, 2011 can be found on the Company website at or at .
Contact:
Steve Handy
CFO
818-761-1002
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Datum: 15.03.2012 - 15:10 Uhr
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