Tix Corporation Reports Third Quarter and First Nine Months 2012 Results
(firmenpresse) - STUDIO CITY, CA -- (Marketwire) -- 11/12/12 -- Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the third quarter and first nine months ended September 30, 2012.
In July 2012, the Company 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 third quarter and first nine months ended September 30, 2012 and 2011 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.
Tix Corporation's business is operated by its 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 discount ticket location 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.
Third quarter 2012 revenues decreased 10% to $6.4 million compared with $7.1 million for the same period a year ago. The decline in revenues of $712,000 is due to a general overall decrease in travel to, and consumer spending in Las Vegas; the closing of three of our bestselling shows for which there has been no comparable replacement; and recent demolition work on the Las Vegas strip requiring us to close one of our discount ticket locations at the end of April 2012.
Third quarter 2012 direct operating expenses decreased 8% to $2.5 million compared with $2.7 million for the same period a year ago. Included in these expenses are payroll costs, rents, and utilities. The decrease in expense of $209,000 was primarily due to reduced rents realized from the closure of one of our discount ticket locations in April 2012 and the recent successful negotiation of reduced rents at one of our largest discount ticket locations.
Third quarter 2012 selling, general and administrative expenses were $2.8 million compared with $3.5 million for the same period a year ago. Included in these expenses are $636,000 of aggregate expenses during the third quarter of 2012 and $1.3 million of aggregate expenses during the same period a year ago, in each case relating to ordinary course legal expenses, expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation expenses. Excluding these expenses, selling, general and administrative expenses decreased $42,000, or 2%, to $2.1 million compared to $2.2 million for the same period of the prior year.
Third quarter 2012 gain from discontinued operations was $55,000 compared to a gain from discontinued operations of $170,000 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.
Third quarter 2012 net income was $768,000, or $0.03 per diluted common share, as compared to a net income of $647,000, or $0.03 per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the third quarter 2012, which includes adjustments for items such as discontinued operations and expenses related to litigation and related legal matters described below, decreased $476,000, or 19%, to $2.0 million, or $0.08 per diluted common share, as compared to Adjusted Earnings of $2.5 million, or $0.10 per diluted common share, reported for the same period a year ago.
For the first nine months of 2012, revenues decreased 2% to $18.4 million compared to $18.8 million for the same period a year ago. The decrease in revenues of $390,000 is due to a general overall decrease in travel to, and consumer spending in, Las Vegas; the closing of three of our bestselling shows for which there has been no comparable replacement; a large show that closed temporarily to reopen in a smaller venue; and recent demolition work on the Las Vegas strip requiring us to close one of our discount ticket locations at the end of April 2012.
For the first nine months of 2012, direct operating expenses increased 3% to $7.9 compared to $7.6 million for the same period a year ago. Included in these expenses are payroll costs, rents, and utilities. The increase in expense of $246,000 was due to increases in payroll costs of $331,000, due primarily to the expansion of the number of locations at the end of the first quarter of 2011 leading to a higher year-over-year expense. Rents and utilities expense decreased $85,000 primarily due to reduced rents realized from the closure of one of our discount ticket locations in April 2012 and the recent successful negotiation of reduced rents at one of our largest discount ticket locations.
For the first nine months of 2012, selling, general and administrative expenses were $8.4 million compared with $8.3 million for the same period a year ago. Included in these expenses are $2.0 million of aggregate expenses during the first nine months of 2012 and $2.2 million of aggregate expenses during the same period a year ago, in each case relating to ordinary course legal expenses, expenses for certain non-recurring matters requiring legal and advisory services relating to corporate and governance matters and litigation expenses. Excluding these expenses, selling, general and administrative expenses increased $249,000, or 4%, to $6.3 million compared to $6.1 million for same period of the prior year. The increase in expense was due to an increase of $141,000 in general legal expenses and an increase in non-cash stock based compensation expense of $188,000. These increases were offset by a decrease of $80,000 in expenses across our remaining operating accounts.
For the first nine months of 2012, loss from discontinued operations was $544,000 compared to a gain from discontinued operations of $315,000 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 $300,000 which included $162,000 of depreciation expense, for the first nine months of 2012.
For the first nine months of 2012, net income was $568,000, or $0.02 per diluted common share, as compared to a net income of $2.2 million, or $0.09 per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the first nine 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, decreased $696,000, or 12%, to $5.0 million, or $0.20 per diluted common share, as compared to Adjusted Earnings of $5.7 million, or $0.22 per diluted common share, reported for the same period a year ago.
Mitch Francis, Chief Executive Officer of the Company, stated, "Our third quarter 2012 revenue decline reflects the economic realities of the current Las Vegas marketplace. There are a number of large scale construction projects negatively impacting foot traffic along the Strip, including one demolition project which necessitated the closure of one of our locations earlier this year. We were also recently notified that another location, which generated about 17% of our total sales this year, will have to close in January 2013 due to a major hotel renovation project. In response, we are pursuing strong replacement locations that will hopefully open in the middle to end of 2013. We expect these new locations will return us back to continued revenue growth.
Mr. Francis continued, "We have also experienced the closing of three large shows for which we sold hundreds of tickets daily, without immediate comparable replacements. However, Cirque du Soleil's 'Zarkana' just opened and Cirque du Soleil's 'Michael Jackson' is scheduled to open during the first quarter of next year. Finally, we believe the national reduction in consumer spending has had a negative effect in Las Vegas, contributing to lower ticket sales. 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 (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) provides discount ticketing services. It currently operates ten discount ticket stores in Las Vegas under its Tix4Tonight marquee, which offers 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 .
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Datum: 12.11.2012 - 08:00 Uhr
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