Tix Corporation Reports Fourth Quarter and Full Year 2012 Results
(firmenpresse) - STUDIO CITY, CA -- (Marketwire) -- 03/25/13 -- Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the fourth quarter and full year ended December 31, 2012.
Tix Corporation's business is operated by its wholly owned subsidiary Tix4Tonight, which sells discount show tickets from nine 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. The majority of our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas strip and downtown.
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 fourth quarter and full year ended December 31, 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.
Fourth quarter 2012 revenues decreased 14% to $5.9 million compared with $6.9 million for the same period a year ago. The decline in revenues of $950,000 is due to a general overall decrease in consumer spending in Las Vegas; the permanent and temporary closing of some of our bestselling shows; 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.
Fourth quarter 2012 direct operating expenses decreased 7% 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 $189,000 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.
Fourth quarter 2012 selling, general and administrative expenses were $2.4 million compared with $3.1 million for the same period a year ago. Included in these expenses are $270,000 of aggregate expenses during the fourth quarter of 2012 and $722,000 of aggregate expenses during the same period a year ago, in each case relating to 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 $268,000, or 11%, to $2.1 million compared to $2.4 million for the same period of the prior year.
Fourth quarter 2012 net income was $807,000, or $0.03 per diluted common share, as compared to a net loss 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 fourth quarter 2012, which includes adjustments for items such as discontinued operations and expenses related to litigation and related legal matters described below, decreased $576,000, or 27%, to $1.5 million, or $0.06 per diluted common share, as compared to Adjusted Earnings of $2.1 million, or $0.09 per diluted common share, reported for the same period a year ago.
For the full year of 2012, revenues decreased 5% to $24.3 million compared to $25.7 million for the same period a year ago. The decrease in revenues of $1.3 million is due to a general overall decrease in consumer spending in Las Vegas; the permanent and temporary closing of some of our bestselling shows; 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 full year of 2012, direct operating expenses increased 1% to $10.4 million compared to $10.3 million for the same period a year ago. Included in these expenses are payroll costs, rents, and utilities. The increase in expense of $57,000 was due to increases in payroll costs of $355,000, 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 $298,000 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 full year of 2012, selling, general and administrative expenses were $10.8 million compared with $11.4 million for the same period a year ago. Included in these expenses are $2.3 million of aggregate expenses during the full year of 2012 and $2.9 million of aggregate expenses during the same period a year ago, in each case relating to 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 $19,000 to $8.5 million compared to $8.5 million for same period of the prior year.
For the full year of 2012, loss from discontinued operations was $544,000 compared to a loss from discontinued operations of $2.6 million for the same period a year ago. In July 2012, the Company 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 full year of 2012.
For the full year of 2012, net income was $1.4 million, or $0.06 per diluted common share, as compared to a net income of $29,000, or $0.00 per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the full year 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 $1.3 million, or 16%, to $6.5 million, or $0.27 per diluted common share, as compared to Adjusted Earnings of $7.8 million, or $0.31 per diluted common share, reported for the same period a year ago.
Mitch Francis, Chief Executive Officer of the Company, stated, "Despite full year 2012 being a challenging year for the Las Vegas economy in general and for us in particular, we posted our second best year in terms of both revenues and Adjusted Earnings. There are a number of large scale construction and renovation projects negatively impacting foot traffic along the Strip, which necessitated the closure of one of our locations in April 2012 and more recently, one of our locations in February 2013, which generated about 17% of our total sales in 2012. We are managing through these unusual short term disruptions to our business by pursuing new locations that will hopefully start opening in the middle to end of 2013. We expect these new locations, coupled with an improvement in consumer spending in 2013, to return us to continued revenue growth."
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 nine 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, 2012 can be found on the Company website at or at .
The following table set forth a reconciliation of consolidated net income (loss) to consolidated Adjusted Earnings:
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Datum: 25.03.2013 - 08:00 Uhr
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