Tix Corporation Reports First Quarter 2013 Results
(firmenpresse) - STUDIO CITY, CA -- (Marketwired) -- 05/02/13 -- Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the first quarter ended March 31, 2013.
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.
First quarter 2013 revenues decreased 10% to $5.3 million compared with $5.9 million for the same period a year ago. The decline in revenues of $585,000 was caused by large scale construction and renovation projects on the Las Vegas strip requiring us to close two of our discount ticket locations; one in April 2012 and another in February 2013. Revenues were also negatively impacted by the continued general overall decrease in consumer spending in Las Vegas.
First quarter 2013 direct operating expenses decreased 17% to $2.3 million compared with $2.8 million for the same period a year ago. Included in these expenses are payroll costs, rents, and utilities. The decrease in expense of $466,000 was due to $131,000 in reduced rents and utilities expense and $190,000 in reduced payroll costs realized from the closure of two of our discount ticket locations as discussed above, and $145,000 in reduced rents realized on the successful lease renegotiation at one of our discount ticket locations in the second half of calendar year 2012.
First quarter 2013 selling, general and administrative expenses were $2.4 million compared with $3.0 million for the same period a year ago. Included in these expenses are $400,000 of aggregate expenses during the first quarter of 2013 and $876,000 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 $108,000, or 5%, to $2.0 million compared to $2.1 million for the same period of the prior year. The decrease in expense was due to a decrease in merchant credit card processing fees of $26,000, small equipment expense of $24,000, advertising expense of $23,000, and employee related healthcare expense of $20,000. The remaining decrease of $15,000 in expenses was realized over our remaining operating accounts.
First quarter 2013 net income was $237,000, or $0.01 per diluted common share, as compared to a net loss of ($294,000), or ($0.01) per diluted common share, reported for the same period a year ago. Adjusted Earnings (as defined and explained below) for the first quarter 2013, which includes adjustments for items such as discontinued operations and expenses related to litigation and related legal matters described below, was $1.2 million, or $0.05 per diluted common share, as compared to Adjusted Earnings of $1.2 million, or $0.05 per diluted common share, reported for the same period a year ago.
Mitch Francis, Chief Executive Officer of the Company, stated, "Our first quarter 2013 revenue performance was negatively impacted by the closure of one of our locations in April 2012 and more recently, one of our major locations in February 2013, caused by large scale construction and renovation projects in Las Vegas. In an effort to mitigate the decline in revenues, we significantly reduced our expenses which resulted in increased net income and an Adjusted Earnings comparable to the same period a year ago. We will continue to manage through these unusual short term disruptions to our business by pursuing new locations, one which we currently anticipate opening in the third quarter 2013 and another in the second quarter of 2014. We expect these new locations, coupled with an improvement in consumer spending in Las Vegas, to provide us future 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 .
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Datum: 02.05.2013 - 06:00 Uhr
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