Tix Corporation Reports Second Quarter and First Six Months 2016 Results
(firmenpresse) - STUDIO CITY, CA -- (Marketwired) -- 08/15/16 -- Tix Corporation (the "Company" or "Tix") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the second quarter and first six months ended June 30, 2016.
Mitch Francis, Chief Executive Officer of the Company, stated, "While the overall number of tickets sold this year decreased slightly more than two-percent over the same period a year ago, our revenues were also impacted by the change in product mix sold which reduced our average revenue earned per ticket sold. The decrease in tickets sold and the change in product mix was partially due to the recent permanent closure of a Cirque du Soleil show for which we had significant sales in the prior year. We also experienced recent trends in consumers purchasing lower priced show and attraction tickets, which generate lower commissions and fees. Also of note is that producers are reporting that ticket sales are generally lower this year verses last year."
"We remain focused on executing prudent growth strategies that capitalize on our Company''s leadership position in the Las Vegas market, such as the agreement we recently announced with Expedia Local Expert, a division of Expedia, Inc., the world''s largest online travel agency. Our role as Expedia''s Official Las Vegas Guest Services Partner leverages Tix''s existing operations and caters to the large percentage of Las Vegas visitors who book their travel through Expedia brands. The agreement was effective June 15, 2016 and we anticipate the impact from the agreement to start contributing to our growth strategy and financial results in the fourth quarter of this year."
Second quarter 2016 revenues were $5,312,000 compared with $5,889,000 for the same period a year ago. Revenues were negatively impacted by both the decline in the number of tickets sold and the decline in the average revenue earned per ticket sold. The decline in the number of tickets sold, which also contributed to the decline in the average revenue earned per ticket sold, was partially from the permanent closure in April 2016 of a popular Cirque du Soleil show. Also contributing to the decline in average revenue earned per ticket sold was increased consumer demand for lower priced shows and attractions, which carried lower commissions and fees, as compared to the same period a year ago.
Direct operating expenses during the period, which includes payroll costs, rents, and utilities, increased to $2,552,000 compared with $2,271,000 for the same period a year ago. The increase in direct operating expenses was due to increased locations in operation, increased headcount and increased hourly payroll costs as compared to the same period a year ago. The Company recently increased its hiring activities in anticipation of increased activity relating to the Expedia Local Expert opportunities.
Second quarter 2016 selling, general and administrative expenses increased slightly to $1,834,000 compared with $1,802,000 for the same period a year ago.
Second quarter 2016 provision for income taxes was $273,000, as compared to $100,000 reported for the same period a year ago. In December 2015, the Company recorded a deferred tax asset in the amount of $11,531,000 and began recording a provision for income taxes in calendar year 2016 using a federal income tax rate of 34% which reduced the Company''s deferred tax asset balance accordingly. During the same period of the prior year, the Company''s provision for income taxes included only estimated corporate alternative minimum taxes under the federal tax code.
Second quarter 2016 net income was $530,000, or $0.03 per diluted common share, as compared to net income of $1,582,000, or $0.09 per diluted common share reported for the same period a year ago. Excluding the impact of our provision for income taxes discussed above, net income was approximately $771,000, or $0.04 per diluted share, as compared to net income of $1,582,000, or $0.09 per diluted share, reported for the same period a year ago. Adjusted EBITDA (as defined and explained below) for the second quarter of 2016, was $1,028,000, or $0.06 per diluted common share, as compared to Adjusted EBITDA of $1,907,000, or $0.11 per diluted common share, reported for the same period a year ago.
First six months 2016 revenues were $10,729,000 compared with $11,439,000 for the same period a year ago. Revenues were negatively impacted by both the decline in the number of tickets sold and the decline in the average revenue earned per ticket sold. The decline in the number of tickets sold, which also contributed to the decline in the average revenue earned per ticket sold, was partially from the permanent closure in April 2016 of a popular Cirque du Soleil show. Also contributing to the decline in average revenue per ticket sold was increased consumer demand for lower priced shows and attractions, which carried lower commissions and fees, as compared to the same period a year ago.
First six months 2016 direct operating expenses, which includes payroll costs, rents, and utilities, increased to $5,147,000 compared with $4,577,000 for the same period a year ago. The increase in direct operating expenses was due to increased locations in operation, increased headcount and increased hourly payroll costs as compared to the same period a year ago. The Company recently increased its hiring activities in anticipation of increased activity relating to the Expedia Local Expert opportunities.
First six months 2016 selling, general and administrative expenses decreased to $3,778,000 compared with $3,837,000 for the same period a year ago.
First six months 2016 provision for income taxes was $525,000, as compared to $161,000 reported for the same period a year ago. In December 2015, the Company recorded a deferred tax asset in the amount of $11,531,000 and began recording a provision for income taxes in calendar year 2016 using a federal income tax rate of 34% which reduced the Company''s deferred tax asset balance accordingly. During the same period of the prior year, the Company''s provision for income taxes included only estimated corporate alternative minimum taxes under the federal tax code.
First six months 2016 net income was $1,018,000, or $0.06 per diluted common share, as compared to net income of $2,545,000, or $0.14 per diluted common share reported for the same period a year ago. Excluding the impact of our provision for income taxes discussed above, net income was approximately $1,481,000, or $0.08 per diluted share, as compared to net income of $2,545,000 or $0.14 per diluted share, reported for the same period a year ago. Adjusted EBITDA (as defined and explained below) for the first six months of 2016, was $1,999,000, or $0.11 per diluted common share, as compared to Adjusted EBITDA of $3,213,000, or $0.18 per diluted common share, reported for the same period a year ago.
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 EBITDA as net income plus (a) income taxes (b) other expenses, net, (c) depreciation and amortization charges, (d) stock based compensation expense, (e) loss on disposition of property and equipment, (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 EBITDA 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 EBITDA 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 EBITDA are widely used in similar entertainment companies to measure operating performance, although Adjusted EBITDA as calculated by the Company is not necessarily comparable to similarly titled measures by such other companies. Adjusted EBITDA (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 10 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.
On January 2, 2014, the Company announced that its Board of Directors adopted an amendment of the Company''s Stockholder Rights Agreement (the "Rights Agreement") to protect the interests of all Company stockholders by lowering the beneficial ownership threshold to a level that could help preserve the value of the Federal Net Operating Loss Carry Forwards ("NOLs"). The Company''s ability to use the NOLs would be substantially limited if there were an "ownership change" as defined under Section 382 of the U.S. Internal Revenue Code and related U.S. Treasury regulations ("Section 382"). In general, an "ownership change" would occur under Section 382 if the Company''s "5-percent shareholders," as defined under Section 382, collectively increase their ownership in the Company by more than 50 percentage points over a rolling three-year period.
Under the terms of the amended and restated Rights Agreement, subject to certain exceptions, in the event a person or group, without Board approval, acquires beneficial ownership of 4.95% or more of the outstanding Common Stock or announces a tender or exchange offer which would result in such person or group''s beneficial ownership of 4.95% or more of the outstanding Common Stock (a "Triggering Stockholder"), then all stockholders of the Company (other than the Triggering Stockholder) will be entitled to acquire shares of Common Stock at a 50% discount (a "Dilution Event").
A person or group that owns 4.95% or more of the outstanding Common Stock at the time of the adoption of the amended and restated Rights Agreement (an "Existing Major Stockholder") will not trigger a Dilution Event. However, a Dilution Event will be triggered if an Existing Major Stockholder, without Board approval, acquires any additional shares of Common Stock.
The 4.95% beneficial ownership threshold under the amended and restated Rights Agreement will remain applicable until March 31, 2021, or earlier, if the Board determines that the reduced threshold is no longer necessary for the preservation of the NOLs.
The foregoing description of the amended and restated Rights Agreement is qualified in its entirety by reference to the full text of the amended and restated Rights Agreement, a copy of which is available on the Company''s website.
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future revenues and financial position. 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 filings with the OTCQX. The Company assumes no obligation to update these forward-looking statements. A copy of the Company''s reports for the twelve months ended December 31, 2015 can be found on the Company website at or at .
The following is a reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2016 and 2015, respectively:
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Datum: 15.08.2016 - 06:00 Uhr
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