STUDIO CITY, CA--(Marketwired - Jul 27, 2015) - Tix Corporation (the "Company") (OTCQX: TIXC), a leading provider of discount ticketing services, today reported results for the second quarter and first six months ended June 30, 2015. 

SECOND QUARTER 2015 HIGHLIGHTS

• Announced quarterly cash dividend program equating to $0.20 per share annually. 
• Paid first quarterly cash dividend of $0.05 per common share. 
  

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. Our discount ticket locations also offer discount dinner reservations at various restaurants surrounding the Las Vegas Strip and downtown.

Second Quarter 2015 and 2014

Second quarter 2015 revenues increased to $5.9 million compared with $5.7 million for the same period a year ago. 

Second quarter 2015 direct operating expenses, which includes payroll costs, rents, and utilities, was $2.3 million compared to $2.3 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, improved to 39% compared to 40% for the same period a year ago. 

Second quarter 2015 selling, general and administrative expenses was $1.8 million compared to $1.8 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, improved to 31% compared to 32% for the same period a year ago. 

Second quarter 2015 net income increased to $1.6 million compared with $1.2 million for the same period a year ago. Net income per diluted common share increased to $0.09 compared with $0.07 per diluted common share reported for the same period a year ago.

First Six Months 2015 and 2014

First six months 2015 revenues increased to $11.4 million compared with $10.9 million for the same period a year ago. 

First six months 2015 direct operating expenses, which includes payroll costs, rents, and utilities, declined slightly to $4.6 million compared to $4.7 million for the same period a year ago. Direct operating expenses, as a percentage of revenues, improved to 40% compared to 43% for the same period a year ago. 

First six months 2015 selling, general and administrative expenses was $3.8 million compared to $3.8 million for the same period a year ago. Selling, general and administrative expenses, as a percentage of revenues, improved to 34% compared to 35% for the same period a year ago. 

First six months 2015 net income increased to $2.5 million compared with $1.7 million for the same period a year ago. Net income per diluted common share increased to $0.14 compared with $0.09 per diluted common share reported for the same period a year ago.

Conclusion 

Mitch Francis, Chief Executive Officer of the Company, stated, "We had a solid first six months of 2015. I'm encouraged by our expectation that the remaining six months of 2015 will build on our recent performance. Our financial performance, coupled with our recently announced quarterly cash dividend program of $0.05 per share, ($0.20 per share annually), reflects both the continued strength of our business and our continued efforts to return capital to our shareholders." 

Investor Conference Call

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.

Stockholder Rights Agreement

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.

About Tix Corporation

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.

Safe Harbor Statement

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, 2014 can be found on the Company website at www.tixcorp.com or at www.otcqx.com.

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
				June 30, 2015				December 31, 2014
				(Unaudited)
Assets
Current assets:
	Cash			$	7,413,000			$	4,866,000
	Accounts receivable				43,000				54,000
	Prepaid expenses and other current assets				256,000				148,000
		Total current assets			7,712,000				5,068,000
Property and equipment, net					735,000				918,000
Other assets:
	Intangible assets:
		Goodwill			3,120,000				3,120,000
		Intangibles, net			67,000				153,000
		Total intangible assets			3,187,000				3,273,000
	Deposits and other assets				66,000				68,000
		Total other assets			3,253,000				3,341,000
			Total assets	$	11,700,000			$	9,327,000
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable - shows and events			$	1,965,000			$	938,000
	Accounts payable and accrued expenses				1,062,000				1,236,000
	Deferred revenue				52,000				25,000
	Note payable - short term and net of discount				176,000				176,000
	Obligation for share purchase - short term				-				81,000
		Total current liabilities			3,255,000				2,456,000
Deferred rent obligations					62,000				133,000
Note payable - net of current portion and discount					364,000				552,000
Obligation for share purchases - net of current portion					-				78,000
Total liabilities					3,681,000				3,219,000
Stockholders' equity:
	Preferred stock, $.01 par value; 500,000 shares authorized; none issued				-				-
	Common Stock, $.08 par value; 100,000,000 shares authorized; 16,941,598 shares net of 16,394,393 treasury shares, and 17,864,744 shares net of 15,451,803 treasury shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively				2,668,000				2,666,000
	Additional paid-in capital				94,083,000				93,865,000
	Obligation for share purchases				-				(2,148,000	)
	Cost of shares held in treasury				(27,620,000	)			(25,465,000	)
	Accumulated deficit				(61,112,000	)			(62,810,000	)
		Total stockholders' equity			8,019,000				6,108,000
			Total liabilities and stockholders' equity	$	11,700,000			$	9,327,000

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
			Three Months Ended June 30,
			2015				2014
			(Unaudited)				(Unaudited)
Revenues			$	5,889,000			$	5,726,000
Operating expenses:
	Direct costs of revenues			2,271,000				2,314,000
	Selling, general and administrative expenses			1,802,000				1,847,000
	Depreciation and amortization			136,000				203,000
		Total costs and expenses		4,209,000				4,364,000
Operating income				1,680,000				1,362,000
Other income (expense):
	Other income, net			7,000				-
	Interest expense, net			(5,000	)			(73,000	)
		Other income (expense), net		2,000				(73,000	)
Income before income tax expense				1,682,000				1,289,000
Income tax expense				100,000				51,000
Net income			$	1,582,000			$	1,238,000
Net income per common share
	Net income per common share - basic		$	0.09			$	0.07
	Net income per common share - diluted		$	0.09			$	0.07
Weighted average common shares outstanding - basic				16,939,461				18,204,799
Weighted average common shares outstanding - diluted				18,116,058				18,273,174

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
			Six Months Ended June 30,
			2015				2014
			(Unaudited)				(Unaudited)
Revenues			$	11,439,000			$	10,899,000
Operating expenses:
	Direct costs of revenues			4,577,000				4,677,000
	Selling, general and administrative expenses			3,837,000				3,783,000
	Depreciation and amortization			315,000				463,000
		Total costs and expenses		8,729,000				8,923,000
Operating income				2,710,000				1,976,000
Other expense:
	Other income, net			7,000				-
	Interest expense, net			(11,000	)			(166,000	)
		Other expense, net		(4,000	)			(166,000	)
Income before income tax expense				2,706,000				1,810,000
Income tax expense				161,000				81,000
Net income			$	2,545,000			$	1,729,000
	Net income per common share
	Net income per common share - basic		$	0.15			$	0.09
Net income per common share - diluted			$	0.14			$	0.09
Weighted average common shares outstanding - basic				17,248,524				18,211,758
Weighted average common shares outstanding - diluted				17,962,235				18,294,632

TIX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
					Six Months Ended June 30,
					2015				2014
					(Unaudited)				(Unaudited)
Cash flows from operating activities:
	Net income				$	2,545,000			$	1,729,000
		Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation				229,000				275,000
		Non-cash and accrued interest				12,000				20,000
		Amortization of intangible assets				86,000				188,000
		Fair value of options and warrants issued to employees and directors				188,000				160,000
		(Increase) decrease in:
			Accounts receivable			11,000				10,000
			Prepaid expenses and other assets			(106,000	)			27,000
		Increase (decrease) in:
			Accounts payable - shows and events			1,027,000				1,144,000
			Accounts payable and accrued expenses			(174,000	)			(294,000	)
			Deferred revenue			27,000				32,000
			Deferred rent obligations			(71,000	)			(25,000	)
				Net cash provided by operating activities		3,774,000				3,266,000
Cash flows from investing activities:
	Purchases of property and equipment					(46,000	)			(392,000	)
				Net cash used in investing activities		(46,000	)			(392,000	)
Cash flows from financing activities:
	Cash received on exercise of stock options					25,000				-
	Payment of cash dividends					(847,000	)			-
	Payment on notes payable					(200,000	)			(3,743,000	)
	Obligation for share purchases					(159,000	)			(90,000	)
	Proceed received on senior secured notes payable					-				4,000,000
	Purchase of treasury shares					-				(44,000	)
				Net cash provided by (used in) financing activities		(1,181,000	)			123,000
Net increase						2,547,000				2,997,000
Cash, balance at beginning of period						4,866,000				3,176,000
Cash, balance at end of period					$	7,413,000			$	6,173,000