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Tix Corp. Reports Operating Results (10-Q)

May 10, 2010 | About:
10qk

10qk

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Tix Corp. (TIXC) filed Quarterly Report for the period ended 2010-03-31.

Tix Corp. has a market cap of $46.37 million; its shares were traded at around $1.49 with and P/S ratio of 0.57. TIXC is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

The Company earns fee revenues from the sales of discounted tickets from purchasers of the tickets and commissions from the entertainment supplier, as well as revenues from the sale of premium tickets to sporting and other entertainment events. Through our discounted ticket venues we also offer discount dinner reservations. From Exhibit Merchandising, LLC “EM”, we earn revenues from the management of retail outlets associated with the sale of merchandise related to touring exhibits, such as “Tutankhamun and The Golden Age of the Pharaohs.” Through our live entertainment segment, we earn revenues from the presentation and production of events, as well as sponsorship and ancillary revenues. Our revenues for the three months ended March 31, 2010 and 2009 were $16.8 million and $20.2 million, respectively. Our revenues decreased $3.4 million, or 17%, during the three months ended March 31, 2010 as compared to the same period of the prior year. The decrease in revenues was primarily the result of a $3.7 million decline in revenues from our Live Entertainment segment and a $244,000 decline in revenues from our Merchandising segment, which were offset in part by a $588,000 increase in Ticketing Services revenues.

Direct operating expenses include payroll and related costs, rents, cost of tickets and goods sold, artist fees, show related marketing costs and advertising expenses along with other related costs of promoting and producing live entertainment. Direct costs of revenues for the three months ended March 31, 2010 and 2009 were $11.8 million and $15.0 million, respectively. Our operating expenses decreased $3.2 million or 21% during the three months ended March 31, 2010 as compared to the same period of the prior year. The decrease in direct operating expenses is reflective of the 17% decline in revenues.

Operating segment selling, marketing and administrative expenses include advertising and promotional costs related to the Company s business activities. Our operating segment selling, marketing and administrative expenses for the three months ended March 31, 2010 and 2009 were $3.0 million and $2.6 million, respectively. Our selling, general and administrative expenses increased $406,000 or 15% during the three months ended March 31, 2010 as compared to the same period of the prior year due to a $490,000 and $12,000 increase in selling and general and administrative expenses in our Ticketing Services and Exhibit Merchandising segments, respectively. These increases were offset in part by a $96,000 decline in selling, general and administrative expenses at Live Entertainment segment.

Corporate expenses are expenses that relate to activities at or directed by our executive offices. Significant components of corporate expenses consist of corporate personnel and personnel-related costs, insurance, legal and accounting fees, consulting and advisory fees, and corporate occupancy costs. Corporate expenses for the three months ended March 31, 2010 and 2009 were $1.2 million and $1.7 million, respectively. Corporate expenses decreased $481,000 for the three months ended March 31, 2010, as compared to same period of the prior year. This decrease in corporate expenses is mainly the result of a decrease in stock based compensation expense including $257,000 related to the departure of an officer.

The Ticketing Services segment earns fee revenues from the sales of discounted tickets from purchasers of the tickets and commissions from the entertainment supplier, as well as revenues from the sale of premium tickets to sporting and other entertainment events. Through our discounted ticket venues, we also offer discount dinner reservations. Ticketing Services revenues were $4.7 million for the three months ended March 31, 2010 as compared to $4.1 million for the three months ended March 31, 2009. Our revenues increased $588,000, or 14%, during the three months ended March 31, 2010 as compared to the same period of the prior year. The increase in Ticketing Service revenues is the result of a $580,000 increase in Tix4Tonight revenues and a $43,000 increase in ancillary revenues i.e. the sale of dinner reservations, offset by a $35,000 decline in premium ticket revenues.

Tix4Tonight revenues for the three months ended March 31, 2010 and 2009 were $4.7 million and $4.1 million, respectively, which is an increase of $583,000 or 15% in 2010 as compared to the same period in 2009. The increase reflects a greater demand for discount tickets as well as an increase in the average selling price per ticket in 2010 as compared to 2009. The average selling price per ticket in 2010 was $59.49 per ticket, which represented an increase of $4.33 per ticket o

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10qk
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