Discount ticketing provider Tix Corporation’s “aggressive” approach to turning around its major losses over the past two years has led to a revenue increase of three per cent year-on-year in its first-quarter results.
The firm reported operating income of $97,000 (£74,500/€86,400), compared to its significant operating loss of $721,000 in the same period last year. Net income also hit $50,000 for Q1 compared to a net loss of $717,000 last year.
Cashflows from operations have also improved to $137,000, after it recorded cash used in operations of $639,000 in the prior year.
Tix Corporation provides discount-ticketing services through several stores in the Nevada entertainment hub under its Tix4Tonight marquee. It offers discounted tickets for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining. Tix4Tonight also serves as the official Las Vegas guest services partner for Expedia and its other brands.
MGM Resorts, which is a partner of four of the five Cirque du Soleil shows, pulled the show’s tickets from the company’s Tix4Tonight booths to retain them for its own sales in November 2017. Cirque du Soleil made up 15 per cent of Tix’s total ticket sales. MGM also opened five of its own discount ticket booths
Despite the positive Q1 results, the firm’s chief executive Mitch Francis says future financial results could falter due to what he claims to be an activist stockholder’s “consistent attacks on management” and “desire to control the company.”
Francis said: “We have aggressively addressed the difficult Las Vegas show ticket market conditions experienced over the past two years. We developed a new agreement with MGM Resorts and Cirque du Soleil; increased service fees; and we effected significant operating cost savings. As a result, we are proud to report a return to year-over-year revenue; positive cash flow; and have maintained cash reserves with no debt.
“We anticipate these efforts will lead to improved operating results throughout 2019. However, activist stockholder, Haren Bhakta of HSB Capital Partners continues to pursue his own personal agenda to the detriment of the Company and its stockholders.
“As he has done in the past two years or so, he continues to force the Company to spend enormous management time and resources and hundreds of thousands of dollars (primarily in legal fees over the past two years) in responding to his consistent attacks on management, directors and employees and his constant threats regarding his desire to control the Company.
“Such distractions and expenses may well adversely affect our future results and diminish the positive results described above. Mr. Bhakta has no background in any facet of the ticket business; no background in Las Vegas entertainment; no background as an officer or director of a publicly traded company; and no other experience or qualification that is relevant to Tix and its business.
“We urge Tix stockholders to ignore any communications from Mr. Bhakta and to allow the Company to continue its fruitful efforts to improve its operating results for all stockholders.”
Image: Stuart Seeger