Tix Corporation Reports Third Quarter 2009 and First Nine Month Results

--Net income for the nine months ended September 30, 2009 improved to $793,000, or $.02 per diluted share, compared to a net loss of ($1.7 million) for the same period a year earlier.

--The Company's Tix4Tonight discount show and dinners division increased its gross sales by 39% to $19.9 million during the third quarter of 2009 from $14.3 million for the same period in 2008.

--The Company increased its cash balance to $10.1 million as of September 30, 2009 compared to $9.2 million as of December 31, 2008; the Company has no debt.

--The Company had cash flow from operations of $1.6 million for the nine months ended September 30, 2009.

--During the third quarter of 2009, Tix Corporation received a Notice of Allowance from the United States Trademark and Patent Office of its that it will soon be issuing a patent for its inventions concerning the sale of discount tickets. The patent is based upon the processes and methods that were developed in our Las Vegas based discount ticket business, Tix4Tonight. The patent covers the sale of discount tickets through ticket booths, Internet, cell phones and personal digital assistants.

--Company expects continued revenue growth and improved profitability for the fourth quarter of 2009.

Tix Corporation (Nasdaq: TIXC), a leading integrated entertainment
company providing discount and premium ticketing services, event and
branded merchandising, and production/promotion of live concert and
theatrical events, today reported results for the three and nine months
ended September 30, 2009.

Third quarter 2009 revenue increased 5.9% to $9.4 million, compared to
$8.8 million recorded in the comparable period last year. In the third
quarter 2009, commissions and fees generated by our Ticketing Services
segment were $4.6 million, revenue from Exhibit Merchandising was $2.3
million and revenue from Live Entertainment was $2.5 million. The net
loss for the third quarter was ($161,000), or $0.00 per diluted common
share, compared to a net loss of ($986,000), or ($0.03) per diluted
common share, reported in the third quarter of 2008.

The Company's revenue for the nine months ended September 30, 2009 was
$56.1 million, compared to $48.9 million during the same period in 2008.
Net income for the nine months was $793,000, or $0.02 per diluted share,
compared to a net loss of ($1.7 million), or ($0.05) per diluted share,
for the first nine months of 2008.

The Company increased its cash balance to $10.1 million as of September
30, 2009 compared to $9.2 million as of December 31, 2008, and compared
to $5.2 million for the same period last year. In addition, the Company
has no debt.

After approximately eight years of effort, Tix Corporation has received
a Notice of Allowance from the United States Patent and Trademark Office
that it will soon be issued a patent for its inventions concerning
discount ticket brokerage. The Company believes the patent is quite
broad, covering ticket booths, online ticket sales, and even ticket
sales over cell phones. The Company believes the patent encompasses the
business it conducts under its Tix4Tonight subsidiary in Las Vegas. A
Notice of Allowance confirms the patent application has been examined
and is allowed for issuance as a patent and the prosecution on the
merits is closed.

Mitch Francis, CEO of Tix Corporation stated, "The entire industry of
live theater production virtually ceases its touring performances during
the summer months which coincide with the third quarter. This is also
true with our Tix Productions division. While we are loath to produce
even a small net loss for this quarter, it was not unexpected and we
believe the Company remains on track to achieve its annual goals of
positive net income; positive cash flow from each division; and remain
debt free." Mr. Francis added, "During the third quarter, our revenue
growth was driven primarily by our Ticketing Services business as
consumers continued to seek value in these challenging economic times.
Our improved operating results over last year stem from our integrated
businesses and proven business models that continue to perform extremely
well. We anticipate a strong performance in the fourth quarter and
beyond due to a number of factors, including our theatrical production, 101
Dalmatians -- The Musical."

Segmental Operating Results

Ticketing Services Segment

Overall revenue from the Company's Ticketing Services segment, which
includes revenue from discount and premium ticket sales increased 22% to
$4.6 million for the quarter compared to $3.7 million in the prior year
period. The increase in Ticketing Service revenues is primarily the
result of a $1.1 million increase in discount show ticket commissions
and fees as well as an increase in ancillary revenues, offset by a
($310,000) decline in premium ticket revenues.

Operating income improved 33% to $1.9 million during the quarter
compared to operating income of $1.5 million in the prior year period.

The Company's discount ticketing division, Tix4Tonight, increased the
number of discount show tickets sold by 22% to 344,000 tickets in the
third quarter of 2009 compared to the comparable period in the prior
year. The gross sales value of discount show tickets sold, commissions
and fees earned on the sale of discount tickets to customers increased
39% to $19.5 million.

Revenue for the discount show tickets sold grew 32% to $4.2 million
during the quarter ended September 30, 2009 compared to $3.2 million in
the prior year period. The increase in revenue reflects a greater demand
for discount tickets as well as an increase in the average selling price
per ticket in 2009 as compared to 2008. The average selling price per
ticket in 2009 increased 14% to $56.73 as compared to $49.67 in 2008.
Miscellaneous revenue from discount golf and dinner reservations
increased 41% to $352,000 from $249,000 in the prior year period.

Revenue from the Company's premium ticketing division, Tix4AnyEvent, was
$26,000 compared to $336,000 in the prior year comparable period. The
$310,000 decline in revenues is primarily the result of an overall
decline in demand for premium tickets due to the poor economic
environment nationally, which has led to a decline in discretionary
spending. Management expects that Tix4AnyEvent's revenues will decline
in 2009 compared to 2008, but expects its net income to be greater with
the reduction of risk and a more measured approach in participating in
the sale and distribution of premium tickets to concerts, live theater
and sporting events.

The Company elected to terminate its agreement with Costco as the
Tix4Members.com Internet-based ticketing operations generated minimal
revenue. The Company remains interested in offering a national ticketing
service and is currently seeking additional partners.

Exhibit Merchandising Segment

Exhibit Merchandising (EM), which operates retail specialty stores for
touring museum exhibitions and touring theatrical productions, generated
revenue of $2.3 million during the quarter, compared to $2.4 million in
the prior year comparable period. Revenue was primarily derived from the
Company's retail outlets associated with the sale of merchandise related
to touring exhibits, and was mainly derived from "Tutankhamun and The
Golden Age of the Pharaohs."

"Tutankhamun and The Golden Age of the Pharaohs" and "Tutankhamun the
Golden King and the Great Pharaohs" are currently booked in museums
through July 2011 and December 2012, respectively. During the third
quarter of 2009, although there was a 46% increase in attendance to the
exhibits, there was a 35% decrease in revenue per attendee. The decline
in revenues per attendee is the result of generally poor economic
conditions, as well as a competing store at one of the exhibit
locations, which management believes resulted in a $134,000 decline in
revenues, which has been partially offset by a renegotiation of terms.

Live Entertainment Segment

Tix Productions (TPI), which produces and presents live entertainment
events, recorded a decline in revenue of 6% to $2.5 million for the
third quarter, compared to the prior year period. Operating loss for the
quarter was $(818,000) compared to $(500,000) in the prior year period.
The decrease in revenue was due to several factors including:

--
In the third quarter of 2009, the Company presented or produced 6 show
dates as compared to 16 show dates in the third quarter of 2008. The
decrease in revenues attributable to the 62% decline in the number of
shows produced and related revenues was offset in part in 2009, by
several shows being presented in arenas where ticket prices and number
of attendees are greater than the community theaters, where many of
our shows generally play. As a result of these arena plays, our show
revenues declined 6% to $2.5 million in 2009, as compared to $2.7
million in 2008.

--
In 2008, tours of live entertainment companies began earlier and later
in the year to avoid the presidential campaign season (July through
October) when advertising prices were at their highest and audience
attention at its lowest. As a result, Live Entertainment revenues in
2008 were higher than normal for the first and fourth quarters and
lower than normal in the second quarter. The third quarter is our live
entertainment segment's weakest quarter as a result of live theatre
seasons ending in June and starting in October. In addition, in 2008,
many productions that Tix was associated with toured Canada during the
election cycle which, due to a strong Canadian dollar and economy,
resulted in unusually strong profits. These combined factors resulted
in an unusually large number of productions in the first and fourth
quarters that under normal circumstances would have naturally fallen
in the second or third quarters

Mr. Francis concluded, "We are particularly excited about the potential
for "101 Dalmatians, the Musical," which debuted in Minneapolis
in October. In addition to opening to favorable reviews, audiences have
reacted enthusiastically, with standing ovations at every performance.
While having a positive impact on our results in 2009, the revenue
potential of the show over a longer period of time is quite substantial.
Finally, we remain enthusiastic about the opportunities in all three of
our businesses for the balance of the year and beyond including the
continued increases in the number and value of discount tickets and
dinner reservations sold. A strong balance sheet and no debt position
Tix to take advantage of the many growth opportunities we are seeing in
all of our markets."

Investor Conference Call

The company will host a conference call for investors today, Monday,
November 9, 2009, beginning at 1:30 p.m. Pacific / 4:30 p.m. Eastern.
Participants may access the call by dialing (877) 941-0843 (domestic) or
(480) 629-9643 (international). In addition, the call will be webcast
via the company's Web site at www.tixcorp.com,
Investor Relations, where it will also be archived. A telephone replay
will be available through Thursday, November 23, 2009. To access the
replay, please dial (800) 406-7325 (domestic) or (303) 590-3030
(international), passcode 4181222.

About TIX Corporation

Tix Corporation is an integrated entertainment company providing
discount and premium ticketing services, event and branded
merchandising, and production/promotion of live concert and theatrical
events. It currently operates seven prime locations in Las Vegas under
the Tix4Tonight marquee, and offers up to a 50 percent discount for
same-day shows, concerts, attractions and sporting events, as well as
discount reservations for golf and dining. The Company also offers
premium tickets to concerts, theater and sporting events throughout the
United States under its Tix4AnyEvent.com brand. The Company's Exhibit
Merchandising operation is engaged in branded merchandise development
and sales activities related to museum exhibitions and other events,
including the King Tutankhamun and Real Pirates tours; selling themed
souvenir memorabilia and collector's items in specialty stores in
conjunction with the specific events and venues. Tix Productions is
dedicated to live concert and theatrical promotion and production
throughout the United States, Canada and Europe and operates under the
banners of Magic Arts & Entertainment and NewSpace Entertainment.

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. 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 filings with the Securities and Exchange
Commission. The Company assumes no obligation to update these
forward-looking statements.

TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
                                                         Three Months Ended September 30,
                                                         2009                2008
                                                                (Unaudited)         (Unaudited)
Revenues                                                 $      9,362,000    $      8,839,000
Operating expenses:
Direct costs of revenues                                        5,341,000           5,127,000
Selling and marketing expenses                                  229,000             217,000
General and administrative expenses, including non-cash
equity-based costs of $528,000 and $560,000 in 2009 and
2008, respectively (including $342,000 and $505,000 for
officers, directors and employees in 2009 and 2008,
respectively)                                                   3,398,000           3,409,000
Depreciation and amortization                                   625,000             1,151,000
Total costs and expenses                                        9,593,000           9,904,000
Operating loss                                                  (231,000)           (1,065,000)
Other:
Other income                                                    63,000              77,000
Interest income                                                 10,000              7,000
Interest expense                                                (3,000)             (5,000)
Other income, net                                               70,000              79,000
Net loss                                                        (161,000)           (986,000)
Other comprehensive income (loss)
Foreign currency translation                                    4,000               (108,000)
adjustments
Comprehensive loss                                       $      (157,000)    $      (1,094,000)
Net loss per common share- basic and diluted             $      (0.00)       $      (0.03)
Weighted average common shares outstanding -
basic and diluted                                        $      32,439,015   $      32,912,630

TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
                                              Nine Months Ended September 30,
                                              2009                2008
                                                     (Unaudited)         (Unaudited)
Revenues                                      $      56,116,000   $      48,866,000
Operating expenses:
Direct costs of revenues                             41,677,000          34,181,000
Selling and marketing expenses                       1,416,000           2,392,000
General and administrative expenses,
including non-cash equity-based costs of
$1,379,000 and $1,841,000 in 2009 and
2008, respectively (including $1,035,000
and $1,334,000 for officers, directors
and employees in 2009 and 2008,
respectively)                                        10,491,000          10,930,000
Depreciation and amortization                        1,872,000           3,375,000
Total costs and expenses                             55,456,000          50,878,000
Operating income (loss)                              660,000             (2,012,000)
Other:
Other income                                         217,000             285,000
Interest income                                      32,000              52,000
Interest expense                                     (10,000)            (15,000)
Other income, net                                    239,000             322,000
Net income (loss) before income tax expense          899,000             (1,690,000)
Current income tax expense                           106,000             -
Net income (loss)                                    793,000             (1,690,000)
Other comprehensive income (loss)
Foreign currency translation                         18,000              (152,000)
adjustments
Comprehensive income (loss)                   $      811,000      $      (1,842,000)
Net income (loss) per common share -
Basic                                         $      0.02         $      (0.05)
Diluted                                       $      0.02         $      (0.05)
Weighted average common shares outstanding -
Basic                                                32,368,397          31,791,002
Diluted                                              32,677,535          31,791,002

Consolidating Statement of Operations (unaudited)
Three months ended September 30,
                                Ticketing       Exhibit            Live               Corporate         Consolidated
                                Services        Merchandising      Entertainment                        and Combined
2009
Revenue                         $    4,550,000  $      2,286,000   $      2,526,000   $    -            $      9,362,000
Direct cost of revenues              1,613,000         1,321,000          2,407,000        -                   5,341,000
Selling, general and
administrative expenses              874,000           524,000            741,000          1,488,000           3,627,000
Depreciation and amortization        131,000           295,000            196,000          3,000               625,000
Operating income (loss)         $    1,932,000  $      146,000     $      (818,000)   $    (1,491,000)  $      (231,000)
Current assets                  $    4,845,000  $      2,621,000   $      2,407,000   $    6,025,000    $      15,898,000
Fixed assets                         532,000           538,000            88,000           75,000              1,233,000
Intangible assets and goodwill       304,000           4,080,000          6,787,000        -                   11,171,000
Other non-current assets             189,000           13,000             2,167,000        6,000               2,375,000
Total assets                    $    5,870,000  $      7,252,000   $      11,449,000  $    6,106,000    $      30,677,000
2008
Revenue                         $    3,737,000  $      2,419,000   $      2,683,000   $    -            $      8,839,000
Direct cost of revenues              1,473,000         1,401,000          2,253,000        -                   5,127,000
Selling, general and
administrative expenses              690,000           827,000            695,000          1,414,000           3,626,000
Depreciation and amortization        120,000           796,000            235,000          -                   1,151,000
Operating income (loss)         $    1,454,000  $      (605,000)   $      (500,000)   $    (1,414,000)  $      (1,065,000)
Current assets                  $    2,166,000  $      6,021,000   $      3,099,000   $    495,000      $      11,781,000
Fixed assets                         595,000           767,000            116,000          28,000              1,506,000
Intangible assets and goodwill       591,000           38,632,000         7,397,000        -                   46,620,000
Other non-current assets             65,000            25,000             459,000          6,000               555,000
Total assets                    $    3,417,000  $      45,445,000  $      11,071,000  $    529,000      $      60,462,000

Consolidating Statement of Operations (unaudited)
Nine months ended September 30,
                               Ticketing        Exhibit             Live               Corporate         Consolidated
                               Services         Merchandising       Entertainment                        and Combined
2009
Revenue                        $    13,375,000  $      7,396,000    $      35,345,000  $    -            $      56,116,000
Direct cost of revenues             4,876,000          4,424,000           32,377,000       -                   41,677,000
Selling, general and
administrative expenses             2,649,000          1,791,000           3,075,000        4,392,000           11,907,000
Depreciation and amortization       385,000            888,000             591,000          8,000               1,872,000
Operating income (loss)        $    5,465,000   $      293,000      $      (698,000)   $    (4,400,000)  $      660,000
2008
Revenue                        $    10,100,000  $      8,501,000    $      30,265,000  $    -            $      48,866,000
Direct cost of revenues             4,283,000          5,082,000           24,816,000       -                   34,181,000
Selling, general and
administrative expenses             1,903,000          2,873,000           4,231,000        4,315,000           13,322,000
Depreciation and amortization       381,000            2,376,000           609,000          9,000               3,375,000
Operating income (loss)        $    3,533,000   $      (1,830,000)  $      609,000     $    (4,324,000)  $      (2,012,000)

TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                          September 30,      December 31,
                                                          2009               2008
                                                          (Unaudited)
Assets
Current assets:
      Cash                                            $   10,113,000     $   9,192,000
      Accounts receivable, including show
      revenues earned but not billed                      599,000            986,000
      Advances to vendors                                 1,698,000          118,000
      Inventory, net                                      2,136,000          3,320,000
      Prepaid expenses and other current assets           1,352,000          867,000
                  Total current assets                    15,898,000         14,483,000
Property and equipment:
      Office equipment and furniture                      1,999,000          1,816,000
      Equipment under capital lease                       408,000            408,000
      Leasehold improvements                              378,000            364,000
                  Property and equipment, cost basis      2,785,000          2,588,000
      Less accumulated depreciation                       (1,552,000)        (1,155,000)
                  Total property and equipment, net       1,233,000          1,433,000
Other assets:
      Intangible assets:
                  Goodwill                                5,895,000          5,639,000
                  Intangibles, net                        5,276,000          6,751,000
                  Total intangible assets                 11,171,000         12,390,000
      Capitalized theatrical costs                        2,204,000          459,000
      Deposits and other assets                           171,000            83,000
                  Total other assets                      13,546,000         12,932,000
                  Total assets                        $   30,677,000     $   28,848,000
Liabilities and Stockholders' Equity
Current liabilities:
      Accounts payable                                $   5,073,000      $   4,822,000
      Accrued expenses                                    1,091,000          1,315,000
      Current portion of capital lease obligations        59,000             51,000
      Deferred revenue                                    143,000            100,000
      Income taxes payable                                111,000            200,000
                  Total current liabilities               6,477,000          6,488,000
Non-current liabilities:
      Capital lease obligations, less
      current portion                                     31,000             78,000
      Deferred rent                                       35,000             85,000
                  Total non-current liabilities           66,000             163,000
Commitments and contingencies
Stockholders' equity:
      Preferred stock, $.01 par value;
      500,000 shares authorized; none issued
      Common Stock, $.08 par value;
      100,000,000 shares authorized;
      32,449,460 shares net of
      1,014,000 treasury shares, and
      32,345,863 shares net of 732,370
      treasury shares issued at September
 30, 2009 and December 31, 2008 respectively    2,678,000       2,646,000
 Additional paid-in capital                     89,619,000      88,062,000
 Cost of shares held in treasury
 (1,014,000 shares at September 30,
 2009 and 732,370
 shares at December 31, 2008 respectively)      (2,561,000)     (2,098,000)
 Accumulated deficit                            (65,591,000)    (66,384,000)
 Accumulated other comprehensive loss           (11,000)        (29,000)
            Total stockholders' equity          24,134,000      22,197,000
            Total liabilities and
            stockholders' equity              $ 30,677,000    $ 28,848,000

TIX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     Nine Months Ended September 30,
                                                     2009                2008
                                                            (Unaudited)         (Unaudited)
Cash flows from operating activities:
Net income (loss)                                    $      793,000      $      (1,690,000)
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation                                                397,000             362,000
Amortization of intangible assets                           1,475,000           3,013,000
Fair valued common stock issued for
services to employees                                       8,000               36,000
Fair valued common stock issued for
services to consultants                                     119,000             395,000
Fair value of options issued to employees
and directors                                               1,027,000           1,298,000
Fair value of warrants issued to
consultants                                                 225,000             112,000
Change in allowance of inventory                            10,000              70,000
(Increase) decrease in:
Accounts receivable                                         387,000             686,000
Advances to vendors                                         (1,580,000)         (531,000)
Inventory                                                   1,174,000           6,000
Prepaid expenses and other current assets                   (485,000)           (1,259,000)
Capitalized theatrical costs, deposits
and other assets                                            (1,833,000)         (482,000)
Increase (decrease) in:
Accounts payable and accrued expenses                       (42,000)            315,000
Income taxes payable                                        (89,000)            200,000
Deferred revenue                                            43,000              184,000
Deferred rent                                               (50,000)            (88,000)
Net cash provided by operating activities                   1,579,000           2,627,000
Cash flows from investing activities:
Purchases of property and equipment                         (197,000)           (398,000)
Purchase of Magic Arts & Entertainment, net of
cash acquired                                               -                   (1,971,000)
Purchase of NewSpace Entertainment, net of
cash acquired                                               -                   (1,254,000)
Net cash used in investing activities                       (197,000)           (3,623,000)
Cash flows from financing activities:
Cost of Treasury Stock                                      (463,000)           (1,128,000)
Payments on capital lease obligations                       (39,000)            (34,000)
Net proceeds from exercise of options and warrants          23,000              54,000
Net cash provided by (used in) financing activities         (479,000)           (1,108,000)
Effect of exchange rate changes on cash                     18,000              (159,000)
Change in Cash:
Net increase (decrease)                                     921,000             (2,263,000)
Balance at beginning of period                              9,192,000           7,417,000
Balance at end of period                             $      10,113,000   $      5,154,000
Supplemental disclosures of cash flow information:
Cash paid for:
Income taxes                                         $ 187,000  $ -
Interest                                             $ 10,000   $ 15,000
Non-cash investing activities:
Issuance of earn-out shares of 190,476 and
originally issued 476,190 shares of common stock in
conjunction with the acquisition of Magic Arts &
Entertainment - Florida, Inc. in 2009 and 2008
respectively.                                        $ 256,000  $ 2,257,000
Issuance of 571,428 shares of common stock in
conjunction with the acquisition of NewSpace
Entertainment, Inc.                                  $ -        $ 2,595,000
Non-cash financing activities:
Shares withheld related to income taxes as a result
of an employee option exercise                       $ 69,000   $ -

SOURCE: Tix Corporation

For Media: 
Makovsky + Co. 
Michael Goodwin, 212-508-9639 
mgoodwin@makovsky.com 
or 
For Investors: 
Makovsky + Co. 
Gene Marbach, 212-508-9645 
gmarbach@makovsky.com 
or 
Makovsky + Co. 
Daniela Viola, 212-508-9676 
dviola@makovsky.com

For full details on Tix Corporation (TIXC) TIXC. Tix Corporation (TIXC) has Short Term PowerRatings at TradingMarkets. Details on Tix Corporation (TIXC) Short Term PowerRatings is available at This Link.