Tourism in Las Vegas Has Ticket Dealer Sitting Pretty

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Tix Corp.’s strong second quarter was just the ticket for its investors.

Thanks to bigger crowds in Las Vegas and smaller legal fees, the company boosted profits and the chief executive said he expects growth to continue apace.

Shares of the Studio City discount ticket seller rose 8.7 percent during the week ended Aug. 6 to close at $1.25. The company was the biggest gainer on the LABJ Stock Index. (See Page 30.)

Tix conducts its business through a wholly owned subsidiary, Tix4Tonight, which sells reduced-price tickets to Las Vegas shows and attractions from 11 booths it operates in that city. Its offerings include comedy shows from Jerry Seinfeld and Carrot Top, and variety shows like “Zumanity” by Cirque du Soleil. Some of its locations also sell discounted dinner coupons.

Tix on Aug. 4 reported second quarter net income of $1.2 million (7 cents a share), compared with $579,000 (2 cents) for the same quarter a year earlier. Revenue rose 11 percent to $5.7 million.

The company did not respond to the Business Journal’s request for comment.

The rebounding Las Vegas tourist trade has boosted Tix’s business. Southern Nevada welcomed 3.5 million visitors in June, up 3.1 percent from the same month a year earlier, according to the Las Vegas Convention and Visitors Authority. Sin City is on pace to bring in 41 million tourists this year, which would be a record high. To capitalize on this traffic, Tix has refurbished several of its booths – which has brought in more sales, Chief Executive Mitchell Francis said in a statement accompanying earnings.

Tix also has benefited from paying significantly less in legal fees than it did last year, when it was involved in an acrimonious public dispute with its then-largest shareholder.

Baker Street Capital, a West L.A. hedge fund, had sought to make changes to Tix’s board due to concerns about the company’s performance. To resolve the situation, Tix agreed to repurchase 5.4 million shares from Baker Street for $1.95 a share in a transaction announced Dec. 24.

Francis mentioned the new booths and big drop in legal fees being a key driver of last quarter’s profitability and the company’s good first half, which he expects to continue.

“We are pleased with our overall performance this year,” Francis said in a press release accompanying the earnings. “The increase in revenue from the replacement and enhancement of several of our booths, along with the dramatic reduction of legal expenses, account for the majority of our improved results.”

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