TIX CORP (TIXC) - Description of business
Since January 1, 2004, the Company's principal business activity, through its wholly-owned subsidiary, Tix4Tonight, LLC, has been the sale of tickets for Las Vegas shows at a discount to the original box office price, on the same day of the performance, from ticket booths located on the Las Vegas Strip.
Tix4Tonight generally sells show tickets under short-term, non-exclusive agreements with approximately 60 Las Vegas shows, out of a total of approximately 80 Las Vegas shows running at any one time, and typically offers tickets for approximately 50 shows on any given day at a discount plus a service fee. Tix4Tonight does not know exactly what shows it will be able to offer tickets for until the same day of the show. There are usually many more tickets available each day than are sold, although it is not uncommon for Tix4Tonight to sell-out its supply of tickets for individual shows. The shows are paid on a weekly basis only for the tickets that Tix4Tonight actually sells to customers. Tix4Tonight has no financial risk with respect to unsold tickets.
The Company conducts the operations of Tix4Tonight at four locations in Las Vegas, Nevada: South Strip at the Hawaiian Marketplace Shopping Center (which commenced operations in November 2005 and replaced the location next to the Harley-Davidson Cafe at Harmon); the Fashion Show Mall Strip entrance in front of Neiman-Marcus (which commenced operations in February 2005); North Strip, just south of the Riviera Hotel; and a downtown Las Vegas facility at the Four Queens Hotel fronting onto the Fremont Street Experience (which commenced operations in December 2005). The Company also maintains administrative offices for Tix4Tonight in Las Vegas, Nevada.
Beginning August 10, 2006, as an adjunct to its Las Vegas show ticketing business, the Company launched its Tix4Dinner operations from the same locations as the sale of show tickets. Tix4Dinner offers reservations for discounted dinners at various restaurants on the Las Vegas strip, with dining at specific times on the same day as the sale.
In December 2006, the Company introduced its Tix4Stand-byGolf discount golf reservation business through the acquisition of Stand-By Golf Las Vegas. Stand-By Golf Las Vegas has operated in the Las Vegas area for approximately ten years, offering tee-time bookings to approximately 30 area golf courses at significant discounts. The Company anticipates marketing its new golf offerings at its four Las Vegas ticketing facilities, online and at its Las Vegas office. Revenue Concentrations:
During the year ended December 31, 2006, there were no showrooms or other ticket sources which accounted for 10% or more of revenues. During the year ended December 31, 2005, one hotel showroom and one other ticket source accounted for 14.0% and 11.6% of revenues, respectively.
Because of the seasonal nature of tourism in Las Vegas, attendance patterns at Las Vegas shows may vary accordingly. The nature and degree of this seasonality varies among Las Vegas shows depending on the time of year, as well as the nature of entertainment alternatives available to audiences. The Company's revenues are more dependent on the presence of conventions in Las Vegas and the type of shows being offered for sale than seasonality.