Tuxis Corporation Announces Third Quarter 2012 Financial Results

October 24, 2012 - Tuxis Corporation (Ticker: TUXS) today reported its financial results for the third quarter ended September 30, 2012.
Tuxis recorded a net loss of $21,288 or $0.02 per share for the three months ended September 30,
2012 compared to a net loss of $40,659 or $0.04 per share for the three months ended September
30, 2011. Revenue from rental income was $117,256 for the three months ended September 30,
2012 compared to $114,809 for the three months ended September 30, 201. Tuxis recorded a net loss of $312,247 or $0.28 per share for the nine months ended September 30, 2012 compared to a
net loss of $128,683 or $0.12 per share for the nine months ended September 30, 2011. Revenue
from rental income was $351,349 for the nine months ended September 30, 2012 compared to
$336,066 for the nine months ended September 30, 2011. The Company's primary source of
revenue is rental income from its self storage facilities. Tuxis had an adjusted EBITDA loss of
$148,221 for the nine months ended September 30, 2012 compared to an adjusted EBITDA loss of $27,332 for the nine months ended September 30, 2011.
The Company's book value per share at September 30, 2012 was $5.52 (shareholders' equity of
$6,175,860 divided by 1,118,577 shares issued and outstanding).
The Company's unaudited balance sheet, statements of income, and statements of cash flows as of and for the third quarter and nine months ended September 30, 2012 including a reconciliation of net loss to adjusted EBITDA, are appended to the copy of this press release on www.tuxis.com.

About Tuxis

Tuxis Corporation is engaged through subsidiaries in self storage and real estate development. Tuxis Self Storage at Heritage Park, Clinton, Connecticut, is a 184 unit self storage facility which offers a mix of standard and climate control units. Tuxis Self Storage at Millbrook Commons, Millbrook, New York, is a mixed use facility consisting of 141 climate control self storage units including wine storage bins and complemented by rental office space. To learn more about our self storage facilities please visit www.tuxisselfstorage.com. To learn more about Tuxis Corporation, including Rule 15c2-11 information, please visit www.tuxis.com.

Safe Harbor Note

This release contains certain "forward looking statements" made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Tuxis Corporation, which may cause the company's actual results to be materially different from those expressed or implied by such statements. The forward looking statements made herein are only made as of the date of this release, and the company undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.
The Company views book value per share and adjusted EBITDA, non-GAAP financial measures, as an important indicator of financial performance and as a complement to results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Presented in conjunction with other financial information, the combined presentation can enhance an investor's understanding of the Company's underlying financial condition and results from
operations. The definition of book value as presented in this press release is shareholders' equity divided by currently issued and outstanding shares. The term "adjusted EBITDA" is a financial measure that the Company defines as net income (loss) before dividend and interest income, income taxes, depreciation, and share-based compensation. Adjusted EBITDA is not a substitute for measures determined in accordance with GAAP and may not be comparable to adjusted EBITDA as reported by other companies.
Contact: Thomas O'Malley
Chief Financial Officer
1-212-785-9300, ext. 267 tomalley@tuxis.com
www.tuxis.com

TUXIS CORPORATION CONSOLIDATED BALANCE SHEET September 30, 2012

(Unaudited)

Assets

Current assets

Cash and cash equivalents

$ 516,781

Acconnts receivable

19,217

Prepaid expenses

47,456

Total current assets

583,454

Property and equipment, net

6,800,832

Other assets

3,664

6,804,496

Total assets $ 7,387,950

Liabilities and shareholders' equity

Current liabilities

Accounts payable and accrued expenses

Total current liabilities

Due to afrùiates

Death benerrt obligation

Totalliabilities

Shareholders' equity

Common stock, $0.01 par value, 1,000,000 shares authorized;

l, 118,577 issued and outstanding

Series Aparticipating preferred stock, $0.01 par value, 100,000 shares authorized, -0- shares issued and outstanding

$ 35,775

35,775

993,834

182,481

l, 176,315

1,212,090

11,186

TUXIS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Revenues

Three Months Ended Nine Months Ended

September 30, September 30,

2012 2011 2012 2011

Rental income and other fees $ 117,256 $ 114,809 $ 351,349 $ 336,066

Expenses

Generai and administrative

51,305

47,147

153,154

160,967

Compensation and benefits

44,344

62,327

319,385

179,640

Deprec iation

31,889

31,485

95,451

94,456

Professional

11,684

6,750

27,031

22,791

Share-based compensation

3,272

63,193

3,272

139,222

150,981

658,214

461,126


Other inc ome

Dividends and interest

678 580 1,848 1,444

Loss before income taxes

(21,288) (35,592) (305,017) (123,616)

Income tax expense

5,067 7,230 5,067

Net loss

$(21,288) $ (40,659) $(312,247) $(128,683)

Basic and diluted per share net loss

$ (0.02)

$ (0.04)

$ (0.28)

$ (0.12)

Basic and diluted average shares outstanding

l, 118,577

1,043,765

l, 114,391

1,038, 799

TUXIS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2012 and 2011 (Unaudited)

Cash flows from operating activities

2012 2011

Net loss

Adjustments to reconcile net loss to net cash provided by

$ (312,247) $ (128,683)

(used in) operating activities

Depreciation

95,451 94,456

Share-based compensation expense

63,193 3,272

Increase in accounts receivable

(6,239) (3,925)

Increase in prepaid expenses

(20,247) (10,862)

Increas e in other as s ets

(288)

Increase (decrease) in accounts payable and accrued expenses

731 (2,575)

Increas e in due t o affiliates

102,080 202,648

Increase in death benefit obligation

165,029

Net cash provided by operating activities

87,751 154,043

Cash flows frominvesting activities

Real estate development (19,241) (40,016) Fixed asset acquisitions (15,546) (6,374)


Net cash used in investing activities (34,787) (46,390)

Cash flows fromfinancing activities

Issuance ofstock upon exercise ofstock options 23,681 17,731

Promissory note accepted with exercise ofstock options (23,482) (17,582) Prepayment of promissory note 650

Net cash provided by financing activities 849 149

Net increase in cash and cash equivalents 53,813 107,802

Cash and cash equivalents

Beginning of period 462,968 303,925


End ofperiod $ 516,781 $ 411,727

Supplemental disclosure:

Income taxes paid $ 7,230 $ 5,067

TUXIS CORPORATION

NON-GAAP FINANCIAL MEASURE AND RECONCILIATION

(Unaudited)

The Company views adjusted EBITDA, a non-GAAP financial measure, as a complement to results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The term "adjusted EBITDA" is a financial measure that the Company defines as net income (loss) before dividends and interest income, income taxes, depreciation, and share-based compensation. Adjusted EBITDA is not a substitute for measures determined in accordance with GAAP and may not be comparable to adjusted EBITDA as reported by other companies. A reconciliation of net loss to adjusted EBITDA for nine months ended September

30, 2012 and 2011, respectively, is set forth in the following table:

2012

2011

Net los s

$ (312,247)

$ (128,683)

Adjus tments :

Dividends , interes t, and other income

(1,848)

(1,444)

Depreciation

95,451

94,456

Share-bas ed compens ation

63,193

3,272

Income tax expens e

7,230

5,067

Adjus ted EBITDA

$ (148,221)

$ (27,332)

distributed by