Exhibit 99.1
[GLOBAL ENTERTAINMENT LOGO]
For Further Information Contact:
NEWS RELEASE Richard Kozuback, President
Global Entertainment Corporation
480-994-0772
Rudy R. Miller, Chairman
The Miller Group
Investor Relations for the Company
602-225-0505
gee@themillergroup.net
Global Entertainment Corporation
4909 East McDowell Road, Suite 104
Phoenix, Arizona 85008-4293
www.globalentertainment2000.com
GLOBAL ENTERTAINMENT CORPORATION ANNOUNCES FISCAL YEAR 2007 RESULTS
PHOENIX, ARIZONA, AUGUST 29, 2007 -- GLOBAL ENTERTAINMENT CORPORATION (AMEX:
GEE) - a company engaged in sports management, multi-purpose events and
entertainment center and related real estate development, facility and venue
management and marketing, venue ticketing and brand licensing, today reported
that revenue for the fiscal year ended May 31, 2007 increased $12,184,087 for a
total $26,449,636 for the fiscal year compared to total revenue of $14,265,558
for the fiscal year ended May 31, 2006. The increase was generated primarily
from project management fees received during the final development stage of two
events center projects completed during the fiscal year. While revenue increased
significantly for fiscal 2007, the company realized a net loss of $4,125,377 for
the twelve months or a loss of $.63 per share compared to net income of $245,055
for the comparable fiscal year ended May 31, 2006 or $.04 per diluted share.
Revenue growth in fiscal 2007 came from all segments of the Company's business
operations based on the interaction and interrelationships designed to offer
turnkey solutions for mid-sized communities in the development of multi-use
entertainment facilities. ICC completed two projects during the fiscal year, the
Santa Ana Star Center in Rio Rancho, New Mexico and Tim's Toyota Center in
Prescott Valley, Arizona. Each new facility has as their major tenant a CHL
hockey team that began play in the 2006/2007 season. Revenue for Encore Facility
Management was positively impacted as a result of multi-year agreements in place
with the two new facilities. Under Encore's direction GEMS generates licensing
and advertising fees from the facilities as well as increased revenue resulting
from two new hockey franchise teams in Broomfield Colorado and the hockey team
in the Prescott Valley facility. GETTIX, Global's in-house ticketing company,
also benefited from the new facilities.
For the same fiscal 2007 period, the company reported a net loss that was
comprised of costs incurred in the normal course of rapid growth experienced by
Global's business segments during a year that produced a material increase in
revenue. The company added staff and associated overhead in the startup
operation of Global Properties I, growth related staffing for Encore, additional
sales and administrative staff for expanded development and marketing related to
Cragar and investment in the expansion of GETTIX ticketing operations. Legal
fees incurred during the fiscal year increased relative to the settlement, and
accrual for potential future settlement of claims. Attributing to the results
and a primary factor in the loss for the year was the charge for impairment of
intangible assets associated with the Cragar subsidiary. The company determined
that a decline in current economic and industry factors specific to the Motor
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Global Entertainment Corporation Announces Fiscal Year 2007 Results
August 29, 2007
Page 2
Vehicle Industry and Automotive "Aftermarket" segment resulted in a $905,716
reduction of the carrying value of the Cragar intangible asset. The charge off
was recognized and included in the Company's income statement. Also associated
with the loss were bad debt expenses related to amounts past due under the CHL
Joint Operating Agreement, certain related past due franchisee balances, and
additional operational reserves. Approximately $2.1 million of the loss
represents the write down of intangible assets and bad debt expense, all
non-cash items.
"We're very disappointed in the significant loss reported for fiscal 2007 in
light of all the progress made in developing our platform of companies that
provide interrelated revenue streams some of which cover spans of multiple
years. The decrease in the intangible carrying value of Cragar was industry
related and outside our ability to control," stated Richard Kozuback, president
and chief executive officer. "We have implemented a new operational, management
and financial software system to enable us to better analyze and manage our
future growth. The investments we are making for the future along with the
addition of experienced personnel are critical factors in the continued
development of the Company's business strategy.
"We announced four new arena development projects within the last four months
that are currently in various stages of formal commitment. All projects have the
approval of their respective city councils or city and county commissions. The
locations of the new events centers are: Dodge City, Kansas; Allen, Texas;
Independence, Missouri, and Yuma, Arizona. Each of the facilities will have a
new hockey team franchise as the primary tenant. Additionally, we will sign
multi-year turnkey service agreements covering all revenue producing activities
that are provided by our Global subsidiaries which will include: facility
management, marketing, sales and related services. Further expanding our
national presence, we have also placed a franchise team in Rapid City, South
Dakota, that is due to be part of the CHL league in the 2008/2009 season. These
actions support our objective for continued growth on a national level. As CEO
and in combination with my executive management team, we have as our number one
commitment the building of operational profits, which will create substantial
long-term value for our shareholders. We look forward to reporting on our
progress in the coming year," Kozuback concluded.
Visit our web sites:
www.globalentertainment2000.com www.centralhockeyleague.com
www.coliseums.com www.Cragar.com www.GetTix.net
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Global Entertainment Corporation Announces Fiscal Year 2007 Results
August 29, 2007
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Global Entertainment Corporation is an integrated events company focused on
mid-size communities that is engaged through its seven wholly owned
subsidiaries, in sports management, multi-purpose events and entertainment
center and related real estate development, facility and venue management and
marketing, venue ticketing and brand licensing. The WESTERN PROFESSIONAL HOCKEY
LEAGUE, INC., through a joint operating agreement with the Central Hockey
League, is the operator and franchisor of professional minor league hockey teams
in nine states. INTERNATIONAL COLISEUMS COMPANY serves as project manager for
arena development while ENCORE FACILITY MANAGEMENT coordinates all arena
facility operations. GLOBAL ENTERTAINMENT MARKETING SYSTEMS pursues licensing
and marketing opportunities related to the Company's sports management and arena
developments and operations. GLOBAL PROPERTIES I in correlation with arena
development projects works to maximize value and development potential of new
properties. GLOBAL ENTERTAINMENT TICKETING is an in-house ticketing company for
sports and entertainment venues. CRAGAR INDUSTRIES is the licensor for its
nationally recognized, branded products CRAGAR(R), TRU-SPOKE(R), CRAGAR S/S(R)
and STREET PRO(R).
Certain statements in this release may be "forward-looking statements"
within the meaning of The Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include projections of matters that
affect revenue, operating expenses or net earnings; projections of capital
expenditures; projections of growth; hiring plans; plans for future
operations; financing needs or plans; plans relating to the company's
products and services; and assumptions relating to the foregoing.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. Future
events and actual results could differ materially from those set forth in,
contemplated by, or underlying the forward-looking information.
Some of the important factors that could cause the company's actual results
to differ materially from those projected in forward-looking statements
made by the company include, but are not limited to, the following: intense
competition within the sports and entertainment industries, past and future
acquisitions, expanding operations into new markets, risk of business
interruption, management of rapid growth, need for additional financing,
changing consumer demands, dependence on key personnel, sales and income
tax uncertainty and increasing marketing, management, occupancy and other
administrative costs.
These factors are discussed in greater detail in the company's Annual
Report on Form 10-KSB for the year ended May 31, 2007, as filed with the
Securities and Exchange Commission.
FINANCIAL TABLES FOLLOWS:
Global Entertainment Corporation Announces Fiscal Year 2007 Results
August 29, 2007
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
May 31, May 31,
2007 2006
------------ ------------
(Audited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,251,542 $ 5,438,091
Accounts receivable, net 3,243,482 6,004,068
Other current assets 969,485 499,142
------------ ------------
Total Current Assets 8,464,509 11,941,301
Other Assets 3,563,157 4,819,299
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Total Assets $ 12,027,666 $ 16,760,600
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 4,695,293 $ 4,387,512
Deferred revenues - current portion 311,994 900,386
------------ ------------
Total Current Liabilities 5,007,287 5,287,898
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Other Liabilities 66,000 458,195
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Total Liabilities 5,073,287 5,746,093
------------ ------------
Stockholders' Equity:
Common stock 6,508 6,488
Paid-in capital 10,731,010 10,665,781
Retained earnings (deficit) (3,783,139) 342,238
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Total Equity 6,954,379 11,014,507
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Total Liabilities and Equity $ 12,027,666 $ 16,760,600
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Global Entertainment Corporation Announces Fiscal Year 2007 Results
August 29, 2007
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GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
(AUDITED)
For the Years Ended
May 31, May 31,
2007 2006
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Revenue $ 26,449,636 $ 14,265,558
Expenses 30,777,350 14,100,075
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Income (loss) from operations (4,327,714) 165,483
Other income 202,337 28,572
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Income (loss) before income taxes (4,125,377) 194,055
Income tax benefit -- (51,000)
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Net income (loss) $ (4,125,377) $ 245,055
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Net Income (loss) per common share: Basic $ (0.63) $ 0.04
Weighted average number of common shares
outstanding: Basic 6,502,736 5,519,895
Net Income (loss) per common share: Diluted $ (0.63) $ 0.04
Weighted average number of common shares
outstanding: Diluted 6,502,736 5,805,338
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