Exhibit 99.1
[GLOBAL ENTERTAINMENT LOGO]
For Further Information Contact:
NEWS RELEASE Richard Kozuback, President
Global Entertainment Corporation
480-994-0772
www.globalentertainment2000.com
Rudy R. Miller, Chairman
The Miller Group
Investor Relations for the Company
602-225-0505
gee@themillergroup.net
FOR IMMEDIATE RELEASE
Global Entertainment Corporation
4909 East McDowell Road, Suite 104
Phoenix, Arizona 85008-4293
Global Entertainment Corporation Reports
First Quarter Fiscal 2008 Results
PHOENIX, ARIZONA, OCTOBER 15, 2007 -- GLOBAL ENTERTAINMENT CORPORATION (AMEX:
GEE) - a company engaged in sports management, arena and related real estate
development, facility and venue management and marketing, venue ticketing and
brand licensing, today reported revenue for the first quarter ended August 31,
2007 was $3,473,276 compared to revenue of $3,651,918 in the first quarter of
the prior fiscal year. For the three-month period ended August 31, 2007, the
company realized a net loss of $1,518,294 or ($.23) per share compared to a net
loss of $938,660 or ($.14) per share for the three-month period ended August 31,
2006.
Revenue for the first quarter fiscal 2008 increased in every segment of the
company's multiple subsidiary operations with the exception of project
management fees that decreased compared to the prior year period as construction
project management agreements were in the final stages of completion, a period
that generates less revenue. Facility management revenue increased 180.2% to
$964,292 for the three months ended August 31, 2007 while licensing and
advertising fees increased 27.4% to $866,210 and ticket service fees increased
39.9% to $779,809. The new multi-purpose events center developments announced in
the last two quarters of fiscal 2007 are in various stages of formal commitment
or in the final process of due diligence analysis.
The net loss incurred by the company in the first quarter fiscal 2008 was
primarily attributable to one-time loss reserves associated with the final
settlement of two litigation issues, legal fees associated with these
settlements, a one-time charge for severance expense for a former executive and
expenses associates with the launch of special edition vehicle kits for the
CRAGAR(R) brand. The loss reserves for the two settlements, the associated legal
fees and expense recorded for the severance package total approximately
$1,300,000 or 85.6% of the total loss in the first three months of fiscal year
2008.
"Our loss for the quarter was primarily comprised of non-recurring expenses that
included the settlement of two legal claims that have taken undue management
time and attention. While settlement fees and associated costs in such matters
are counter productive to our goal of a return to profitable operations, we can
now put these issues behind us and concentrate fully on productive operations.
The increased revenue generated by our business segments involved with facility
management is in line with expectations of our business plan. We expect however
to experience variances in the timing of revenue and to some extent expenses
based on the nature of our business associated with major long-term development
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projects," stated Richard Kozuback, president and chief executive officer. "Our
development subsidiary, International Coliseums Company, is currently performing
project management services for an events and entertainment center in Wenatchee,
Washington. Our facility management subsidiary, Encore, will provide facility
management services, sales and marketing services will be performed by our GEMS
subsidiary and event ticketing will be handled by GetTix upon completion of the
facility."
Concluding Kozuback stated, "We continue to refine key strategic areas in the
execution of our business plan. The addition of general counsel to our executive
team and our new CFO both with prior public company experience in successful
national companies are major enhancements to our operations. To effect our
long-term business plan we will make ongoing investments in our infrastructure
dictated by revenue growth in each business segment. Our planned objective being
a return to profitability."
Visit our web sites:
www.globalentertainment2000.com www.centralhockeyleague.com
www.coliseums.com www.Cragar.com www.GetTix.net
Global Entertainment Corporation is an integrated events and entertainment
company focused on mid-size communities that is engaged, through its seven
wholly owned subsidiaries, in sports management, multi-purpose events and
entertainment centers and related real estate development, facility and venue
management and marketing, venue ticketing and brand licensing. GLOBAL PROPERTIES
I in correlation with arena development projects works to maximize value and
development potential of new properties. INTERNATIONAL COLISEUMS COMPANY serves
as project manager for arena development while ENCORE FACILITY MANAGEMENT
coordinates all arena facility scheduling operations. GLOBAL ENTERTAINMENT
MARKETING SYSTEMS (GEMS) pursues licensing and marketing opportunities related
to the Company's sports management and arena developments and operations. GLOBAL
ENTERTAINMENT TICKETING (GETTIX.NET) is an in-house ticketing company for sports
and entertainment venues. 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. CRAGAR
INDUSTRIES, INC. is the licensor for its nationally recognized, branded products
CRAGAR(R), TRUSPOKE(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 TABLE FOLLOWS:
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
August 31, May 31,
2007 2007
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,766,047 $ 4,251,542
Accounts receivable, net 1,842,120 3,243,482
Other current assets 1,036,591 969,485
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TOTAL CURRENT ASSETS 5,644,758 8,464,509
OTHER ASSETS 11,211,724 3,563,157
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TOTAL ASSETS $ 16,856,482 $ 12,027,666
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 4,010,090 $ 4,695,293
Notes payable 63,126 --
Other liabilities 795,141 311,994
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TOTAL CURRENT LIABILITIES 4,868,357 5,007,287
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NOTES PAYABLE AND OTHER LONG-TERM LIABILITIES 6,552,040 66,000
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TOTAL LIABILITIES 11,420,397 5,073,287
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STOCKHOLDERS' EQUITY:
Common stock 6,513 6,508
Paid-in capital 10,731,005 10,731,010
Retained earnings (deficit) (5,301,433) (3,783,139)
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TOTAL EQUITY 5,436,085 6,954,379
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TOTAL LIABILITIES & EQUITY $ 16,856,482 $ 12,027,666
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GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
(Unaudited)
For the three months ended
August 31,
---------------------------------
2007 2006
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Revenues $ 3,473,276 $ 3,651,918
Expenses 5,028,734 4,660,806
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Loss from operations (1,555,458) (1,008,888)
Other income 37,164 70,228
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Net Loss $(1,518,294) $ (938,660)
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Loss per share - basic and diluted $ (0.23) $ (0.14)
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Weighted average shares outstanding
- basic and diluted 6,508,700 6,494,428
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