Exhibit 99.1
[GLOBAL ENTERTAINMENT LOGO]
For Further Information Contact:
NEWS RELEASE Richard Kozuback, President
Global Entertainment Corporation
480-994-0772
www.globalentertainment2000.com
Global Entertainment Corporation Rudy R. Miller, Chairman
4909 East McDowell Road, Suite 104 The Miller Group
Phoenix, Arizona 85008-4293 Investor Relations for the Company
602-225-0505
gee@themillergroup.net
FOR IMMEDIATE RELEASE
Global Entertainment Corporation Reports
Second Quarter Fiscal 2008 Results
PHOENIX, ARIZONA, JANUARY 14, 2008 -- 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 second quarter ended November
30, 2007 was $3,022,583, a decrease of 76.4% compared to revenue of $12,833,023
in the second quarter of the prior fiscal year. For the three-month period ended
November 30, 2007, the company realized a net loss of $592,727 or $(.09) per
share compared to net income of $117,526 or $.02 per share for the three-month
period ended November 30, 2006.
Revenue for the first six months of fiscal 2008 was $6,495,859, a decrease of
60.6% compared to revenue of $16,484,941 in the first six months of the prior
fiscal year. A net loss of $2,111,021 or $(.32) per share was reported for the
six-month period ended November 30, 2007 compared to a net loss of $821,134 or
$(.13) per share for the first six month period of fiscal 2007.
The net loss incurred by the company in the second quarter fiscal 2008 was
primarily attributable to a $9,810,440 or 76.4% decrease in revenue largely at
our ICC subsidiary due to a reduction of projects under management. Also
contributing to the revenue decline was the agreed upon cancellation of our
facility management contract with the Chevrolet Center in Youngstown, Ohio. The
reduction in revenue in our second quarter results points to the criticality of
timing for major development projects that are important for our revenue
generation.
The loss for the six-month period ended November 30, 2007 includes reserves set
aside in the first quarter for the settlement of two litigation issues, the
associated legal fees and expense recorded for the severance package of a former
executive officer that total approximately $1,300,000 or 61.6% of the total loss
in the first six months of fiscal year 2008.
"The company is in various stages of discussion, negotiation or final due
diligence on several projects previously announced and expects closure to occur
on at least one of the projects within the near future. We anticipated the
potential for new projects previously announced by Global Properties I, our real
estate development subsidiary responsible for marketing events center projects
to mid-sized communities throughout the nation, would have moved at a faster
pace thus enabling us to maintain the momentum we established in fiscal 2007. It
is our intention to have multiple events center projects under development at
any given time," stated Richard Kozuback, president and chief executive officer.
"ICC is currently managing the development of an events center in Wenatchee,
Washington. Once completed, revenue generation will come on line by way of a
multi-year facility management agreement as well as exclusive ticketing for all
events to be handled by our GetTix.Net subsidiary. In addition, we are in the
final stage of negotiations for our next development project that will include
all aspects of revenue generation for our multiple subsidiary companies. ICC
will head the design and manage the construction, a new hockey franchise will be
awarded by the Western Professional Hockey League d/b/a the Central Hockey
League and serve as the center's primary tenant, Encore Facility Management will
engage in a multi-year agreement to manage the building along with its licensing
and advertising arm, Global Entertainment Marketing Systems, which will handle
all sales and marketing services, and GetTix will provide exclusive ticketing
services for all events.
"We recognize the impact to our financial results associated with the variances
in timing for the start of major, long-term development projects and with the
up-front expenses related to the marketing program for Global Properties I. We
expect the diversification of our revenue streams, independent of new
development, to improve with our ability to enter into multi-year facility
management and ticketing agreements as each new events center is completed. Our
GetTix.Net subsidiary continues to be a bright spot and produces the majority of
its revenue from clients outside the Global network of events centers. This
subsidiary has continued to post strong operational and financial results.
Management is committed to its responsibility and mission to return the company
to profitability," concluded Kozuback.
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 (ICC)
serves as project manager for arena development while ENCORE FACILITY MANAGEMENT
coordinates operations for all arena facility scheduling. 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 a 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, and Quarterly Report
on Form 10-QSB for the quarter ended August 31, 2007, as filed with the
Securities and Exchange Commission.
FINANCIAL TABLE FOLLOWS:
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
November 30, May 31,
2007 2007
------------ ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,696,924 $ 4,251,542
Accounts receivable, net 2,354,869 3,243,482
Other current assets 1,116,058 969,485
------------ ------------
Total Current Assets 5,167,851 8,464,509
Construction in progress 14,917,862 --
Trademarks 2,737,164 2,743,341
Other Assets 798,058 819,816
------------ ------------
Total Other Assets 18,453,084 3,563,157
------------ ------------
Total Assets $ 23,620,935 $ 12,027,666
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 3,885,825 $ 4,695,293
Notes payable 63,126 --
Other liabilities 782,810 311,994
------------ ------------
Total Current Liabilities 4,731,761 5,007,287
------------ ------------
Notes payable and other long-term liabilities 14,045,816 66,000
------------ ------------
Total Liabilities 18,777,577 5,073,287
------------ ------------
Stockholders' Equity:
Common stock 6,522 6,508
Paid-in capital 10,730,997 10,731,010
Retained earnings (deficit) (5,894,161) (3,783,139)
------------ ------------
Total Equity 4,843,358 6,954,379
------------ ------------
Total Liabilities & Equity $ 23,620,935 $ 12,027,666
============ ============
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
(Unaudited)
For the three months ended For the six months ended
------------------------------- -------------------------------
November 30, November 30, November 30, November 30,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Revenue $ 3,022,583 $ 12,833,023 $ 6,495,859 $ 16,484,941
Expenses 3,650,921 12,785,348 8,679,655 17,446,154
------------ ------------ ------------ ------------
Income (loss) from operations
(628,338) 47,675 (2,183,796) (961,213)
Other income 35,611 69,851 72,775, 140,079
------------ ------------ ------------ ------------
Income (loss) before income taxes (592,727) 117,526 (2,111,021) (821,134)
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) $ (592,727) $ 117,526 $ (2,111,021) $ (821,134)
============ ============ ============ ============
Net Income (loss) per common share: Basic $ (0.09) $ 0.02 $ (0.32) $ (0.13)
Weighted average number of common shares
outstanding: Basic 6,521,117 6,500,261 6,518,604 6,497,383
Net Income (loss) per common share: Diluted $ (0.09) $ 0.02 $ (0.32) $ (0.13)
Weighted average number of common shares
outstanding: Diluted 6,521,117 6,693,742 6,518,604 6,497,383
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