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
1600 North Desert Drive, Suite 300 The Miller Group
Tempe, Arizona 85281 Investor Relations for the Company
602-225-0505
gee@themillergroup.net
FOR IMMEDIATE RELEASE
Global Entertainment Corporation Reports
Third Quarter Fiscal 2008 Net Income
TEMPE, ARIZONA, APRIL 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 net income of $77,000 or $0.01 per share on
revenues of $3.2 million for the fiscal quarter ended February 29, 2008, which
includes an income tax benefit of $107,000, compared to a net loss of $304,000
or $0.05 per share on revenues of $5.7 million for the same quarter in the prior
fiscal year.
The company reported a loss from operations in the third quarter of fiscal 2008
of $31,000, an improvement from an operating loss of $478,000 for third quarter
fiscal 2007, due in part to the reduction of defense costs with the settlement
of several legal issues, a reduction in legal settlement reserves based on
actual settlement costs as well as placing an emphasis on the control of
operating costs.
In February 2008, the company signed a project management agreement with the
City of Allen, Texas for the development of a $52.5 million multi-use
entertainment facility with an anticipated average seating capacity of 6,200,
along with 25 luxury suites. The company expects the City of Allen project to
yield in excess of $2.0 million in fees to two of its subsidiaries over the
course of the twenty months that began as of February 2008. With the anticipated
opening of the City of Allen events center, other company subsidiaries plan to
serve a broad range of functions. Encore Facility Management will be engaged for
an all-inclusive multi-year facility management agreement, Global Entertainment
Marketing Systems (GEMS) will market advertising and marketing rights, Global
Entertainment Ticketing (GetTix) will provide exclusive ticketing services for
all events, and the Western Professional Hockey League d/b/a Central Hockey may
award a hockey franchise to serve as the events center's primary tenant. Ground
breaking ceremonies are expected to take place in early June 2008 with an
anticipated opening in October 2009.
"I am pleased with the improvement in our financial picture. While the City of
Allen project ramps up, the company continues to move forward on the greater
Wenatchee regional events center in the state of Washington scheduled to open in
the fall of 2008. Global Properties I maintains active discussions and
negotiations with several mid-sized communities for the development of
multi-purpose events centers," Richard Kozuback, president and chief executive
officer said. "Our ticketing company remains a strong profit center for our
operations with a base of clients many of which are outside the Global network.
more...
Global Entertainment Corporation Reports Third Quarter Fiscal 2008 Net Income
April 14, 2008
Page 2
The company's hockey subsidiary operating as the Central Hockey League completed
a successful season of operation and the teams are now in the midst of playoffs
with the ultimate winner to emerge as the Ray Miron's President Cup Champions.
"As part of the company's ongoing financial and business review of operations
the Board of Directors has determined to divest its Cragar Industries
subsidiary. Management will devote its attention to building its core business
activities through its inter-related subsidiaries. Our management team and Board
of Directors stay focused on the need to produce profitable financial results
for our shareholders," Kozuback concluded.
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 April 14, 2008, as filed with the
Securities and Exchange Commission.
FINANCIAL TABLE FOLLOWS:
Global Entertainment Corporation Reports Third Quarter Fiscal 2008 Net Income
April 14, 2008
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
February 29, May 31,
2008 2007
-------- --------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 957 $ 4,252
Accounts receivable, net 3,402 3,522
Other current assets 982 969
-------- --------
Total Current Assets 5,341 8,743
-------- --------
Construction in progress 21,818 --
Intangible assets 2,735 2,743
Other assets 806 820
-------- --------
Total Other Assets 25,359 3,563
-------- --------
Total Assets $ 30,700 $ 12,306
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 3,824 $ 4,973
Notes payable 511 --
Other liabilities 393 313
-------- --------
Total Current Liabilities 4,728 5,286
-------- --------
Deferred income tax liability 66 66
Notes payable and other long-term liabilities 20,776 --
-------- --------
Total Liabilities 25,570 5,352
-------- --------
Commitments and Contingencies:
Minority Interests 20 --
Stockholders' Equity:
Common stock 7 7
Paid-in capital 10,921 10,731
Retained earnings (deficit) (5,818) (3,784)
-------- --------
Total Equity 5,110 6,954
-------- --------
Total Liabilities & Stockholders' Equity $ 30,700 $ 12,306
======== ========
Global Entertainment Corporation Reports Third Quarter Fiscal 2008 Net Income
April 14, 2008
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
FINANCIAL HIGHLIGHTS
(Unaudited)(in thousands, except per share amounts)
For the three months ended For the nine months ended
------------------------------- -------------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
-------- -------- -------- --------
Revenue $ 3,172 $ 5,654 $ 9,688 $ 22,139
Expenses 3,203 6,132 11,883 23,674
-------- -------- -------- --------
Income (loss) from operations
(31) (478) (2,195) (1,535)
Other income 1 174 54 410
-------- -------- -------- --------
Income (loss) before income taxes (30) (304) (2,141) (1,125)
Income tax benefit 107 -- 107 --
-------- -------- -------- --------
Net income (loss) $ 77 $ (304) $ (2,034) $ (1,125)
======== ======== ======== ========
Earnings (loss) per common share: Basic $ 0.01 $ (0.05) $ (0.31) $ (0.17)
Weighted average number of common shares
outstanding: Basic 6,542 6,508 6,518 6,501
Earnings (loss) per common share: Diluted $ 0.01 $ (0.05) $ (0.31) $ (0.17)
Weighted average number of common shares
outstanding: Diluted 6,542 6,508 6,518 6,501
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