Exhibit 99.1
[GLOBAL ENTERTAINMENT LOGO]
For Further Information Contact:
NEWS RELEASE Richard Kozuback, President
Global Entertainment Corporation
480-994-0772
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
GLOBAL ENTERTAINMENT CORPORATION ANNOUNCES FISCAL YEAR 2008 RESULTS
TEMPE, ARIZONA, AUGUST 29, 2008 -- 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, and venue ticketing, today reported a loss of $4.03 million for the
fiscal year ended May 31, 2008 comprised of: 1) a loss from continuing
operations of $2.82 million primarily attributable to legal fees and settlements
costs associated with several litigation issues, and 2) a $1.21 million loss
from discontinued operations related to the company's divestiture of its Cragar
subsidiary. Revenue of $12.44 million was 51.8% lower than the $25.81 million of
revenues realized for the fiscal year ended May 31, 2007. This reduction was
primarily related to the timing of project management fees realized from major
projects that occurred in fiscal 2007. The project management fees in fiscal
2007 of $13.87 million included substantial revenue from the company's purchase
and subsequent resale of furniture, fixtures and equipment (FFE) for the arenas
then under construction. Only minimal FFE revenue was realized in fiscal 2008 as
project management fees were only $0.91 million. Also contributing to the
decrease in revenue was a reduction of $0.3 million due to the cancellation of
facility contracts in Ohio.
Richard Kozuback, president and chief executive officer stated, "Our loss from
continuing operations was impacted by the settlement of several litigation
issues and the decrease in facility service fees from the cancellation of
facility contracts in Ohio. Our ticketing operations were also affected by the
contract cancellation however service fees were relatively unchanged as a result
of GetTix's well diversified revenue stream."
Continuing, Mr. Kozuback pointed out that, "Because the timing of the long-term
development projects we work on have substantial variation, any delays in
initiating or completing the projects reverberate company-wide and affect the
revenue streams received by all our subsidiary companies. This was evident in
fiscal 2008 and will hopefully go in the other direction for fiscal 2009. For
example, in fiscal year 2009 we have the opening of the Town Toyota Center in
Wenatchee, Washington planned for October 2008 for which Global subsidiary
companies will supply exclusive services for up to 15 years.
* Encore Facility Management (Encore) will manage the building
operations.
* Global Entertainment Marketing Systems (GEMS) will be the licensing
and advertising arm handling all sales and marketing services.
* Global Entertainment Ticketing (GetTix.Net) will provide exclusive
ticketing services for all events.
For fiscal 2009, we also have underway the previously announced development
projects with the Cities of Allen, Texas (a $50 million multi-purpose events
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Global Entertainment Corporation Announces Fiscal Year 2008 Results
August 29, 2008
Page 2
center), and Independence, Missouri (a $52 million multi-purpose events center).
We anticipate that both facilities will have CHL teams and utilize our full
array of services provided by our multiple subsidiary companies."
Finally, Mr. Kozuback concluded, "After examining our core strengths in addition
to observing the weakening of the automobile industry and the slowing demand in
the automotive aftermarket business, we decided to sell the assets of Cragar
Industries and take a charge in the fourth fiscal quarter of approximately $1.0
million, which is included in our loss from discontinued operations. This
divestiture allows us to fully focus on our primary business of developing
first-class multi-purpose events centers that offer mid-sized communities the
opportunity to enjoy a wide array of sports and entertainment options."
Visit our web sites:
www.globalentertainment2000.com www.centralhockeyleague.com
www.coliseums.com www.GetTix.net
Global Entertainment Corporation is an integrated events and entertainment
company focused on mid-size communities that is engaged, through its six wholly
owned subsidiaries, in sports management, multi-purpose events and entertainment
centers and related real estate development, facility and venue management and
marketing and venue ticketing. 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.
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-K for the year ended May 31, 2008, as filed with the
Securities and Exchange Commission.
FINANCIAL TABLES FOLLOWS:
Global Entertainment Corporation Announces Fiscal Year 2008 Results
August 29, 2008
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
May 31, May 31,
2008 2007
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 443 $ 4,252
Accounts receivable, net 1,111 3,420
Investment in Wenatchee project 34,473 --
Other current assets 2,406 1,085
-------- --------
Total Current Assets 38,433 8,757
Other Assets 931 3,549
-------- --------
Total Assets $ 39,364 $ 12,306
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 8,468 $ 4,728
Deferred revenues 24 240
Notes payable - current portion 27,220 --
Liabilities related to assets to be disposed 233 318
-------- --------
Total Current Liabilities 35,945 5,286
-------- --------
Other Liabilities 297 66
-------- --------
Total Liabilities 36,242 5,352
-------- --------
Stockholders' Equity:
Common stock 7 7
Paid-in capital 10,930 10,731
Retained deficit (7,815) (3,784)
-------- --------
Total Stockholders' Equity 3,122 6,954
-------- --------
Total Liabilities and Stockholders' Equity $ 39,364 $ 12,306
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Global Entertainment Corporation Announces Fiscal Year 2008 Results
August 29, 2008
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GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
For the Years Ended
----------------------------------
May 31, 2008 May 31, 2007
------------ ------------
Revenue $ 12,437 $ 25,812
Expenses 15,202 28,874
----------- -----------
Loss from operations
(2,765) (3,062)
Other income (expense) (159) 461
----------- -----------
Loss from continuing operations before income taxes (2,924) (2,601)
Income tax benefit 105 --
----------- -----------
Loss from continuing operations (2,819) (2,601)
Loss from discontinued operations, net of income taxes (1,212) (1,524)
----------- -----------
Net loss $ (4,031) $ (4,125)
=========== ===========
Loss per common share:
Diluted
Loss from continuing operations $ (0.43) $ (0.40)
Loss from discontinued operations (0.19) (0.23)
----------- -----------
Net loss $ (0.62) $ (0.63)
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Weighted average number of common shares outstanding: Diluted 6,545,292 6,502,736
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