Exhibit 99.1
NEWS RELEASE
[GLOBAL ENTERTAINMENT LOGO]
For Further Information Contact:
Richard Kozuback, President
Global Entertainment Corporation
480-994-0772
Global Entertainment Corporation Rudy R. Miller, Chairman
1600 North Desert Drive, Suite 301 The Miller Group
Tempe, Arizona 85281 Investor Relations for the Company
602-225-0505
gee@themillergroup.net
GLOBAL ENTERTAINMENT CORPORATION REPORTS
REVENUE IMPROVED IN THIRD QUARTER AND NINE-MONTHS FISCAL 2009
TEMPE, ARIZONA, APRIL 14, 2009 -- GLOBAL ENTERTAINMENT CORPORATION (NYSE AMEX:
GEE) -today reported revenue in both the third quarter and the nine-months
fiscal 2009 ended February 28, 2009 were up over the prior year results.
Revenue improvement in the three-month period ended February 28, 2009, was
derived from several segments of the company's diversified revenue streams.
Project management fees that included fees on projects in progress in
Independence, Missouri (started February 2008), Allen, Texas (started June 2008)
and the Wenatchee, Washington project, recognized on a percentage of completion
basis, were up 87.1% to $0.2 million for the third quarter ended February 28,
2009, compared to $0.1 million in the prior fiscal year. Facility management
fees increased 36.3%, to $1.1 million in the third quarter ended February 28,
2009, compared to $0.8 million in the three-month period ended February 29,
2008. The $0.3 million year-over-year increase in fees resulting from the
opening of the Wenatchee, Washington facility in October 2008, was offset by a
decline in fees from management of the Rio Rancho, New Mexico, which ended in
January 2009. Providing a new source of revenue for the company, concession
revenue was $0.3 million for the three-month period ended February 28, 2009 and
transfer of a license, not a regularly recurring event, provided revenue of $0.4
million for the three-month period ended February 28, 2009. A loss from
continuing operations of $0.1 million, $0.02 per share, was reported for the
third quarter ended February 28, 2009, compared to income from continuing
operations of $0.1 million for third quarter ended February 29, 2008.
Revenue for the nine-month period of fiscal 2009 showed a slight improvement of
0.5% to $9.13 million from $9.09 million for the prior fiscal year. The increase
in project management fees of $1.1 million and the new concession revenue source
of $0.4 million were offset by declines in other revenue segments. For the
nine-month period ended February 28, 2009, the company reported a loss from
continuing operations of $0.5 million, or $0.08 per share, compared to the loss
from continuing operations of $1.8 million, or $0.28 per share, for the same
Global Entertainment Corporation Reports Revenue Improved in Third Quarter and
Nine-Months Fiscal 2009
April 14, 2009
Page 2
nine-month period in the prior fiscal year that included $1.1 million in
additional legal, settlement and severance costs.
"In the third quarter we experienced solid operating results from our two
projects under construction (Independence, Missouri and Allen, Texas). We also
received a portion of the project development fees under an agreement previously
announced in January 2009 for an events center project scheduled in Dodge City,
Kansas. Given the current economic climate however we have seen a decrease in
sales from the decline in the number of events held at our events centers under
our facility management agreements as well as a decline in attendance at events
and venues. This also negatively impacts our ticketing revenue from those
facilities. Ticketing done on a national level as an independent, full-service
ticketing company has also declined. We continue to monitor closely our general
operating costs to keep them aligned with operational requirements," Richard
Kozuback, president and chief executive officer said.
Kozuback continued, "We are preparing for the topping off ceremony, a milestone
in any major construction project, for the Independence, Missouri and Allen,
Texas projects later this month staying on time for their projected openings in
November 2009. Upon completion, these two facilities will produce multiple
revenue generating opportunities for our company through multi-year facility
management agreements and exclusive ticketing service agreements for all
events."
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 develop potential new
properties. INTERNATIONAL COLISEUMS COMPANY (ICC) serves as project manager for
arena development while ENCORE FACILITY MANAGEMENT coordinates arena 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 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.
Global Entertainment Corporation Reports Revenue Improved in Third Quarter and
Nine-Months Fiscal 2009
April 14, 2009
Page 3
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 TABLE FOLLOWS:
Global Entertainment Corporation Reports Revenue Improved in Third Quarter and
Nine-Months Fiscal 2009
April 14, 2009
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
February 28, May 31,
2009 2008
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,233 $ 443
Accounts receivable, net 1,681 1,111
Investment in Wenatchee project -- 34,473
Other current assets 498 2,406
-------- --------
Total Current Assets 3,412 38,433
Other Assets 1,773 931
-------- --------
Total Assets $ 5,185 $ 39,364
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 2,037 $ 8,468
Notes payable 109 27,220
Other liabilities 238 257
-------- --------
Total Current Liabilities 2,384 35,945
Notes payable and other long-term liabilities 214 297
-------- --------
Total Liabilities 2,598 36,242
-------- --------
Stockholders' Equity:
Common stock 7 7
Paid-in capital 10,953 10,930
Accumulated deficit (8,373) (7,815)
-------- --------
Total Stockholders' Equity 2,587 3,122
-------- --------
Total Liabilities and Stockholders' Equity $ 5,185 $ 39,364
======== ========
Global Entertainment Corporation Reports Revenue Improved in Third Quarter and
Nine-Months Fiscal 2009
April 14, 2009
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share amounts)
For the Three Months Ended For the Nine Months Ended
------------------------------- -------------------------------
February 28, February 29, February 28, February 29,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenue $ 3,537 $ 3,037 $ 9,127 $ 9,086
Expenses 3,620 2,995 9,234 11,057
----------- ----------- ----------- -----------
Income (loss) from operations (83) 42 (107) (1,971)
(59) -- (403) 48
Other income (expense)
----------- ----------- ----------- -----------
Income (loss) from continuing
operations before income taxes (142) 42 (510) (1,923)
Income tax benefit -- 107 -- 107
----------- ----------- ----------- -----------
Income (loss) from continuing (142) 149 (510) (1,816)
operations
Loss from discontinued operations,
net of income taxes -- (72) (48) (218)
----------- ----------- ----------- -----------
Net income (loss) $ (142) $ 77 $ (558) $ (2,034)
=========== =========== =========== ===========
Earnings (loss) per common share - Diluted:
Income (loss) from continuing operations $ (0.02) $ 0.02 $ (0.08) $ (0.28)
Loss from discontinued operations -- (0.01) -- (0.03)
----------- ----------- ----------- -----------
Net income (loss) $ (0.02) $ 0.01 $ (0.08) $ (0.31)
=========== =========== =========== ===========
Weighted average number of common shares
outstanding:
Diluted 6,627,112 6,542,004 6,626,072 6,518,491
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