Exhibit 99.1
NEWS RELEASE
[GLOBAL ENTERTAINMENT LOGO]
For Further Information Contact:
Richard Kozuback, President
Global Entertainment Corporation
480-994-0772
www.globalentertainment2000.com
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 REACHES PROFITABILITY IN FISCAL YEAR 2009
TEMPE, ARIZONA, AUGUST 28, 2009 -- GLOBAL ENTERTAINMENT CORPORATION (OTCBB:
GNTP) - today reported revenue of $13.2 million for the fiscal year ended May
31, 2009 up 6.0% compared to revenue of $12.4 million in the prior fiscal year.
Income from continuing operations was up 105.3% to $0.2 million with net income
of $27 thousand for fiscal year 2009, compared to the prior fiscal year that
reported a loss from continuing operations of $2.8 million and a net loss of
$4.0 million, which included a $1.2 million loss from discontinued operations
related to the company's divestiture of a subsidiary company.
During fiscal year 2009 the Wenatchee, Washington facility began operations and
was subsequently sold in December 2008 which allowed the company to repay the
related $48.9 million construction loan in full resulting in a positive change
to the balance sheet by the reduction of the majority of the company's
outstanding debt. From the company's multiple revenue streams project management
fees increased 109% to $1.9 million compared to $0.9 million in the prior fiscal
year; license fees - initial and transfer, were $1.6 million that included an
initial license fee of $1.2 million, a non regular recurring event that did not
occur in fiscal year ended 2008; and food service revenue was $0.7 million for
the fiscal year 2009.
"Our return to profitability in fiscal year 2009 was reached during a
significantly challenging economic time for our country and the impact it had on
the entertainment business where we found families reducing expenditures for
entertainment outside their homes. The sectors of our business tied to
management and service agreements saw a decline in the number of events held and
decline in attendance at events, which also reduced revenues in our ticketing
company. Advertising sales commissions were impacted as well. The opening of the
Allen, Texas and Independence, Missouri arenas in the fall of 2009 shows promise
for added revenue with the new multi-year contracts in place," stated Richard
Kozuback, president and chief executive officer. "Contributing to the
improvement in net income was a decrease in our legal and settlement costs over
the prior fiscal year and reduction in corporate payroll.
"Ground breaking on the $41.5 million Dodge City, Kansas arena is expected in
October 2009 and we will be recording project management fees throughout fiscal
2010. The facility has a planned opening in 2011," Kozuback continued. "We
expect 2010 will continue to present challenges until there are more indications
that the economy is in a solid state of recovery. Making operational adjustments
within the current economic environment will be a focus for management and the
Board of Directors."
more...
Global Entertainment Corporation Reaches Profitability in Fiscal Year 2009
August 28, 2009
Page 2
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 seven
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 and GEC
FOOD SERVICE, LLC coordinates arena operations and concessions. 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.
The "audited" consolidated balance sheets and consolidated statements of
operations contained in this press release have been derived from, and
should be read in conjunction with, the Company's May 31, 2009 annual
report on Form 10-K. This press release does not include all disclosures
normally required by accounting principles generally accepted in the United
States.
FINANCIAL TABLE FOLLOWS:
Global Entertainment Corporation Reaches Profitability in Fiscal Year 2009
August 28, 2009
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
May 31, 2009 and 2008
(Audited)
(in thousands, except share and per share amounts)
2009 2008
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,111 $ 443
Accounts receivable, net of $5 and $2 allowance
at May 31, 2009 and 2008 2,220 1,111
Prepaid expenses and other assets 281 239
Investment in Wenatchee project -- 34,473
Deferred income tax asset, net -- 112
Assets to be disposed -- 2,033
-------- --------
TOTAL CURRENT ASSETS 3,612 38,411
Property and equipment, net 708 266
Goodwill 519 519
Other assets 329 108
Minority interests -- 38
-------- --------
TOTAL ASSETS $ 5,168 $ 39,342
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,132 $ 7,718
Accrued liabilities 588 750
Deferred revenues 64 24
Notes payable - current portion 111 27,220
Minority interests 19 --
Liabilities related to assets to be disposed -- 211
-------- --------
TOTAL CURRENT LIABILITIES 1,914 35,923
Deferred income tax liability, net 5 117
Notes payable - long-term portion 69 180
-------- --------
TOTAL LIABILITIES 1,988 36,220
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock - $.001 par value; 10,000,000 shares authorized;
no shares issued or outstanding -- --
Common stock - $.001 par value; 50,000,000 shares authorized;
6,633,112 and 6,625,114 shares issued and outstanding as
of May 31, 2009 and 2008 7 7
Paid-in capital 10,961 10,930
Retained deficit (7,788) (7,815)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 3,180 3,122
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,168 $ 39,342
======== ========
Global Entertainment Corporation Reaches Profitability in Fiscal Year 2009
August 28, 2009
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended May 31, 2009 and 2008
(Audited)
(in thousands, except share and per share amounts)
2009 2008
----------- -----------
REVENUES:
Project development fees $ 703 $ 769
Project management fees 1,908 913
Facility management fees 3,191 3,279
Ticket service fees 2,783 4,170
Food service revenue 677 --
Advertising sales commissions 454 767
License fees - league dues and other 1,745 1,923
License fees - initial and transfer 1,577 371
Other revenue 141 245
----------- -----------
TOTAL REVENUES 13,179 12,437
----------- -----------
OPERATING COSTS:
Cost of revenues 5,959 6,759
General and administrative costs 6,626 8,443
----------- -----------
TOTAL OPERATING COSTS 12,585 15,202
----------- -----------
OPERATING INCOME (LOSS) 594 (2,765)
----------- -----------
OTHER EXPENSE:
Interest income 20 94
Interest expense (407) (40)
Minority interests (57) 38
Loss on investment in PVEC, LLC -- (251)
----------- -----------
TOTAL OTHER EXPENSE (444) (159)
----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 150 (2,924)
INCOME TAX BENEFIT -- 105
----------- -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 150 (2,819)
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES (123) (1,212)
----------- -----------
NET INCOME (LOSS) $ 27 $ (4,031)
=========== ===========
EARNINGS (LOSS) PER SHARE:
Basic -
Income (loss) from continuing operations $ 0.02 $ (0.43)
Loss from discontinued operations (0.02) (0.19)
----------- -----------
Net income (loss) $ 0.00 $ (0.62)
=========== ===========
Diluted -
Income (loss) from continuing operations $ 0.02 $ (0.43)
Loss from discontinued operations (0.02) (0.19)
----------- -----------
Net income (loss) $ 0.00 $ (0.62)
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic 6,628,076 6,545,292
=========== ===========
Diluted 6,632,762 6,545,292
=========== ===========