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
FOR IMMEDIATE RELEASE
GLOBAL ENTERTAINMENT CORPORATION REPORTS
FIRST QUARTER FISCAL 2010 RESULTS
TEMPE, ARIZONA, OCTOBER 15, 2009 -- GLOBAL ENTERTAINMENT CORPORATION (OTCBB:
GNTP) - today reported for the first three months of fiscal 2010, the company
realized a net loss of $0.25 million or $0.04 per share compared to a net loss
of $0.16 million or $0.02 per share for the three-month period ended August 31,
2008. The prior year period included a loss of $0.05 million from discontinued
operations, net of income taxes for which there is no comparable loss in the
first quarter of the current fiscal year 2010.
Revenue for the first quarter ended August 31, 2009 was $2.37 million, an
improvement over revenue of $2.36 million in the first quarter period ended
August 31, 2008. Facility management fees increased 103.1% to $0.9 million
compared to $0.4 million in the same period in the prior fiscal year. This was
primarily due to fees for preopening services on the Allen, Texas and
Independence, Missouri projects. License fees-league dues and other increased
36.5% to $0.37 million compared to $0.27 million in the prior fiscal year, which
represents an increase in sponsorship revenue. These increases however were
offset by a combination of the decreases of $0.16 million in project development
fees, $0.02 million in project management fees and $0.42 million in ticket
service fees.
Richard Kozuback, president and chief executive officer said, "Unemployment
numbers continue to increase despite the fact there are reported signs of
general improvement taking place in the economic recovery. We see high
unemployment rates as a contributing factor for the decline in the entertainment
business that directly affects our subsidiaries involved in arena development,
facility and venue management and marketing, and venue ticketing. Attendance at
events held at our facilities continues to be impacted by the current economic
conditions.
"We expect to earn advertising sales commissions and facility management fees
through our multi-year contracts with Independence, Missouri and Allen Texas
throughout the fiscal year. We also expect to earn project development fees in
our second quarter ended November 30, 2009 from our Dodge City, Kansas project
agreement. We are making every effort to meet the challenges faced in these
difficult economic times as we focus on effective operation of our core
businesses and on controlling expenses," Kozuback stated.
more...
Global Entertainment Corporation Reports First Quarter Fiscal 2010 Results
October 15, 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, INC. (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 sheet contained in this press release
has 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 TABLES FOLLOW:
Global Entertainment Corporation Reports First Quarter Fiscal 2010 Results
October 15, 2009
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
As of August 31, 2009 (Unaudited) and May 31, 2009 (Audited)
(in thousands, except share and per share amounts)
August 31, May 31,
2009 2009
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 756 $ 1,111
Accounts receivable, net of $5 allowance at May 31, 2009 3,359 2,220
Prepaid expenses and other assets 252 281
Property held for sale - food service equipment 577 --
-------- --------
Total Current Assets 4,944 3,612
Property and equipment, net 138 708
Goodwill 519 519
Other assets 295 329
-------- --------
Total Assets $ 5,896 $ 5,168
======== ========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 1,817 $ 1,132
Accrued liabilities 487 588
Deferred revenues 458 64
Note payable - current portion 113 111
-------- --------
Total Current Liabilities 2,875 1,895
Deferred income tax liability, net 5 5
Note payable - long-term portion 40 69
-------- --------
Total Liabilities 2,920 1,969
-------- --------
Commitments and Contingencies
Equity:
Global Entertainment Corporation 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 shares issued and outstanding as of August 31, 2009
and May 31, 2009 7 7
Paid-in capital 10,970 10,961
Retained deficit (8,037) (7,788)
-------- --------
Total Global Entertainment Corporation Equity 2,940 3,180
Noncontrolling interest 36 19
-------- --------
Total Equity 2,976 3,199
-------- --------
Total Liabilities and Equity $ 5,896 $ 5,168
======== ========
Global Entertainment Corporation Reports First Quarter Fiscal 2010 Results
October 15, 2009
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended August 31, 2009 and 2008
(Unaudited) (in thousands, except share and per share amounts)
2009 2008
---------- ----------
Revenues:
Project development fees $ 50 $ 209
Project management fees 446 465
Facility management fees 904 445
Ticket service fees 199 620
Food service revenue 72 --
Advertising sales commissions 71 245
License fees - league dues and other 374 274
License fees - initial and transfer 100 --
Other revenue 154 101
---------- ----------
Total Revenues 2,370 2,359
---------- ----------
Operating Costs:
Cost of revenues 1,136 979
General and administrative costs 1,464 1,496
---------- ----------
Total Operating Costs 2,600 2,475
---------- ----------
Operating Loss (230) (116)
---------- ----------
Other Income (Expense):
Interest income 1 3
Interest expense (3) (7)
---------- ----------
Total Other Expense (2) (4)
---------- ----------
Loss from Continuing Operations Before Tax (232) (120)
Income Tax Benefit -- --
---------- ----------
Loss from Continuing Operations, net of tax (232) (120)
Loss from Discontinued Operations, net of tax -- (48)
---------- ----------
Net Loss (232) (168)
Net Income (Loss), attributable to noncontrolling interest 17 (8)
---------- ----------
Net Loss, attributable to Global $ (249) $ (160)
========== ==========
Loss Per Share - basic and diluted:
Loss from continuing operations, attributable to Global common
shareholders $ (0.04) $ (0.02)
Loss from discontinued operations, attributable to Global common
shareholders -- --
---------- ----------
Net loss, attributable to Global common shareholders $ (0.04) $ (0.02)
========== ==========
Weighted Average Number of Shares Outstanding - basic and diluted 6,633,112 6,625,114
========== ==========
Amounts attributable to Global common shareholders
Loss from continuing operations, net of tax, attributable
to Global common shareholders $ (249) $ (112)
Loss from discontinued operations, net of tax, attributable
to Global common shareholders -- (48)
---------- ----------
Net loss, attributable to Global common shareholders $ (249) $ (160)
========== ==========
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