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
REVENUE AND NET INCOME GAINS IN SECOND QUARTER 2010 RESULTS
TEMPE, ARIZONA, JANUARY 14, 2010 -- GLOBAL ENTERTAINMENT CORPORATION (OTCBB:
GNTP) - today reported revenue and net income. Each showed growth in the second
quarter fiscal 2010 period ended November 30, 2009 compared to prior year
results. Additionally, revenue also expanded for the six-month fiscal 2010
period ended November 30, 2009 compared to the previous year.
For the second quarter of fiscal 2010, the company realized net income from
continuing operations of $0.03 million or $0.00 per share, a progression from
the net loss of $0.3 million or $0.04 per share it experienced during the
three-month period ended November 30, 2008. Revenue for the second quarter of
fiscal 2010 was $3.3 million compared to revenue of $3.2 million for the same
period ended November 30, 2008, an increase of 3.2%. The largest driver of
revenue during the period came from facility management fees which rose to $1.5
million compared to $0.7 million in the same period in the previous fiscal year,
an improvement of 111% year-over-year. This growth was derived mainly from fees
for preopening services on the Allen, Texas and Independence, Missouri projects.
Food service revenues have also increased; growing 94% year-over-year to $0.3
million in the three-month period ended November 30, 2009, up from $0.1 million
in the second quarter of the prior year. The Company's food service business
benefited from the initial 23 days of operations at the Independence, Missouri
facility. These gains were offset, however, by a combination of declines in the
following segments: $0.17 million in project development fees, $0.23 million in
project management fees and $0.38 million in ticket service fees.
Revenue for the first six months of fiscal 2010 increased 2.0% higher than the
same period in fiscal 2009 to $5.7 million from $5.6 million. The gain in
facility management fees of $1.3 million and food service fees of $0.2 million
were offset by decreases in other areas which led to a net loss from continuing
operations, however, there was still slight year-over-year improvement. For the
six-month period ended November 30, 2009, the company reported a loss from
continuing operations of $0.2 million, or $0.03 per share, compared to the loss
from continuing operations for the same six-month period in the prior fiscal
year of $0.4 million, or $0.06 per share, which included a loss, net of taxes,
from discontinued operations of $0.05 million.
Richard Kozuback, president and chief executive officer stated, "Our revenues
have continued to be impacted by the lingering high unemployment levels and
overall fragility of the economy which have adversely affected the entertainment
industry as a whole. In particular, our project development and management,
more...
Global Entertainment Corporation Reports Second Quarter Fiscal 2010 Results
January 14, 2010
Page 2
ticketing and advertising businesses have all suffered due to the economic
environment and decline in the number of events held, attendance at events and
venues under contract."
Kozuback elaborated, "We are optimistic, however, that the economy will show
improvement during the 2010 calendar year and are hopeful that the mix of
entertainment facilities and events we are involved with will continue to
provide customers with high-quality alternatives if spending on entertainment
increases. We are also proud to have completed construction in the second
quarter on facilities in Allen, Texas and Independence, Missouri and opened
these buildings in November 2009. In addition, we are excited by the future
facility in Dodge City, Kansas. The project broke ground in October 2009, and we
are continuing to earn project management fees."
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 coordinate 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 Second Quarter Fiscal 2010 Results
January 14, 2010
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
As of November 30, 2009 (Unaudited) and May 31, 2009 (Audited)
(in thousands, except share and per share amounts)
November 30, May 31,
2009 2009
-------- --------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,561 $ 1,111
Accounts receivable, net of $5 allowance at May 31, 2009 3,163 2,220
Prepaid expenses and other assets 457 281
-------- --------
Total Current Assets 6,181 3,612
Property and equipment, net 127 708
Accounts recievable 640 215
Goodwill 519 519
Other assets 119 114
-------- --------
Total Assets $ 7,586 $ 5,168
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LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 3,546 $ 1,132
Accrued liabilities 506 588
Deferred revenues 392 64
Note payable - current portion 115 111
-------- --------
Total Current Liabilities 4,559 1,895
Deferred income tax liability, net 5 5
Note payable - long-term portion 10 69
-------- --------
Total Liabilities 4,574 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;
6,646,062 and 6,633,112 shares issued and outstanding as of
November 30, 2009 and May 31, 2009 7 7
Paid-in capital 10,980 10,961
Retained deficit (8,011) (7,788)
-------- --------
Total Global Entertainment Corporation Equity 2,976 3,180
Noncontrolling interest 36 19
-------- --------
Total Equity 3,012 3,199
-------- --------
Total Liabilities and Equity $ 7,586 $ 5,168
======== ========
Global Entertainment Corporation Reports Second Quarter Fiscal 2010 Results
January 14, 2010
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended November 30, 2009 and 2008
(Unaudited) (in thousands, except share and per share amounts)
Three Months Ended Six Months Ended
November 30, November 30,
------------------------ ------------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues:
Project development fees $ 102 $ 269 $ 152 $ 478
Project management fees 533 761 979 1,226
Facility management fees 1,534 728 2,438 1,173
Ticket service fees 314 695 513 1,315
Food service revenue 252 130 324 130
Advertising sales commissions 120 133 191 378
License fees - league dues and other 474 515 848 789
License fees - initial and transfer -- -- 100 --
Other revenue 5 -- 159 101
---------- ---------- ---------- ----------
Total Revenues 3,334 3,231 5,704 5,590
---------- ---------- ---------- ----------
Operating Costs:
Cost of revenues 1,943 1,419 3,079 2,398
General and administrative costs 1,363 1,720 2,827 3,216
---------- ---------- ---------- ----------
Total Operating Costs 3,306 3,139 5,906 5,614
---------- ---------- ---------- ----------
Operating Income (Loss) 28 92 (202) (24)
---------- ---------- ---------- ----------
Other Income (Expense):
Interest income -- 9 1 12
Interest expense (2) (354) (5) (361)
---------- ---------- ---------- ----------
Total Other Expense (2) (345) (4) (349)
---------- ---------- ---------- ----------
Income (Loss) from Continuing Operations, before tax 26 (253) (206) (373)
Income Tax Benefit -- -- -- --
---------- ---------- ---------- ----------
Income (Loss) from Continuing Operations, net of tax 26 (253) (206) (373)
Income (Loss) from Discontinued Operations, net of tax -- -- -- (48)
---------- ---------- ---------- ----------
Net Income (Loss) 26 (253) (206) (421)
Net Income (Loss), attributable to noncontrolling interest -- 3 17 (5)
---------- ---------- ---------- ----------
Net Income (Loss), attributable to Global $ 26 $ (256) $ (223) $ (416)
========== ========== ========== ==========
Earnings (Loss) Per Share - basic and diluted:
Income (loss) from continuing operations, attributable to
Global common shareholders $ -- $ (0.04) $ (0.03) $ (0.06)
Loss from discontinued operations, attributable to Global
common shareholders -- -- -- --
---------- ---------- ---------- ----------
Net Income (Loss), attributable to Global common shareholders $ -- $ (0.04) $ (0.03) $ (0.06)
========== ========== ========== ==========
Weighted Average Number of Shares Outstanding - basic and diluted 6,639,150 6,626,015 6,636,115 6,625,562
========== ========== ========== ==========
Amounts attributable to Global common shareholders
Income (loss) from continuing operations, net of tax,
attributable to Global common shareholders $ 26 $ (256) $ (223) $ (368)
Loss from discontinued operations, net of tax, attributable
to Global common shareholders -- -- -- (48)
---------- ---------- ---------- ----------
Net income (loss), attributable to Global common shareholders $ 26 $ (256) $ (223) $ (416)
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