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 Reports
Third Quarter 2010 Results
TEMPE, ARIZONA, APRIL 14, 2010 -- GLOBAL ENTERTAINMENT CORPORATION (OTCBB: GNTP)
- - today reported for the third quarter of fiscal 2010, the company realized a
net loss of $0.5 million or $0.08 per share compared to a net loss of $0.1
million or $0.02 per share for the three-month period ended February 28, 2009.
Revenue for the three months ended February 28, 2010 was $3.2 million compared
to $3.5 million during the quarter ended February 28, 2009. The main source of
revenue during the period remained facility management fees at $1.1 million
which were virtually unchanged from the three months ended February 28, 2009.
Facility management fees in the three months ended February 28, 2010 were driven
by the first full quarter of recurring fees from buildings in Allen, Texas and
Independence, Missouri that opened in November 2009. However, these increases
were offset by year-over-year declines in monthly management fees from the Rio
Rancho, New Mexico facility, which ended in January 2009, the Wenatchee,
Washington facility, which ended in August 2009, and the Prescott Valley
facility. Ticket service fees decreased $0.5 million, to $0.3 million during the
third quarter, from $0.8 million in the prior year quarter. This decrease in
ticket service fees reflects declines in the number of events held, attendance
at events and venues under contract. License fees from initial and transfer
franchises were zero in the quarter ended February 28, 2010, and $0.4 million in
the prior year quarter.
The two brightest areas during the quarter from the standpoint of revenue
generation were food service and license fees from league dues and other. Food
service revenues increased $0.6 million in the third quarter of fiscal year
2010, to $0.9 million, compared to $0.3 million in the prior year quarter. The
quarter ended February 28, 2010, was the first full quarter of food service
operations at the Independence, Missouri facility. Food service revenue is
currently derived almost entirely from the Independence, Missouri facility.
License fees from league dues and other areas increased slightly, moving upwards
$0.1 million during the third quarter of fiscal 2010 to $0.6 million from $0.5
million in the three months ended February 28, 2009. The increase was the result
of growth in corporate sponsorship revenue.
Richard Kozuback, president and chief executive officer stated, "The prolonged
economic doldrums of the past 18 months, including an unemployment rate hovering
around 10 percent, have continued to negatively impact the entire entertainment
industry. As such, our revenues have continued to suffer. Specifically our
ticketing, franchise licensing and project development businesses have been
susceptible to the decrease in number of entertainment events occurring and
attendance at held events as well as a hold on new project approvals from
cities."
more...
Global Entertainment Corporation Reports Third Quarter 2010 Results
April 14, 2010
Page 2
"Our belief remains that the economy will continue to improve as the year
progresses and demand for entertainment facilities and events will return. We
persist in working towards positioning Global Entertainment to be a beneficiary
when the demand for entertainment alternatives does increase and we are hopeful
that our combination of entertainment options will satisfy a portion of the
public's appetite. In addition, we continue to be excited by the future facility
in Dodge City, Kansas which broke ground in October 2009, and project management
fees from this events center are expected to continue being earned over a total
of 22 months", stated Kozuback.
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 Third Quarter 2010 Results
April 14, 2010
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
As of February 28, 2010 (Unaudited) and May 31, 2009 (Audited)
(in thousands, except share and per share amounts)
February 28, May 31,
2010 2009
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 585 $ 1,111
Accounts receivable, net of $5 allowance at May 31, 2009 2,158 2,220
Prepaid expenses and other assets 330 281
-------- --------
TOTAL CURRENT ASSETS 3,073 3,612
Property and equipment, net 114 708
Accounts receivable 736 215
Goodwill 519 519
Other assets 119 114
-------- --------
TOTAL ASSETS $ 4,561 $ 5,168
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LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,022 $ 1,132
Accrued liabilities 596 588
Deferred revenues 316 64
Note payable - current portion 97 111
-------- --------
TOTAL CURRENT LIABILITIES 2,031 1,895
Deferred income tax liability, net 5 5
Note payable - long-term portion -- 69
-------- --------
TOTAL LIABILITIES 2,036 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
February 28, 2010 and May 31, 2009 7 7
Paid-in capital 10,984 10,961
Retained deficit (8,510) (7,788)
-------- --------
TOTAL GLOBAL ENTERTAINMENT CORPORATION EQUITY 2,481 3,180
Noncontrolling interest 44 19
-------- --------
TOTAL EQUITY 2,525 3,199
-------- --------
TOTAL LIABILITIES AND EQUITY $ 4,561 $ 5,168
======== ========
Global Entertainment Corporation Reports Third Quarter 2010 Results
April 14, 2010
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended February 28,
2010 and 2009 (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
February 28, February 28,
------------------------- --------------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
REVENUES:
Project development fees $ -- $ 100 $ 152 $ 578
Project management fees 203 247 1,182 1,473
Facility management fees 1,116 1,067 3,554 2,240
Ticket service fees 268 766 781 2,081
Food service revenue 909 282 1,233 412
Advertising sales commissions 74 115 265 493
License fees - league dues and other 626 517 1,474 1,306
License fees - initial and transfer -- 443 100 443
Other revenue 29 -- 188 101
---------- ---------- ---------- ----------
TOTAL REVENUES 3,225 3,537 8,929 9,127
---------- ---------- ---------- ----------
OPERATING COSTS:
Cost of revenues 1,962 1,939 5,041 4,337
General and administrative costs 1,671 1,681 4,498 4,897
---------- ---------- ---------- ----------
TOTAL OPERATING COSTS 3,633 3,620 9,539 9,234
---------- ---------- ---------- ----------
OPERATING LOSS (408) (83) (610) (107)
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest income 4 6 5 18
Interest expense (2) (47) (7) (408)
Loss on investment in PVEC, LLC (85) -- (85) --
---------- ---------- ---------- ----------
TOTAL OTHER EXPENSE (83) (41) (87) (390)
---------- ---------- ---------- ----------
LOSS FROM CONTINUING OPERATIONS, BEFORE TAX (491) (124) (697) (497)
INCOME TAX BENEFIT -- -- -- --
---------- ---------- ---------- ----------
LOSS FROM CONTINUING OPERATIONS, NET OF TAX (491) (124) (697) (497)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX -- -- -- (48)
---------- ---------- ---------- ----------
NET LOSS (491) (124) (697) (545)
NET LOSS, ATTRIBUTABLE TO NONCONTROLLING INTEREST 8 18 25 13
---------- ---------- ---------- ----------
NET LOSS, ATTRIBUTABLE TO GLOBAL $ (499) $ (142) $ (722) $ (558)
========== ========== ========== ==========
LOSS PER SHARE - BASIC AND DILUTED:
Loss from continuing operations, attributable to Global
common shareholders $ (0.08) $ (0.02) $ (0.11) $ (0.08)
Loss from discontinued operations, attributable to Global
common shareholders -- -- -- --
---------- ---------- ---------- ----------
Net Loss, attributable to Global common shareholders $ (0.08) $ (0.02) $ (0.11) $ (0.08)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED 6,646,062 6,627,112 6,639,394 6,626,072
========== ========== ========== ==========
AMOUNTS ATTRIBUTABLE TO GLOBAL COMMON SHAREHOLDERS
Loss from continuing operations, net of tax, attributable
to Global common shareholders $ (499) $ (142) $ (722) $ (510)
Loss from discontinued operations, net of tax, attributable
to Global common shareholders -- -- -- (48)
---------- ---------- ---------- ----------
Net loss, attributable to Global common shareholders $ (499) $ (142) $ (722) $ (558)
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