Published: October 15, 2009
Global Entertainment Corporation Reports First Quarter Fiscal 2010 Results
TEMPE, Ariz. - (BUSINESS WIRE) - 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.
Visit our web sites:
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.
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GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
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|
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
|
|
|
|
|
|
|
|
|
|
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LIABILITIES AND EQUITY
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Current Liabilities:
|
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Accounts payable
|
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$
|
1,817
|
|
|
$
|
1,132
|
|
|
Accrued liabilities
|
|
|
487
|
|
|
|
588
|
|
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Deferred revenues
|
|
|
458
|
|
|
|
64
|
|
|
Note payable - current portion
|
|
|
113
|
|
|
|
111
|
|
|
|
|
Total Current Liabilities
|
|
|
2,875
|
|
|
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1,895
|
|
|
|
|
|
|
|
|
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Deferred income tax liability, net
|
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|
5
|
|
|
|
5
|
|
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Note payable - long-term portion
|
|
|
40
|
|
|
|
69
|
|
|
|
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Total Liabilities
|
|
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2,920
|
|
|
|
1,969
|
|
|
|
|
|
|
|
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Commitments and Contingencies
|
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|
|
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Equity:
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Global Entertainment Corporation Equity -
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|
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Preferred stock - $.001 par value; 10,000,000 shares authorized; no
shares issued or outstanding
|
|
|
|
|
|
|
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-
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|
|
|
-
|
|
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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
|
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|
|
|
|
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|
|
|
|
|
|
|
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7
|
|
|
|
7
|
|
|
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Paid-in capital
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|
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10,970
|
|
|
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10,961
|
|
|
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Retained deficit
|
|
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(8,037
|
)
|
|
|
(7,788
|
)
|
|
|
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Total Global Entertainment Corporation Equity
|
|
|
2,940
|
|
|
|
3,180
|
|
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Noncontrolling interest
|
|
|
36
|
|
|
|
19
|
|
|
|
|
Total Equity
|
|
|
2,976
|
|
|
|
3,199
|
|
|
|
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Total Liabilities and Equity
|
|
$
|
5,896
|
|
|
$
|
5,168
|
|
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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)
|
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|
|
|
|
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|
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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
|
|
|
|
Cost of revenues - furniture and fixtures
|
|
|
-
|
|
|
|
-
|
|
|
|
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
|
)
|
|
|
|
|
|
|
|
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Loss Per Share - basic and diluted:
|
|
|
|
|
|
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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
|
)
|
Global Entertainment Corporation
Richard Kozuback, President,
480-994-0772
www.globalentertainment2000.com
or
The
Miller Group
Rudy R. Miller, Chairman, 602-225-0505
Investor
Relations for the Company
gntp@themillergroup.net
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