Attached files
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE 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
www.themillergroup.net
GLOBAL ENTERTAINMENT CORPORATION REPORTS
SECOND QUARTER 2011 RESULTS
TEMPE, ARIZONA, JANUARY 14, 2011 -- GLOBAL ENTERTAINMENT CORPORATION (OTCBB:
GNTP) - an integrated event and entertainment company, today reported financial
results for the second quarter of its fiscal year 2011, ended November 30, 2010.
During this period, the company realized a net loss of $0.5 million or $0.07 per
share compared to a net gain of $0.03 million or $0.00 per share for the
three-month period ended November 30, 2009.
During the second quarter of the company's fiscal 2011 total revenues produced
were $1.9 million which was a decline from the $3.3 million earned during the
prior year's quarter. The major factors contributing to the drop in revenues
were lessening project management fees and facility management fees. Project
management fees for the quarter were $0.2 million compared to $0.5 million in
the prior year period, a decrease of $0.3 million related to the completion of
projects in Allen, Texas and Independence, Missouri in November 2009. Project
management fees during the second quarter originated from the facility under
construction in Dodge City, Kansas. Facility management fees during the most
recent quarter were $0.5 million versus $1.5 million in the second quarter of
fiscal 2010, a drop of $1 million. This decrease is related to reduced fees for
preopening services on the completed buildings in Allen, Texas and Independence,
Missouri and is off-set by facility management fees in those same projects as
well as preopening fees for the Dodge, Kansas facility.
The Central Hockey League was a bright spot for the company during the quarter
as it produced increased license fees. License fees - league dues and other rose
slightly during the quarter. In addition, license fees - initial and transfer
generated $0.3 million during the second quarter of fiscal 2011 while there were
no license fees - initial and transfer earned during the previous year's second
quarter.
Total operating costs declined year-over-year. The company had total operating
costs of $2.1 million during the second quarter versus $3.3 million in the prior
year's second quarter, a drop of $1.2 million. Cost of revenues fell to $0.9
million for the quarter, down from $1.9 million in the second quarter of fiscal
2010. General and administrative costs also declined, moving to $1.2 million
from $1.4 million in the same period the previous year.
Richard Kozuback, President and Chief Executive Officer stated, "The economy
continues to present challenges for us. However, we have reduced operating costs
and eliminated business units that have not been profitable for us. Also, we
will develop strategic alliances with synergistic business partners with
experience and expertise in facility management that will allow us to continue
to focus on our core competencies and increasing internal efficiencies as we
strive to position Global Entertainment for future growth."
more...
Global Entertainment Corporation Reports Second Quarter 2011 Results
January 14, 2011
Page 2
Kozuback added, "We are pleased with the performance of the Central Hockey
League and International Coliseums Company and we project improvements in other
areas of our business in 2011; specifically, Global Entertainment Ticketing
(GetTix.net). In addition, we look forward to the completion of the United
Wireless Arena in Dodge City, Kansas in February which will mark the successful
completion of the tenth event center project for our company since 2003."
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: limited
liquidity and the need for additional financing intense competition within
the sports and entertainment industries, past and future acquisitions,
expanding operations into new markets, risk of business interruption,
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, 2010 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 2011 Results
January 14, 2011
Page 3
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS As
of November 30, 2010 (Unaudited) and May 31, 2010
(Audited)
(in thousands, except share and per share amounts)
November 30, May 31,
2010 2010
-------- --------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 348 $ 193
Accounts receivable, net of $0 and $194 allowance
at November 30, 2010 and May 31, 2010 1,105 1,042
Prepaid expenses and other assets 116 257
-------- --------
Total current assets 1,569 1,492
Property and equipment, net 96 107
Accounts receivable 215 215
Goodwill 519 519
Other assets 100 119
-------- --------
Total assets $ 2,499 $ 2,452
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 1,287 $ 739
Accrued liabilities 715 871
Deferred revenues 357 86
Contractual obligation - current portion 34 41
Notes payable - current portion 552 79
-------- --------
Total current liabilities 2,945 1,816
Deferred income tax liability, net 5 5
Contractual obligation - long-term portion 18 35
-------- --------
Total liabilities 2,968 1,856
-------- --------
COMMITMENTS AND CONTINGENCIES (see Note 5)
STOCKHOLDERS' EQUITY (DEFICIT)
Global Entertainment Corporation 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;
6,646,062 shares issued and outstanding as of November 30, 2010
and as of May 31, 2010 7 7
Additional paid-in capital 10,992 10,987
Accumulated deficit (11,449) (10,410)
-------- --------
Total stockholders' equity controlling interest (450) 584
Noncontrolling interests (19) 12
-------- --------
Total Stockholders' Equity (Deficit) (469) 596
-------- --------
Total Liabilities and Stockholders's Equity (Deficit) $ 2,499 $ 2,452
======== ========
Global Entertainment Corporation Reports Second Quarter 2011 Results
January 14, 2011
Page 4
GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS For the Three and Six Months Ended November 30,
2010 and 2009 (Unaudited)
(in thousands, except share and per share amounts)
For the Three Months Ended For the Six Months Ended
November 30, November 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
REVENUES
Project development fees $ -- $ 102 $ -- $ 152
Project management fees 177 533 388 979
Facility management fees 452 1,534 1,267 2,438
Ticket service fees 260 314 383 513
Food service revenue 151 252 271 324
Advertising sales commissions 54 120 122 191
License fees - league dues and other 531 474 757 848
License fees - initial and transfer 250 -- 250 100
Other revenue 16 5 277 159
---------- ---------- ---------- ----------
Total revenues 1,891 3,334 3,715 5,704
---------- ---------- ---------- ----------
OPERATING COSTS AND EXPENSES
Cost of revenues 908 1,943 2,034 3,079
General and administrative costs 1,198 1,363 2,434 2,827
---------- ---------- ---------- ----------
Total operating costs and expenses 2,106 3,306 4,468 5,906
---------- ---------- ---------- ----------
OPERATING INCOME (LOSS) (215) 28 (753) (202)
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE)
Interest income 1 -- 1 1
Interest expense (23) -- (27) (5)
Loss on investment in PVEC, LLC (227) (2) (279) --
---------- ---------- ---------- ----------
Total other expense (249) (2) (305) (4)
---------- ---------- ---------- ----------
INCOME (LOSS) FROM OPERATIONS, BEFORE TAX (464) 26 (1,058) (206)
INCOME TAX BENEFIT -- -- -- --
---------- ---------- ---------- ----------
NET INCOME (LOSS) (464) 26 (1,058) (206)
NET INCOME (LOSS), ATTRIBUTABLE TO
NONCONTROLLING INTEREST 9 -- (19) 17
---------- ---------- ---------- ----------
NET INCOME (LOSS), ATTRIBUTABLE TO GLOBAL $ (473) $ 26 $ (1,039) $ (223)
========== ========== ========== ==========
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED:
Net income (loss), attributable to Global
common shareholders $ (0.07) $ 0.00 $ (0.16) $ (0.03)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING -
BASIC AND DILUTED 6,646,062 6,639,150 6,646,062 6,636,115
========== ========== ========== ==========
