Global Entertainment Corporation Reports First Quarter Fiscal 2009 Results
October 15 2008 - 6:05AM
Business Wire
Global Entertainment Corporation (NYSE Alternext US: GEE) today
reported revenue for the first quarter ended August 31, 2008 was
$2.36 million compared to revenue of $3.22 million in the first
quarter period ended August 31, 2007. While in the aggregate
revenue decreased, project management fees increased $0.34 million
in the first quarter fiscal 2009 and include fees associated with
the projects in Independence, Missouri that began in February 2008
and the Allen, Texas project that started in June 2008. The
increase in project management fees was offset however by a
combination of the decreases of $0.52 million in facility
management revenues, $0.54 million in license fees and $0.16
million in ticket service fees. The cancellation of a facility
management contract in Ohio and the decline in the number of events
held and the decrease in attendance at facilities under management
in Rio Rancho, New Mexico and Prescott Valley, Arizona negatively
affected facility management fees and ticket service fees in the
first quarter fiscal 2009. License transfer fees, a part of the
prior year first quarter revenue and not a regularly recurring
event, did not occur in the current first quarter fiscal 2009. For
the first three months of fiscal 2009, the company realized a net
loss of $0.16 million or $0.02 per share compared to a net loss of
$1.52 million or $0.23 per share for the three-month period ended
August 31, 2007. The loss for the first quarter fiscal 2009
includes $0.05 million from discontinued operations, net of income
taxes and a loss of $0.07 million from discontinued operations net
of income taxes in the three-month period ended August 31, 2007.
Richard Kozuback, president and chief executive officer, stated,
�As a company in the entertainment business through our
subsidiaries involved in arena development, facility and venue
management and marketing, and venue ticketing we are doing our best
to fight through these difficult economic times and are generally
pleased with our results for the first quarter fiscal year 2009. We
experienced a decline in the number of events held in the
facilities we manage as well as a decline in venue attendance,
which likely reflects people reining in their discretionary
spending. Nonetheless we approached breakeven in the first quarter
as we focused on our core businesses and cost controls. Our
ticketing services (GetTix.Net) continued as a significant
contributor to total revenue accounting for 26.3% of revenue in the
first quarter of this fiscal year. �The Independence, Missouri and
Allen, Texas projects will contribute project management revenue
over a 20-month period. In Wenatchee, Washington the grand opening
of the multi-purpose events and entertainment center occurred on
October 5th with substantial completion of construction effective
October 3rd. The $52.8 million state-of-the-art facility hosts its
first major events, the first three games of the NAHL hockey season
on October 16th, 18th and 19th.� Concluding, Kozuback stated, �We
have moved beyond the burden of the expenses associated with our
legal defense costs by settling significant legal issues and the
losses connected with the operation of Cragar Industries, a
business segment that we divested because it was unrelated to our
core business model. Our focus now is on the effective operation of
our core businesses and on controlling expenses, which in
combination we hope will lead to strong operational and financial
results for the benefit of our shareholders.� 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 six 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 development
potential of new properties. International Coliseums Company (ICC)
serves as project manager for arena development while Encore
Facility Management coordinates operations for all arena facility
scheduling. 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.
These factors are discussed in greater detail in the company's
Annual Report on Form 10-K for the year ended May 31, 2008, as
filed with the Securities and Exchange Commission. GLOBAL
ENTERTAINMENT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS (unaudited) (in thousands) � � � ASSETS August 31,
May 31, 2008 2008 Current Assets: Cash and cash equivalents $ 563 $
443 Restricted cash 1,250 - Accounts receivable, net 1,197 1,111
Investment in Wenatchee, WA project 47,209 34,473 Other current
assets 299 2,406 � Total Current Assets 50,518 38,433 � Other
Assets 1,171 931 � Total Assets $ 51,689 $ 39,364 � LIABILITIES AND
STOCKHOLDERS' EQUITY � � Current Liabilities: Accounts payable and
accrued liabilities $ 8,271 $ 8,468 Notes payable - current portion
39,651 27,220 Other liabilities 527 257 � Total Current Liabilities
48,449 35,945 � Notes payable and other long-term liabilities 270
297 � Total Liabilities 48,719 36,242 � Stockholders' Equity: �
Common stock 7 7 Paid-in capital 10,938 10,930 Accumulated deficit
(7,975) (7,815) � Total Equity 2,970 3,122 � Total Liabilities
& Stockholders' Equity $ 51,689 $ 39,364 GLOBAL ENTERTAINMENT
CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS � (unaudited) (in thousands except per share amounts) �
Three Months Ended August 31, 2008 � 2007 Revenue $ 2,359 $ 3,224
Expenses � 2,475 � 4,713 Loss from operations (116) (1,489) Other
income � 4 � 39 Loss from continuing operations before income taxes
(112) � (1,450) Income tax benefit � - � - Loss from continuing
operations (112) (1,450) Loss from discontinued operations, net of
income taxes � (48) � (68) Net loss $ (160) $ (1,518) � Loss per
common share: Diluted Loss from continuing operations $ (0.02) $
(0.22) Loss from discontinued operations � - � (0.01) Net loss $
(0.02) $ (0.23) Weighted average number of common shares
outstanding: Diluted 6,625,114 � 6,508,700
Global Entertainment (AMEX:GEE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Global Entertainment (AMEX:GEE)
Historical Stock Chart
From Sep 2023 to Sep 2024