Global Entertainment (AMEX:GEE)
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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