Global Entertainment Corporation (NYSE Amex: GEE)
� today reported revenue in both the third quarter and the nine
months fiscal 2009 ended February 28, 2009 were up over the prior
year results.
Revenue improvement in the three-month period ended February 28,
2009, was derived from several segments of the company�s
diversified revenue streams. Project management fees that included
fees on projects in progress in Independence, Missouri (started
February 2008), Allen, Texas (started June 2008) and the Wenatchee,
Washington project, recognized on a percentage of completion basis,
were up 87.1% to $0.2 million for the third quarter ended February
28, 2009, compared to $0.1 million in the prior fiscal year.
Facility management fees increased 36.3%, to $1.1 million in the
third quarter ended February 28, 2009, compared to $0.8 million in
the three-month period ended February 29, 2008. The $0.3 million
year-over-year increase in fees resulting from the opening of the
Wenatchee, Washington facility in October 2008 was offset by a
decline in fees from management of the Rio Rancho, New Mexico,
which ended in January 2009. Providing a new source of revenue for
the company, concession revenue was $0.3 million for the
three-month period ended February 28, 2009 and transfer of a
license, not a regularly recurring event, provided revenue of $0.4
million for the three-month period ended February 28, 2009. A loss
from continuing operations of $0.1 million, $0.02 per share, was
reported for the third quarter ended February 28, 2009, compared to
income from continuing operations of $0.1 million for the third
quarter ended February 29, 2008.
Revenue for the nine-month period of fiscal 2009 showed a slight
improvement of 0.5% to $9.13 million from $9.09 million for the
prior fiscal year. The increase in project management fees of $1.1
million and the new concession revenue source of $0.4 million were
offset by declines in other revenue segments. For the nine-month
period ended February 28, 2009, the company reported a loss from
continuing operations of $0.5 million, or $0.08 per share, compared
to the loss from continuing operations of $1.8 million, or $0.28
per share, for the same nine-month period in the prior fiscal year
that included $1.1 million in additional legal, settlement and
severance costs.
�In the third quarter we experienced solid operating results
from our two projects under construction (Independence, Missouri
and Allen, Texas). We also received a portion of the project
development fees under an agreement previously announced in January
2009 for an events center project scheduled in Dodge City, Kansas.
Given the current economic climate, however, we have seen a
decrease in sales from the decline in the number of events held at
our events centers under our facility management agreements as well
as a decline in attendance at events and venues. This also
negatively impacts our ticketing revenue from those facilities.
Ticketing done on a national level as an independent, full-service
ticketing company has also declined. We continue to monitor closely
our general operating costs to keep them aligned with operational
requirements,� Richard Kozuback, president and chief executive
officer, said.
Kozuback continued, �We are preparing for the topping off
ceremony, a milestone in any major construction project, for the
Independence, Missouri and Allen, Texas projects later this month,
staying on time for their projected openings in November 2009. Upon
completion, these two facilities will produce multiple
revenue-generating opportunities for our company through multi-year
facility management agreements and exclusive ticketing service
agreements for all events.�
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
develop potential new properties. International Coliseums Company
(ICC) serves as project manager for arena development while Encore
Facility Management coordinates arena operations. 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
(in thousands)
� ASSETS February 28, May 31, �
2009
2008 Current Assets: Cash and cash equivalents $ 1,233 $ 443
Accounts receivable, net 1,681 1,111 Investment in Wenatchee
project - 34,473 Other current assets 498 � 2,406 � � Total Current
Assets 3,412 38,433 � Other Assets 1,773 � 931 � � Total Assets $
5,185 � $ 39,364 � � LIABILITIES AND STOCKHOLDERS' EQUITY � �
Current Liabilities: Accounts payable and accrued liabilities $
2,037 $ 8,468 Notes payable 109 27,220 Other liabilities 238 � 257
� � Total Current Liabilities 2,384 35,945 � Notes payable and
other long-term liabilities 214 � 297 � � Total Liabilities 2,598 �
36,242 � � Stockholders' Equity: � Common stock 7 7 Paid-in capital
10,953 10,930 Accumulated deficit (8,373 ) (7,815 ) � Total
Stockholders' Equity 2,587 � 3,122 � � Total Liabilities and
Stockholders' Equity $ 5,185 � $ 39,364 �
GLOBAL ENTERTAINMENT CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited)
(in thousands except per share
amounts)
� � For the Three Months Ended For the Nine Months Ended
February 28,2009
�
February 29,2008
February 28,2009
�
February 29,2008
Revenue $ 3,537 $ 3,037 $ 9,127 $ 9,086 Expenses � 3,620 � � 2,995
� � 9,234 � � 11,057 � Income (loss) from operations (83 ) 42 (107
) (1,971 )
Other income (expense)
� (59 ) � - � � (403 ) � 48 �
Income (loss) from continuing
operations before income taxes
(142 ) 42 (510 ) (1,923 ) Income tax benefit � - � � 107 � � - � �
107 � Income (loss) from continuing
operations
(142 ) 149 (510 ) (1,816 ) Loss from discontinued operations,
net of income taxes
� - � � (72 ) � (48 ) � (218 ) Net income (loss) $ (142 ) $ 77 � $
(558 ) $ (2,034 )
Earnings (loss) per common share -
Diluted:
Income (loss) from continuing
operations
$ (0.02 ) $ 0.02 $ (0.08 ) $ (0.28 )
Loss from discontinued
operations
� - � � (0.01 ) � - � � (0.03 ) Net income (loss) $ (0.02 ) $ 0.01
� $ (0.08 ) $ (0.31 )
Weighted average number of common
shares outstanding:
Diluted
6,627,112
6,542,004
6,626,072
�
6,518,491
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