Global Entertainment Corporation's First Quarter Fiscal 2007 Revenues up 14%.PHOENIX -- Global Entertainment Corporation (AMEX AMEX See: American Stock Exchange : GEE gee 1 n. The letter g. gee 2 interj. Used to command a horse or ox to turn to the right. intr.v. ) -- a company engaged in sports management, multi-purpose events and entertainment center and related real estate development, facility and venue management and marketing, venue ticketing and brand licensing -- today reported revenue for the first quarter ended August 31, 2006 was up 14% to $3,651,918 compared to revenue of $3,204,773 in the first quarter of the prior fiscal year. For the three-month period ended August 31, 2006, the company realized a net loss of ($938,660) or ($.14) per basic share compared to a net loss of ($151,284) or ($.03) per basic share for the three-month period ended August 31, 2005. The increased loss for the first fiscal quarter was primarily attributable to certain non-recurring expenses, including a negotiated payment related to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. restructuring of the company's management compensation at an events center, an increase in the allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. receivable, a large recruiting fee for a key new executive and certain higher than anticipated legal fees. In addition, with new development projects and the expansion of its overall operations, the company continued to selectively invest in new opportunities, including the recruitment and placement of highly qualified personnel in strategically important positions. This expansion of operations and related costs include the expenses associated with the growth of Encore's facility management activities and the start up of Global Properties I, the company's newest subsidiary focused on assisting communities with the development of entertainment districts. "It is the nature of our business for our multiple subsidiaries to experience variances in the timing of revenue and to some extent expenses. Our loss for the quarter, a portion of which was comprised of non-recurring expenses, was within the range anticipated by management based on recent developments for our growing company," stated Richard Kozuback, president and chief executive officer. "Moving forward we anticipate the addition of new sources of revenue as our multi-year agreements associated with new events centers begin generating sponsorship fees from GEMS sales and marketing efforts, along with service fees from Encore facility management and GetTix ticketing. Some of these fees will be realized within the next thirty days. "Going into fiscal 2007, we are also attempting to balance our attention on containing operational costs with our goal of expanding our national presence in mid-size communities. For example, we recently announced two projects that take us into new regions. First, we have entered the Pacific Northwest market as the exclusive development and management company for a new events and entertainment center in Wenatchee, Washington Wenatchee (IPA: [wɪ ˈnæt tʃi]) is located at the confluence of the Wenatchee and Columbia rivers near the eastern foothills of the Cascade Mountain range in the U.S. State of Washington. . Second, we have entered the Western Canada
Western Canada, commonly referred to as the West market with an agreement to oversee a capital enhancement project for a multi-purpose facility, which also includes our providing long-term facility management, sales and marketing support, and ticketing services for the events center," Kozuback continued. "Finally, we believe the investments we are making in our infrastructure and the creation of a subsidiary solely focused on marketing to interested communities our multi-platform company with its full menu of services offers our shareholders the best opportunity to achieve long-term value." Visit our web sites: www.globalentertainment2000.com www.centralhockeyleague.com www.coliseums.com www.Cragar.com www.GetTix.net Global Entertainment Corporation is an integrated events company focused on mid-size communities that is engaged through its seven wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. in sports management, multi-purpose events and entertainment center and related real estate development, facility and venue management and marketing, venue ticketing and brand licensing. The Western Professional Hockey League The Western Professional Hockey League (abbreviated WPHL) is a defunct mid-level professional ice hockey league. It operated in the United States from 1996 to 2001, with teams in the southern United States, mainly Texas. , Inc, through a joint operating agreement Any contract, agreement, Joint Venture, or other arrangement entered into by two or more businesses in which the operations and the physical facilities of a failing business are merged, although each business retains its status as a separate entity in terms of profits and with the Central Hockey League
The Central Hockey League (CHL) is a mid-level professional hockey league, owned by Global Entertainment Corporation. , is the operator and franchisor of professional minor league hockey teams in nine states. International Coliseums Company serves as project manager for arena development while Encore Facility Management coordinates all arena facility operations. Global Entertainment Marketing Systems pursues licensing and marketing opportunities related to the Company's sports management and arena developments and operations. Global Properties I in correlation with arena development projects works to maximize value and development potential of new properties. Global Entertainment Ticketing is an in-house ticketing company for sports and entertainment venues. Cragar Industries is the licensor for its nationally recognized, branded products CRAGAR[R], TRU-SPOKE[R], CRAGAR S/S S/S Signs & Sx S/S Staples & sutures [R] and STREET PRO[R]. Certain statements in this release may be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . These factors are discussed in greater detail in the company's Annual Report on Form 10-KSB for the year ended May 31, 2006, as filed with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] |
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