Global Entertainment Corporation Announces Fiscal Year 2007 Results.PHOENIX -- Global Entertainment Corporation (AMEX AMEX See: American Stock Exchange : GEE) - 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 that revenue for the fiscal year ended May 31, 2007 increased $12,184,087 for a total $26,449,636 for the fiscal year compared to total revenue of $14,265,558 for the fiscal year ended May 31, 2006. The increase was generated primarily from project management fees received during the final development stage of two events center projects completed during the fiscal year. While revenue increased significantly for fiscal 2007, the company realized a net loss of $4,125,377 for the twelve months or a loss of $.63 per share compared to net income of $245,055 for the comparable fiscal year ended May 31, 2006 or $.04 per diluted share. Revenue growth in fiscal 2007 came from all segments of the Company's business operations based on the interaction and interrelationships designed to offer turnkey solutions for mid-sized communities in the development of multi-use entertainment facilities. ICC ICC See: International Chamber of Commerce completed two projects during the fiscal year, the Santa Ana Star Center Santa Ana Star Center is an 8,000-seat multipurpose arena in Rio Rancho, New Mexico, a suburb of Albuquerque. It is home to the New Mexico Scorpions of the Central Hockey League and a possible expansion team in af2, a division of the Arena Football League. in Rio Rancho, New Mexico Rio Rancho, (Spanish: Río Rancho) is a suburb of Albuquerque,and is the largest city and economic hub of Sandoval County in the U.S. state of New Mexico. It is the fourth-largest and fastest-growing city in New Mexico. As of the 2000 census, the city population was 51,765. , and Tim's Toyota Center Tim's Toyota Center (originally built as the Prescott Valley Convention & Events Center) is a 5,100-seat multi-purpose arena located in Prescott Valley, Arizona. Built in 2006, it is home to the Arizona Sundogs Central Hockey League team and in 2008 will be home to an in Prescott Valley, Arizona Prescott Valley is a town in Yavapai County, Arizona, United States. The population was 23,535 at the 2000 census. Prescott Valley was the seventh fastest-growing place among all cities and towns in Arizona between 1990 and 2000. . Each new facility has as their major tenant a CHL CHL crown-heel length. hockey team that began play in the 2006/2007 season. Revenue for Encore Facility Management was positively impacted as a result of multi-year agreements in place with the two new facilities. Under Encore's direction GEMS generates licensing and advertising fees from the facilities as well as increased revenue resulting from two new hockey franchise teams in Broomfield, Colorado, and the hockey team in the Prescott Valley facility. GETTIX, Global's in-house ticketing company, also benefited from the new facilities. For the same fiscal 2007 period, the company reported a net loss that was comprised of costs incurred in the normal course of rapid growth experienced by Global's business segments during a year that produced a material increase in revenue. The company added staff and associated overhead in the startup operation of Global Properties I, growth related staffing for Encore, additional sales and administrative staff for expanded development and marketing related to Cragar and investment in the expansion of GETTIX ticketing operations. Legal fees incurred during the fiscal year increased relative to the settlement, and accrual for potential future settlement of claims. Attributing to the results and a primary factor in the loss for the year was the charge for impairment of intangible assets associated with the Cragar subsidiary. The company determined that a decline in current economic and industry factors specific to the Motor Vehicle Industry and Automotive "Aftermarket" segment resulted in a $905,716 reduction of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the Cragar intangible asset. The charge off was recognized and included in the Company's income statement. Also associated with the loss were bad debt expenses related to amounts past due under the CHL 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 , certain related past due franchisee balances, and additional operational reserves. Approximately $2.1 million of the loss represents the write down of intangible assets and bad debt expense, all non-cash items. "We're very disappointed in the significant loss reported for fiscal 2007 in light of all the progress made in developing our platform of companies that provide interrelated in·ter·re·late tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates To place in or come into mutual relationship. in revenue streams some of which cover spans of multiple years. The decrease in the intangible carrying value of Cragar was industry related and outside our ability to control," stated Richard Kozuback, president and chief executive officer. "We have implemented a new operational, management and financial software system to enable us to better analyze and manage our future growth. The investments we are making for the future along with the addition of experienced personnel are critical factors in the continued development of the Company's business strategy. "We announced four new arena development projects within the last four months that are currently in various stages of formal commitment. All projects have the approval of their respective city councils or city and county commissions. The locations of the new events centers are: Dodge City, Kansas; Allen, Texas; Independence, Missouri, and Yuma, Arizona. Each of the facilities will have a new hockey team franchise as the primary tenant. Additionally, we will sign multi-year turnkey service agreements covering all revenue producing activities that are provided by our Global subsidiaries which will include: facility management, marketing, sales and related services. Further expanding our national presence, we have also placed a franchise team in Rapid City, South Dakota Rapid City is a city located in the western part of South Dakota and is the second largest city in the state of South Dakota after Sioux Falls. Set against the eastern slope of the Black Hills, Rapid City is in the county of PenningtonGR6 USA. , that is due to be part of the CHL league in the 2008/2009 season. These actions support our objective for continued growth on a national level. As CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and in combination with my executive management team, we have as our number one commitment the building of operational profits, which will create substantial long-term value for our shareholders. We look forward to reporting on our progress in the coming year," Kozuback concluded. 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 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" 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 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, 2007, as filed with the Securities and Exchange Commission. FINANCIAL TABLES FOLLOWS: GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. CONSOLIDATED BALANCE SHEETS [TABLE OMITTED] GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED SUMMARY OF OPERATIONS FINANCIAL HIGHLIGHTS (AUDITED) [TABLE OMITTED] |
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