Tempe: Global Entertainment Posts Quarterly Loss

http://www.globalentertainment2000.com/
April 14, 2010 07:05 AM Eastern Daylight Time
Global Entertainment Corporation Reports Third Quarter 2010 Results

TEMPE, Ariz.--(BUSINESS WIRE)--Global Entertainment Corporation (OTCBB: GNTP) today reported for the third quarter of fiscal 2010, the company realized a net loss of $0.5 million or $0.08 per share compared to a net loss of $0.1 million or $0.02 per share for the three-month period ended February 28, 2009.

Revenue for the three months ended February 28, 2010 was $3.2 million compared to $3.5 million during the quarter ended February 28, 2009. The main source of revenue during the period remained facility management fees at $1.1 million which were virtually unchanged from the three months ended February 28, 2009. Facility management fees in the three months ended February 28, 2010 were driven by the first full quarter of recurring fees from buildings in Allen, Texas and Independence, Missouri that opened in November 2009. However, these increases were offset by year-over-year declines in monthly management fees from the Rio Rancho, New Mexico facility, which ended in January 2009, the Wenatchee, Washington facility, which ended in August 2009, and the Prescott Valley facility. Ticket service fees decreased $0.5 million, to $0.3 million during the third quarter, from $0.8 million in the prior year quarter. This decrease in ticket service fees reflects declines in the number of events held, attendance at events and venues under contract. License fees from initial and transfer franchises were zero in the quarter ended February 28, 2010, and $0.4 million in the prior year quarter.

The two brightest areas during the quarter from the standpoint of revenue generation were food service and license fees from league dues and other. Food service revenues increased $0.6 million in the third quarter of fiscal year 2010, to $0.9 million, compared to $0.3 million in the prior year quarter. The quarter ended February 28, 2010, was the first full quarter of food service operations at the Independence, Missouri facility. Food service revenue is currently derived almost entirely from the Independence, Missouri facility. License fees from league dues and other areas increased slightly, moving upwards $0.1 million during the third quarter of fiscal 2010 to $0.6 million from $0.5 million in the three months ended February 28, 2009. The increase was the result of growth in corporate sponsorship revenue.

Richard Kozuback, president and chief executive officer, stated, “The prolonged economic doldrums of the past 18 months, including an unemployment rate hovering around 10 percent, have continued to negatively impact the entire entertainment industry. As such, our revenues have continued to suffer. Specifically, our ticketing, franchise licensing and project development businesses have been susceptible to the decrease in number of entertainment events occurring and attendance at held events as well as a hold on new project approvals from cities.”

“Our belief remains that the economy will continue to improve as the year progresses and demand for entertainment facilities and events will return. We persist in working towards positioning Global Entertainment to be a beneficiary when the demand for entertainment alternatives does increase and we are hopeful that our combination of entertainment options will satisfy a portion of the public’s appetite. In addition, we continue to be excited by the future facility in Dodge City, Kansas which broke ground in October 2009, and project management fees from this events center are expect