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Youngstown Arena Project Boosts Global's Earnings
YOUNGSTOWN, Ohio-- The Youngstown Convocation Center is already boosting the fortunes of one company -- the one managing its development. Global Entertainment Corp., the Phoenix entertainment and sports management company the city of Youngstown contracted with to develop the $41 million downtown arena, reported Jan. 14 it earned $158,468, or three cents per share, during the quarter ended Nov. 30, compared to loss of $109,728, or three cents per share, for the 2003 period. For the second quarter of its current fiscal year, Global's revenues were nearly $4.7 million, up 456% from $771,686 for the same period last year, the company reported. For the first six months of its fiscal year, the company reported revenue increased 293% to $6.4 million, up from $1.6 million for the first six months of the previous fiscal year.In a company statement posted on a business wire, Global specifically attributed a 456% gain in quarterly revenues to the convocation center construction project, which is funded by a $26.8 million federal grant and managed by one of the company's subsidiaries, International Coliseums Co."Our operating results and the substantial increase in revenue reflect the success of our current projects," said Richard Kozuback, president and chief executive officer. "The significant progress we have made is demonstrated by our second quarter results with net income of $158,468 when in the second quarter of last year we had a net loss." Structural steel was delivered to the convocation center site last week and construction is under way on the center's steel frame. It is projected the facility will be completed and opened by this fall.In March 2004, International Coliseums Co. signed agreements with the city to build and manage the arena. Under the deal, the company will receive a $750,000 fee for its work and 4% of gross annual revenues. After that, the city gets the first $300,000 in profits and 80% of the profits afterwards.The city also required Global to post a $300,000 performance bond in order to secure work for the $41 million center.A hockey franchise owned by area McDonald's operator Herb Washington is slated play in the arena. The team will play in the Central Hockey League, another Global Entertainment subsidiary. A general manager for the new team is expected to be announced Jan. 19.The company reported expenses rose during the second quarter, due to spending to equip and train staff for its ticketing subsidiary, GetTix.Net. In addition, the company added staff to meet the requirements of increased activity experienced by all of its subsidiaries. "We have been extremely busy during the second quarter, focusing on growth and expansion within all our subsidiaries and in all markets where we have extensive expertise. Although our operating expenses rose, much of the increase is related to our investment in new personnel and equipment that is required for us to fulfill our obligations related to new contracts and agreements," said Kozuback.The company reported its ICC subsidiary has signed a definitive agreement with the city of Rio Rancho, N.M., to build a 6,500-seat multipurpose events center with a project value of $34 million. Global also said it has formed a joint venture with Compass Facility Management Inc., named GECompass LLC, to provide facility management for event centers, such as those that are developed by International Coliseums Co.Visit Global Entertainment Corp. at www.globalentertainment2000.com"