Hall of Fame Resort & Entertainment Company Announces Third Quarter 2021 Results
November 10 2021 - 5:24PM
Business Wire
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV,
HOFVW) (the “Company”), the only resort, entertainment and media
company centered around the power of professional football,
announced its third quarter fiscal 2021 results for the period
ended September 30, 2021.
“The third quarter showed the potential of the ecosystem that we
are creating,” stated Michael Crawford, President and CEO of HOFV.
“While hosting flagship events at Tom Benson Hall of Fame Stadium,
we continued our rapid pace of construction at the Hall of Fame
Village powered by Johnson Controls. We completed the Constellation
Center for Excellence and recently received the certificate of
occupancy, allowing programming for year-round attendance.
Construction has continued to move forward in the Fan Engagement
Zone, and upon completion guests will be treated to unique and
immersive dining and entertainment experiences. We are also
expanding the Hall of Fame Village Sports Complex through
additional fields and amenities for athletes, fans, and families,
which will allow for more and larger events on campus driving
increased attendance and revenue synergies. Within our media
division, we relaunched our Non-Fungible Token (NFT) business, we
co-produced the World Chase Tag special with Tupelo Honey and ESPN,
and we began production of The Perfect Ten, a documentary
highlighting the 10 individuals that have won the Heisman Trophy
and have been enshrined in the Pro Football Hall of Fame. We are
also excited to be in the second season of our NFL Alumni Academy,
our professional football development program, which provides our
media division another opportunity to create and distribute a
docuseries called “The Academy”. Finally, we were thrilled to
launch the Hall of Fantasy League, our national professionally
managed fantasy football league, and have had active engagement
between fans and team general managers. The HOFV team continues to
execute and remains focused on delivering results over the near and
long term.”
Key Financial Highlights
- Third quarter revenue was $3.5 million, an increase of 108%
compared to the same period of the prior year, primarily driven by
hotel revenue related to events being held at Hall of Fame Village
powered by Johnson Controls. Event and rental revenue also
contributed to revenue.
- Third quarter net income was $8.1 million. This was primarily
due to income of $22.5 million related to a change in fair value of
warrant liability.
- Third quarter adjusted EBITDA was a loss of $7.3 million,
compared to a loss of $7.5 million in the same period of the prior
year, resulting from increased investments in operations. See page
3 for reconciliation of net income attributable to Hall of Fame
Resort & Entertainment Company stockholders to adjusted
EBITDA.
- The Company finished its third quarter with a cash balance,
including restricted cash, of $28.5 million, compared to $73.7
million as of June 30, 2021. The lower cash balance was due to
three factors: (1) an expected decline in cash from operating
activities, (2) increased capital expenditures related to
construction activities, and (3) reduction of debt, primarily
driven by a $20 million loan repayment.
Third Quarter Business Highlights
- Entered into a non-binding term sheet for a senior loan
facility secured by the Constellation Center for Excellence with
ERIEBANK, for up to $25 million.
- Announced partnership with Esports Entertainment Group to
become our official eSports provider and to operate a Helix eSports
entertainment center that is scheduled to open in 2022.
- Partnered with Venuetize to develop a mobile app to provide
guests with information and more convenient visits to the Hall of
Fame Village powered by Johnson Controls.
- Launched the Hall of Fantasy League’s inaugural 2021-2022
season through its first live draft and a mobile app, with former
NFL players and top fantasy experts leading its franchises.
- Signed a multi-year sponsorship agreement with Hendrickson, a
leading global manufacturer and supplier of commercial
transportation products.
Subsequent To Quarter End Highlights
- Announced partnership with Whistle Studios and WaV Sports to
launch a football-themed docuseries The Academy. The Academy will
follow athletes participating in the second season of the NFL
Alumni Academy, the first-ever in-season NFL player replacement and
training program for aspiring NFL players, being held at the Hall
of Fame Village powered by Johnson Controls.
- Received certificate of occupancy for Constellation Center for
Excellence, the first on-campus asset constructed during Phase II
at the Hall of Fame Village powered by Johnson Controls.
- Signed a multi-year, multi-million-dollar sponsorship agreement
with CommScope, a global network infrastructure provider.
- Announced a partnership with ASM Global, the world’s leading
producer of entertainment experiences, to bring concerts, festivals
and other special events to the Tom Benson Hall of Fame
Stadium.
Conference Call
The Company will host a conference call and webcast Thursday,
November 11, 2021, beginning at 8:30 a.m. ET, to provide commentary
on the business. Speaking on the call will be Michael Crawford,
President and Chief Executive Officer, and Jason Krom, Chief
Financial Officer.
Investors and all other interested parties can access the live
webcast and replay at the Company’s website: ir.hofreco.com.
About Hall of Fame Resort & Entertainment Company
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV,
HOFVW) is a resort and entertainment company leveraging the power
and popularity of professional football and its legendary players
in partnership with the Pro Football Hall of Fame. Headquartered in
Canton, Ohio, the Hall of Fame Resort & Entertainment Company
is the owner of the Hall of Fame Village powered by Johnson
Controls, a multi-use sports, entertainment and media destination
centered around the Pro Football Hall of Fame’s campus. Additional
information on the Company can be found at www.HOFREco.com.
Forward-Looking Statements
Certain statements made herein are “forward-looking statements”
within the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words and phrases such
as “opportunity,” “future,” “will,” “goal,” and “look forward” and
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company’s control, that
could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements. Important
factors, among others, that may affect actual results or outcomes
include the Company’s ability to manage growth; the Company’s
ability to execute its business plan and meet its projections,
including refinancing its existing term loan and obtaining
financing to construct planned facilities; potential litigation
involving the Company; changes in applicable laws or regulations;
general economic and market conditions impacting demand for the
Company’s products and services, and in particular economic and
market conditions in the resort and entertainment industry; the
potential adverse effects of the ongoing global coronavirus
(COVID-19) pandemic on capital markets, general economic
conditions, unemployment and the Company’s liquidity, operations
and personnel, the inability to maintain the listing of the
Company’s shares on Nasdaq, as well as those risks and
uncertainties discussed from time to time in our reports and other
public filings with the SEC. The Company does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States
(“GAAP”) and corresponding metrics as non-GAAP financial measures.
The presentation includes references to the following non-GAAP
financial measures: EBITDA and adjusted EBITDA. These are important
financial measures used in the management of the business,
including decisions concerning the allocation of resources and
assessment of performance. Management believes that reporting these
non-GAAP financial measures is useful to investors as these
measures are representative of the company’s performance and
provide improve comparability of results. See the table below for
the definitions of the non-GAAP financial measures referred to
above and corresponding reconciliations of these non-GAAP financial
measures to the most comparable GAAP financial measures. Non-GAAP
financial measures should be viewed as additions to, and not as
alternatives for HOFV’s results prepared in accordance with GAAP.
In additional, the non-GAAP measures HOFV uses may differ from
non-GAAP measures used by other companies, and other companies may
not define the non-GAAP measures the company uses in the same
way.
For the Three Months Ended September 30,
2021
2020
Adjusted EBITDA Reconciliation Net income (loss)
attributable to HOFRE stockholders
$
8,145,916
$
(8,390,903
)
(Benefit from) provision for income taxes
-
-
Interest expense
981,945
615,250
Depreciation expense
2,993,583
2,753,046
Amortization of discount on note payable
1,326,620
3,043,738
EBITDA
13,448,064
(1,978,869
)
Loss on forgiveness of debt
-
877,976
Business combination costs
-
19,137,165
Impairment expense
1,748,448
-
Change in fair value of warrant liability
(22,469,170
)
(25,510,000
)
Adjusted EBITDA
$
(7,272,658
)
$
(7,473,728
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211110006415/en/
Media/Investor Contacts: Media Inquiries:
public.relations@hofreco.com Investor Inquiries:
investor.relations@hofreco.com
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