Hall of Fame Resort & Entertainment Company Announces First Quarter 2022 Results
May 10 2022 - 4:30PM
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 first quarter fiscal 2022 results for the period
ended March 31, 2022.
“We continue to evolve and operationalize as a company, building
both physically and virtually with an intense focus on the guest
experience,” stated Michael Crawford, President and CEO. “Critical
first downs are being made in financing as execution has been the
name of the game. We look forward to sharing a number of highlights
achieved during the first quarter on Wednesday morning. Our team
has successfully been able to announce new and dynamic events on
campus, add compelling content to our media business and continue
to build out our gaming vertical. In addition, the Company has
secured needed financing and anticipates announcing several
additional lending instruments for Phase II in the coming weeks. It
is a very exciting time as the Company transitions into an
operational destination offering multiple unique engagement
opportunities, showing year over year and quarter over quarter
progress and increases. We look forward to welcoming fans to the
newly constructed assets for Enshrinement Week in early August and
to entertaining our guests through different experiences across our
media and gaming verticals as well.”
Key Financial Highlights
- First quarter revenue was $2.1 million, an increase of 10%
compared to the same period of the prior year, primarily driven by
hotel revenue and event revenue related to events being held at the
Hall of Fame Village powered by Johnson Controls.
- First quarter net loss attributable to shareholders was $8.1
million, compared to a loss of $126.1 million in the prior year
period. The change in fair value of warrant liability was the
primary driver in the variance between the two time periods.
- First quarter adjusted EBITDA was a loss of $6.9 million,
compared to a loss of $5.1 million in the same period of the prior
year, resulting from increased expenses related to increase in
legal and professional fees, payroll and benefits, and insurance
costs. See page 3 for a reconciliation of net loss to EBITDA and
adjusted EBITDA.
- The Company finished its fiscal quarter with a cash balance,
including restricted cash, of $12.8 million, compared to $17.4
million as of December 31, 2021. The lower cash balance was due to
increased capital expenditures related to construction activities,
partially offset by proceeds from sales of common stock and cash
from operating activities.
First Quarter Business Highlights
- Announced Company strategy to secure sports betting gaming
licenses.
- Announced $38 million debt restructuring, pushing out short
term debt maturing in calendar year 2022 and extending maturities
of the debt instruments at least twelve months.
- Announced partnership with premier sports marketing firm Allied
Sports as our agency of record for sponsorship and media
opportunities.
- Announced partnership with the Pro Football Hall of Fame and I
Got It to develop, market and sell digital assets and NFTs centered
around some of the most iconic moments and coveted memorabilia from
the game’s history, which are memorialized inside the Pro Football
Hall of Fame in Canton, Ohio.
- Completed inaugural season of the Hall of Fantasy League
(“HOFL”) with season recap on Twitch co-hosted by former NFL player
Ahman Green and Jeff Eisenband.
- Announced multi-year partnership with Cleveland Clinic to make
the global healthcare leader the official healthcare provider of
the Hall of Fame Village Sports Complex and Tom Benson Hall of Fame
Stadium.
- Announced it will host the 2022 Concert for Legends Presented
by Ford, headlined by legendary Rock and Roll Hall of Fame rock
band Journey. The concert will take place during this year’s Pro
Football Hall of Fame Enshrinement Week.
Subsequent To Quarter End Highlights
- Shared details surrounding the Play-Action Plaza, which will
feature several attractions, including the only two rides of their
kind in Stark County, Ohio – a giant Ferris Wheel with 20 gondolas
equipped to accommodate six-to-eight people each and a Soaring
Football Zipline.
- Secured two additional sources of funding that will be used
towards construction of the Center for Performance. The Company
recently closed a $4 million loan with Midwest Lender Fund, LLC. In
addition, the City of Canton, in coordination with the Canton
Regional Energy Special Improvement District, approved legislation
that will enable the Company to move forward with $3.2 million in
Property Assessed Clean Energy (PACE) financing.
- Announced a collaboration with recreational facility The
SportDome and its owners, the Kempthorn family, to transfer the
operation of local sports leagues to the Center for
Performance.
Conference Call
The Company will host a conference call and webcast Wednesday,
May 11, 2022, beginning at 8:30 a.m. ET, to provide commentary on
the business. 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,” “enable,” “pipeline,”
“transition,” “move forward,” “towards,” “build out,” “coming” 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, which could cause actual results or outcomes
to differ materially from those discussed in the forward-looking
statements. Important factors that may affect actual results or
outcomes include, among others, the Company’s ability to manage
growth; the Company’s ability to execute its business plan and meet
its projections, including 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 effects of the ongoing
global coronavirus (COVID-19) pandemic on capital markets, general
economic conditions, unemployment and the Company’s liquidity,
operations and personnel; increased inflation; the inability to
maintain the listing of the Company’s shares on Nasdaq; and 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 improved 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 the Company’s results prepared in accordance with
GAAP. In addition, the non-GAAP measures the Company 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 March 31
2022
2021
Adjusted EBITDA Reconciliation Net loss attributable to
HOFRE stockholders
$
(8,112,097
)
$
(126,147,182
)
(Benefit from) provision for income taxes
-
-
Interest expense
1,213,541
955,308
Depreciation expense
3,242,285
2,920,937
Amortization of discount on notes payable
1,355,974
1,234,114
EBITDA
(2,300,297
)
(121,036,823
)
Loss (gain) on extinguishment of debt
148,472
(390,400
)
Change in fair value of warrant liability
(4,750,000
)
116,351,000
Adjusted EBITDA
$
(6,901,825
)
$
(5,076,223
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510006434/en/
Media/Investor Contacts: Media Inquiries:
public.relations@hofreco.com Investor Inquiries:
investor.relations@hofreco.com
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