Hall of Fame Resort & Entertainment Company Announces First Quarter 2022 Results
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV, HOFVW) reported first-quarter fiscal 2022 results, showing a revenue increase of 10% to $2.1 million, driven by hotel and event revenues. The net loss decreased to $8.1 million from $126.1 million year-over-year. However, the adjusted EBITDA loss rose to $6.9 million due to higher expenses. The company has a cash balance of $12.8 million and announced several strategic partnerships, debt restructuring of $38 million, and plans for sports betting licenses. The company aims to enhance guest experiences with new attractions and events.
- First-quarter revenue increased by 10% to $2.1 million.
- Net loss attributable to shareholders decreased significantly to $8.1 million from $126.1 million year-over-year.
- Secured $38 million debt restructuring to extend maturities, improving financial flexibility.
- Announced strategic partnerships, including with Allied Sports for media opportunities.
- Adjusted EBITDA loss increased to $6.9 million compared to a loss of $5.1 million in the previous year.
- Cash balance decreased to $12.8 million from $17.4 million due to increased capital expenditures.
“We continue to evolve and operationalize as a company, building both physically and virtually with an intense focus on the guest experience,” stated
Key Financial Highlights
-
First quarter revenue was
, an increase of$2.1 million 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 ofFame Village powered by Johnson Controls. -
First quarter net loss attributable to shareholders was
, compared to a loss of$8.1 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.$126.1 million -
First quarter adjusted EBITDA was a loss of
, compared to a loss of$6.9 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.$5.1 million -
The Company finished its fiscal quarter with a cash balance, including restricted cash, of
, compared to$12.8 million as of$17.4 million 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
debt restructuring, pushing out short term debt maturing in calendar year 2022 and extending maturities of the debt instruments at least twelve months.$38 million -
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 thePro Football Hall of Fame inCanton, Ohio . -
Completed inaugural season of the Hall of
Fantasy League (“HOFL”) with season recap on Twitch co-hosted by former NFL playerAhman Green andJeff Eisenband . -
Announced multi-year partnership with
Cleveland Clinic to make the global healthcare leader the official healthcare provider of theHall of Fame Village Sports Complex andTom Benson Hall of Fame Stadium. -
Announced it will host the 2022 Concert for Legends Presented by
Ford , headlined by legendaryRock 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 inStark 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 loan with$4 million Midwest Lender Fund, LLC . In addition, theCity of Canton , in coordination with theCanton Regional Energy Special Improvement District , approved legislation that will enable the Company to move forward with in Property Assessed Clean Energy (PACE) financing.$3.2 million -
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
About
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
Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in
For the Three Months Ended |
||||||||||
|
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
Source:
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