Hall of Fame Resort & Entertainment Company Announces First Quarter 2021 Results
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV, HOFVW) reported its Q1 2021 results with a revenue of $1.9 million, maintaining year-over-year levels. However, the company faced a net loss of $126.1 million due to significant expenses tied to warrant liabilities. In terms of cash flow, the company improved its cash balance to $68.6 million, driven by equity raises. Key developments include partnerships for two documentaries, a focus on NFTs, and the launch of a unique fantasy football league. The company continues to enhance the Hall of Fame Village with new fan engagement opportunities.
- Partnerships for documentaries to boost media presence.
- Successful launch of Hall of Fantasy League (HOFL) to engage fans.
- Increased cash balance to $68.6 million, up from $40.1 million.
- Net loss of $126.1 million primarily due to warrant liability changes.
- Adjusted EBITDA loss of $5.1 million, consistent with the previous year.
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV, HOFVW), the only resort, entertainment and media company centered around the power of professional football, announced its first quarter fiscal 2021 results for the period ended March 31, 2021.
“We are pleased with all of the progress made during the first quarter. The team continues to execute at a high level, moving the ball down the field,” shared President and CEO Michael Crawford. “We announced several new media partnerships to create two documentaries: “INSPIRE: Heroes of Change”, in partnership with Tupelo Honey and “The Perfect Ten”, the story of the 10 athletes who are the only players to win both the Heisman trophy and be enshrined into the Pro Football Hall of Fame (also known as “H2H”) in partnership with Elite Team Holdings, LLC. Also, this quarter, the Company partnered with leading marketing and PR agency Dolphin Entertainment to enter into the exciting world of non-fungible tokens (“NFTs”). Our first NFTs will showcase several of the amazing H2H Legends in a way that we believe has not been developed to date. These NFTs demonstrate our ability to provide a new medium of engagement with football fans through our direct access to one-of-a-kind content.” Crawford continued, “We were also able to move forward on the construction front within Hall of Fame Village powered by Johnson Controls. We have developed the east endzone of Tom Benson Hall of Fame Stadium which will now house a state of the art “fan-zone”, providing tremendous engagement and entertainment opportunities, complete with a jumbotron scoreboard as well as have made remarkable progress within the Constellation Center of Excellence. Lastly, we were excited to launch the Hall of Fantasy League (“HOFL”), our “first of its kind” fantasy football league. The HOFL allows fans to participate in new and unique ways within the world of fantasy football. Over the last quarter we made “staking” available through our relationship with StakeKings as well as the opportunity to purchase team logo merchandise online. We look forward to the first HOFL season which will run parallel to that of the NFL.”
Key Financial Highlights
-
First quarter revenue was
$1.9 million , which is comparable to the prior year, as hotel revenue mostly offset lower rent and events revenues. -
First quarter net loss of
$126.1 million . This was primarily due to$116.4 million expense related to a change in fair value of warrant liability, a result of the April 12, 2021 Securities and Exchange Commission staff statement affecting the accounting treatment for certain warrants. -
First quarter adjusted EBITDA was a loss of
$5.1 million , which is comparable to the prior year. See page 6 for reconciliation of net loss attributable to Hall of Fame Resort & Entertainment Company stockholders to adjusted EBITDA. -
The Company had a cash balance, including restricted cash, of
$68.6 million as of March 31, 2021, compared to$40.1 million as of December 31, 2020. The increased cash balance was driven by proceeds from an equity raise and exercise of warrants in the first quarter.
First Quarter Business Highlights
- Formed a media partnership with Tupelo Honey, one of the nation’s largest independent production companies, to work on producing INSPIRED: Heroes of Change, an unscripted series featuring professional football figures who are using their platforms to improve their communities.
- Announced the development of the H2H documentary with Elite Team Holdings, LLC that will be produced in partnership with NFL Films. The documentary will highlight the careers of the ten men that have won the Heisman Trophy and also have been enshrined into the Pro Football Hall of Fame.
- Announced that the Highway 77 Music Festival will take place at the Hall of Fame Village powered by Johnson Controls, on Sunday, September 12, 2021.
- Signed a multi-year partnership with the Women’s Football Alliance to host its four division championships at the Tom Benson Hall of Fame Stadium beginning this year.
-
Closed on the sale of 14.1 million shares of common stock in an underwritten public offering, which includes the full exercise of the underwriters’ over-allotment option, for gross proceeds of approximately
$34.5 million . - Signed a partnership with Dolphin Entertainment to create NFTs with the first tokens connected to the H2H platform.
- Launched HOFL with the unveiling of 10 cities, team names and logos.
- Launched “staking” of the 10 HOFL teams as well as the ability to purchase team logo merchandise online.
Subsequent To Quarter End Highlights
- Announced multi-year partnership deal with American Standard and extended an agreement with PepsiCo Beverages North America.
- Announced the launch of the first NFTs for the H2H Legend Series on May 17th, beginning with Heisman Trophy winner and Pro Football Hall of Fame enshrinee Tim Brown.
Conference Call
The Company will host a conference call and webcast Monday, May 17, 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 inability to recognize the anticipated benefits of the business combination; costs related to the business combination; the inability to obtain or maintain the list
FAQ
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