Playmaker Capital Inc (fka PMKRF)

[makinezmoney]

$PMKRF: $7Milly Rev Q4-2021 Results


Press Release | 03/21/2022
Playmaker Capital Inc. (TSX-V: PMKR; OTCQX: PMKRF) (“the Company” or “Playmaker”), the digital sports media company that delivers authentic content through its portfolio of sports media and technology brands, is pleased to report its financial results for the three months ended December 31, 2021 (“Q4 2021”) and for the full year of 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220321005313/en/

Playmaker Reports Fourth Quarter 2021 and Full Year Results Highlighted by Exceptional Organic Growth and Profitability (Graphic: Business Wire)
Playmaker Reports Fourth Quarter 2021 and Full Year Results Highlighted by Exceptional Organic Growth and Profitability (Graphic: Business Wire)

“Our pro forma results for Q4 2021 and full year 2021 demonstrate the continued execution of our strategy. We are acquiring great companies and successfully integrating them to leverage the centres of excellence within each business for the benefit of the entire Playmaker ecosystem. Our audience numbers have grown dramatically. We are now generating over 200 million monthly sessions from more than 85 million unique users across Playmaker’s web properties, generating over 50 million monthly YouTube views and 550K monthly podcast streams, and reaching more than 100 million fans across all major social platforms. We have expanded our distribution channels to deliver relevant content to our fans when they want it, how they want it, and where they want it. Our organic growth has been phenomenal, and we have done it while maintaining a focus on profitability with a 119% increase in pro forma adjusted EBITDA year over year.” said Jordan Gnat, Founder and CEO of Playmaker.

FINANCIAL HIGHLIGHTS (Figures in USD)

Revenue – Revenue was $7.0 million in Q4 2021, compared to $nil in Q4 2020.
Operating Income – Operating income was $0.5 million in Q4 2021, compared to an operating loss of less than $0.1 million in Q4 2020.
Pro Forma Revenue (including all acquisitions to date) – Revenue was $7.5M in Q4 2021, an increase of 49% from $5.0M in Q4 2020. For the twelve months ended December 31, 2021, pro forma revenue was $23.8M, an increase of 91% from $12.5M in the prior year.
Pro Forma Adjusted EBITDA (including all acquisitions to date) – Adjusted EBITDA was $2.9M in Q4 2021, an increase of 23% from $2.4M in Q4 2020. For the twelve months ended December 31, 2021, pro forma adjusted EBITDA was $9.3M, an increase of 119% from $4.2M in the prior year.
Cash and Cash Equivalents – Cash and cash equivalents were $7.1 million at December 31, 2021 compared to $6.6 million at December 31, 2020.
OPERATIONAL HIGHLIGHTS

Playmaker added to its collection of premier sports media brands through the acquisitions of Futbol Sites, Fanáticos, Yardbarker, Two-Up, SoccerMemes, VarskySports, TNN, Super Poker, Cracks and Futmarketing.
Playmaker achieved its highest rankings by Comscore for total web visits in the month of December 2021, ranking as the #6 digital sports media group across the Americas and the #1 regional sports media group across all of Latin America.
Playmaker achieved record engagement metrics in Q4 2021 across its owned and operated web properties, reaching more than 85 million monthly unique users and generating more than 462 million sessions, representing a 50%+ increase over Q4 2020.
Successful migration of Yardbarker’s web monetization to Playmaker Bench, Playmaker’s in-house monetization tech stack; commenced migration of TNN web properties to Playmaker Bench; Futbol Sites and TNN launched content syndication with major news outlets with support of Playmaker’s syndication centre of excellence.
The Morning Bark, Yardbarker’s daily email newsletter, increased its subscriber base to more than 370K.
TNN’s podcast network achieved a monthly record of 550K streams in Q4 2021.
Playmaker brand Cracks generated more than 600 million views on YouTube in 2021.
Playmaker properties reached more than 100 million social media followers across all major platforms including Facebook, Twitter, TikTok, Instagram, YouTube and Twitch.
CONFERENCE CALL

The Company will host a management conference call to discuss its Q4 and full year financial results on March 21, 2022 at 8:30 a.m. (Eastern Time). Hosting the call will be Jordan Gnat, Chief Executive Officer; Jake Cassaday, Chief Operating Officer; and Mike Cooke, Chief Financial Officer.

To participate in the conference call, please dial-in using one of the following numbers approximately five minutes prior to commencement and ask to join the Playmaker call:

Dial-In Number (Toll Free): 1-844-707-6933

Dial-In Number (International): 1-412-317-5796

A replay of the Conference Call will be made available at playmaker.fans/investors.

To sign up for Playmaker Investor Alerts, visit: PMKR Investor Alerts.

TSX VENTURE EXCHANGE DISCLAIMER
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-IFRS MEASURES
Some of the information presented in this press release includes non-IFRS financial measures, including, “EBITDA”, “Adjusted EBITDA”, and metrics that are presented on a pro forma basis. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization of our operating segments, excluding the head office costs incurred by our corporate segment.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker’s current expectations regarding future events. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking information contained in this press release includes, but is not limited to, statements relating to the future performance or achievements of Playmaker and the Futbol Sites, Yardbarker, Two-Up, TNN, Super Poker, VarskySports, Cracks and Futmarketing transactions, including their continued expansion and growth, and other statements that are not historical facts. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT PLAYMAKER
Playmaker Capital Inc. (TSX-V: PMKR) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a premier collection of sports media brands, curated to deliver highly engaged audiences of sports fans to sports betting companies, leagues, teams and advertisers.

Playmaker reports in U.S. dollars, except where noted otherwise, and in accordance with International Financial Reporting Standards (“IFRS”).

For more information, visit: www.playmaker.fans or contact Playmaker Chief Executive Officer Jordan Gnat via email [e-mail].


Playmaker Capital Inc.
Consolidated Statements of Financial Position
(Stated in U.S. dollars)






December 31, 2021



December 31, 2020

(Note 2)

Assets









Current









Cash and cash equivalents

$

7,111,728

$

6,631,358

Accounts receivable



4,406,719



-

Income taxes receivable



45,711



-

Inventory



18,770



-

Prepaid and other current assets



377,061



3,107

Total current assets



11,959,989



6,634,465

Property and equipment



778,381



610

Intangible assets



45,808,097



-

Goodwill



28,393,097



-

Deferred tax asset



868,116





Other long-term assets



20,720



-

Total assets

$

87,828,400

$

6,635,075

Liabilities









Current









Accounts payable

$

567,572

$

-

Income taxes payable



81,264



-

Deferred revenue



188,993



-

Accrued expenses and other current liabilities



2,623,321



87,767

Current portion of lease liability



88,951



-

Current portion of long-term debt



14,365



-

Current deferred consideration



2,345,759



-

Current contingent consideration



10,475,031



-

Total current liabilities



16,385,256



87,767

Long-term debt



46,708



-

Long-term lease liability



415,057



-

Deferred tax liability



4,237,822





Deferred consideration



1,848,388



-

Contingent consideration



8,837,406



-

Total liabilities



31,770,637



87,767

Shareholders' Equity









Share capital



60,494,370



6,823,258

Contributed surplus



606,863



30,740

Warrant reserve



303,278



38,740

Accumulated other comprehensive (loss) income



(1,368,266)



90,796

Deficit



(3,978,482)



(436,226)

Total shareholders’ equity



56,057,763



6,547,308

Total liabilities and shareholders’ equity

$

87,828,400

$

6,635,075



Playmaker Capital Inc.
Consolidated Statements of Net Loss and Comprehensive Loss
(Stated in U.S. dollars, except share information)
For the years ended December 31,















2021



2020

Revenue

$

14,820,154

$

-

Cost of sales



1,189,901



-

Gross profit



13,630,253



-

Operating expenses









Advertising, commissions and fees



2,666,087



-

Web services and publishing



613,851



-

Salary and wages



5,797,734



92,551

Professional fees



828,410



71,328

General and administration



733,966



45,435

Share-based compensation



576,778



29,908

Depreciation and amortization



648,441



1,179

Total operating expenses



11,865,267



240,401

Operating income (loss)



1,764,986



(240,401)

Listing and filing fees



(1,826,331)



-

Transaction costs



(842,729)



-

Interest expense



(130,144)



-

Other income



21,761



-

Other expenses



(19,819)



(2,201)

Change in fair value of consideration



(2,901,005)



-

Change in fair value of convertible debenture



(678,429)



-

Foreign exchange gain (loss)



849,908



(23,580)

Net loss before taxes



(3,761,802)



(266,182)

Deferred income tax recovery



324,824



-

Current income tax expense



(105,278)



-

Net loss

$

(3,542,256)

$

(266,182)

Other comprehensive (loss) income:









(Loss) gain on translation



(1,459,062)



47,932

Net loss and comprehensive loss

$

(5,001,318)

$

(218,250)

Basic and diluted net loss per share

$

(0.03)

$

(0.05)

Basic and diluted weighted average number of shares



128,850,587



5,565,479


Playmaker Capital Inc.
Consolidated Statements of Cash Flows
(Stated in U.S. dollars)
For the years ended December 31,











Operating activities



2021



2020

Net loss

$

(3,542,256)

$

(266,182)

Depreciation and amortization



648,441



1,179

Share-based compensation



576,778



29,908

Listing fees, RTO costs



618,184



-

Non-cash interest expense



107,434



-

Change in fair value of contingent consideration



2,901,005



-

Change in fair value of convertible debenture



678,429



-

Unrealized foreign exchange (gain) loss



(864,176)



21,969

Deferred income tax recovery



(324,824)



-

Loss on disposal of asset



-



2,201

Change in non-cash working capital:









Accounts receivable



(829,901)



-

Income taxes receivable



9,745



-

Inventory



8,926



-

Prepaid and other current assets



(75,341)



1,442

Accounts payable



(135,661)



(5,757)

Income taxes payable



81,264



-

Deferred revenue



121,810



-

Accrued expenses and other current liabilities



535,098



16,700

Net cash flows provided by (used in) operating activities



514,955



(198,540)

Investing activities









Acquisition of Futbol Sites, net of cash acquired



(6,228,466)



-

Cash acquired through RTO



162,375



-

Acquisition of Fanaticos



(204,290)



-

Acquisition of Yardbarker, net of cash acquired



(9,331,068)



-

Settlement of Yardbarker deferred consideration



(500,000)





Acquisition of SoccerMemes



(100,000)



-

Acquisition of Two-Up, net of cash acquired and debt assumed



(676,764)



-

Acquisition of Varsky



(175,804)



-

Acquisition of TNN, net of cash acquired



(4,163,915)



-

Acquisition of SuperPoker



(1,727,806)



-

Acquisition of Cracks



(478,141)



-

Purchase of property and equipment



(246,415)



-

Purchase of intangibles



(55,590)



-

Net cash flows used in investing activities



(23,725,884)



-

Financing activities









Issuance of preferred shares



5,505,000



5,178,585

Issuance of common shares



19,881,600



382

Issuance costs on preferred and common shares



(1,236,391)



(88,383)

Options exercised



36,704



-

Warrants exercised



18,066



-

Long-term debt repayments



(139,587)



-

Lease liability principal payments



(28,410)



-

Repurchase of preferred shares



-



(166,666)

Net cash flows provided by financing activities



24,036,982



4,923,918

Increase in cash and cash equivalents



826,053



4,725,378

Foreign exchange impact



(345,683)



26,973

Cash and cash equivalents, beginning of year



6,631,358



1,879,007

Cash and cash equivalents, end of year

$

7,111,728

$

6,631,35