Hall of Fame Resort & Entertainment Company Announces First Quarter 2022 Results
May 10, 2022 4:30 PM ETHall of Fame Resort & Entertainment Company (HOFV), HOFVW
CANTON, Ohio--(BUSINESS WIRE)-- Hall of Fame Resort & Entertainment Company (HOFV) (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 (F), 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.
