Hall of Fame Resorts and Entertainment Reports Third Quarter 2022 Results

Canton, Ohio, November 14, 2022 /PRNewswire/ — Hall of Fame Resort & Entertainment Company (NASDAQ: HOFVHOFVW) (the “Company”), the only resort, entertainment and media company centered around the power of professional football, announced results for the third quarter of fiscal 2022 ending in the current quarter September 30, 2022.

“This quarter’s results reflect the team’s continued execution. All business verticals are flexing their muscles and positioning us for big wins ahead,” said michael crawford, President and Chief Executive Officer. “The company has closed a number of financing transactions this year, many with the support of key shareholders and local communities, all of which support the continued building of our unique destination, committed to Honor the past and inspire the future. The debt we have raised is commensurate with our stated objectives and has been acquired using our “just in time financing” model, enabling us to keep the cost of debt low in a truly elevated interest rate environment over the past six months,” continued Crawford Said, “With the majority of Phase II construction complete, we successfully delivered several major new events on campus during the second and third quarters, surpassing the Village’s attendance records for the past few years.Our media vertical, Village of Fame Media for sale This perfect ten, a documentary that brings together for the first time only ten Fox Sports Films men who have both won the Heisman Trophy and been inducted into the Pro Football Hall of Fame. The 90-minute show will air in prime time on Super Bowl weekend. Our gaming vertical has also been a huge success with conditional approval from the Ohio Casino Control Board for the necessary sports betting license.We are delighted to have received retail and mobile license approvals and look forward to January 1, 2023, launched with our mobile betting partner bet. Collectively, we’ve increasingly demonstrated the value proposition of HOFV and the opportunity across all of our businesses. “

Key Financial Highlights

• Revenue for the third quarter was $8.7 millionan increase of 149% compared to the same period last year, driven primarily by event revenue and hotel revenue related to events held at the Johnson Controls-supported Village of Fame.
• Net loss attributable to shareholders for the third quarter was $11.1 millioncompared to net income $8.1 million during the previous year. The change in fair value of the warrant liability is the primary driver of the difference between the two time periods.
• Adjusted EBITDA was a loss in the third quarter $7.4 millioncompared to loss $7.3 million The year-over-year increase was primarily attributable to increases in costs related to salary and benefits, insurance costs, and costs related to campus events. See page 3 for a reconciliation of net loss to EBITDA and Adjusted EBITDA.
• The company’s cash balance (including restricted cash) at the end of its fiscal quarter was $32.6 millioncompared to $17.8 million as June 30, 2022. The increase in cash balance was due to gains on construction-related financing, partially offset by higher capital expenditures related to construction activities.

Third Quarter Business Highlights

• The Village of Fame, powered by Johnson Controls, hosts many major events (“Village of Fame”), including USFL playoffs and championship games, Women’s Rugby League Championships, Liberty Bowl, Pro Football Hall of Fame kickoff NFL season games, Black Academy Hall of Fame game and with Journey, O’Jays and Glad Knightand Dave Chappelle.
• Completed construction of several key campus assets – ForeverLawn Sports Center, Performance Center and Play-Action Plaza.
• Access to multiple types of financing to support construction and infrastructure development $61.1 millionincluding PACE financing related to Tom Benson Hall of Fame Stadium, as well as retail venue leases and senior loans related to the Fan Interaction Area.
• Hall of Fame Village Media announces the sale of sports documentary THE PERFECT 10 and will co-produce the film with Fox Sports Films, spotlighting just 10 legendary football icons who have achieved one of the rarest double accomplishments in all of professional sports achievements. The documentary will air in prime time on Super Bowl LVII weekend programming.
• announced football paradise, the first of its kind produced in partnership with the Pro Football Hall of Fame. Football Heaven will explore some of the most intriguing stories, artifacts and characters in professional football history and will begin airing November 15, 2022.
• Announcing Season 2 of the Fantasy League (“HOFL”), with Pro Football Hall of Fame running back and Dallas Cowboys legend Emmitt Smith serving as commissioner.

After quarter-end highlights

• Safety $57.5 million Additional funds include $7.5 million Financing and $50 million Land lease to support the construction of the water park. The company also received a commitment to guarantee the completion of the football-themed water park, $28 million The senior loan to build the on-site Hilton Tapestry Hotel in Hall of Fame Village, as well as to restructure existing debt owed to its largest shareholder, Industrial Realty Group.
• Received conditional approval for mobile and retail sports betting licenses from the Ohio Casino Control Commission.The company previously announced the Rush Street InteractiveInc. (NYSE: relative strength index) as its official retail sports betting partner, and better oneFounded by Sports Betting Veterans Joey Levy and media moguls jack paulas its official mobile sports betting partner.
• Announcing partnership with Green Bay Packers Hall of Famer donald driver Bring “Driven Elite,” a premier fitness and athletic training facility for all fitness levels, to the Village’s Constellation Center for Excellence.

telephone conference
Company to Host Conference Call and Webcast Tuesday, November 15, 2022start at 8:30 a.m. ET, provide a review about the business. Investors and all other interested parties can access the webcast and replay on the Company’s website at: ir.hofreco.com.

About Hall of Fame Resorts & Entertainment
Hall of Fame Resorts & Entertainment (NASDAQ: HOFV, HOFVW) is a resort and entertainment company that, in partnership with the Pro Football Hall of Fame, harnesses the power and popularity of professional football and its legendary players.Headquartered in Canton, Ohio, Hall of Fame Resorts and Entertainment is the owner of Hall of Fame Village, a multi-use sports, entertainment and media destination centered on the Pro Football Hall of Fame campus, backed by Johnson Controls.For more information about the company, please visit www.HOFREco.com.

forward-looking statements

Certain statements 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 can be identified by use of words such as “opportunity,” “future,” “will,” “goal,” “enabling,” “pipeline,” “transition,” “forward,” “towards,” “build,” “upcoming ” and “outlook” are expressions that predict or indicate future events or trends, or are not statements of historical events. 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, could cause actual results or results to differ materially from those discussed in the forward-looking statements. Important factors that could affect actual results or achievements include, among others In addition, the Company’s ability to manage growth; the Company’s ability to execute its business plan and achieve its forecasts, including obtaining financing to construct planned facilities; potential litigation involving the Company; changes in applicable laws or regulations; General economic and market conditions, in particular those of the resort and entertainment industries; the impact of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment rates, and companies’ liquidity, operations and personnel increased inflation; the inability to maintain the Company’s stock listing on Nasdaq; the potential impact of a reverse stock split; and risks and uncertainties discussed from time to time in our reports filed with the Securities and Exchange Commission and other public filings. The company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

A company reports its financial performance in accordance with generally accepted accounting principles U.S. (“GAAP”) and corresponding measures are presented as non-GAAP financial measures. This presentation includes references to the following non-GAAP financial measures: EBITDA and Adjusted EBITDA. These are important financial metrics used in business management, including decisions about resource allocation and performance evaluation. Management believes that reporting these non-GAAP financial measures is useful to investors because they are representative of the company’s performance and provide better comparability of results. See the table below for definitions of the above non-GAAP financial measures and corresponding reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures. Non-GAAP financial measures should be considered in addition to, not as a substitute for, the Company’s results prepared in accordance with GAAP. In addition, the non-GAAP measures used by the Company may differ from the non-GAAP measures used by other companies, and other companies may not define the non-GAAP measures used by the Company in the same way.

SOURCE Hall of Fame Resorts and Entertainment