CANTON, Ohio, May 13, 2024 /PRNewswire/ — Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV, HOFVW)) (the “Company”), the only resort, entertainment and media company centered around the power of professional football, announced its first quarter 2024 results for the period ended March 31, 2024.
“The first quarter reflects our stated commitment to flatten seasonality and grow our business. Within the Village, the team has done a great job in diversifying the types and timing of events we host, adding new tenant experiences, and focusing on the necessary capital sources to continue with the development of our Gameday Bay Waterpark and Hilton Tapestry Hotel. Our Media vertical continues to create new content development, which has allowed us to have more shows in distribution on multiple platforms this year compared to the prior year”. Crawford went on to say, “while we continue to build the necessary infrastructure to support revenue growth, we remain focused on maximizing every dollar spent. The results for the first quarter highlight a significant step towards strengthening expense management processes, which will allow the company to reach stabilization quicker. While the macro-environment remains uncertain, the Company continues to focus on investing to create unique experiences for our guests to enjoy and drive positive results for our shareholders”.
Key Financial Highlights
First quarter revenue was $4.2 million, an increase of 34% compared to the same period in the prior year, primarily driven by continued operationalization of Hall of Fame Village through event and rental revenue.
First quarter net loss attributable to shareholders was $14.9 million, compared to a net loss of $19.6 million in the same period in the prior year, primarily driven by decreased operating expenses and partially offset by increased interest expense.
First quarter adjusted EBITDA was a loss of $2.9 million, compared to a loss of $10.9 million in the same period in the prior year. The change was driven by decreased operating expenses including compensation-related expenses and third-party services in conjunction with the prior year period including several non-recurring items. See page 6 for a reconciliation of net loss to EBITDA and adjusted EBITDA.
The Company finished its fiscal quarter with a cash balance of $6.9 million, including $4.2 million in restricted cash, compared to $11.8 million, including $8.6 million in restricted cash, as of December 31, 2023.
Key Business Highlights
Hall of Fame Village hosted many large events including events in the Center for Performance ranging from the ForeverLawn Faith Leadership Event with headline speakers Craig Groeschel and Tim Tebow, conventions and trade shows, and sporting leagues and cheerleading events. The variety and type of events and subsequent increased attendance has allowed us to benefit from our synergistic revenue model.
Opened several new tenants within Hall of Fame Village with Driven Elite Fitness facility located within the Constellation Center for Excellence and Driven Elite Performance situated in the Center for Performance along with Heggy’s Nut Shop, a beloved brand renowned throughout Stark County for its premier-quality snacks.
The Company finalized an audit of campus wide operating systems with plans to implement this year, which will enhance revenue maximization, improve operational efficiencies, all with a focus on creating a world class visitor experience.
The Company has accelerated its expense management processes, which have saved hundreds of thousands of dollars annually to date. The continued investments in the processes will allow for the Company to reach stabilization more quickly.
Hall of Fame Village has announced numerous large events and has curated an exciting full year calendar of entertainment and engagement options. These events range from eight-time Grammy Award winner Carrie Underwood performing at the Concert for Legends in August during the annual weeklong Enshrinement Festival to Bert Kreischer’s Fully Loaded Comedy Festival in June and GridIron Gateway Gaming Tournament in July. Tom Benson Hall of Fame Stadium will also be the home for the Opendorse Bowl Series featuring four Division III conferences this winter.
Conference Call
The Company will host a conference call and webcast Tuesday, May 14, 2024, 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: https://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 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 “plan,” “opportunity,” “future,” “will,” “goal,” “enable,” “pipeline,” “transition,” “move forward,” “towards,” “build out,” “coming” , “commitment” 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 and for working capital; 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; 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 SEC. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
HALL OF FAME RESORT & ENTERTAINMENT COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months Ended March 31,
2024
2023
Revenues
Sponsorships, net of activation costs
$ 859,731
$ 673,475
Event, rents, restaurant, and other revenues
2,054,877
908,312
Hotel revenues
1,276,707
1,538,646
Total revenues
4,191,315
3,120,433
Operating expenses
Operating expenses
6,150,364
12,528,716
Hotel operating expenses
974,432
1,459,203
Impairment expense
–
1,145,000
Depreciation expense
4,158,750
2,553,360
Total operating expenses
11,283,546
17,686,279
Loss from operations
(7,092,231)
(14,565,846)
Other income (expense)
Interest expense, net
(6,521,534)
(3,632,637)
Amortization of discount on note payable
(955,322)
(855,891)
Change in fair value of warrant liability
49,000
(238,000)
Change in fair value of interest rate swap
–
(100,000)
Loss on sale of asset
(140,041)
–
Income from equity method investments
29,952
–
Total other expense
(7,537,945)
(4,826,528)
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