Hall of Fame Resort & Entertainment Company Announces Fourth Quarter and Full Year 2023 Results
FOR IMMEDIATE RELEASE
CANTON, Ohio (March 20, 2024) – 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 fourth quarter and full-year fiscal 2023 results for the period ended December 31, 2023.
“The performance of the fourth quarter highlights the significant progress that we have made over the course of the last year,” stated Michael Crawford, HOFV President & CEO. “We remained focused on operational execution within all our business verticals, which led to record fourth quarter revenue. As an early-stage Company, it is mission critical that we continue to make the necessary strategic investments to enhance business growth, increase operational efficiency, and elevate our Media and Gaming product and brands within the sports and entertainment industry. In addition, our synergistic business model helps create integrated guest experiences and growth throughout our organization. As we enter 2024, I am very excited with the plan we have to grow our operational capabilities by adding a roster of diverse events, strategic partnerships, and new experiences that will bring millions of guests to our campus. Finally, we are committed to telling great stories with multiple new Hall of Fame Village Media projects being shopped for production and distribution.” Crawford went on to share, “Our priorities remain creating one-of-a-kind content and experiences for our guests to enjoy, completing the Phase II development of Hall of Fame Village, and continue our work on a balance sheet structure that creates shareholder value and supports the company’s long-term success.”
Key Financial Highlights
- Fourth quarter revenue was $6.1 million, an increase of 101% compared to the same period in the prior year, primarily driven by continued operationalization of Hall of Fame Village through event and rental revenue. For the full year, revenue was $24.1 million, an increase of 51% compared to the prior year. Full year results were driven by event and rental revenue at Hall of Fame Village and hotel revenue at the Doubletree by Hilton Downtown Canton.
- Fourth quarter net loss attributable to shareholders was $20.2 million, compared to a net loss of $18.5 million in the same period in the prior year. The change was primarily driven by impairment expense related to the agreement of the ForeverLawn Sports Complex sale and was partially offset by an increase in other income resulting from an award by an arbitration panel and an increase in total revenue. For the full year, net loss was $69.7 million compared to a net loss of $46.9 million, primarily driven by increased net interest expense and operating expenses.
- The Company finished its fiscal quarter with a cash balance of $11.8 million, including $8.6 million in restricted cash, compared to $11.8 million, including $7.5 million in restricted cash, as of September 30, 2023.
- Fourth quarter adjusted EBITDA was a loss of $1.9 million, compared to a loss of $5.5 million in the same period in the prior year. For the full year, adjusted EBITDA was a loss of $25.5 million compared to a loss of $26.0 million in the prior year as increased operating expense was mostly offset by revenue. See page 6 for a reconciliation of net loss to EBITDA and adjusted EBITDA.
Key Business Highlights
- Hall of Fame Village hosted many large events at Hall of Fame Village including Emmy and Grammy nominated comedian, Bill Burr, all seven divisions of the OHSAA Football Championships, and Winter Blitz. In addition to these large events, additional revenue was generated from campus programming and tenant and event rentals associated with our synergistic revenue model.
- The Company announced the strategic partnership with Josh Harris and David Blitzer to elevate and expand youth sports programming at the Hall of Fame Village. The partnership will amplify youth sports programming and create world-class experiences for participants at the ForeverLawn Sports Complex and will extend to youth sports programming at the Hall of Fame Village’s Center for Performance.
- The Company partnered with several new prominent companies including Coca-Cola Consolidated, the Ohio Lottery!, and Enviroscapes.
- The Company completed a $2.8 million public offering of common stock and warrants to increase institutional ownership and improve stock trading volumes.
Conference Call
The Company will host a conference call and webcast Thursday, March 21, 2023, 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.
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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” 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.