Hall of Fame Resort & Entertainment Company excels in 2023 with strong financials and strategic ventures

Thursday, March 21, 2024

Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV, HOFVW), a unique resort, entertainment, and media entity focused on the prominence of professional football, has unveiled its financial results for the fourth quarter and full fiscal year 2023, concluding on 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.”   

Financial Highlights:

• Fourth-quarter revenue surged to $6.1 million, marking a remarkable 101% increase compared to the same period the previous year. This growth was primarily propelled by the ongoing operationalization of Hall of Fame Village, driving event and rental revenue. Annual revenue reached $24.1 million, rising by 51% from the previous year, primarily attributed to event and rental revenue at Hall of Fame Village and hotel revenue at the Doubletree by Hilton Downtown Canton.
• Net loss attributable to shareholders for the fourth quarter was $20.2 million, compared to $18.5 million in the same period of the prior year. The increase was chiefly influenced by impairment expenses linked to the ForeverLawn Sports Complex sale, offset by enhanced other income due to an arbitration panel award and augmented total revenue. For the full year, the net loss stood at $69.7 million, compared to $46.9 million the previous year, primarily driven by heightened net interest expenses and operating costs.
• Adjusted EBITDA for the fourth quarter depicted a loss of $1.9 million, an improvement from the $5.5 million loss recorded in the same period the prior year. For the entire year, adjusted EBITDA indicated a loss of $25.5 million, a slight reduction from the $26.0 million loss in the previous year, with increased operating expenses mostly offset by revenue.
• As of the end of the fiscal quarter, the Company held a cash balance of $11.8 million, including $8.6 million in restricted cash, compared to $11.8 million, with $7.5 million in restricted cash, as of September 30, 2023.

Business Highlights:

• Hall of Fame Village hosted a series of significant events, including performances by Emmy and Grammy-nominated comedian Bill Burr, all seven divisions of the OHSAA Football Championships, and Winter Blitz. Extra sources of income stemmed from campus programming and the rental of venues to tenants and event organizers, in harmony with the integrated revenue strategy.
• The Company unveiled a strategic partnership with Josh Harris and David Blitzer aimed at enhancing and broadening youth sports programming at the Hall of Fame Village. This partnership aims to enhance youth sports programming and create exceptional experiences for participants at the ForeverLawn Sports Complex, extending to youth sports programming at the Hall of Fame Village’s Center for Performance.
• Collaborations were forged with several notable companies, including Coca-Cola Consolidated, the Ohio Lottery!, and Enviroscapes.
• A $2.8 million public offering of common stock and warrants was successfully completed to bolster institutional ownership and enhance stock trading volumes.

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