Playmaker Capital Inc. (TSX-V: PMKR) ("the Company" or "Playmaker"), the digital sports media company that delivers authentic content experiences through its portfolio of sports media and technology brands, is pleased to report its financial results for the three months ended March 31, 2022 ("Q1 2022").
"We have started 2022 the way we completed 2021 - focused on execution. We continue to see strong organic growth from our underlying businesses, and we continue to grow through acquisition. In Q1, we acquired Futmarketing, and subsequent to the quarter end we acquired The Sports Drop," said Jordan Gnat, Playmaker CEO. "We are focused on the profitability of our company and ensuring we invest in people and technology that drive efficiencies and create the necessary foundation for both sustainable organic growth and the ability to integrate new businesses into our ecosystem. We continue to see significant growth of the audiences we engage across our ecosystem. In Q1, our web properties reached a monthly high of 88M users, an increase of 55% over Q1 2021, and total user sessions in the quarter exceeded 645M, an increase of 64% over Q1 2021. We continue to see excellent engagement across our YouTube properties, generating 145M views in the quarter, a 5% increase over Q1 2021. We have built a significant multi-channel platform of assets with leadership teams that are working together to leverage each other's strengths."
"Our operating segments continued to drive profitable growth in Q1 2022, delivering a 37% increase in pro forma revenue compared to Q1 2021 while contributing $1.6 million of operating income and $1.7 million of Adjusted EBITDA in the quarter," said Mike Cooke, Playmaker CFO. "We also continue to focus on strengthening our balance sheet, closing a $15.0 million credit facility during the quarter. The addition of such a significant amount of available capital, combined with $5.1M of cash on hand at quarter-end, provides us with flexibility to continue to opportunistically pursue our M&A strategy."
FINANCIAL HIGHLIGHTS (Figures in USD)
OPERATIONAL HIGHLIGHTS
CONFERENCE CALL
The Company will host a management conference call to discuss its Q1 2022 financial results on May 17, 2022 at 10:00 a.m. (Eastern Time). Hosting the call will be Jordan Gnat, Chief Executive Officer; Jake Cassaday, Chief Operating Officer; and Mike Cooke, Chief Financial Officer.
To participate in the conference call, please dial in using one of the following numbers approximately five minutes prior to commencement and ask to join the Playmaker call:
Dial-In Number (Toll Free): 1-844-707-6933
Dial-In Number (International): 1-412-317-5796
A replay of the Conference Call will be made available at playmaker.fans/investors.
To sign up for Playmaker Investor Alerts, visit: PMKR Investor Alerts.
TSX VENTURE EXCHANGE DISCLAIMER
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NON-IFRS MEASURES
Some of the information presented in this press release includes non-IFRS financial measures, including, "EBITDA", "Adjusted EBITDA", "working capital", and metrics that are presented on a pro forma basis. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
"EBITDA" is earnings before interest, taxes, depreciation and amortization.
"Adjusted EBITDA" is earnings of the Company's operating subsidiaries before interest, taxes, depreciation and amortization, excluding the impact of head office costs and any one-time costs.
"Working capital" is the Company's current assets minus its current liabilities.
"Pro forma" is an adjustment to incorporate the results of any acquisitions made through the end of Q1 2022, assuming each acquisition occurred on the first day of the period being presented.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker's current expectations regarding future events. The words "will", "expects", "anticipates", "believes", "plans", "intends" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
ABOUT PLAYMAKER
Playmaker Capital Inc. (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a premier collection of sports media brands, curated to deliver highly engaged audiences of sports fans to sports betting companies, leagues, teams and advertisers.
Playmaker reports in U.S. dollars, except where noted otherwise, and in accordance with International Financial Reporting Standards ("IFRS").
For more information, visit: http://www.playmaker.fans or contact Playmaker Chief Executive Officer Jordan Gnat via email [email protected] | T: (416) 815-4993
Playmaker Capital Inc. |
||||||
Condensed Consolidated Interim Statements of Financial Position |
||||||
(Stated in U.S. dollars) |
||||||
|
|
March 31, 2022
|
|
December 31, 2021
|
||
Assets |
|
|
|
|
||
Current |
|
|
|
|
||
Cash and cash equivalents |
$ |
5,066,882 |
$ |
7,111,728 |
||
Accounts receivable |
|
3,981,195 |
|
4,406,719 |
||
Income taxes receivable |
|
99,553 |
|
45,711 |
||
Inventory |
|
188,160 |
|
18,770 |
||
Prepaid and other current assets |
|
459,708 |
|
377,061 |
||
Total current assets |
|
9,795,498 |
|
11,959,989 |
||
Property and equipment |
|
944,617 |
|
778,381 |
||
Intangible assets |
|
48,671,392 |
|
45,808,097 |
||
Goodwill |
|
28,422,683 |
|
28,393,097 |
||
Deferred tax asset |
|
882,337 |
|
868,116 |
||
Other long-term assets |
|
41,994 |
|
20,720 |
||
Total assets |
$ |
88,758,521 |
$ |
87,828,400 |
||
Liabilities |
|
|
|
|
||
Current |
|
|
|
|
||
Accounts payable |
$ |
629,244 |
$ |
567,572 |
||
Income taxes payable |
|
99,853 |
|
81,264 |
||
Deferred revenue |
|
142,770 |
|
188,993 |
||
Accrued expenses and other current liabilities |
|
2,141,374 |
|
2,623,321 |
||
Current portion of lease liability |
|
129,106 |
|
88,951 |
||
Current portion of long-term debt |
|
- |
|
14,365 |
||
Current deferred consideration |
|
2,155,000 |
|
2,345,759 |
||
Current contingent consideration |
|
14,125,376 |
|
10,475,031 |
||
Total current liabilities |
|
19,422,723 |
|
16,385,256 |
||
Long-term debt |
|
- |
|
46,708 |
||
Long-term lease liability |
|
538,416 |
|
415,057 |
||
Deferred tax liability |
|
4,002,790 |
|
4,237,822 |
||
Deferred consideration |
|
1,878,710 |
|
1,848,388 |
||
Contingent consideration |
|
8,671,713 |
|
8,837,406 |
||
Total liabilities |
|
34,514,352 |
|
31,770,637 |
||
Shareholders' Equity |
|
|
|
|
||
Share capital |
|
61,034,944 |
|
60,494,370 |
||
Contributed surplus |
|
813,278 |
|
606,863 |
||
Warrant reserve |
|
299,517 |
|
303,278 |
||
Accumulated other comprehensive (loss) income |
|
(526,205) |
|
(1,368,266) |
||
Deficit |
|
(7,377,365) |
|
(3,978,482) |
||
Total shareholders' equity |
|
54,244,169 |
|
56,057,763 |
||
Total liabilities and shareholders' equity |
$ |
88,758,521 |
$ |
87,828,400 |
Playmaker Capital Inc. |
||||||
Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss |
||||||
Unaudited |
||||||
(Stated in U.S. dollars, except share information) |
||||||
For the three months ended March 31 |
||||||
|
|
2022 |
|
2021 |
||
Revenue |
$ |
5,816,573 |
$ |
- |
||
Cost of sales |
|
728,969 |
|
- |
||
Gross profit |
|
5,087,604 |
|
- |
||
Operating expenses |
|
|
|
|
||
Advertising, commissions and fees |
|
478,803 |
|
- |
||
Web services and publishing |
|
223,252 |
|
- |
||
Salary and wages |
|
2,996,461 |
|
17,826 |
||
Professional fees |
|
475,036 |
|
82,571 |
||
General and administration |
|
432,417 |
|
7,961 |
||
Share-based compensation |
|
213,810 |
|
90 |
||
Depreciation and amortization |
|
940,836 |
|
297 |
||
Total operating expenses |
|
5,760,615 |
|
108,745 |
||
Operating income (loss) |
|
(673,011) |
|
(108,745) |
||
Listing and filing fees |
|
(5,827) |
|
- |
||
Transaction costs |
|
(648,934) |
|
(56,389) |
||
Interest expense |
|
(10,483) |
|
- |
||
Other income |
|
7,823 |
|
- |
||
Other expenses |
|
(12,226) |
|
- |
||
Change in fair value of consideration |
|
(1,896,772) |
|
- |
||
Foreign exchange gain (loss) |
|
(137,314) |
|
(173,971) |
||
Net loss before taxes |
|
(3,376,744) |
|
(339,105) |
||
Deferred income tax recovery |
|
- |
|
- |
||
Current income tax expense |
|
(22,139) |
|
- |
||
Net loss |
$ |
(3,398,883) |
$ |
(339,105) |
||
Other comprehensive (loss) income: |
|
|
|
|
||
(Loss) gain on translation |
|
842,061 |
|
174,934 |
||
Net loss and comprehensive loss |
$ |
(2,556,822) |
$ |
(164,170) |
||
Basic and diluted net loss per share |
$ |
(0.02) |
$ |
(0.01) |
||
Basic and diluted weighted average number of shares |
|
212,960,634 |
|
30,000,000 |
Playmaker Capital Inc. |
||||||
Condensed Consolidated Interim Statements of Cash Flows |
||||||
Unaudited |
||||||
(Stated in U.S. dollars) |
||||||
For the three months ended March 31 |
||||||
|
|
|
|
|
||
Operating activities |
|
2022 |
|
2021 |
||
Net loss |
$ |
(3,398,883) |
$ |
(339,104) |
||
Depreciation and amortization |
|
940,836 |
|
297 |
||
Share-based compensation |
|
213,810 |
|
90 |
||
Non-cash interest expense |
|
6,543 |
|
- |
||
Change in fair value of contingent consideration |
|
1,896,772 |
|
- |
||
Unrealized foreign exchange (gain) loss |
|
137,314 |
|
155,775 |
||
Change in non-cash working capital: |
|
|
|
|
||
Accounts receivable |
|
425,524 |
|
(25) |
||
Income taxes receivable |
|
(53,842) |
|
- |
||
Inventory |
|
(169,390) |
|
- |
||
Prepaid and other assets |
|
(94,998) |
|
(31,146) |
||
Accounts payable |
|
61,672 |
|
25 |
||
Income taxes payable |
|
18,589 |
|
- |
||
Deferred revenue |
|
(46,223) |
|
- |
||
Accrued expenses and other current liabilities |
|
(543,023) |
|
(26,321) |
||
Net cash flows used in operating activities |
|
(605,299) |
|
(240,409) |
||
Investing activities |
|
|
|
|
||
Restricted Cash ? Futbol Sites Acquisition |
|
- |
|
(6,000,000) |
||
Acquisition of Futmarketing |
|
(875,000) |
|
- |
||
Settlement of consideration |
|
(429,691) |
|
- |
||
Purchase of property and equipment |
|
(25,117) |
|
(3,087) |
||
Purchase of intangibles |
|
(44,040) |
|
- |
||
Net cash flows used in investing activities |
|
(1,373,848) |
|
(6,003,087) |
||
Financing activities |
|
|
|
|
||
Issuance of preferred shares |
|
- |
|
5,505,000 |
||
Issuance costs on preferred and common shares |
|
- |
|
(149,727) |
||
Warrants exercised |
|
26,813 |
|
- |
||
Lease liability principal payments |
|
(40,161) |
|
- |
||
Net cash flows provided by financing activities |
|
(13,348) |
|
5,355,273 |
||
Increase (decrease) in cash and cash equivalents |
|
(1,992,495) |
|
(888,223) |
||
Foreign exchange impact |
|
(52,351) |
|
19,160 |
||
Cash and cash equivalents, beginning of period |
|
7,111,728 |
|
6,631,358 |
||
Cash and cash equivalents, end of period |
$ |
5,066,882 |
$ |
5,762,295 |
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