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 second quarter ended June 30, 2022 (“Q2 2022”).
“Q2 was a very productive quarter for us as we continued to invest in the foundation of our business, integrating recently acquired companies, and developing operational efficiencies and centres of excellence,” said Jordan Gnat, Playmaker CEO. “We completed two acquisitions subsequent to the quarter end with the key efforts on diligence and operational integration happening prior to closing the transactions. We launched new products with BarkBets and The 90th Minute and our new affiliate partnership with oddschecker. On the balance sheet side, we completed a financing with Beedie Capital, bringing additional institutional capital into the company. This investment provides us with the flexibility to execute on our strategies and a partner in Beedie Capital that brings unique expertise and perspective to complement our business. I have stated on many occasions that we will not profit at the expense of growth and not grow at the expense of profit. This is the disciplined approach we started with and, as demonstrated, we continue to focus on this balance.”
“Though we continue to invest in growth initiatives throughout the business, we produced $1.9 million of pro forma Adjusted EBITDA in Q2, demonstrating our balanced focus on profitability and growth,” said Mike Cooke, Playmaker CFO. “Meanwhile, at a time when capital is at a premium, we continue to strengthen our balance sheet, closing a US $20.0 million convertible loan facility in July 2022. This facility, combined with the US $15.0 million credit facility that we closed in March 2022, gives us significant flexibility to opportunistically pursue our M&A strategy – and to continue making investments to drive growth, both organically and through strategic acquisitions over time.”
FINANCIAL HIGHLIGHTS (Figures in USD)
OPERATIONAL HIGHLIGHTS
______________________________________________________
1 Comscore Media Metrix® - Sports – June 2022 – Multi Platform – Desktop 6+ and Total Mobile 18+ - Total Visits – Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States
CONFERENCE CALL
The Company will host a management conference call to discuss its Q2 2022 financial results on August 16, 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 date of this press release, 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 CAPITAL INC.
Playmaker (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that acquires and integrates premier fan-centric media brands, curated to deliver highly engaged audiences of sports fans to tier one advertisers, online sports betting operators, and sports federations and leagues. Leveraging its in-house technology stack, Bench, and with a 360 degree view of sports fans, Playmaker delivers authentic digital content experiences for sports fans and best-in-class results for its partners across the Americas.
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) |
||||||
|
|
|
|
|
|
|
|
|
|
June 30,
(Unaudited) |
|
December 31,
(Audited) |
|
Assets |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,478,240 |
$ |
7,111,728 |
|
Accounts receivable |
|
|
4,558,803 |
|
4,406,719 |
|
Income taxes receivable |
|
|
184,902 |
|
45,711 |
|
Inventory |
|
|
143,489 |
|
18,770 |
|
Prepaid and other current assets |
|
|
762,084 |
|
377,061 |
|
Total current assets |
|
|
8,127,518 |
|
11,959,989 |
|
Property and equipment |
|
|
1,006,550 |
|
778,381 |
|
Intangible assets |
|
|
48,330,035 |
|
45,808,097 |
|
Goodwill |
|
|
28,085,443 |
|
28,393,097 |
|
Deferred tax asset |
|
|
855,546 |
|
868,116 |
|
Other long-term assets |
|
|
48,819 |
|
20,720 |
|
Total assets |
|
$ |
86,453,911 |
$ |
87,828,400 |
|
Liabilities |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,172,295 |
$ |
567,572 |
|
Income taxes payable |
|
|
82,495 |
|
81,264 |
|
Deferred revenue |
|
|
317,659 |
|
188,993 |
|
Accrued expenses and other current liabilities |
|
|
1,669,682 |
|
2,623,321 |
|
Current portion of lease liability |
|
|
169,525 |
|
88,951 |
|
Current portion of long-term debt |
|
|
- |
|
14,365 |
|
Current deferred consideration |
|
|
2,034,033 |
|
2,345,759 |
|
Current contingent consideration |
|
|
11,851,550 |
|
10,475,031 |
|
Total current liabilities |
|
|
17,297,239 |
|
16,385,256 |
|
Long-term debt |
|
|
5,888,888 |
|
46,708 |
|
Long-term lease liability |
|
|
513,540 |
|
415,057 |
|
Deferred tax liability |
|
|
4,221,940 |
|
4,237,822 |
|
Deferred consideration |
|
|
- |
|
1,848,388 |
|
Contingent consideration |
|
|
4,455,624 |
|
8,837,406 |
|
Total liabilities |
|
|
32,377,231 |
|
31,770,637 |
|
Shareholders' Equity |
|
|
|
|
|
|
Share capital |
|
|
62,659,877 |
|
60,494,370 |
|
Contributed surplus |
|
|
1,171,967 |
|
606,863 |
|
Warrant reserve |
|
|
277,393 |
|
303,278 |
|
Accumulated other comprehensive (loss) income |
|
|
(1,542,347) |
|
(1,368,266) |
|
Deficit |
|
|
(8,490,210) |
|
(3,978,482) |
|
Total shareholders’ equity |
|
|
54,076,680 |
|
56,057,763 |
|
Total liabilities and shareholders’ equity |
|
$ |
86,453,911 |
$ |
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) |
|||||||||||||
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|||
Revenue |
|
$ |
6,977,718 |
$ |
3,039,141 |
$ |
12,794,291 |
$ |
3,039,141 |
|
|||
Cost of sales |
|
|
666,049 |
|
145,706 |
|
1,395,018 |
|
145,706 |
|
|||
Gross profit |
|
|
6,311,669 |
|
2,893,435 |
|
11,399,273 |
|
2,893,435 |
|
|||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|||
Advertising, commissions and fees |
|
1,198,608 |
|
772,084 |
|
1,677,411 |
|
772,084 |
|
||||
Web services and publishing |
|
|
268,566 |
|
114,003 |
|
491,818 |
|
114,003 |
|
|||
Salary and wages |
|
|
3,322,411 |
|
1,186,199 |
|
6,318,872 |
|
1,204,025 |
|
|||
Professional fees |
|
|
219,018 |
|
141,970 |
|
694,054 |
|
224,541 |
|
|||
General and administration |
|
|
500,692 |
|
146,386 |
|
933,109 |
|
154,346 |
|
|||
Share-based compensation |
|
|
370,719 |
|
116,918 |
|
584,529 |
|
117,008 |
|
|||
Depreciation and amortization |
|
|
1,123,867 |
|
16,094 |
|
2,064,703 |
|
16,391 |
|
|||
Total operating expenses |
|
|
7,003,881 |
|
2,493,654 |
|
12,764,496 |
|
2,602,398 |
|
|||
Operating income (loss) |
|
|
(692,212) |
|
399,781 |
|
(1,365,223) |
|
291,037 |
|
|||
Listing and filing fees |
|
|
(5,786) |
|
(1,734,304) |
|
(11,613) |
|
(1,734,304) |
|
|||
Transaction costs |
|
|
(100,398) |
|
(171,638) |
|
(749,332) |
|
(228,027) |
|
|||
Interest expense |
|
|
(93,574) |
|
(107,134) |
|
(104,057) |
|
(107,134) |
|
|||
Other income |
|
|
4,454 |
|
4,247 |
|
12,277 |
|
4,247 |
|
|||
Other expenses |
|
|
(59,539) |
|
(2,992) |
|
(71,765) |
|
(2,992) |
|
|||
Change in fair value of consideration |
|
|
- |
|
- |
|
(1,896,772) |
|
- |
|
|||
Foreign exchange gain (loss) |
|
|
(138,795) |
|
513,128 |
|
(276,109) |
|
339,157 |
|
|||
Net loss before taxes |
|
|
(1,085,850) |
|
(1,098,912) |
|
(4,462,594) |
|
(1,438,016) |
|
|||
Current income tax expense |
|
|
(26,995) |
|
(20,530) |
|
(49,134) |
|
(20,530) |
|
|||
Net loss |
|
$ |
(1,112,845) |
$ |
(1,119,442) |
$ |
(4,511,728) |
$ |
(1,458,546) |
|
|||
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
||||
(Loss) on translation |
|
|
(1,016,142) |
|
(723,432) |
|
(174,081) |
|
(548,498) |
|
|||
Net loss and comprehensive loss |
|
$ |
(2,128,987) |
$ |
(1,842,874) |
$ |
(4,685,809) |
$ |
(2,007,044) |
|
|||
Basic and diluted net loss per share |
|
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.02) |
$ |
(0.03) |
|
|||
Basic and diluted weighted average number of shares |
|
|
215,158,590 |
|
82,327,862 |
|
213,863,106 |
|
56,454,641 |
|
Playmaker Capital Inc. |
||||||
Condensed Consolidated Interim Statements of Cash Flows |
||||||
Unaudited |
||||||
(Stated in U.S. dollars) |
||||||
For the six months ended June 30 |
||||||
|
|
|
|
|
|
|
Operating activities |
|
|
2022 |
|
2021 |
|
Net loss |
|
$ |
(4,511,728) |
$ |
(1,458,546) |
|
Depreciation and amortization |
|
|
2,064,703 |
|
16,391 |
|
Share-based compensation |
|
|
584,529 |
|
117,627 |
|
Listing fees, RTO costs |
|
|
- |
|
618,184 |
|
Interest expense on convertible debenture, settled with shares |
|
|
- |
|
102,740 |
|
Non-cash interest expense |
|
|
8,648 |
|
- |
|
Change in fair value of contingent consideration |
|
|
1,896,772 |
|
- |
|
Unrealized foreign exchange (gain) loss |
|
|
276,109 |
|
(339,157) |
|
Change in non-cash working capital: |
|
|
|
|
|
|
Accounts receivable |
|
|
378,139 |
|
(277,460) |
|
Income taxes receivable |
|
|
(139,191) |
|
(24,470) |
|
Inventory |
|
|
(124,719) |
|
(20,724) |
|
Prepaid and other assets |
|
|
(399,502) |
|
(101,333) |
|
Accounts payable |
|
|
183,574 |
|
596,794 |
|
Income taxes payable |
|
|
1,231 |
|
- |
|
Deferred revenue |
|
|
128,666 |
|
- |
|
Accrued expenses and other current liabilities |
|
|
(1,123,786) |
|
(62,950) |
|
Net cash flows used in operating activities |
|
|
(776,555) |
|
(832,904) |
|
Investing activities |
|
|
|
|
|
|
Acquisition of Futbol Sites, net of cash acquired |
|
|
- |
|
(6,166,393) |
|
Acquisition of Fanaticos |
|
|
- |
|
(204,290) |
|
Acquisition of Futmarketing |
|
|
(875,000) |
|
- |
|
Acquisition of SportsDrop |
|
|
(1,200,000) |
|
- |
|
Settlement of deferred and contingent consideration |
|
|
(7,393,636) |
|
- |
|
Cash acquired through RTO |
|
|
- |
|
162,375 |
|
Purchase of property and equipment |
|
|
(109,076) |
|
(15,434) |
|
Purchase of intangible assets |
|
|
(73,633) |
|
- |
|
Net cash flows used in investing activities |
|
|
(9,651,345) |
|
(6,223,742) |
|
Financing activities |
|
|
|
|
|
|
Issuance of preferred shares |
|
|
- |
|
5,505,000 |
|
Issuance of common shares Issuance costs on preferred and common shares |
|
|
- - |
|
19,881,600 (1,236,391) |
|
Options exercised |
|
|
- |
|
27,956 |
|
Warrants exercised |
|
|
162,174 |
|
9,900 |
|
Long-term debt drawn |
|
|
6,000,000 |
|
- |
|
Long-term debt repayments |
|
|
(111,112) |
|
(22,186) |
|
Lease liability principal payments |
|
|
(96,839) |
|
(21,440) |
|
Net cash flows provided by financing activities |
|
|
5,954,223 |
|
24,144,439 |
|
Increase (decrease) in cash and cash equivalents |
|
|
(4,473,677) |
|
17,087,793 |
|
Foreign exchange impact |
|
|
(159,811) |
|
(206,011) |
|
Cash and cash equivalents, beginning of period |
|
|
7,111,728 |
|
6,631,358 |
|
Cash and cash equivalents, end of period |
|
$ |
2,478,240 |
$ |
23,513,140 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220815005691/en/
MEDIA
Elias Blahacek – E: [email protected] | T: (416) 254-4345