PMKR Playmaker Capital Inc

• Q1 2022 pro forma revenue was U.S. $5.8 million, an organic increase of 37% over Q1 2021
• Trailing twelve-month pro forma revenue was U.S. $25.4 million, an organic increase of 78% over the previous twelve months
• Q1 2022 pro forma Adjusted EBITDA was U.S. $1.7 million, an organic increase of 16% over Q1 2021
• Trailing twelve-month pro forma Adjusted EBITDA was U.S. $9.5 million, an organic increase of 80% over the previous twelve months

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”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220516006020/en/

Playmaker Capital Inc. Reports First Quarter 2022 Results (Graphic: Business Wire)

“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)

• Revenue – Revenue was $5.8 million in Q1 2022, compared to $nil in Q1 2021.
• Operating Income – Our Digital Media and Technology Services operating segments produced combined operating income of $1.6 million in Q1 2022, compared to $nil in Q1 2021. On a consolidated basis, including our corporate segment, operating loss was $0.7 million in Q1 2022, compared to an operating loss of $0.1 million in Q1 2021.
• Pro Forma Revenue (including all acquisitions through Q1 2022) – Revenue was $5.8 million in Q1 2022, an increase of 37% from $4.2 million in Q1 2021.
• Pro Forma Adjusted EBITDA (including all acquisitions through Q1 2022) – Adjusted EBITDA was $1.7 million in Q1 2022, an increase of 16% from $1.4 million in Q1 2021.
• Cash and Cash Equivalents – Cash and cash equivalents were $5.1 million at March 31, 2022 compared to $7.1 million at December 31, 2021.

OPERATIONAL HIGHLIGHTS

• Playmaker added to its premier collection of sports media brands with the acquisition of U.S. media company, The Sports Drop. As part of the acquisition, The Sports Drop Founder, Mike Bellom, joined Playmaker’s senior leadership team as Head of Paid Media. Playmaker also acquired Futmarketing, a top digital media and marketing group in Brazil and a trusted editorial consultant to soccer platforms throughout Latin America.
• Playmaker introduced Adam Seaborn as Head of Partnerships (North America) to lead integrated sales efforts for Playmaker’s North American assets.
• Playmaker achieved record engagement metrics in Q1 2022 across its owned and operated web properties, reaching more than 88 million monthly users and generating more than 645 million sessions in the quarter, representing a 64%+ increase over Q1 2021.
• Playmaker achieved its highest rankings by Comscore in Brazil, with Futbol Sites’ properties Bolavip and Fanaticos ranking #1 and #3 respectively for the month of March.
• Successful migration of The Nation Network’s web properties, including all team sites and Daily Faceoff, to Playmaker Bench, Playmaker’s in-house monetization tech stack.
• The Morning Bark, Yardbarker’s daily email newsletter, increased its subscriber base to more than 372,000. Yardbarker also launched BarkBets, a daily sports betting focused newsletter.
• Yardbarker and Spotlight Sports Group entered into a long-term strategic partnership to provide an all-new horse racing portal on yardbarker.com. This vertical provides users access to odds, entries, analysis, and general information pertaining to horseracing across the U.S.
• Playmaker brand Cracks launched a live show offering and generated more than 145 million views on YouTube in Q1 2022.
• Playmaker properties reached more than 106 million social media followers across all major platforms including Facebook, Twitter, TikTok, Instagram, YouTube and Twitch.

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 jgnat@playmaker.fans | T: (416) 815-4993

Playmaker Capital Inc.

Condensed Consolidated Interim Statements of Financial Position

(Stated in U.S. dollars)

 

 

 

March 31, 2022 (Unaudited)

 

 

December 31, 2021 (Audited)

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220516006020/en/

MEDIA Derek Holota – Derek@providentcomms.com | (+1) 343-422-5606