Playmaker Capital Inc. (TSX-V: PMKR) (“Playmaker” or the “Company”), the Toronto-based digital sports media company, today reports its financial results for the third quarter ended September 30, 2021.
“We are excited to share our results from the third quarter and the continuation of the progress that we have made since our Q2 earnings release in August. In Q3 we have begun to see the results of the execution of our roll up strategy with the acquisitions of Yardbarker and Two-Up. We acquired two companies but at the same time focused on the organic growth of our existing portfolio of companies and on the realizable synergies between them. We are seeing strong momentum from all three levers of our growth engine - organic, acquisition, and synergies - and we will continue our efforts to maximize each one. We continue to build our pipeline, as evidenced by the recently announced acquisitions of VarksySports, SuperPoker and The Nation Network. The integration of these companies is well underway, and we are thrilled with the level of collaboration between our companies and the shared vision of building a market-leading sports media business.” said Jordan Gnat, Founder and CEO of Playmaker.
FINANCIAL HIGHLIGHTS (Figures in USD)
OPERATIONAL HIGHLIGHTS
CONFERENCE CALL INFORMATION
The Company will host a management conference call to discuss its third quarter 2021 financial results on November 15, 2021, at 8:30 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 the following number(s) approximately five minutes prior to commencement and ask to join the Playmaker call:
Dial-In Number (Toll Free): 1-866-807-9684
Dial-In Number (International): 1-412-317-5415
A replay of the Conference Call will be available between November 15, 2021, and December 31, 2021, and can be accessed at playmaker.fans/investors.
A Q3 2021 Company Overview presentation can also be accessed at playmaker.fans/investors.
To sign up for Playmaker Investor Alerts, follow this link: 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. “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization of our operating segments, excluding the head office costs incurred by our Corporate segment.
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. Specific forward-looking information contained in this press release includes, but is not limited to, statements relating to the future performance or achievement of the Yardbarker, Two-Up, The Nation Network, Grupo SuperPoker and VarskySports transactions, including their continued expansion and growth, and other statements that are not historical facts. 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 (TSX-V: PMKR) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a collection of premier 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].
Playmaker Capital Inc. Condensed Consolidated Interim Statements of Financial Position (Stated in U.S. dollars) |
|||||
|
|
September 30, 2021
|
|
December 31, 2020
|
|
Assets |
|
|
|
|
|
Current |
|
|
|
|
|
Cash and cash equivalents |
$ |
13,356,860 |
$ |
6,631,358 |
|
Accounts receivable |
|
3,197,450 |
|
- |
|
Income taxes receivable |
|
79,195 |
|
- |
|
Inventory |
|
30,804 |
|
- |
|
Prepaid and other current assets |
|
393,073 |
|
3,107 |
|
Total current assets |
|
17,057,382 |
|
6,634,465 |
|
Property and equipment |
|
498,028 |
|
610 |
|
Intangible assets |
|
33,874,875 |
|
- |
|
Goodwill |
|
19,798,203 |
|
- |
|
Other long-term assets |
|
9,704 |
|
- |
|
Total assets |
$ |
71,238,192 |
$ |
6,635,075 |
|
Liabilities |
|
|
|
|
|
Current |
|
|
|
|
|
Accounts payable |
$ |
622,178 |
$ |
- |
|
Accrued expenses and other current liabilities |
|
1,541,153 |
|
87,767 |
|
Current portion of lease liability |
|
34,460 |
|
- |
|
Current portion of long-term debt |
|
14,357 |
|
- |
|
Consideration payable |
|
8,750,000 |
|
- |
|
Total current liabilities |
|
10,962,148 |
|
87,767 |
|
Long-term debt |
|
50,013 |
|
- |
|
Long-term lease liability |
|
214,893 |
|
- |
|
Deferred consideration |
|
1,793,218 |
|
- |
|
Contingent consideration |
|
7,218,804 |
|
- |
|
Total liabilities |
|
20,239,076 |
|
87,767 |
|
Shareholders' Equity |
|
|
|
|
|
Share capital |
|
53,122,010 |
|
6,823,258 |
|
Contributed surplus |
|
357,658 |
|
30,740 |
|
Warrant reserve |
|
315,036 |
|
38,740 |
|
Accumulated other comprehensive (loss) income |
|
(1,794,123) |
|
90,796 |
|
Deficit |
|
(1,001,465) |
|
(436,226) |
|
Total shareholders’ equity |
|
50,999,116 |
|
6,547,308 |
|
Total liabilities and shareholders’ equity |
$ |
71,238,192 |
$ |
6,635,075 |
Playmaker Capital Inc. Condensed Consolidated Interim Statements of Net Income (Loss) and Comprehensive (Loss) Income Unaudited (Stated in U.S. dollars, except share information) |
|||||||||||
|
|
Three months ended
|
|
Nine months ended
|
|||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||
Revenue |
$ |
4,776,080 |
$ |
- |
$ |
7,815,221 |
$ |
- |
|||
Cost of sales |
|
306,169 |
|
- |
|
451,875 |
|
- |
|||
Gross profit |
|
4,469,911 |
|
- |
|
7,363,346 |
|
- |
|||
Operating expenses |
|
|
|
|
|
|
|
|
|||
Advertising, commissions and fees |
|
913,589 |
|
- |
|
1,685,673 |
|
- |
|||
Web services and publishing |
|
181,272 |
|
- |
|
295,275 |
|
- |
|||
Salary and wages |
|
1,698,991 |
|
- |
|
2,903,016 |
|
92,551 |
|||
Professional fees |
|
200,165 |
|
1,045 |
|
424,706 |
|
69,450 |
|||
General and administration |
|
176,790 |
|
92 |
|
331,136 |
|
44,962 |
|||
Share-based compensation |
|
212,837 |
|
- |
|
329,845 |
|
4,321 |
|||
Depreciation and amortization |
|
68,811 |
|
159 |
|
85,202 |
|
1,016 |
|||
Total operating expenses |
|
3,452,455 |
|
1,296 |
|
6,054,853 |
|
212,300 |
|||
Operating income (loss) |
|
1,017,456 |
|
(1,296) |
|
1,308,493 |
|
(212,300) |
|||
Listing and filing fees |
|
(84,162) |
|
- |
|
(1,818,466) |
|
- |
|||
Transaction costs |
|
(353,053) |
|
- |
|
(581,080) |
|
- |
|||
Interest expense |
|
(11,552) |
|
- |
|
(118,686) |
|
- |
|||
Other income |
|
9,671 |
|
- |
|
13,918 |
|
- |
|||
Other expenses |
|
(15,379) |
|
- |
|
(18,371) |
|
(2,201) |
|||
Foreign exchange gain (loss) |
|
330,336 |
|
(28,044) |
|
669,493 |
|
50,489 |
|||
Net income (loss) before taxes |
|
893,317 |
|
(29,340) |
|
(544,699) |
|
(164,012) |
|||
Income taxes |
|
(10) |
|
- |
|
(20,540) |
|
- |
|||
Net income (loss) |
$ |
893,307 |
$ |
(29,340) |
$ |
(565,239) |
$ |
(164,012) |
|||
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|||
(Loss) gain on translation |
|
(1,336,421) |
|
31,627 |
|
(1,884,919) |
|
(24,390) |
|||
Net income (loss) and comprehensive (loss) income |
$ |
(443,114) |
$ |
2,287 |
$ |
(2,450,158) |
$ |
(188,402) |
|||
Basic and diluted net income (loss) per share |
$ |
0.00 |
$ |
(0.01) |
$ |
(0.01) |
$ |
(0.04) |
|||
Basic and diluted weighted average number of shares |
|
201,190,143 |
|
4,000,000 |
|
102,150,461 |
|
4,000,000 |
Playmaker Capital Inc. Condensed Consolidated Interim Statements of Cash Flows Unaudited (Stated in U.S. dollars) For the nine months ended September 30, |
|||||
Operating activities |
|
2021 |
|
2020 |
|
Net loss |
$ |
(565,239) |
$ |
(164,012) |
|
Depreciation and amortization |
|
85,202 |
|
1,016 |
|
Share-based compensation |
|
329,845 |
|
4,321 |
|
Listing fees, RTO costs |
|
618,184 |
|
- |
|
Interest expense on convertible debenture, settled with shares |
|
102,740 |
|
- |
|
Unrealized foreign exchange gain |
|
(669,493) |
|
(58,300) |
|
Loss on disposal of asset |
|
- |
|
2,201 |
|
Change in non-cash working capital: |
|
|
|
|
|
Accounts receivable |
|
14,350 |
|
- |
|
Income taxes receivable |
|
(23,739) |
|
- |
|
Inventory |
|
(3,108) |
|
- |
|
Prepaid and other current assets |
|
(182,931) |
|
(14) |
|
Accounts payable |
|
35,299 |
|
(2,792) |
|
Accrued expenses and other current liabilities |
|
(274,112) |
|
(10,674) |
|
Net cash flows used in operating activities |
|
(533,002) |
|
(228,254) |
|
Investing activities |
|
|
|
|
|
Acquisition of Futbol Sites, net of cash acquired |
|
(6,228,466) |
|
- |
|
Cash acquired through RTO |
|
162,375 |
|
- |
|
Acquisition of Fanaticos |
|
(204,290) |
|
- |
|
Acquisition of Yardbarker, net of cash acquired |
|
(9,024,553) |
|
- |
|
Acquisition of SoccerMemes |
|
(100,000) |
|
- |
|
Acquisition of Two-Up, net of cash acquired and debt assumed |
|
(676,764) |
|
- |
|
Purchase of property and equipment |
|
(219,402) |
|
- |
|
Purchase of intangibles |
|
(13,226) |
|
- |
|
Net cash flows used in investing activities |
|
(16,304,326) |
|
- |
|
Financing activities |
|
|
|
|
|
Issuance of preferred shares |
|
5,505,000 |
|
- |
|
Issuance of common shares |
|
19,881,600 |
|
- |
|
Issuance costs on preferred and common shares |
|
(1,236,391) |
|
- |
|
Options exercised |
|
36,882 |
|
- |
|
Warrants exercised |
|
13,596 |
|
- |
|
Long-term debt repayments |
|
(135,511) |
|
- |
|
Lease liability principal payments |
|
(18,889) |
|
- |
|
Repurchase of preferred shares |
|
- |
|
(166,666) |
|
Net cash flows provided by (used in) financing activities |
|
24,046,287 |
|
(166,666) |
|
Increase (decrease) in cash and cash equivalents |
|
7,208,959 |
|
(394,920) |
|
Foreign exchange impact |
|
(483,457) |
|
33,891 |
|
Cash and cash equivalents, beginning of period |
|
6,631,358 |
|
1,879,007 |
|
Cash and cash equivalents, end of period |
$ |
13,356,860 |
$ |
1,517,978 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211115005416/en/
MEDIA
Tom Webb - E: [email protected] | T: (+1) 512 952 9369
Romilly Evans - E: [email protected] | T: (+44) 7766 752 274