RE:RE:RE:New Press Release - Enthusiast Gaming Reports Q1 2024 Results Some of RBC thoughts on issues similar to below but they think positive cash in H2/24. They raised the target to 40 cents from 30 cents pre-Q1 reporting.
Other notables from the quarter.
(i) management indicated that the company continues to receive lender support following the non- compliance with debt covenants in Q4/23 and Q1/24, including the current waiving of certain covenant compliance and amendments that have deferred principal repayments ($0.4MM in principal repayments for April and May being deferred to June 2024);
(ii) management announced a multi-year partnership with the NHL beginning with the 2024-2025 season, which is similar to NFL TNG (renewed for a third season) with upfront investment and overall economics for the NHL expected to benefit from the existing NFL partnership; and
(iii) operating performance and liquidity in Q2/24 should sequentially benefit from the full run-rate of $10MM in annualized cost savings (versus one month in Q1/24), the Playwire partnership, $4MM in asset sales in April, and improving working capital management.
Puma1back wrote: Going back to the Run rate, the company has been losing between eight and $12 million each quarter over the last 8 quarters. The losses above those numbers were always just right downs of intangibles. So when looked over these last 8 quarters the current lost of just over 1 million looks like quite an accomplishment.
This new management may be able to deliver that holy Grail of positive ebitda. I doubt, however, that the market will get excited until they see something more than just discussions.