Q3 2021 pro forma revenue was $6.3 million, an increase of 104% over Q3 2020; pro forma adjusted EBITDA was $2.6 million, an increase of 125% over Q3 2020; trailing 12-month pro forma revenue of $20.6 million, driven by organic growth of 85% compared to the previous 12-month period
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)
- Revenue – Revenue was $4.8 million in Q3 2021, compared to $nil in Q3 2020.
- Operating Income – Operating income was $1.0 million in Q3 2021, compared to $nil in Q3 2020.
- Pro Forma Revenue (including acquisitions through the end of Q3) – Including the results of Futbol Sites LLC (“Futbol Sites”), YB Media LLC (“Yardbarker”) and Two-Up Agency Ltd. (“Two-Up”) on a pro forma basis, revenue was $5.6M in Q3 2021, an increase of 109% from $2.7M in Q3 2020. For the nine months ended September 30, 2021, pro forma revenue was $13.8M, an increase of 130% from $6.0M in the prior year.
- Pro Forma Adjusted EBITDA (including acquisitions through the end of Q3) - Including the results of Futbol Sites, Yardbarker and Two-Up on a pro forma basis, adjusted EBITDA was $2.5M in Q3 2021, an increase of 153% from $1.0M in Q3 2020. For the nine months ended September 30, 2021, pro forma adjusted EBITDA was $5.3M, an increase of 294% from $1.3M in the prior year.
- Pro Forma Revenue (including all acquisitions to date) – Including the results of Futbol Sites, Yardbarker, Two-Up, The Nation Network (“TNN”) and Grupo SuperPoker (“SuperPoker”) on apro forma basis, revenue was $6.3 million in Q3 2021, an increase of 104% from $3.1 million in Q3 2020. For the nine months ended September 30, 2021, pro forma revenue increased by 118% to $15.7 million from $7.2 million in the same period of 2020.
- Pro Forma Adjusted EBITDA (including all acquisitions to date) – Including the results of Futbol Sites, Yardbarker, Two-Up, TNN and SuperPoker on a pro forma basis,adjusted EBITDA was $2.6 million in Q3 2021, an increase of 125% from $1.2M in Q3 2020. For the nine months ended September 30, 2021, pro forma adjusted EBITDA increased to $5.8 million from $1.7 million in the same period of 2020, an increase of 251%.
- Trailing 12-Month Metrics – Including all acquisitions to date, for the 12 months ended September 30, 2021, pro forma revenue was $20.6 million, representing 85% organic growth over the previous 12-month period, and pro forma adjusted EBITDA was $8.2 million.
- Cash and Cash Equivalents – Cash and cash equivalents were$13.4 million as at September 30, 2021 compared to $6.6 million at December 31, 2020.
OPERATIONAL HIGHLIGHTS
- On July 26, 2021, the Company acquired Yardbarker, a premier U.S. sports and entertainment media company, and the Morning Bark, Yardbarker’s daily email newsletter.
- On August 31, 2021, the Company acquired Two-Up Agency, a leading provider of technical solutions to the online gaming industry’s strongest brands.
- On November 2, 2021, the Company significantly strengthened its presence in Canada by acquiring TNN and its wholly-owned subsidiary, Daily Faceoff (“DFO”). TNN is an Edmonton-based, hockey-first digital media group that attracts millions of sports fans annually to its network of fan community sites, podcasts, and rapidly growing hockey reference property, DFO.
- On November 3, 2021, Playmaker acquired leading Brazilian media company SuperPoker.
- On November 1, 2021, the Company announced that it had acquired the domain name, license rights and the rights to the social accounts @VarskySports on Twitter, Instagram, and Facebook, which have a cumulative global audience of more than two million followers. The purchase price consisted of closing cash payment of $175,000 and the issuance of $25,000 of Playmaker common shares on closing, priced at CAD$0.6819 per share.
- On a pro forma basis, Playmaker achieved record engagement metrics in the quarter across the Futbol Sites, Yardbarker and TNN owned and operated properties. Playmaker reaches more than 75 million unique users monthly and in Q3 2021, the user base generated more than 442 million sessions across its properties, representing a 70%+ increase over Q3 2020. Playmaker also reaches more than 365,000 users via the Morning Bark.
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 beJordan 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 jgnat@playmaker.fans.
Playmaker Capital Inc.
Condensed Consolidated Interim Statements of Financial Position
(Stated in U.S. dollars)
|
|
|
September 30, 2021
(Unaudited)
|
|
|
December 31, 2020
(Audited)
|
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
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
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
|
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