Enthusiast Gaming Reports Third Quarter 2021 Results
Record revenue of $43.3 million, including direct sales of $6.8 million
Record gross profit of $10.1 million
Paid subscribers grew to an all-time high of 207,000
TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX; TSX: EGLX), ("Enthusiast Gaming" or the "Company"), today announced financial results for the three and nine months ended September 30, 2021. All amounts are stated in Canadian dollars unless otherwise indicated.
Third Quarter 2021 Financial and Operating Highlights
-- Revenue of $43.3 million, a 165% increase vs revenue of $16.3 million in
Q3 2020
-- Direct sales of $6.8 million, a 580% increase vs direct sales of $1.0
million in Q3 2020
-- Gross profit of $10.1 million, a 146% increase vs gross profit of $4.1
million in Q3 2020
-- Paid subscribers of 207,000 as at September 30, 2021, an 85% increase vs
paid subscribers of 112,000 as at September 30, 2020
-- Cash balance of $33.5 million as at September 30, 2021, as compared to
$4.3 million as at December 31, 2020
-- Completed acquisitions of GameKnot and Addicting Games
-- Net cash used in operating activities of $3.8 million vs $3.7 million in
Q3 2020
-- Net and comprehensive loss of $12.3 million, or $0.10 per common share,
vs $8.0 million and $0.10, for Q3 2020
"This has been an outstanding quarter for Enthusiast Gaming across our key categories," commented Adrian Montgomery, CEO of Enthusiast Gaming. "Ongoing momentum in direct sales, the acquisition of Addicting Games, and the renewal and addition of key partners continues to power revenue and gross profit numbers that demonstrate the strength of our strategy. Our team's ability to continue acquiring accretive properties, attract quality partners, and deliver the best fan experience through our flywheel of content, creators, and communities continues to deliver against and exceed expectations."
Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the three and nine months ended September 30, 2021 and should be read in conjunction with them. It is only in the context of the information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company's profile on SEDAR and EDGAR.
Earnings Announcement and Supplemental Information
Management will host a conference call and webcast on November 10, 2021, at 5:00 p.m. ET to review and discuss the third quarter 2021 results.
Conference call dial-in details:
North America (toll-free): +1 844-826-3035
International: +1 412-317-5195
Conference ID: 10161588
A live webcast can be accessed at https://www.enthusiastgaming.com/investors/
If you are unable to join live, an archived recording of the webcast will be available on the investor relations section of the Enthusiast Gaming website.
About Enthusiast Gaming
Enthusiast Gaming is building the largest media platform for video game and esports fans to connect and engage worldwide. Combining the elements of its four core pillars; Media, Talent, Esports and Experiences, Enthusiast Gaming provides a unique opportunity and integrated approach to reach and connect with its coveted GenZ and Millennial audience. Through its proprietary mix of digital media and entertainment assets, Enthusiast Gaming has built a vast network of like-minded communities to deliver the ultimate fan experience.
Contacts
Enthusiast Gaming Investor Relations:
Eric Bernofsky, Chief Corporate Officer
investor@enthusiastgaming.com
Media Relations:
Ashley Stanhope, Provident Communications
ashley@providentcomms.com
416-303-1498
Forward Looking Statements
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.
Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.
Enthusiast Gaming
Holdings Inc.
Condensed Consolidated Interim Statements of
Financial Position
As at September 30, 2021
and December 31, 2020
(Unaudited - Expressed in
Canadian Dollars)
September 30, 2021 December 31, 2020
ASSETS
Current
Cash $ 33,526,534 $ 4,323,823
Trade and other
receivables 27,351,305 22,424,596
Investments 133,466 124,998
Loans receivable 176,931 194,389
Income tax receivable 290,077 290,077
Prepaid expenses 3,098,610 576,802
----------------------- ------------------ -----------------
Total current assets 64,576,923 27,934,685
Non-current
Property and equipment 279,562 354,850
Right-of-use asset 2,731,941 2,848,400
Long-term investment - 2,606,100
Investment in
associates and joint
ventures 921,235 1,026,910
Long-term portion of
prepaid expenses 263,224 263,196
Intangible assets 101,540,147 81,106,007
Goodwill 156,181,672 106,181,086
Total assets $ 326,494,704 $ 222,321,234
------------------------ ------------------ -----------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current
Accounts payable and
accrued liabilities $ 27,136,558 $ 23,602,547
Contract liabilities 3,455,887 1,625,594
Income tax payable 374,364 -
Current portion of
long-term debt 9,766,060 1,250,000
Current portion of
deferred payment
liability 10,648,211 636,600
Current portion of
convertible
debentures - 7,546,453
Current portion of
lease contract
liabilities 604,094 578,330
Current portion of
other long-term debt 11,176 -
Total current
liabilities 51,996,350 35,239,524
Non-current
Long-term debt - 21,651,956
Long-term portion of
deferred payment
liability 5,991,777 529,124
Long-term lease
contract liabilities 2,266,045 2,308,336
Vendor-take-back loan - 5,559,250
Other long-term debt 137,158 -
Deferred tax liability 20,880,115 15,161,987
Total liabilities $ 81,271,445 $ 80,450,177
------------------------ ------------------ -----------------
Shareholders' Equity
Share capital 360,603,409 232,616,997
Contributed surplus 21,563,566 7,494,164
Accumulated other
comprehensive income 49,007 45,428
Deficit (136,992,723) (98,285,532)
------------------ -----------------
Total shareholders'
equity 245,223,259 141,871,057
------------------------ ------------------ -----------------
Total liabilities and
shareholders' equity $ 326,494,704 $ 222,321,234
------------------------ ------------------ -----------------