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 
 ------------------------   ------------------    -----------------