- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Hall of Fame Resort and Entertainment Company’s Third Quarter 2022 Earnings Conference Call. This conference is being recorded and all participants are in a listen-only mode.

We will open the conference for questions and answers following the prepared remarks. I’ll now turn on the call over to Anne Graffice, Executive Vice President, Public Affairs. Please go ahead, ma’am.

Anne Graffice

you earnings joining conference thank third for and XXXX quarter call. morning, all us for our Good

Our latest documents press our Michael were in posted Crawford, release, Investor website supplemental slides, evening the and my market and at after our hofreco.com. hours. brief section President These Relations can After found yesterday be of Form introduction, XX-Q quarter’s Chief CEO financial outlook. analysis fiscal year. our an update will give on update provide an an and then overview Lee, results, of Financial our on the of financial will the quarter’s results and company’s Officer Benjamin the

to will forward-looking forward-looking estimates, and expectations and release. These statements each encourage we concerning call, today’s to uncertainties. company’s and press rely the statements that and current actual During the I future performance. risks plans full you make disclosure due of in statements results assumptions reflect read earnings may on the about materially differ

uses in performance that evaluate non-GAAP the to please press Additionally, the company note results detailed release. as internally,

We be accessed slide have can archived website will and replay this These our there call. deck quarterly be results. of posted summarizing with on slides a the a along supplementary

have any contact directly. to as is always additional after me Crawford. pleasure over today turn now please my to call questions It the Michael you If

Michael Crawford

Thank week you, is so Anne. everyone Good good morning, everybody. far. a having I hope

is it I I team. to think ability and thought really thank QX fantastic. the was you of showing an I probably lot saw release. I here yesterday what if to our you have overcome earnings on want adversity, think a we’re

things we We supply about I adversity. admirable through team very something and Obviously, inflation people’s and the that’s the saw so of week, in with some around that chain moderate encouraging. although talk that inflation, that’s safety, threatening still labor know little we’ve a last happening. little think challenges, is bit things issues, although done and health COVID come a an bit COVID are job I has of the face

is The RevPARs betting, gone those are little folks when still virtual And XXXX I hotels the the improvement see is lot stated to consumer And down and to what like And see team’s comfort and sports execute. destination the opportunities, one, of macro I they’re execution I and focused you the gaming consumer It’s evidence talking their with look and a think of reality a for and of game a bit, still a overcome Number to had the to our think adversity, what as to confidence yet, plan. you focus of quarter-over-quarter of the be results think or demand. inflation shareholders while village, see much From take are this that, [indiscernible] some standpoint, in the inspiring. seems have back are We continues in at the and still I was are couple spending and investors of great recession. ability have Business on levels. we should regional think you And a partners consumer pretty travelers experiences maintain back. and on very types spending. you high wallets. coming things.

money We’re record parks. seeing having and highs they’re and in own theme Entertainment, those a are parks, people that fairly significant in way. our spending attendance they’re hotel while in

operators or want way you may be you experiences see as Sports And escape for sports significant rates, interest of So still environment to X. of of are to due buying they item in looking last meals reality. betting you enhancing more incredibly defer that this defer months, the a to it engage you incredibly want highs. to in launch while much And in a And home couple experiences I to like environment, we’re sport, and entertained. buying important. here very especially go forward the I say may are our record still also is some and Ohio, this way Jan betting encouraging out with which over watched the the in people to the by are seeing reporting

of from So recent have some I’d view, just and focus more a of that like company key news point areas of the of highlight to some the had. we

about foremost, a let’s and talk First bit little financing.

big we’re it million We two, financing should our the a and And opportunity company the finished in, They have this two new had the That not alone. is closed didn’t the of really it is I pragmatically. over think year people size. And environment worth did in that do a haphazardly. they team execute, to this say things, very year number wow, way. $XXX by for

And as you may so imagine debt. that? added added the we’ve by we debt we’ve at this in I costly is When looked added, We’ve that what mean that do might not debt longer-term as environment. imagine –

we’ve point we almost from that also ATM rate is pragmatic very bringing around so $X.X interest alone, we and cost of big X.X% view, did added a So that’s for million. average I of million the were new only worth company. of and win far an financing the QX In debt the think in $XX us use our of our debt

that phase debt? thing about I the the If the like one lot in in much because hear in had remember a we taking that of isn’t this on too company bringing a everyone you were equity. year we ago, call I’d almost Now, questions, remember, to

are and experiences. million company private phase experiences. in that to financing to so support raised public the We build creation about $XXX to build those and bring the talked assets in to that equity, the which continue has this of And the needing time environments at of assets, helped over build has we now date of of and

the should and team year So cost. going we’re I great that taking. has stated that don’t we and about needed had concerned in was the longer-term to think debt that early the we the of anyone lower It’s amount success very debt be debt target were this doing

big us said. for is I as so a win And that

takeaway of transactions of parts about what we company. success say shareholder invested announced largest the recent were all is, So in biggest I have we, this was we IRG. the the when of are the And the one we

Now, shareholder largest is the lent money point They stood the view, have from the not they to stock behind a company. only have of but IRG to company. loans

is for providing company, As for of provided I construction a loan need the support hotel that younger They a entity. a it. our $XX senior sort to that established money successful startup that lending guarantee in with that completion with in now raising you build will have we construction. start million that a is they’ve weren’t needed a it continued the will The a Waterpark the that’s continue to hotel funding senior has facility that more onsite IRG What also means the if now needed effectively guarantee construction our guaranteed. say. The from guarantee. And complete spring. support It’s provide we source needs Waterpark the to we should Waterpark, now

behind lot financing for at to takeaway cost, and about point taking when the and again, city, like significant that is up that, to longer-term the because had this of that the stuff non-revenue and time the residency to provided you banks company don’t is in infrastructure. a last stuff. talk debt community also continues infrastructure community it view county, a the to needed was to you this has want that. shareholder stood the here One needed raise, talk do as company leadership low do have largest the I with about So support finance commitment And to that’s and community foundations they project bearing this

so largest that support shareholder not of And to a and from of success all community, from option the fail the This our is community. our in everyone is kind going on perspectives here. an

that So about support. we of level that and are of incredibly appreciative excited

reverse gets about stock about that me Let know up everyone I talk now topic worked split. the the

many so feedback about gotten of And to is many split. and it reverse how horrible consider notes a stock I’ve points

split a a me The is the what things. stock of is thing. if one, does A stock reverse maintain allows tool one a us much Let is split our NASDAQ. of the very on reality few it needed to reverse listing different. that say perception Number

access would point company actually to much the to to holding valuation It’s everyone agree trade today much as the liquidity. think I it’s have for the and a have be we’re to they’re shareholders that – ability right us agree our And shares better today price better for not. that stock it’s to at a of better much view. from

The value has company at reflecting. is We’re greater the than stock much the much, right at or $X.XX not price $X.XX. valuation what

mercy indices are the We of the at themselves.

starting both the time, mercy to the environment, you that the that’s the virtually. sentiment. ability at business And consumer created physically generated plan inflationary put growth of see see at and assets year-over-year We’re the revenue place. quarter-over-quarter, in But now we’ve for same execution shows and and be you the being

of but everyone to with have the extension. do meet behalf XXX-day until a can’t don’t the confident are for got We view. because very We just one, a Number month, the all with work to an company the did couple for favor we a if we with that file special that thing. We had XXX-day ruling later that followed, management on an closely request meeting to in extension for me continue shareholder we We just stock haven’t of on shareholders we’ll let a give that extension things that shareholders. a that. point then So this NASDAQ reverse – criteria and from voted consider on NASDAQ extension of you same here. have split. extension ruling align of won’t on we The this

upside where in that. JCI has that in because have this lot there I’d believe our the Tara show the belief execution me next since because passed been that that need to in Charnes. listing of gives and in I I And fact, the this have is think in valuation. that that need in the I people we update time No this General shares sold last will this And we we I back this we in Board to The this to company. Management confidence one sold a in we it has needs can the collectively share. through that. maintain going a go something aligned positives us understand has in of shares of a company, share like has hold No we’re is mediation do room, the so added to I some Counsel, because hold but XXXX, that, are our company single will topic about. have of say repeat at, to company. shares I the of talk provided. tools everyone And just We and the hold won’t of if know there one shares status. big I’m company. single together. with to

her of taken updates And few give so as here’s what a I’ll the to well. say mediation. ask I step just But brief on we’ve would this

to the the table there outcome & good Tara, sides that Johnson the think you? determined, Controls of a that together Entertainment is for come Company at would yet be news are Hall have a but is I of Resort sense looking both resolution. Fame and and is the

Tara Charnes

Yes. Mike. Thanks,

stated, first agreed parties a Naming I previously step again, an to disagreement we Rights neutral JCI the think provided third relating resolution the our company with that that There TAAS mediator. the ongoing Agreement. is filings. a as our dispute Naming well is the with And between that’s a Agreement. to Rights have in in mediation And recent Agreement includes summary and that for as the as party good as and proceed

party should State We then the Ohio. to dispute to mediation the any have may Discussions and unsuccessful, commenced for in binding refer ongoing arbitration either the that prove then be are if reason process. of

Michael Crawford

that. thank Tara So for you

So presented – to we’re proposal looking this. a to forward we’ve resolve

process. will through I to work think we mediation the continue

arbitration. prepared are binding We to to go

seem specifics outcome from hope things we more in I’ll reality of is fact, the as the to canceled. this update. I’ll of and point The think get some the our a thing point. view. I don’t with things productive the to said, have resolve inflation that everyone is business news repeat, positive is facing talk through But units is both in environment this And I go the good and by to and to start getting are Our last sides I construction are about before desire construction a slowing,

just all up certainly stopping. don’t hope to or the And the slowing those projects creative. of other States to construction But being not And world, by delay. I not. critical I of and to that’s just long. projects chain we about are want free in we’ve really give credit don’t constraints because revenue very around what around when construction some supply benefit should been Ohio project that mean, in having construction, our lot We facing our prudent I We’ve versus of just mean because we because also of something management elements. from having of a not and say teams. I very United not overpay year success, the benefit, down for are the been we slight And loss a timing

the So the hotel assets Phase be waterpark in the built two are remaining for to X.

and of the spring. period The will I publicly of on we time. And week, The will months asset. As is be for we’ve that. which news, to for less next all pause said, decided a have that next closing this as the particular sight on construction until funding, line we’ve we waterpark hotel hotel, additional ground of funding is couple over break great said

have to markets or come and up delayed time to hopefully, the well. watch up as supply to other so commodities and as constraints projects And start more free items we free start are canceled down, chain

So of closely a of out right in in important, anticipate assets I’d and come XXXX. ground assets winter, we last spring those the of is, on now as with the that thing hotel party has our opening The fact break we say partners. very have working sometime lot been X third we Phase will we but we’re completed late both then

zone the that unique really like different Shula’s and and we some just ability and of to Kettle program And his fitness and what on Driver like Topgolf engagement help areas Donald party third is an fan bring experiences Elite athletes create our innovative their and we to brands will them great in which which so Smoosh is physically. you property in with help are and may to here, Brew and And goals field contained Cookies be on off Driven need and really mentally recall and the signed fact, a further others. deal both speaks

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with other community to of opportunity were both very of them we to are about where leaders things talk meet going. the so And appreciative and

hosted events Tom as Hall in that at of Benson record quarter Stadium number for Fame of record stadium, we revenue well. QX Our

to those I events in think of QX. types you’re going grow the throughout see to continuing year

next and come the Winter have for more on in to going Fan Topgolf we’re hosted Center open, Performance this new January new a talked have the as early QX, well. that Engagement Plaza, very be I brand for of daily Action community is to is late and December, opening the Ohio enjoying life to needed. a with in hopefully sporting we a opened dome then, Ohio Blitz and you’ll And that events asset Smoosh High School and round received. others offering gives festival QX, multiple Championships enshrinement but we’ve holiday opening enshrinement incredibly Play Performance, we NFL be year. here. for opportunity much will during Canton the winter to late events. others Cookies, being property. that filled Build-A-Bear really destination. Shula’s We entire Football our visiting the thought now unique Visit be Brew and destination, soft and launching called new – to first amazing see well will and was revenue opening with And The of our that and wrestling And looking December, really that a state bringing of on it since QX capacity being we’re also the holiday. to others that, our occurred an hosted course hosted about experiences on Center that year is forward tournament, basis, here kicked experience The be game off is an other we’ve driving big and us the with area Zone, then for we over brand Kettle preseason asset there throughout as for

We have one open. attraction

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way that done positioned team right to the have will job. We’ve we the this asset excellent that there the So has an and synergy allow occur.

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now media seeing We’re phases. content through all those

of can NFT shows look very podcast And special said, we’ve is to guests, there. Ten think we’ve which for launching Famers. creating a week, us Hall we us include space, help media opportunity this Perfect television podcast. the and so unique. to fantastic to Super we’re do content are stories Fox, And we’ve – a that week tell what When the a very in unique of our at you’ll lot see about we’ll content. video can national Bowl sold Fox, that different the that really really one Football I is This will optimistic access revenue as kind exclusive we of It rights on still Heaven there,

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there. breadth about updated Room. service can pipeline. Hall the that And the it of you to is and new launched speaks has our of all multiple we done. deals can Legends a most fantasy are where there a we really XXXX pay what of already so your go And information group and excited space for season where team second This with get Locker media going of the Fantasy we’re the is course, development players League, just to in Gaming, launched go the our about and play in

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Sports excited well. I couldn’t Betr. betting and And partners more Interactive about, so that’s there, done our talked Rush be about very Street two we’ve

I I have change of With mobile you sports is now betting, to use that going mobile face I betting Betr app. can the and tell app. the forever. think that I

some the near It engage absolutely to look I enhances had Paul the coin not bet himself announcing I in legally to future of they’ve and activations to me was next bet on it step is before. a opportunity being play include series. to several in focused Betr but we bat, with that the the we and Jake. degree next never allows on run, way forward support about interested to engaging the always the the allowed not now, Ohio betting a To or nth occasions may with the You’re outcome which the currency in talk is sport able and a right team. meet on to way that the Jake very know what have I got there may based platform. continue next the

I’ll leave so your to imaginations. And that

well. We do, bigger are gaming will as part we’re virtual become of esports tournaments. we gaming, onsite also building hosting now Esports a what virtual

We’ve well. multiple of to have to environment hotel And a experiences. our in plan hosted XXXX, types scale think different our at even is our large events so host and stadium here in fantasy. that fantasy launch events in fantasy We fantasy already bigger host in unique an as way we

and sponsorships. partnerships Lastly,

course a win-win Media with sponsor in each in division, called They’re maximize to and trying our for our us of every this employed to Allied a clearly working bring company to Gaming both partners the We’ve are category. division, as We Sports. and well. Village here We at be sides. want

we’re being there. partners and maximize to the can experience types the brand – of to to talked forward Controls the about revenue confident thoughtful to And offer. to to partners And uplift the will order partner right category grow past. timing to We a continue bringing also sides move in multiple Johnson JCI. we’ve and in big those of will to each about that the so partnerships anticipate look maximize I going been opportunity way has in I’m the this now. us And very JCI a both that on develop. continuing They’ve forward very XXXX. the that for got and settle conversations good and our effect sponsorships in in we’re

me the QX. through there I’ll us from over to and financials Ben pause it turn to Let take

Benjamin Lee

and Mike, Thanks, everyone. morning, good

well site. Anne Moving as XXXX and Investor website mentioned That available the our as third document on we SEC earlier, Relations to on financial post is filed as market results quarter our Form XX-Q yesterday.

of and quarter. significant Third same quarter XXX% was Fame of and driven linked was represents in increase XXX% the hotel. $X.X the an of from Stadium, higher revenue period total revenue primarily our at Tom year, Benson increase increases Hall by at on operating Revenue growth million, event revenue which an prior DoubleTree the in

previously year Controls, have from diversification disclosed to While sponsorship was the prior dispute and revenue down growth Johnson the improved. with due revenue

increased $XX.X which liabilities GAAP loss our higher. U.S. improve liabilities, value income price stock $X.X of by experience Under moves and company if value in the opposite of these by the fair warrant when The net million. fair Third will the our decline would declines. million. quarter company minus of a partially company’s the adjusted price stock will offset million, effect EBITDA the posted was change $X.X The

in or item for flow it line cash will periods. company’s the this prior from operations, and our and statements financial price, all future stock liquidity on the cash based not equivalents While impact vary does cash

Both are We finished at $XX the proceeds quarter second The during balance of usage quarter. values balances. cash cash Moving million company’s of compared with instruments million the This spent to inclusive with the offset end the $XX driven to the of a quarter. financing our $XX cash quarter. by primary the expenditures million approximately balance cash by to construction sheet. third continues was of usage various from during be restricted approximately obtained

balance lenders not economic on provided support do to In tourism The development subsequent significant closed we’ve Fame goal deeper to and Fund. increased Benson million Canton, by the both million to October, $X.X company to $XX.X as Enterprise The Our common and financing financial Ohio’s continued end. to Hall be and reflects through These at the community notes to increase the of typically driving Tom destination financing for. traditional net a the our second amounts area. debt related site financing State $XXX Stadium significant used due the primarily district million Bond of make related impact quarter provide end pace bit raised to to to principal in payable million compared the loan into Stark that on quarter. $XXX of Foundations. local little work, County areas $XX.X the on Community progress a I’d will Stark infrastructure from like go City fund the a of County million detail dollars was of

development As we’ve previously to a that we future the collection taxes development. of highlighted, are in district district allows additional sales tourism the support in for

stack Engagement of financing construction indoor park, in the the asset of sheet restructuring of marquee portion Phase complete we with of lending final announced balance capital the destination. to while us remaining our II on on water the million to all begin Zone, Fan for the securing Similarly, class destination a Additionally, of extending at our we commitments necessary closed components $XX assets. along maturities, world that construction allow the will

see, $XXX million financing to financial completed with as on we’ve In laser-focused been financing we’ve the we that company transactions allows capital year, schedules. reach approximately long-term As you needs a its structure of building align this total goals. can construction

Just as environment. of the even importantly, interest as markets X.X%, we’ve by maintained a credit rising evidenced as weighted tighten average rate interest rate

shareholder, approach of pragmatic rates supported allowing transactions This industrial thoughtful throughout the largest Our position the by long-term our is of our State ability Likewise, and to Ohio. financing growth. to this the all favorable local to active critical for company. these is area ability continued of our and success the complete sheet realty shows will group secure balance at and help that stakeholders drive the our future us support

rest trends the we fiscal year, year the seasonal last revenue and of similar For for expenses. expect to

guidance next for to Looking year.

and our existing expected on monetizing expecting of same XXXX. The expense to growth revenue is where is invest and while to company in growth. excess newly the are by developed and time virtual compared when We to need to EBITDA assets. staying XXXX lean Adjusted continued focused our focus fiscal on improve XX% driven physical balancing XX%, intensely the at support possible, by management

We shareholders. increased balance to of In deliver multiple with and all build. to ecosystem flexibility driving closing, EBITDA that streams across long-term synergies the revenue to our value each to hard sheet one our we support of diversification a remain exciting to financial phase growth committed we’re so maintaining expect working through provides

as transparent ahead. and we to you’ve Finally, updates timely and continue provide we expect, move to will come as to our shareholders

will who some let Now, to provide Mike, it closing turn me comments. back

Michael Crawford

to year XX% projected do when you growth company QX Ben’s exactly startup for at A is have XX% Thank a point great laser-focused update a and very the When revenue EBITDA projected a level, next growth staying year-over-year, that you on. you, numbers level, cost in the really usually in you away environment. And look don’t look you you Ben. and think on at spot about about at at walk encouraged.

marketing you You add sales. have in have resources, construct, to have invest to and you to

and but business We’re matching lowering versus with expenses an that doing revenue we’re around growth. being towards pragmatic expenses savvy and of eye all doing that,

the Number the for need what waiting quarter? been what what So for Phase one, II. waiting been tell That’s takeaways you. this that to to me key I’ve we are hear. we have everybody’s complete financing to That’s

You have it.

big a that’s takeaway. So

and You feel should very about. stand comfortable behind

from You guarantees not project our have the largest only financing, have completion you shareholder.

debt with IRG worked, to profile our almost low very been of very revenue with sheet, debt, balance You worry due. terms, so the shareholder or have the we we that to largest loans, realigning in our debt about or longer-term They restructuring community hard also committed project. profile I support that cannot this fail. issue that extend this that timing shareholder working at no all support, success would have And so about is comes that going matches We’ve have our it investing in. cost at say can gotten the is there repay gambling has committed stated unprecedented. The

When sponsorship, I committed we the about from have that Hall Fame are predominantly coming excited and Village growth. it started from as company it’s now multiple will of the events in now we about a we’re XXXX, let the excited coming revenue is We first but think fail, areas. and growth, more When even not future. that management event about I different

of events us and sporting different for directly Now for like of asset. our We by revenues rental our coming created an revenue now Center in tournaments generated like Complex, have it’s year types with Performance. like by round our Stadium, ForeverLawn our indoor assets full Sports

and attractions generating have to revenue. generate are We that going already

We and food beverage that revenue. is generating have

great in. And that base in a We have That revenue. have tenant XXXX. multiple of generating only gets coming now have our revenue profitability, leases where we either percentage now a or stronger in is hotel we rent growing

we’ve two of they sports done better sports micro as primary what with betting focus. I the success The to exciting. of at want the the way from to view, is are is So revolutionize great a going the point even selected I Commission said, we betting exciting. from reemphasize conditional as more the diversification mobilely was revenue partners it’s Village do. our of approval Casino the a betting Control is company of received to think, Ohio paramount view very We From point efforts.

revenue And our encouraged is of bottom the the XXXX sell. contribution uplift we’ll by our so the unit. Media other that in industry also pieces we’re as gaming that see and starting sports betting gaming and make will now to well, line

with ready or of we distribution. for getting to We sell signing deals that have either a very assets robust are developing, pipeline

feel I across So think I all line think start virtually to undervalued. we’re exceptional you a breakout experiences do you be both will for I we’re And and creating experiences, I platforms. physically bottom more that year engage of to revenue our media. said, grow. and host and entertain have I’ve will when create importantly exponentially XXXX and contribution And growth to certainly audiences, believe exceptional

We are undervalued.

will that. XXXX. to about what smart will is do that We but in we compliance be listing correct and important, Maintaining do we how

here. And so the investors III should the take III way, the we’re by that as of Phase and for a net positive. And thinking Village Phase already planning destination about

talked shareholders. can it from belief this the it that the the And attending of to market execution to execute It show have. to don’t show doesn’t think of financing. I’ll been obtain XXXX want the we’ve the and now questions road grow shows point and may macro thank has bumpy financing view. give year know any I continues from And that the thank and that a over our folks that the just inflation and for every strategy. comes I of you an I it I open way a But in just about come. a team. winner. the and execute People company the team So view, money. point can by call strategy the as there up because want stop

Operator

John question – Aarde be [Operator excuse of Vander you. ahead. me, go First Instructions] will Group. from Thank Please Maxim Jack

Jack Vander Aarde

Good to and environment. morning. fortunate momentum this of continued in Congrats see great. execute continue to Okay, the strong execution. It’s you guys on type

kinds remind about you it looking you are events forward, uptick revenue results what of great revenue us quarter events? excited the events. drivers the revenue? of that was those this third Biggest to like of what see. really drivers looks Michael, key are are big quarter. And the also So driver of Can

Michael Crawford

enshrinement appreciate highlighted and an run attended, for the for that We that took as the very this has well. Legends. year was Hall over Journey. QX this question is called it. over. Good Concert profitable Jack. on very year obviously Thanks, There us We enshrinement event part Fame by well is Yes. did concert that of take property. our event It of as typically

represents And things a you for or playoffs for that other assets beverage, so food our That’s from to opened. been uplift other and creating our to have hotel attractions rides weekend or Starbucks Center visits that for on us. weekends rental two stays hope that, USFL, nationally which had here, of events and absolutely the big I held the being the weekend for televised for everyone row, saw us. Outside in championships phenomenal a a Performance

Our two hotels were weeks. for full

worth and were we The Canton, lot there’s revenue that that national get our The the exposure and Village and of of rentals, as of full was frankly, to providing media. that amount so Our ticket those But refer benefit. revenue events. Fox the uplift indirect of of percentage a by for the in restaurants company concession the earned dollars that Ohio we what got, of direct we weeks. two millions field revenue by got the

we that a Football So the that Alliance very We Championships. we’re Again, we Chappelle as entertainment types at win. Dave have. here. was had comedian looked Women’s as diversifying a big of

ton a So of events. differences in

cycle. and you driven of from, added also forward, out we meetings and sporting large event assets, a The lot around outdoor up will all weddings now but ranging to events we’re be conventions and talked private about, football, and from a the have that maximizing of going event where calendar, sponsors. robust played our here, indoor hosted was and was events here. diversifying What that We non-football, coming hotel QX we from everything plan much scale can revenue more so tell is revenue I as

events will create us. that going to talk today, opportunity And ourselves about we’re for some revenue even generate but I that that greater won’t

with the we’ll expanded balance that to course, asset always calendar And excited is and very those product have. or you the right their continue and showcase to events we the along service team continue of with starting events, Of at base I grow our to to as do sponsorships we have opportunity obviously number grow that the now assets, those. think Sponsors then, events. about get

experiences, the I up assets, that those done and lot terms venue to a really a will attract so year what over we’ve of things unique years kinds more next come. think that in And events restaurants, of of is the adjacency even gaming, of course set has for indoor/outdoor

Jack Vander Aarde

perspective? what then, And great. the both for appreciate your I perspective share it. waterpark on waterpark just Michael, you Phase and value the business the just roadmap Got Village be us appreciate there A II in from of you to and which helpful the for brings to strategic color XXXX, Can in it like that. open the is question, of a That’s hotel construction color next helpful. the new the lot also expect sounds on

Michael Crawford

window look, and today, look we if Well, in chilly Ohio. Absolutely. you the pretty took outside are And it’s gloomy. a

in region long I needed say you and up to of in itself, waterparks something attended. of profitable box think tell we a sort a high entertainment the And so me Ohio time, number come the are well quite this very frankly I have quality like that for can’t destination. a people And and

attendees to it year. talking that usually per call You’re about between I’ll assets X.X XXX,XXX generate million

the for is attendance associated strong, play that kind to just we’re very with of strategic already strongest are asset and a that environment so The creating. It hotel The us, X, Hotel and revenue the our for And allows happening maybe minutes driver. it’s EBITDA away. of assets XX with any stay occur. of Downtown

in when events, these Hall Pro I’ve past, built, attractions, Football when comedians, large Fame, a complete waterpark. have so you build lot my and two done betting, events big assets, more the indoor of now scale we’ve sports sporting and indoor And a experiences of outdoor this gaming, different collection concerts, we between

stay, occur, up. You more longer dollar of stay enjoy value and play the company sell it visitation. really bundle and can now and the more the as of and enhances the things The those themselves, repeat goes they the same these come the they thing. to lot people them a spend do When together, experiences packages, the length back

millions dollars just attendance annual not experiences create these there’s we of out driver of excited both a an it’s larger experiences, a honestly, also and which are lot and EBITDA, months on where from basis that the whole of of it’s tell a but an all revenue in I for visitation. stay to there’s people greater length the direct from you, will of of driver the So coming And indirect tens kinds other do. about a can year live repeat and six Ohio, revenue for

South to and have experiences. entertainment fly get to West either or into You escape

such the doing is in America, football with I assets their and out with a lot waterpark company just we’re themed very So A operators, fact, see past best quality in in the fantastic the only and industry. there. in great excited about was to we’re what have there waterpark this week walked high Disney they waterpark the it line and of visited

So more to come, groundbreaking underway week. but exciting to the get this

Jack Vander Aarde

Commission. Congrats if get questions license the betting on sports could Casino topic. I here. last just more this a Ohio, the Control things from Ohio then Two securing couple And on one Excellent.

you you I number also, whatever operations, of there you Just waiting for share place, don’t then gaming left you allow can helpful. an whether still you expectations your do X guys just just number activities. what for or do sports to betting to are And bets, besides have else us setting any initial start be clarify, help revenue, official wagers, Jan would for waiting of could Thanks. to it know, is gross license to understand be

Michael Crawford

today can share expectations. the we anything about not Yes,

partners worked you that we numbers. excited for think things. about the I not pro with have can formas tell those but the our around opportunity, prepared I’m yet I share on to expectations

only sports going is And the which big create to Ohio. there. that County, fairly immersive we’re in retail the be will in county environment a book We Stark

this the about. of tell am. and excited to experience be about and I’ll know people food kind, talked one are beverage haven’t of brand that really a quality yet. to side a We It’s going be and you I I going high

there you there a to you up XX licenses, thank obtaining don’t Ohio, really to the and guaranteed from set and obtained. rules favorable was is say the been and taxing franchises, tournaments and on available. towards One the the sports were that. in much In our were congratulations think licenses, I going roughly I a understood partners. note is sports that Ohio sports betting to very large view sports very licenses of total only the shareholders so has for is you’re see everything But be were when thing what at really the point I already few this, exciting think that betting to think that betting

one the now this the doing goes to Ohio, how of but this really of that the guaranteed which for know licenses in community that Commission state to Ohio it’s only of was not valued outside those I we’re in approved state And us show by only and that impactful company, right Control what is, our have an I and We’re think that, you economic region. licenses. our for driver, – saw casino wanted Casino those

the else. rules Now and your conditional through to approval go the and the to and you as because you stipulations process, about question meet still conditional experience around to approval, you the security yes, have of the experience it’s show everything have the

at have all. that no We concerns about absolutely

our We’re working with very partners. closely

want to from they very technology You view, of and imagine is secure. sure point that a information guest make can mobile data

approval, new all it’s the conditioned of any our to that launching it. things – over the partners just in And you like upon all that are you checklist just the So business. it’s items have have the have place,

Jan X, to we come all we’re ready to We’re it, expect go. over so and

Tara Charnes

its commission down Yes. closely to better would very sports received add this retail our is approval. track that just partner at approval and conditional work far then the operator Mike I point, also RSI, and to that betting has with continuing ensure

Jack Vander Aarde

Thanks. I Excellent. really for Fantastic. it That’s the color me. guys. appreciate

Michael Crawford

day. Thanks, Jack. good Have a

Operator

will from Research. Thank Singular next you. question ahead. David go be Marsh, Please Instructions] Our [Operator

David Marsh

good on good the momentum. questions taking Hi, morning. and for congrats the again Thanks

Just pretty that Jan also X, be clear little ready on and betting would the item the release press was be the to seemed X? betting sports online side. It sports one the retail housekeeping to Jan ready go go quick

Michael Crawford

No, and that’s question. great a

Once and out start QX kind to go to of guests but fit it. to I’m the I that that. building. So near-term. will be will in of going keep be able with about of everyone Fame was it’ll Rush this having here’s their them and bringing shell Hall would for Resort open, Retail the that ecosystems, offer open to Rush and very experience be are I them offering how core I engaging know to just of of anticipate think the people Entertainment showing apprised them. as before be book the it’s and context quickly live – ready getting up, open, And guessing this we’ll is Company opportunities completed enjoy for interior sports in them possible. on we’ve and into retail focused incredibly experience as the & signing the

David Marsh

– process doesn’t just mediation, completion the question in timelines this kind hard Thanks. and kind are And then terms like of around more completion of any a out forever? so thing is there arbitration of drag JCI situation, that there Okay. of

Michael Crawford

they perception resolution where is that’s the there I third-party, as has Well, – by difference the met what if we’ve resolved. Johnson difference do. reason look, absolutely yes, in we we’re have whole contract went with. for reason the way, experienced though it has mediator a we our so understands dealing or a been. in both that of dispute why a the in financial think progressed path – can done has or We that not we think the to mechanism There there then said, the our desire mediation – And something, is are I was how our get sides – could mediator, over around X,XXX business is reason progressed, The didn’t a publicly Controls feel resolve when we very down timelines. had and mediations, look, have

place. all in have We financing

while going Our extension for to a was day COVID day on. have contract allowed us

and is And can it share. But amicably so them. said we very a is we’re working very publicly what with What we’ve professionally process. confidential basically

though, this. there. very do Controls has then to near-term, we’re and We’ve sides anticipate said, a And expecting in getting and As go are both proposal, towards going a work mediator the we’ll I made the resolution that. a I Johnson I response think around from that,

Tara Charnes

to just what would Mike David, Yes. said. I add

As of is process. I’m of that the mediation sure, you can appreciate underpinnings sort confidential is it a

to interim updates. a But terms we public at company process of out, appropriate So in of we’re do terms so concrete that the while as can have will in updates more somewhat context. plays time, what when certainly, provide we share the we in limited

David Marsh

your to that Is Great, statement? Thanks. until still of guys But of little this sponsorship back that kind wrap terms though you just are up, a to – revenue realize ability held is an resolved. in bit accurate to just

Michael Crawford

good a helps it’s It’s No. question for folks. that though, one clarify us because

We’re can part and strategy as all our category actively business the we always of in And been itself, has grow we pursuing sponsors will. the in to of category monetization presents full take categories. really the terms of advantage

as sponsor, was this complex a a Sports sports us. a a Complex. deal, very sponsor was As we an big ForeverLawn That $X XX-year, ForeverLawn million year, example, or for deal which of our added naming

other to sponsors that have are path and the with conversation opportunity of them. We deep work down

categories represent they I think for Johnson what business several Controls, of us.

pipeline and that to And stewards of do we at when build sponsors categories so responsible be we existing the always look you to a potential those still partners even we as category, have partners. have need opportunity and that could are in of in business, every

and of And that. comment to existing agreement. context Johnson to that would categories part so a would do also work work, the have continued that Controls, how have to process be would similar to really I get understand it how the can’t we we’ve the were in sponsor of in mediation if of on we’d

David Marsh

I and more call little guidance EBITDA range million range million bit more $XX lastly, $XX bit guys had guided think in the the or guys in and any all us know just you that. fine just then last loss with and I and bit precisely labor your The regard in there quarter or thoughts revenue with a year. guidance And little is opaque are the – the Great. for that to market understand was let comparison just conditions the conditions little tune a that you QX? a to what way of But with could in reiterate to a

Benjamin Lee

you. has for can Yes. Yes, Dave, this cover I one Ben. that

seasonality here So we off little a because We of of guided just in XQ. yes, that bit came where previously. that’s

up have what you very, XQ more So off, a events strong for very expected couple is quarter. see third to coming lined we of a

what in XXXX. strong full that in then to year, slightly to So uptick you’ll year, XQ look for course, growth had between next year an we and put versus XX see us teens we high as in this below of which year XXXX last very similar and somewhere

Michael Crawford

example, we from you assets Yes. selling add, that’s said and to think we as diversify only And comes selling things thing creating coming partnerships, And a bigger couldn’t to basis of by new David. on Performance. are think been in more the we I where very well there sort anticipated multiple that revenue ago an our this host ad now for events, I these even. outside I start have as would Center approached said. add as weeks We’ve And hoc now, bigger entities media, two events

on the we’re I big inflation very even still purchases. a the am I and off laying spending about fact that dynamic facing. item about it’s am environment may consumers be though, fluid So encouraged that though are experiences, moderating. ticket encouraged they

there we experiences XXXX. us and that destinations year throughout into regional I in and of to a for for this positive gaming great virtually be so think move and terms net is is And media, going

David Marsh

Sounds for and great questions, congrats guys. momentum taking the again, progress. much so and Thanks great, on the

Michael Crawford

you. Thank

Benjamin Lee

Thank you.

Operator

like Thank you. to remarks. now to management floor closing back this time, the At for I’d over turn

Anne Graffice

do a We that you. going I’m other with questions share to few the have group. Thank

bit are prices? or rather, at explanation coming surrounding ATM asking being using little in why the you an current Can saying first of process? a more The that you give

Michael Crawford

on make remarks just should then I’ll also a Yes. this. of you Ben couple and comment

and is our is about all, there small using us over ATM, now, scale $X the ATM, do It from help a pragmatic business that We because did as to of to allow to we’re very continue to Right of the a other be engaging in let’s say we’ll vehicle manage strategically. million is clear, little there perspective of be needed. the needed the ATM. quarter equity financing. to entice the But to pricing. the on not using that a it that’s when with trying you more forms First the if

quarter. used to while it you I so don’t anything. want minimally last know add it, if And we over we used the

Benjamin Lee

of Yes. where mean, [Call the hit Ends dilution, price I’ll equity When just stock away thoughtful really ATM, deferred have Abruptly] now, I using to we it. at possible want all we from add. right Mike be stay

Hall of Fame Resort & Entertainment (HOFV) 15 Nov 222022 Q3 Earnings call transcript