Q1 2024 Hall of Fame Resort & Entertainment Co Earnings Call

May 14, 2024

Unknown Speaker: Good morning.

Unknown Executive: Good morning. Welcome to Hall of Fame Resort and Entertainment Company's first quarter 2024 earnings conference call. This conference call is being recorded, and all participants are in a listen-only mode. We will open up the conference for questions and answers following the prepared remarks. I would now like to turn the conference over to Anne Grafis, Executive Vice President, Global Marketing and Public Affairs.

Good morning, welcome to Hall of Fame Resort and Entertainment Company's first quarter 2024 earnings Conference call. This conference call is being recorded and all participants are in a listen only mode. We will open up the conference for question and answers following their prepared remarks, I went down like to turn the conference over to Anne Coffees.

Anne Zimmer: Executive Vice President Global marketing and public affairs.

Anne Grafis: Good morning and thank you for joining us for our first quarter 2024 earnings conference call. Our latest press release and supplemental slides were posted yesterday evening after market hours. These documents can be found in the investor relations section of our website at HOFRECO.com.

Anne Zimmer: Good morning, and thank you for joining us for our first quarter 2024 earnings conference call. Our latest press release and supplemental slides were posted yesterday evening after market hours. These documents can be found in the investor relations section of our website at HOFRECO.com.

Anne Zimmer: Good morning, and thank you for joining us for our first quarter 2024 earnings conference call. Our latest press release and supplemental slides were posted yesterday evening. After market hours. These documents can be found in the Investor Relations section of our website at H O F. R E C O dot com.

Anne Zimmer: After our brief introduction, Michael Crawford, our President and CEO, will give an update on the company's strategy and outlook. John Van Buten, Vice President and Corporate Controller, will then provide an analysis of the quarter's financial results and an update on the company's fiscal 2024 financial outlook. During today's call, we will make forward-looking statements that reflect the company's current expectations about future plans and performance. These statements rely on assumptions and estimates, and actual results may differ materially due to risks and uncertainty.

Speaker Change: After a brief introduction Michael Crawford, our president and CEO will give an update on the Companys strategy and outlook John band Mutant Vice President and corporate controller will then provide analysis of the quarters financial results an update on the company's fiscal 2024 financial outlook.

Speaker Change: During today's call we will make forward looking statements that reflect the company's current expectations about future plans and performance.

Speaker Change: These statements rely on assumptions and estimates and actual results may differ materially due to risks and uncertainties I encourage you to read the full disclosure concerning forward looking statements in the earnings press release issued last night.

Anne Zimmer: I encourage you to read the full disclosure concerning forward-looking statements in the earnings press release issued last night. Additionally, please note that the company uses non-GAAP results to evaluate performance internally, as detailed in the press release. Now, it is my pleasure to turn the call over to our President, Michael Crawford.

Speaker Change: Additionally, please note that the company uses non-GAAP results to evaluate performance internally as detailed in the press release now my pleasure to turn the call over to our President Michael Crawford, Michael Thank you and good morning, everyone.

Michael Anthony Crawford: Thank you, Anne. Good morning, everyone. I hope you can see from our Q1 earnings release that we continue to make meaningful progress on many of our stated goals. Two specific that I want to call out are revenue growth. And I think you could tell Q1 this year, probably our best Q1 since going public, really highlights the diversification of revenue and our strategy along that line, and also flattening seasonality. And what I mean by that is taking business that is traditionally in the peak months of summer and early fall and moving it into winter and early spring.

Speaker Change: I hope you can see by our Q1 earnings release, we continue to make meaningful progress on many of our stated goals.

Speaker Change: Two specific that I want to call out revenue growth.

Michael Anthony Crawford: Thank you could tell Q1 this year, probably our best Q1 since going public really highlights the diversification of revenue and our strategy all along that line and also flattening seasonality and what I mean by that is taking business that has traditionally in the peak months of summer and early fall and moving them into <unk>.

Michael Anthony Crawford: Winter and early spring and so I think our team has done a really good job of that.

Michael Anthony Crawford: And so I think our team has done a really good job of that. We continue to add new tenants, so that's lease revenue. We continue to add new experiences, big meetings, big conventions in Q1. Shula's restaurant was obviously open, DoubleTree.

Speaker Change: We continued to add new tenants.

Speaker Change: So thats lease revenue, we continue to add new experiences big meetings the conventions in Q1.

Speaker Change: Sure as restaurant, obviously was open Doug.

Michael Anthony Crawford: We continue to see synergies in the way in which we book events, book stays, and enjoy that revenue going into our restaurants, into our gaming facilities like Topgolf, and staying in our hotels. Obviously, also, as you grow more events and you grow more assets, sponsorship revenue grows as well. And so we had our best quarter in revenue for sponsorships since Q1 of 2021. And you'll recall that at that point in time, Johnson Controls was our largest sponsor.

Speaker Change: Tree, we continued to see synergy in the way in which we book events.

Speaker Change: Book stays in jewelry.

Doug Smith: The revenue going into our restaurants into our gaming facilities like top golf and staying in our hotels. Obviously also as you grow more events and you grow more asset sponsorship revenue growth as well, so we had our best quarter and revenue.

Johnson controls: For sponsorship since Q1 of 2021 and you'll recall at that point in time Johnson controls was our largest sponsors. So we're doing a good job of replacing revenue and growing that.

Michael Anthony Crawford: So we're doing a good job at replacing revenue and growing that. Expense management was obviously a second big goal that we had, and hopefully, that came through loud and clear in our results. From quarter over quarter, from 23 to 24, we are narrowing the gap towards profitability. Our team has done a great job creating more operational efficiencies, and we're investing more in process management and human resources to become really efficient at leveraging every dollar we spend and ensuring that there is a return requirement attached to that, a guest experience requirement, so that we're being most effective with the dollars we have to spend and reinvesting in the company. Additional highlights from Q1: you would have seen we signed eight-time Grammy Award winner Carrie Underwood to headline the Concert for Legends. We're really pleased with that. Our first female headliner.

Speaker Change: Expense management was obviously, a second big goal that we had and hopefully that came through loud and clear in our results from quarter over quarter from 23% to 24, we are narrowing the gap towards profitability. Our team has done a great job through creating more operational efficiencies and we're investing more into <unk>.

Speaker Change: <unk> management and human resources to become really efficient at leveraging every dollar we spend and ensuring that there is a return requirement requirement attached to that a guest experience requirement. So that we're being most effective with the dollars we have to spend and reinvesting into the company.

Speaker Change: Some additional highlights from Q1, you would have seen we signed eight time Grammy Award winner Carrie Underwood to headline the concert for legends, we're really pleased with that our first female headliner.

Michael Anthony Crawford: The game with the Chicago Bears and Houston Texans promises to be great, and of course, the class of new and Chinese, and so it should be a fantastic weekend here in Canton, Ohio. We open new experiences on property Donald Driver, former Green Bay Packers quarterback, opened two experiences, the Driven Elite training experience and our boutique training experience here, which is already selling out quite a bit, and I think our guests are seeing the uniqueness of his style and his offering, and we're really pleased to have him as a part of the offering here at The Village.

Canton, Ohio: The game with the Chicago Bears in Houston Texans promises to be great and of course, the class of new and Chinese and so it should be a fantastic weekend here in canton, Ohio, we.

Speaker Change: We opened new experiences on property Donald driver former Green Bay Packer.

Donald Driver: Open to experiences the driven and we.

Donald Driver: Training experience and our boutique training experience here, which is already selling out quite a bit and I think that our guests are seeing the uniqueness of his style and his offering and we're really pleased to have him as a part of the offering here at the village.

Michael Anthony Crawford: Heggies is a true staple here in Canton, Ohio, a great product with a variety of nuts and candy, and they've really themed and tailored the experience to being here at the campus, a campus focused on sports and entertainment.

unknown: How do you use a true staple here in canton, Ohio, and great product with a variety of nuts in candy and they've really seemed and tailor the experience to being here at the campus a campus focused on sports and entertainment, we talked about our first holiday village gaming branded gaming event.

Michael Anthony Crawford: We talked about our first Hall of Fame Village gaming, branded gaming event, Gridiron Gateway Gaming Tournament, that will be in July. This will be our largest gaming event yet, and so you can see our gaming division is growing. I'll talk about that in just a few moments.

Speaker Change: Grid aren't gateway gaming tournament that will be in July this will be our largest gaming event, yet and so you can see our gaming division has grown and I'll talk about that in just a few moments.

Michael Anthony Crawford: We're getting ready this weekend to host our first carnival here at The Village, and we look to add more of that type of family entertainment, leveraging the assets that we have already in place, our rides, our concession stands, obviously the expanse of The Village itself. Bert Kreischer and our fully loaded comedy festival, featuring a lot of different comics, and in fact, we just announced, too, this lineup is going to be fantastic in June at Tom Benson Hall of Fame Stadium, and it's selling really well, and so we're pleased with that.

Speaker Change: We're getting ready this weekend to host our first carnival here at the village and we look to add more of that type of family entertainment leveraging the assets that we have already in place our rides our concession stands obviously the expanse of the village itself.

Speaker Change: Crusher and our fully loaded comedy festival fees for <unk>.

Speaker Change: <unk> a lot of different comics and in fact, we just announced to this lineup is going to be fantastic in June at Tom Benson whole team stadium, and it's selling really well and so we're pleased with that our relationship with the NFL continues to grow.

Michael Anthony Crawford: Our relationship with the NFL continues to grow. They announced the largest NFL flag championships will be hosted right here at The Village July 19th through the 21st. We're excited about that. It will be covered on ESPN, but that's not all that weekend.

Crusher: They announced the largest NFL flag championships will be hosted right here at the village in July 19th through the 21, we're excited about that it will be covered on ESPN, but thats not all of that weekend were also hosting the American quarterly championships here as well so two and Thats covered on ESPN. So two really large nash.

Michael Anthony Crawford: We're also hosting the American Cornhole League championships here as well, and that's covered on ESPN, so two really large nationally televised events. What you should be seeing is us creating tentpole events throughout the year, moving away from just one big weekend to creating several large weekends with several different types of offerings. I'd like to just talk quickly about our priorities for 24 and the stated priorities that we've talked about in the past.

Michael Anthony Crawford: Obviously, revenue growth, and when you look at Q1 23-24, you see that coming to play. We're anticipating growth for 24, and we're expecting a significant increase in the growth rates related to water park synergies. Even though the water park won't open until 25, we will start pre-selling packages, hotel stays, etc. in 24 for that experience as it opens.

Speaker Change: Televised events.

Speaker Change: Should be seeing is us, creating tentpole events throughout the year.

Speaker Change: Moving away from just one big weekend to creating several large weekends with several different types of offerings.

Speaker Change: I'd like to just talk quickly about our priorities for 24, and our stated priorities that we've talked about in the past obviously revenue growth and when you look at Q1 'twenty three 'twenty four you see that coming to play we're anticipating growth for 'twenty, four and we're expecting significant increase in the growth rates.

Waterpark representative: Related to Waterpark synergies, even though the waterpark won't open until 'twenty five we will start pre selling packages hotel stays et cetera in 'twenty four for that experience as it opens.

Michael Anthony Crawford: Our Q1 numbers also highlight the work that we're doing on our pipeline. We launched a, you know, we're trying to get ahead of informing our guests of all the wonderful happenings and events out at the property, and so now every year, we start with a roster of events, and we continue to add to those throughout the year, as you see. We'll do the same exact thing this year.

Waterpark representative: Our Q1 numbers also highlight the work that we're doing on our pipeline. We launched a we're trying to get ahead of informing our guests of all the wonderful happenings in events out at the property and so now every year, we're starting with a roster of events. So we continue to add to those throughout the year as you see.

Waterpark representative: Same exact thing this year.

Michael Anthony Crawford: We're creating more events and more programming as you create more events and more programming. It creates opportunity for synergy at our restaurants, our rides, concessions, hotel stays, and so that is obviously achieved, and we're continuing to see this stay-and-play mentality grow. We'll be focusing on synergies across all our business verticals, though. As an example, we had a large-scale gaming tournament here just a few months ago. That gaming tournament generated concession revenue, it generated hotel stays, and it generated media content for us as well that we leveraged to garner more events like that in the future. Media is something that I'm proud of.

Speaker Change: We're creating more events and more program as you create more events and more programming it creates opportunity for synergy in our restaurants arrives concessions hotel stays and so that is obviously achieved and we're continuing to see the stay and play mentality grow.

Speaker Change: We will be focusing on synergies across all our business verticals, though as an example, we had a large scale gaming term in here just a few months ago that gaming tournament generated concession revenue generated hotel stays.

Waterpark representative: Generated media content for us as well that we leverage to garner more events like that in the future.

Michael Anthony Crawford: We've done a lot of work over the last few years at sort of filling the pipeline with great new content, and as you will have seen in our Q&A release, we have more content now in distribution across multiple different channels than we ever have. That's a significant step forward for us. We had to build the profile of our media company and our capabilities for creating great media content, and so the team has done a good job there.

Waterpark representative: Media.

Speaker Change: Something that I'm proud of we've done a lot of work over the last few years, it sort of filling the pipeline with great new content and as you would've seen in our Q1 earnings release, we have more content now in distribution across multiple different channels than we ever have that's a significant step forward for us we had to build the profile of our media.

The team: <unk> and our capabilities on creating great media content and so the team has done a good job there largest amount of content and distribution across multiple channels in the Companys history.

Michael Anthony Crawford: Largest amount of content and distribution across multiple channels in the company's history. We're also adding more gaming opportunities, and we're diversifying the type of gaming opportunities. When I think about gaming, I think everyone traditionally wants to go to fantasy sports, e-sports, and obviously sports betting.

Speaker Change: We're also adding more gaming opportunities and we're diversifying the type of gaming opportunities when I think about gaming I think everyone wants to traditionally go to fantasy sports esports, and obviously sports betting sports betting is clearly the revenue from that and especially our mobile partner is increasing I'll talk in a moment about our retail.

Michael Anthony Crawford: Sports betting is clearly the revenue from that, and especially our mobile partner is increasing. I'll talk in a moment about our retail opportunity. But Topgolf, that experience is increasing in terms of its profile and revenue generation, and also enhancing the guest experience. American Cornhole Championships, bringing in more visitors to the village, creating more sponsorship opportunities, more stay and play opportunities, and more beer pong tournaments.

The team: <unk>.

The team: But top golf that experience is increasing in terms of its profile and revenue generation and also enhancing the guest experience American Cornhole championships, bringing in more visitors to the village, creating more sponsorship opportunities more stay in play beer Pong tournament. So non traditional gaming experiences that were continuing.

Michael Anthony Crawford: So non-traditional gaming experiences that we're continuing to look for and hopefully will continue to drive opportunity for us to have synergy across all of our businesses. Our Doubletree has done a fantastic job. The quarter was slightly lower than last year, but it continues to win great awards and recognition there.

The team: To look for and hopefully we'll continue to drive opportunity for us to have synergy across all of our businesses.

The team: Our doubletree has done a fantastic job.

Speaker Change: <unk> was slightly lower than last year, but continues to win rate awards and recognition. There. We are one of the top service hotels, one of the top generating double tree hotels, and the Crestline portfolio and the Hilton portfolio. The team. There is just world class and they create great experiences for our guests to stay it is an extension of the <unk>.

Michael Anthony Crawford: We are one of the top service hotels, one of the top generating Doubletree hotels in the Crestline portfolio and the Hilton portfolio. The team there is just world class, and they create great experiences for our guests to stay. It is an extension of the experience that they have at The Village or with our media, our gaming content, and they live with us there.

Hilton: Experience that they have at the village or with our media, our gaming content and they live with US there and so we want to make sure that that is a really high performing asset and it continues to be I.

Michael Anthony Crawford: We want to make sure that that is a really high-performing asset and that it continues. I talked about packaging as a way in which we can enhance the guest experience. That is something that we are very focused on and, in fact, we'll be implementing a new campus-wide operating system to help do things like pre-selling guest experiences and packaging. The more convenient we can make guest awareness around all the offerings and the types of experiences that we have, the more the guest experience gets enhanced, and the more we can drive revenue for our company as well. Attendance is something that we've spoken about in the past, and last year we had a record year for attendance. We're expecting another record year this year.

Hilton: I talked about packaging as a way in which we can enhance the guest experience that is something that we are very focused on and in fact, we will be implementing a new campus wide operating system to help do things like pre selling guest experiences and packaging the more convenient we can make.

Speaker Change: Guest awareness around the all of the offerings and the types of experiences that we have the more the guest experience gets enhanced and the more that we can drive revenue to our company as well.

Speaker Change: Attendance is something that.

Speaker Change: We've spoken about in the past and last year, we had a record year for attendance, we're expecting another record year. This year, we're seeing attendance growth already in the early part of this year as indicated by our revenue performance in Q1 with attendance growth comes revenue growth and opportunity to do that synergy model that I spoke about.

Michael Anthony Crawford: We're seeing attendance growth already in the early part of this year, as indicated by revenue performance in Q1. With attendance growth comes revenue growth and the opportunity to do that synergy model that I spoke about. I'd reiterate the guidance that we had of 3.5 to 3.7 million this year, but we're doing more than just monitoring attendance.

Speaker Change: I'd reiterate the guidance that we had in the three and a half to $3 $7 million this year.

Michael Anthony Crawford: We're getting smarter at understanding arrival patterns and departure patterns, understanding movement throughout the property, and so that we can market and monetize opportunities for our guests that they may or may not be aware of pre, post event, or during their visit here at the campus. Operational synergies are also something that we've talked a lot about. We've made investments in labor and process management, and this has allowed us to shift more revenue from the top line to the bottom line. As you would have seen, we are narrowing the gap on profitability in Q1 from 23 to 24. The team has worked incredibly hard on this. We've paid attention to every detail.

Speaker Change: But we're doing more than just monitoring attendants, we're getting smarter at understanding arrival patterns and departure patterns understanding movement throughout the property and so that we can market and monetize for our guest opportunities that they may or may not be aware of pre and post event or during their.

Speaker Change: Our visit here at the campus.

Speaker Change: Operational synergies is also something that we've talked a lot about we've made investments in labor and process management. This has allowed us to drop more revenue from top line to bottom line. As you would have seen we are narrowing the gap on profitability over Q1 from 23 to 24.

The team: The team has worked incredibly hard at this we paid attention to every detail, we'll continue to do that and look as we do more we learn more and we stabilize and so the goal with an experienced team is they know what to watch for but more importantly, they are learning from everything that we're doing here and stabilization is key.

Michael Anthony Crawford: We'll continue to do that. And, you know, look, as we do more, we learn more, and we stabilize. And so the goal with an experienced team is that they know what to watch for.

Michael Anthony Crawford: But more importantly, they're learning from everything that we're doing here. And stabilization is key, and stabilization leads to profitability. It also leads to greater customer satisfaction. You know, I talk about this a lot.

Speaker Change: Stabilization leads to profitability.

Speaker Change: It also leads to greater customer satisfaction I talk to us a lot when you create great product and create great guest experiences people will continue to come in and want more of those experiences and.

Michael Anthony Crawford: When you create a great product and you create great guest experiences, people will continue to come back, and they'll want more of those experiences. And we're seeing that as well.

Speaker Change: And we're seeing that as well.

Michael Anthony Crawford: The bottom line, we're focusing on all aspects, shifting from more of that development mindset into the operating and efficiency mindset that drives revenue, expense management, creates those great guest experiences, and engages our guests in all of our business verticals. And when we do that... We have a great opportunity to grow something else, which is sponsorship. And the interesting thing for me, as I said earlier, sponsorship in Q1 of this year was the highest since it's been since Q1 of 21, which would be less than a year after going public. And you'll recall Johnson Controls was our largest sponsor at that time.

Speaker Change: Line, we're focusing on all aspects shifting from more of that development mindset into the operating and efficiency mindset that drives revenue and expense management creates those great guest experiences and it engages our guests and all of our business verticals and what do we do that.

Speaker Change: We have great opportunity to grow something else, which is sponsorship and the.

Speaker Change: The interesting thing for me as I said earlier, our sponsorship in Q1 of this year highest since it's been since Q1 of 'twenty, one which would be less than a year after going public and Youll recall Johnson controls as our largest sponsor at that time not only are we replacing Johnson controls were growing sponsorship and the team we're adding.

Michael Anthony Crawford: Not only are we replacing Johnson Controls, but we're growing sponsorship in the team. We're adding the right individuals to that team and the right support to continue to tell our story. But more importantly, we've been strategic around the timing of sponsorship engagement. I've said before that we want to be strategic in terms of the categories that we're bringing in and the partners that we're bringing in in those categories. We want to make sure that we're fully leveraging the roster of events, the number of experiences, the breadth of campus, the media content development, and gaming opportunities so that we can maximize sponsorship in each of those categories.

Speaker Change: The right individuals to that team and the right support to continue to tell our story, but more importantly, we've been strategic around the timing of sponsorship engagement.

Speaker Change: <unk> said before that we want to be strategic in terms of the categories that we're bringing in and the partners that were bringing in in those categories. We want to make sure that we're fully leveraging the roster of events. The number of experiences the breath of the campus the media content development gaming opportunities so that we.

Speaker Change: Can maximize in each of those categories. The sponsorship and so I'm proud to say that not only have we grown sponsorship revenue in general we've also grown in each category the amount those categories represent for us. So we are taking smaller amounts in categories like carbonated beverage.

Michael Anthony Crawford: So I'm proud to say that not only have we grown sponsorship revenue in general, but we've also grown the amount those categories represent for us. So we're taking smaller amounts in categories like carbonated beverage or alcoholic beverage, and we're growing those by category by being strategic around the time that we're engaging.

Speaker Change: Our alcoholic beverage and we're growing those by category by being strategic around the time that we're engaging.

Speaker Change: Yeah.

Michael Anthony Crawford: I've also talked a little bit about restructuring our balance sheet. The focus that we have on that is very simple: create a long-term success plan, a balance sheet that is balanced, no pun intended, that has the right equity and the right debt. Now, the good news for us as a company is that a significant portion of our debt is the right debt. It's long-term, low interest rate debt. But we do have some that are shorter-term and have higher interest rates.

Speaker Change: I've also talked a little bit about restructuring our balance sheet.

Speaker Change: And.

Speaker Change: The focus that we have on that is very simple create a long term success plan a balance sheet that is balanced no pun intended that has the right equity and the rate that now.

Speaker Change: Good news for us as a company a significant portion of our debt is the rate that its long term low interest rate debt, but we do have some that are shorter term and higher interest rates. So you would have seen that we did extend a considerable amount of that debt almost $50 million in maturity from this year to March of 'twenty five and we're.

Michael Anthony Crawford: So you would have seen that we extended a considerable amount of that debt, almost $50 million in maturity from this year to March of 2025. And we're in the process of working with our largest shareholder, who holds a considerable portion of that debt, to continue to look at how we restructure that for that long-term success I talked about. I've been very pleased and actually very moved by the support in our community.

largest shareholder: In the process of working with our largest shareholder that holds a considerable portion of that debt to continue to look at how do we restructure that for that long term success I talked about.

largest shareholder: I've been very pleased and actually very moved by the support in our community.

Michael Anthony Crawford: Anne Grafis, who heads up our community relations department, our public affairs, and, obviously, marketing, and I work closely together with multiple senior leaders in our community, our mayor, our county commissioners, our head of our port authority, and heads of multiple community foundations.

Graphics: And graphics, who heads up our community Relations Department.

Graphics: Public affairs, and obviously, marking and I worked closely together with multiple senior leaders in our community. Our Mayor County Commissioners are head of a port authority head of multiple community foundations and that work I think is going to pay significant dividends for our shareholders. This is a community to understand the economic benefit.

Michael Anthony Crawford: And that work, I think, is going to pay significant dividends for our shareholders. It's a community that understands the economic benefit of this destination, the village specifically. And we have about $21 million worth of debt that isn't bad debt, but it is short-term debt that we're working with them to restructure to become much longer term, which gives us the right runway and the right debt profile for our company to be successful.

largest shareholder: This destination the village specifically.

Speaker Change: We have about $21 million worth of debt that isn't bad debt, but it is short term debt that we're working with them to restructure to become much longer term that gives us the right runway and ranked debt profile for our company to be successful it is.

Michael Anthony Crawford: It's great to be partners with a community that really values what you're doing and also appreciates the fact that they can support it in a way that returns to them the type of return that helps the rest of the city grow. And that's always been our goal.

Speaker Change: Great to be partners with the community that really values, what youre doing and also appreciate the fact that they can support it.

Speaker Change: In a way that returns to them the type of return that.

Speaker Change: The rest of the city grow and that's always been our goal having an economic impact on our community is something that we are proud of and are already having that type of impact and we look forward to doing more of in the future.

Michael Anthony Crawford: Having an economic impact on our community is something that we are proud of and are already having that type of impact, and we look forward to doing more of in the future. And then lastly, continuing to develop our phase two assets. You'll know that we still have two significant assets that are in development, our Game Day Bay water park and our hills and tapestry hotel. I've talked about the fact that we're in the final stages of closing the capital stack. There's been a lot of, I think, irresponsible reporting around where we are in that process. I've just set the record straight. We have identified all pieces of the capital stack.

Speaker Change: And then lastly.

Speaker Change: Continuing to develop our phase two.

Hilton: Assets, you'll know that we still have two significant assets that are in development are game day by a water park and our Hilton's tapestry hotel.

Hilton: I've talked about the fact that we're in the final stages of closing the capital stack Theres been a lot of.

Speaker Change: Think irresponsible reporting around where we're at in that process.

Speaker Change: I just set the record straight we have identified all pieces of the capital stack, we're working with all of the different constituent groups too.

Michael Anthony Crawford: We're working with all of the different constituent groups to close the capital stack. Everybody wants a simultaneous close. You'll recall we have PACE, we have TIFF bonding, we have TDD bonding, and multiple other tranches of capital to build these assets. We've already brought in $65 million of capital to fund the construction so far of our Game Day Bay water park. We have not started our hotel yet because we don't have the capital stack in place, but I'm hopeful and optimistic that we'll be closing on both of these in the very near future.

Speaker Change: To close the capital stack, everybody wants a simultaneous close and so youll recall, we have pace, we have chip bonding we have TDD bonding.

Speaker Change: And multiple other including equity tranches of capital to build these assets, we've already brought in $65 million.

Speaker Change: Capital to fund the construction so far for our game day Waterpark, we have not started our hotel because we don't have the capital stack in place, but I'm hopeful and optimistic that we'll be closing on both of these in the very near term.

Michael Anthony Crawford: And as we do that, we continue with our construction on those assets at the northern end of the property and look forward to an opening of those mid-25 to Q3 of next year. Our media pipeline, I talked a little bit about, but we continue to grow the number of new projects there. I'm excited to talk about and share with you in the next earnings call. We've got a couple of shows in production and actually filming this week that are really, I'll just say, super cool. I'll be a fanboy. They're really awesome.

Speaker Change: And as we do that we continue then with our construction on those assets to the northern end of the property and look forward to an opening of those mid 25% to Q3 of 25 next year.

Speaker Change: Our media pipeline I talked a little bit about but we continue to grow the number of new projects there.

Speaker Change: I'm excited to talk and share with you in the next earnings call. We've got a couple of shows in production and actually assuming this week that are really obviously super cool.

Michael Anthony Crawford: I think you're going to be pleased with these shows. I think the performers, the folks involved with the shows, the production companies, again, partnerships with some of our previous partners to produce and distribute. So we're excited about what those shows can represent to us from a media point of view. And then gaming, you know, on-site asset development, on-site continued to grow. Our largest event, as I said earlier, is coming in the next couple of months.

Speaker Change: Be a fan boy they are really awesome, I think youre going to be pleased with these shows I think the performers.

Speaker Change: The folks involved with the show the production companies.

Speaker Change: <unk> partnerships with some of our previous partners to produce and distribute so we're excited about what this shows can represent to us from a media point of view and then gaming onsite asset development onsite continued to grow our largest as I said earlier, our largest event coming in.

Speaker Change: The next couple of months, it's a branded event.

Michael Anthony Crawford: It's a branded event and one that we'll be partnering with others on. But, you know, the team there is looking for more nontraditional ways to grow that e-gaming sports opportunity. We did sign the largest fantasy football draft in Q1 of this past 24. That will again happen here on campus in August.

The team: And one that we will be partnering with others on the team there is looking for more non traditional ways to grow that.

Speaker Change: Aiming sports opportunity, we did sign the largest fantasy football.

unknown: Draft in Q1 of this past 24 that will again happened here on campus in August we're excited to bring that back and just continues to grow no better place to hold your fantasy Draft, then where.

Michael Anthony Crawford: We're excited to bring that back. It just continues to grow. No better place to hold your fantasy draft than where professional football is played and where we have the one and only Pro Football Hall of Fame.

Speaker Change: Place, a professional football and where we have the one and only pro football Hall of Fame Theres a lot of packaging unique opportunities. We can do for fantasy draft. So I encourage people to consider hosting their draft here at the village campus.

Michael Anthony Crawford: There's a lot of packaging, unique opportunities we can do for fantasy drafts, and so I encourage people to consider hosting their drafts here at the Village. Let me talk a little bit about retail sportsbooks. I know that many of you have questioned why we haven't opened a retail sportsbook yet, and as I said in our last earnings call, The reality of retail sportsbooks is that they represent only a fraction of the actual sports betting that takes place.

Michael Anthony Crawford: In fact, 2.5% of the market share of sports betting in Ohio is done through retail sportsbooks. What that does is it makes it much less compelling for those sportsbook operators to invest in retail sportsbooks, because they have to fit in with the location.

Speaker Change: Let me talk a little bit about retail sports books.

Speaker Change: I know that many of you have questioned why we haven't opened a retail sports book, yet and as I said in our last earnings call. The.

Speaker Change: The reality of retail sports books is that they represented a fraction of the actual sports betting that happens and in fact, two 5% of the market share betting sports betting in Ohio is done through retail sports books, what that does is it makes it much less compelling for those sports book operators to invest in retail sports books.

Michael Anthony Crawford: They have to staff a location, and the regulatory requirements are pretty stringent. So while we haven't given up hope, we're more focused on this becoming part of a guest experience versus a significant revenue driver for us as a company, which we once thought it could be. We do have an issue that we're dealing with in terms of our retail sports betting license. Our general counsel, Tara Carnes, is working with the Ohio Casino Control Commission.

Speaker Change: They have to fit out a location they have to staff a location.

Company Representative: The requirements of the regulatory requirements are pretty stringent and so while we haven't given up hope we're more focused on this becoming part of our guest experience versus a significant revenue driver for us as a company, which we once thought it could be.

Speaker Change: We do have an issue that we're dealing with in terms of our retail sports betting license.

Company Representative: Our general Counsel Teri Karnes is working with the Ohio Casino control Commission, there can't be a promise of an outcome there, but were hoping to be able to get an extension or to be able to continue with the existing license that we have and have the ability to at some point in time attractive retail sports book operators, but there is.

Michael Anthony Crawford: There can't be a promise of an outcome there, but we're hoping to be able to get an extension or to be able to continue with the existing license that we have and have the ability to, at some point in time, attract a retail sportsbook operator. But there is work being done around that, but there is nothing I can report on yet. And yet, we're still hopeful that we can have this guest experience on property for our guests to enjoy in the near future.

Teri Karnes: <unk> work being done around that nothing I can report on yet and yet we're still hopeful that we can have this guest experience on property for our guests to enjoy in the near future.

Michael Anthony Crawford: I want to talk lastly just about creating unique experiences for our guests. You know, I think that revenue growth in Q1 is a great example of Flattening Seasonality, bringing in new leadership, faith-based content, new conventions, along with sports activity, cheerleading competition, soccer leagues, all the things that we're continuing to ramp up on, very, very important. The same with media and content development and gaming and content development there as well. There is a model that we continue to talk about, which is Synergy, where we have the opportunity to build in one business vertical. We always ask, how can we take that and create opportunities in the other two, and we're doing a much better job. But we also want to create off-site asset development experiences as well.

Teri Karnes: I wanted to talk lastly, just about creating unique experiences for our guests.

Teri Karnes: I think that revenue growth in Q1 is a great example of that flattening seasonality, bringing in new leadership faith based content, New convention, along with sport activity cheerleading competition soccer leagues all of the things that we're continuing to ramp up on.

Teri Karnes: Very very important the same with media and content development and gaming and content development. There as well there is a model that we continue to talk about what your synergy where we have the opportunity to build in one business vertical we always ask how can we take that and create opportunity in the other two and we're doing a much better.

Speaker Change: Our job with that but we also want to create offsite asset development experiences as well and so we've continued to work on that plan. We're refining it we're scaling it we're looking at the timing of that I'm looking forward to that being our next wave of growth potentially for our company.

Michael Anthony Crawford: And so we've continued to work on that plan. We're refining it. We're sizing it. We're looking at the timing of that.

Michael Anthony Crawford: I'm looking forward to that being a next wave of growth for our company in off-site asset locations around the country, expanding our brand, expanding the Pro Football Hall of Fame brand, and offering guests the opportunity to engage with our product, getting them excited about coming to the destination here in Canton, Ohio, getting them excited about viewing our media and experiencing our gaming opportunities as well. Developing and executing a long-term strategy drives results. I'm proud of my team. You can see the results in our Q1 earnings release. I couldn't be more proud.

Speaker Change: In Offsite asset locations around the country, expanding our brand expanding the brand of the pro football Hall of Fame and offering guests the opportunity to engage with our product getting them excited about coming to.

Speaker Change: To the destination here in canton, Ohio, getting them excited about viewing our media and experiencing our gaming opportunities as well.

Speaker Change: Executing long term strategy drives results.

Speaker Change: I'm proud of the team you see the results out of our Q1 earnings release I Couldnt be more proud stabilization is critical profitability is critical spending effectively and efficiently as the goal, but investing in tools experiences that are going to help with that is really important for an early stage.

Michael Anthony Crawford: Stabilization is critical. Profitability is critical. Spending effectively and efficiently is the goal, but investing in tools and experiences that are going to help with that is really important for an early-stage company as well. Again, I want to thank our community, and I thank our shareholders for their support. It's not an easy environment. It hasn't been an easy environment. And our company, quarter after quarter, continues to show positive results, and so I'm proud of that fact. I turn it over now to John Van Buten to give us a financial recap of Q1.

Speaker Change: Each company as well again.

Speaker Change: Again want to thank our community and I think our shareholders for their support.

Speaker Change: Not an easy environment Hasnt been an easy environment and at our company quarter. After quarter continues to show positive results and so I'm proud of that fact in front of the team.

Speaker Change: Turn it over now to Jonathan to give us a financial recap of Q1.

John Van Buten: Thanks, Mike, and good morning, everyone. Moving on to our financial results. First quarter total revenue was $4.2 million, which represents an increase of 34% from the same period in the prior year. Revenue growth in the quarter was primarily driven by event and rental revenue at Hall of Fame Village, which also includes revenue from the tenanting of our Constellation Center for Excellence and Fan Engagement Zone, in addition to revenue from Shula's Restaurant.

Jonathan: Thanks, Mike and good morning, everyone move.

Jonathan: Moving on to our financial results first quarter total revenue was $4 2 million, which represents an increase of 34% from the same period in the prior year.

Jonathan: Revenue growth in the quarter was primarily driven by event in rental revenue at Hall of Fame village, which also includes revenue from the <unk> of our constellation Center for Excellence and fan engagement Zone. In addition to revenue from our <unk> restaurant.

John Van Buten: The company's first quarter revenue mix continues to become more diversified and highlights the synergies and the diverse revenue streams that we are creating within the company from event revenue, tenanting, and rental, hotel and restaurant revenue, media, and gaming. We expect that our revenue streams will grow and broaden in future years as we reach stabilization. For example, for the first quarter, adjusted EBITDA was minus 2.9 million compared to minus 10.9 million in the same period last year.

Company Representative: The company's first quarter revenue mix continues to become more diversified and highlights the synergies and the diverse revenue streams that we are creating within the company from event revenue tentative and rentals hotel and restaurant revenue media and gaming.

Speaker Change: We expect that our revenue streams will grow and brought in in future years as we reach stabilization.

Jonathan: First quarter adjusted EBITDA was minus $2 9 million compared to minus $10 9 million in the same period last year.

John Van Buten: The change was driven by decreased operating expenses related to reduced compensation related expenses and third party services. In addition, last year included several non-recurring expense items. The company posted a net loss of $14.9 million in the quarter.

John Van Buten: The change was driven by decreased operating expenses related to reduced compensation-related expenses and third-party services. In addition, last year included several non-recurring expense items. The company posted a net loss of $14.9 million in the quarter.

Jonathan: The change was driven by decreased operating expenses related to reduced compensation related expenses and third party services and.

Speaker Change: In addition last year included several nonrecurring expense items the.

The company: The company posted a net loss of $14 $9 million in the quarter interest expense increased to $6 $5 million, resulting from higher debt balances and lower capitalized interest as assets are placed into service.

John Van Buten: Interest expense increased to $6.5 million, resulting from higher debt balances and lower capitalized interest as assets are placed into service. Moving to the balance sheet, we finished the quarter with a cash and liquid investment balance of approximately $7 million. The company's usage of cash during the quarter was attributable to operating activities and construction expenditures, which totaled approximately $14 million during the quarter. Our net notes payable balance slightly increased to $222 million compared to $220 million at the end of the prior quarter. This increase in notes payable during the quarter was primarily due to accruals of paid and kind interest.

Speaker Change: Moving to the balance sheet, we finished the quarter with a cash and liquid investment balance of approximately $7 million. The company as the usage of cash during the quarter was attributable to operating activities and construction expenditures, which totaled approximately $14 million during the quarter.

Speaker Change: Our net notes payable balance slightly increased to $222 million compared.

Speaker Change: Compared to $220 million at the end of the prior quarter.

Speaker Change: This increase in notes payable during the quarter was primarily due to accruals of paid in kind interest.

John Van Buten: During the quarter, we exercised the one-year extension of the approximately $49 million of debt to IRG and its affiliate lenders, which was due in March. We are also currently working to restructure over $20 million of debt from the city of Canton, the county, and our local community foundation. As we have noted in prior quarters, we are working to restructure and optimize our overall capital structure in a way that provides the company the best opportunity to move efficiently towards the stabilization of all aspects of our stated business model.

Speaker Change: During the quarter, we exercised the one year extension of the approximately $49 million of debt to IRG and its affiliate lenders, which was due in March we.

Speaker Change: We are also currently working to restructure over $20 million of debt from the city of Ken The County, and our local community foundations.

Speaker Change: As we've noted in prior quarters, we are working to restructure and optimize our overall capital structure in a way that provides the company the best opportunity to move efficiently towards stabilization of all aspects of our stated business model.

John Van Buten: We continue to work towards closing all of the necessary financing required for the remaining Phase II construction, including multiple financing transactions related to our Game Day Bay water park and on-site tapestry hotel. However, we are in a very challenging and restrictive credit environment.

Speaker Change: We continue to work towards closing all of the necessary financing required for the remaining phase II construction, including multiple financing transactions related to our game day Bay, Waterpark and onsite tapestry hotel.

Speaker Change: We're in a very challenging and restrictive credit environment, but we are working diligently towards closing the remaining construction financing needed to fund these critical assets.

John Van Buten: But we are working diligently towards closing the remaining construction financing needed to fund these critical assets, moving to 2024 financial guidance. We are revising our revenue expectations to be in the range of $24 to $27 million, and we are reiterating our previously provided expectations for adjusted EBITDA losses in the mid-teens million range. As we have highlighted, the company and our Hall of Fame village are in the early growth stages. The company is intensely focused on revenue growth and expense management.

Speaker Change: Moving to 2024 financial guidance.

Speaker Change: We're revising our revenue expectations to be in the range of 24% to $27 million.

Speaker Change: And we are reiterating our previously provided expectations for adjusted EBITDA loss in the mid teens millions range.

Speaker Change: Adam as we have highlighted the company and our hall of Fame village are in the early growth stages. The company is intensely focused on revenue growth and expense management.

John Van Buten: Staying lean where possible, while at the same time balancing the need to invest in order to support our growth. We expect increased diversification of revenue and EBITDA across multiple streams, with each one driving synergies to support the ecosystem that we are working to build. In closing, the company is mindful of the current economic environment and will remain intensely focused on driving profitability through diverse revenue streams and disciplined cost management while making strategic investments to support our growth. Finally, as you've come to expect, we will continue to provide transparent and timely updates to our shareholders as we move ahead. Operator, we would like to open the line now for any questions.

Speaker Change: Lean where possible while.

Speaker Change: While at the same time balancing the need to invest in order to support our growth.

Speaker Change: We expect increased diversification of revenue and EBITDA across multiple streams with each one driving synergies to support the ecosystem that we are working to build.

Speaker Change: In closing the company is mindful of the current economic environment, and we will remain intensely focused on driving profitability through diverse revenue streams and disciplined cost management, while making strategic investments to support our growth.

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

Speaker Change: Operator, we would like now to open the line for any questions.

Operator: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove the question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Jack Vander Aarde of Maxim Group. Please proceed.

Speaker Change: Thank you.

Operator: To ask a question. Please press star one on your telephone keypad.

Joe: Joe will indicate your line is in the question Kim You May Press Star two if he would like.

Joe: The question from the queue and for participants using speaker equipment may be missed.

Joe: Sorry to pick up your handset before.

Joe Kim: Mr Hughes.

Speaker Change: Our first question is from Jack Vander <unk> with Maxim Group. Please proceed.

Jack Vander Aarde: Okay, great. I appreciate the update, guys. And thanks for taking my question.

Speaker Change: Okay, Great I appreciate the update guys and thanks for taking my questions.

Jack Vander Aarde: Michael, you know, first on the first quarter results, you know, it's good to see the sponsorship revenue tick up. But the operating expenses were far lower than I expected, particularly the property OPEX, which was down over 7 million year over year. Just how do we think about your operating expenses going forward? And, you know, how did you shave off around 7 million dollars a year in property expenses?

Michael Anthony Crawford: Michael first first in the first quarter results.

Speaker Change: Good to see the sponsorship revenue tick up.

Speaker Change: Operating expenses were far lower than I expected, particularly the property Opex was about $6 million that was down over $7 million year over year.

Speaker Change: Just how do we think about your operating expenses going forward.

Speaker Change: How did you shave off around $7 million year over year property expenses. Thanks.

Michael Anthony Crawford: Yeah, thanks, Jack. Look, I'd like to say a couple things. One, we had an extreme focus last year on ensuring all of our processes were established, right? The full bidding of any contract from an operating point of view, and we have multiple, ensuring that we were looking at every single aspect of our business, from utility expense to insurance. Certainly, having gone three years since de-spackaging, some of our insurance costs for D&L went down. So, there were several factors that contributed to it.

Speaker Change: Yes, Thanks, Jack look I'd say, a couple of things one we.

Jack: We had an extreme focus last year on ensuring all of our processes were established rate the full bidding of any contract from an operating point of view and we have multiple.

Jack: Ensuring that we were looking at every single aspect of our business from utility experience to insurance.

Speaker Change: Certainly having gone three years from Destocking.

Speaker Change: All of our insurance cost for D&O went down. So there were several factors that contributed to it I would just say this I mean, we had a quarter that was great and revenue, but we're really honed in on the expense management side, we looked at compensation there were some reductions there.

Michael Anthony Crawford: I would just say this. We had a quarter that was great for revenue, but we're really honed in on the expense management side. We looked at compensation, and there were some reductions there. We've looked at headcount, making sure that we were efficient versus our needs. My experience with these businesses is that it typically takes three to five years to really stabilize and get efficient at understanding the seasonality of the business, weekday and weekend.

Speaker Change: We've looked at head count and making sure that we're efficient at versus our needs.

Speaker Change: My experience with these businesses as it typically takes three to five years to really stabilize and get efficient at understanding the seasonality of the business.

Speaker Change: Weekday weekend and so we're learning great. The team is learning as we go and we're trying not to replicate any mistakes and in fact with the experience that some of US had we know what to look out for and how to proactively address it I would say this though.

Michael Anthony Crawford: And so we're learning, right? The team is learning as we go, and we're trying not to replicate any mistakes. And in fact, with the experience that some of us have had, we know what to look out for and how to proactively address it.

Michael Anthony Crawford: Remembering we are an early-stage company, and in any particular quarter, there could be ups and downs. And as we add more programming, new different types of programming, as we add more assets, predominantly a water park or a hotel, we're going to have that learning curve start all over again. So while I'd like to say that this is a reliable trend that gets us to profitability much quicker, we're not a property in terms of the village that's fully open yet.

Speaker Change: Remembering we are an early stage company in any particular quarter, there could be ups and there could be downs and as we add more programming new different types of programming as we add more assets predominantly a water park or a hotel, we're going to have that learning curve start all over again, so while I'd like to say that.

Speaker Change: This is a reliable trend if it gets us to profitability much quicker, we're not a property in terms of the village that's fully opened yet and we're also not a company in terms of media and gaming that's firing on all cylinders, we're seeing great growth and we're seeing attention.

Michael Anthony Crawford: And we're also not a company in terms of media and gaming that's firing on all cylinders. We're seeing great growth, and we're seeing attention in both of those other business verticals to the growth that we need, and we're being responsible with the dollars we're spending. But at the end of the day, it just takes time to learn the business, become more efficient, and match expenses to dollars. And then the last thing I'd say is we're getting much more diligent around if a dollar is being spent, what is it supposed to return, and having return thresholds, and making sure that we have in place a process to evaluate as a company projects, new assets, new events that are being proposed so that we're So pleased with the team, pleased with the effort. We're in the early stage yet, and we've got a long way to go. But listen, we're trending in the right direction.

Jack Vander Aarde: Okay, great. That's, that's helpful. And, you know, I caught your comments earlier.

Speaker Change: In both of those other business verticals to the growth that we need and we're being responsible around the dollars we're spending but at the end of the day. It just takes time to learn the business become more efficient and match expenses $2 and then the last thing I'd say is we're getting much more diligent around if the dollars being spent.

Speaker Change: What is it supposed to return and having returned thresholds and making sure that we have in place a process to evaluate as a company.

Speaker Change: Projects, new assets, new events that are being proposed so that we're not spending in.

Speaker Change: Larger scale than what we're returning so pleased with the team pleased with the effort.

Speaker Change: Our early stage, yet and we got a long way to go but listen we're trending in the right direction.

Speaker Change: Okay, Great. That's helpful and I caught your comments earlier I appreciate youre working through kind of the capital stack funding it sounds like it's pretty fluid and you have some announcements coming up.

Speaker Change: I'll switch gears until the Waterpark.

Jack Vander Aarde: I appreciate your working through kind of the capital stack funding. It sounds like it's pretty fluid, and you have some announcements coming up. I'll switch gears to the waterpark. Just, just in general, maybe what's the latest target opening date? I think I caught maybe, maybe the mid or third quarter of 25.

Speaker Change: Just in general maybe what's the latest targeted opening date I think I caught maybe maybe mid or third quarter of 25%.

Jack Vander Aarde: And then with the waterpark, you mentioned potential synergies ahead of the waterpark being built and open. So, maybe pre-selling potential packages. What might you expect maybe to have some, would you expect to have some like tangible pre-sale orders for the waterpark? You know, a few months, a year in advance? Just what do you think about that? That was interesting, that comment.

Speaker Change: And then with the Waterpark you mentioned potential synergies ahead of the Waterpark being dealt and opened so maybe pre selling potential packages.

Speaker Change: What might you expect maybe CASM would you still definitely tangible presale orders for the water Park.

Speaker Change: A few months.

Speaker Change: Year in advance just wondering what are you thinking there that that was interesting in his comments.

Michael Anthony Crawford: Yeah, I think two things. One, just to address the timing, we're looking at the water park in the first half of next year. The water park is 44% complete. We have all of the equipment, or I should say we've procured a lot of the equipment that is ready for installation. As you know from our last earnings call, we have slowed down that construction considerably, waiting for the final pieces of the capital stack to close.

Speaker Change: Yeah.

Speaker Change: Two things one just to address the timing we're looking at the water Park in the first half of next year. The Waterpark is 44% complete.

Speaker Change: We have all of the equipment I should say.

Speaker Change: Procured a lot of the equipment that is ready for install as you know from last earnings call. We have slowed down that construction considerably awaiting for the final pieces of the capital stack to close.

Michael Anthony Crawford: And listen, I just want to make a mention again that when you have four or five different components to the capital stack that all require an integrated close, a simultaneous close, it's not an easy feat. And you're threading the needle, and it's a pretty thin needle to thread.

Speaker Change: Listen I just wanted to make mention of again when you have four or five different components to the capital stack that all require an integrated close simultaneous close it is not an easy feat in your threading the needle and it's a pretty it's a.

Anne Grafis: Thin needle to thread.

Michael Anthony Crawford: But we're getting there, and we're making progress on it. And so I feel comfortable that if we can close the capital stack in the next couple of months, we'll be in a position to open the water park by mid next year. The hotel, the same thing. If we can close the capital stack in the next couple of months. We haven't started the hotel yet, but I think, you know, a hotel build is slightly more efficient than a water park build.

Speaker Change: But we're getting there and we're making progress on it and so I feel comfortable that if we can close the capital stack in the next couple of months, we'll be in a position to open the Waterpark mid next year.

Speaker Change: Hotel the same thing if we can close the capital stack in the next couple of months, we haven't started the hotel yet, but I think hotel build is slightly more efficient than a waterpark build will probably be in Q3 of next year for that asset.

Michael Anthony Crawford: We'll probably be in Q3 of next year for that asset. In the question around how do you sort of think about selling before the assets open? You're pre-selling season passes, you're pre-selling stay and play packages, you're pre-selling food and play packages. So there's a lot of different opportunities to bundle the water park experience with other things, pre-selling the water park tickets with the Pro Football Hall of Fame ticket. And so that revenue starts to come in, typically, I'll say.

Speaker Change: And the question around how do you sort of think about selling before the assets open you are pre selling season passes.

Speaker Change: Reselling stay and play packages, you are pre selling food and play packages. So theres a lot of different opportunity to bundle the water park experience with other things pretty selling water park with the pro football Hall of Fame ticket.

Speaker Change: And so that revenue starts to come in typically I'll say three to six months prior to the Waterpark opening.

Jack Vander Aarde: Okay, great. I appreciate the color there, Mike. Good job on the recent results, and I'll hop back in the queue. Thanks.

Speaker Change: Okay, Great I appreciate the color there Mike.

Speaker Change: Good job on the recent results and I'll hop back in the queue. Thanks.

Speaker Change: Thanks Jack.

David Marsh: Our next question is from David Marsh with Singular Research. Please proceed.

Anne Grafis: Our next question is from David Marsh with singular research. Please proceed.

David Marsh: Hi, good morning. Thanks for taking the questions and congrats on the quarter. And this is really a tremendous accomplishment, and you guys went from $300,000 in event revenue two years ago to $2 million. That's pretty awesome. Could you talk about the different types of events you were able to do, a little bit more about what some of the tentpole events were in the first quarter that were able to drive this revenue? I know you've already mentioned some that are coming up, but I just was curious what you were able to put on the calendar in the first quarter that was able to drive this revenue so high?

David Marsh: Hi, good morning, Thanks for taking my questions and congrats on the quarter and this is really a tremendous accomplishment.

Speaker Change: Thanks, David.

Speaker Change: When you guys went from a $300000 of.

Anne Grafis: Events revenue two years ago.

Speaker Change: 2 million, that's a that's pretty awesome.

Speaker Change: Could you talk about what what the different types of events you were able to.

Speaker Change: A little bit more about what the what kind of some of the tentpole events or.

Speaker Change: The first quarter that we are able to drive this this revenue in.

Speaker Change: I know you've already mentioned some that are coming up but.

Speaker Change: I just was curious what you were able to.

Speaker Change: Put on the calendar in the first quarter that was able to drive this revenue so high.

Michael Anthony Crawford: Yeah, well, one of the biggest was our faith-based leadership event with Tim Thiebaud as the headliner there and, you know, bringing in sports and faith and creating an opportunity for those that were partaking of that event to really hear from one of the higher-profile guys in the game about how he developed his career and how he developed his faith and how those two merged for him to be successful. I think that's a good example of where sports and entertainment come together, and so that was a very large-scale event.

Speaker Change: Yeah, well one of the biggest was our faith based leadership event with <unk>.

Speaker Change: Tim Tebow as the headliner there.

Speaker Change: Bringing in sports and faith in creating an opportunity for those that were thinking of that event to really hear from one of the higher profile guys in the game of how he developed his career and how you develop the space and how those two merged for him to be successful I think that's a good example of where our sports and entertainment coming.

Speaker Change: Together and so that was a very large scale event, we're increasing also though the number of events.

Michael Anthony Crawford: We're increasing also the number of events that frankly, when you think about large-scale cheerleading tournaments or large-scale wrestling tournaments or even large-scale meetings or things like a home and garden show or things like a concrete show or a big, large-scale company event, those things typically will be booked a couple years in advance because they have to find the venue, they have to find the hotels and so on and so on. You know, we've only had the dome open for a couple of cycles, and so I think we're starting to show the unique aspect of that facility and its capabilities, but we're also starting to show the unique aspect of the destination and how you can create this integrated experience that includes ride packaging and food and beverage and hotels and other things that are unique to us versus a standalone convention center or a standalone sports dome.

Speaker Change: Frankly, when you think about how large scale cheerleading tournaments, or large scale wrestling tournaments, or even large scale meetings or.

Speaker Change: Things like our home and garden show or things like.

Speaker Change: Concrete show or a big large scale company event those things typically will be booked a couple of years in advance because they have to locate the venue to have to locate the hotels so on and so on.

Speaker Change: We've only had the dome open really for a couple of cycles and so I think we're starting to show the unique aspect of that facility and its capabilities, but we're also starting to show the unique aspect of the destination and how you can create this integrated experience that includes right packaging and food and beverage and hotels.

Speaker Change: Other things that are unique to us versus a Standalone convention center or a standalone sports stone.

Michael Anthony Crawford: So increasing the types of events and the scale of those events was really critical in Q1. And I think we were able to do that, diversifying events from sport to non-sport and then trying to look for the combination of the two. And that's how we got there this year.

Speaker Change: So increasing the types of events and the scale of those events was really critical in Q1, and I think we were able to do that diversifying events from sports to non sport.

Speaker Change: And then trying to look for the combination of the two and that's how we got there this year.

David Marsh: That's good. Keep up the good work on that front.

Speaker Change: Well, that's good keep up keep up the good work on that front.

David Marsh: If I could just dig into the sponsorship numbers, it's really good progress that you guys have made there. Can you just talk about what that looks like as we project out for the year? I mean, is this a baseline? Like, is this a low watermark, and it will grow throughout the year as you have more events throughout the year and you add new sponsors? Is that the right way to think about it? Yeah, I think so.

Speaker Change: If I could just.

Speaker Change: Dig into the sponsorship.

Speaker Change: Number.

Anne Grafis: That's a really good progress that you guys have made there.

Anne Grafis: Can you just talk about what that looks like.

Speaker Change: We project out for the year I mean does that is this a baseline lake is this the low watermark of growth throughout the year as you have more events throughout the year.

Speaker Change: And you're adding new sponsors is that the right way to think about it.

Michael Anthony Crawford: Yeah, I think so, and it's not just event-related. Obviously, every event we have, concerts and comedic shows and large-scale sporting events like NFL Flag and Cornhole Championships, et cetera, there are always opportunities for what we call a true sponsor for those events and multiple sponsors in multiple categories. What we prefer to do is look for long-term partner sponsors. And what I mean by that is, when you sign a deal with Coke, which is our carbonated beverage partner, you're signing a deal where you can showcase the breadth of what your company has to offer.

Speaker Change: Yes, I think so and it's not just event related obviously every event rehab concerts and comedic shows.

Speaker Change: Large scale sporting events like the NFL flag in corn whole championships et cetera.

Speaker Change: There are always opportunities for what we call a true sponsor for those events and multiple sponsors in multiple categories. What we prefer to do is look for long term partners sponsors and.

Anne Grafis: What I mean by that is when you sign a deal with a coke, which is our carbonated beverage partner Youre signing a deal where you can go and showcase the breadth of what your company has to offer and so E gaming as an example was very attractive to cook and something that helped us land that sponsorship.

Michael Anthony Crawford: And so e-gaming, as an example, was very attractive to Coke and something that helped us land that sponsorship. It was a category from three years ago that was deriving pretty low-level revenue to today, which is deriving fairly meaningful revenue. Why?

Speaker Change: He was a category from three years ago that was deriving pretty low level revenue today, which is driving fairly meaningful revenue why because we've increased the number of assets available to power their product. We've increased the number of events for them to showcase and empower their product and showcase the brand and so we stated.

Michael Anthony Crawford: Because we've increased the number of assets available to pour their product. We've increased the number of events for them to showcase and pour their product and showcase their brand. And so we stated two years ago that we wanted to be strategic because you can get yourself – I've seen this trap before – you can get yourself convinced that you need to sign sponsors quickly to help bring revenue in, and sponsor revenue is typically bottom-line revenue for the most part.

Speaker Change: Two years ago, we wanted to be strategic because you can get yourself I've seen this trap before you can get yourself convinced that you need to sign sponsors quickly to help bring revenue in and sponsor revenues typically bottom line revenue for the most part.

Michael Anthony Crawford: We wanted to hold off so that we had the right profile of company, gaming, media, and destination that would be really appealing. It's a partnership, and so you want to have the most you can offer to the potential partner that you're bringing in, and that creates opportunities for them. And then, obviously, that creates value for you because they're wanting to provide more dollars and more sponsorship because you have more things for them to sponsor.

Anne Grafis: We wanted to hold off so that we had the right profile of company gaming media destination that would be really appealing. It is a partnership and so you want to have the most you can offer to the potential partner that youre, bringing in and that creep.

Speaker Change: Creates opportunity for them and then obviously that creates value for you because they are wanting to provide more dollars and more sponsorship because you have more things for them to sponsors. So the more assets. We opened gameday a water park is going to be significant for us.

Michael Anthony Crawford: The more assets we open, Game Day Bay Water Park is going to be significant for us. The Dome was significant for us. I think Play Action Plaza has the potential to have a real sponsor presence because of our rides and our concessions, the outdoor amphitheater, all of the wonderful things that part of the property has to offer, the more that we can monetize. But it's not just about monetizing. It's also about bringing in partners that help enhance the guest experience.

Speaker Change: Home was significant for US I think play action Plaza has the potential to have a real sponsor presence because of our rides in our concessions outdoor amphitheater all of the wonderful things that part of the property has to offer fan engagement zone. The more that we can monetize but.

Speaker Change: It's not just about monetizing its also about bringing in partners that help enhance the guest experience and so we're very focused on who are the right partners for us in the sports and entertainment World that complement what we're doing and I think our team. Our partnership team has done a really good job of timing and.

Michael Anthony Crawford: And so we're very focused on who are the right partners for us in the sports and entertainment world that complement what we're doing. And I think our team, our partnership team, has done a really good job at timing and engaging with the right profile of partners to help sort of not only expedite growth but the right type of growth.

Speaker Change: Aging with the right profile of partners to help sort of not only expedite growth, but the right type of growth.

Speaker Change: Got it got it.

David Marsh: That's very helpful as well. I also wanted to compliment you on the press release with the complete set of financials. That's extremely helpful for us as we're working on modeling. Just a question around the balance sheet quickly. New line popping up here, equity method investments of 2.5 million, roughly. Could you give me a little bit more insight on that? What is in that? Yeah. Hi, David. This is

Anne Grafis: Very helpful as well.

Anne Zimmer: I also did want to offer a complement on the press release with that.

Speaker Change: Set of financials.

Speaker Change: Extremely helpful for Us is where we're at.

Anne Grafis: On modeling.

Speaker Change: Question around the balance sheet quickly.

Anne Grafis: The new line popping in here equity method investments of $2 5 million roughly could you give me a little bit more.

Speaker Change: Insight on that.

John Van Buten: Hi David, this is John. So that equity method investment line represents our minority interest in the sports complex. So, as you know, during the quarter, we sold 80% of our sports complex to Sandlot, and that represents our remaining investment. So, as that company continues to operate the sports complex and gets income from it, that investment will grow. And you'll notice on the P&L, we also have a new line for income from that equity method investment. And that's where that 20% of income from that will end up.

John: Yes, Hi, David This is John.

Speaker Change: Equity method investment line represents our minority interest in the sports complex. So as you know during the quarter, we sold 80% interest in our sports complex too.

Speaker Change: Sam a lot and that represents our remaining investment so as that company continues to operate the sports complex and has income from that that investment will grow and Youll notice. The P&L. We also have a new line income from equity method investment and Thats worth.

Speaker Change: At that 20% of income from that will we will end up.

David Marsh: And then, just lastly, Mike, I know you guys are continuing to explore alternatives around the retail sports book. I mean, is there anything at all? You know, are there any particular operators that are showing any meaningful interest there? Or is it really just proving to be a little bit tougher than we had initially maybe hoped?

Anne Grafis: Thank you very much that's helpful.

Anne Grafis: And then just lastly.

Anne Grafis: Mike if you could.

Speaker Change: You said you guys are continuing to explore alternatives around the retail sports book I mean is there anything at all.

Anne Grafis: Are there any particular operators.

Anne Grafis: That are showing.

Speaker Change: Meaningful interest there or is it really just.

Speaker Change: Proving to be a little bit tougher than you know.

Speaker Change: We had initially maybe hoped.

Michael Anthony Crawford: Yeah, I think time hasn't been our friend here, David. I think people have learned more about the business in Ohio. When I say people, I'm talking about the retail sports betting operators and the mobile betting operators. Look, 97% of all bets are placed through the devices that we carry around with us every single day. It's very convenient.

Speaker Change: Yes, I think time is.

Anne Grafis: Time Hasnt been our friend here, David I think people have learned more about the business in Ohio, when I say people I'm talking about the retail sports betting operators in the mobile betting operators look 97% of all bets are being placed through the devices that we carry around with US every single day, it's very convenient.

Michael Anthony Crawford: I've gone to several large-scale sporting events in the last, I'll call it, two or three months, and it's amazing to me to see the number of people staring at their phones. And when you really get close, you see what they're doing is they're making a bet on the next play, or they're making a bet on a player and how many points they're going to score. So they don't want to leave their seats and go to a retail sportsbook in many instances. Now, retail sportsbooks have a presence in a lot of the arenas and stadiums in Ohio. I will say that some have pulled out because of the lack of financial success.

Speaker Change: And yet I have gone to several large scale sporting events in the last I'll call. It two to three months and it's amazing to me to see the number of people staring at their phones and when you really get close you see what Theyre doing is theyre, making a bet on the next play or they are making a bet on a player and how many they're going to score so they don't want to leave their seats.

Speaker Change: And go to a retail sports book in many instances now retail sports books have a presence in a lot of the arenas and stadiums in Ohio, I will say that some have pulled out.

Speaker Change: Because of the lack of financial success for US we've always talked about this enhancing our guest experience at the village we are a sports and entertainment destination, you expect to be able to create.

Michael Anthony Crawford: For us, we've always talked about this enhancing our guest experience. At The Village, we are a sports and entertainment destination. You expect to be able to create a sportsbook, a sports betting opportunity here.

Speaker Change: Sports book Sports betting opportunity here.

Michael Anthony Crawford: We are looking at how we can incentivize a potential partner to come in and have a long-term partnership versus having them have to create everything on their own. We're looking at potential food and beverage partners or potential retail partners that kind of complement the experience. It's just time.

Speaker Change: We're looking at how we can incentivize a potential partner to come in versus.

Speaker Change: And have a long term partnership versus having them have to create everything on their own we're looking at potential food and beverage partners or potential retail partners that kind of complement the experience. It's just time.

Anne Grafis: <unk>.

Speaker Change: We've got wonderful assets, we've got a fantastic location for it I think the best location in the village it looks right out into our stadium with all of the events that were hosting.

Michael Anthony Crawford: We've got wonderful assets. We've got a fantastic location for it. I think the best location in The Village is it looks right out onto our stadium with all of the events that we're hosting.

Michael Anthony Crawford: It can create a really magical experience for those guests, but it comes down to economics. So to directly answer your question, Tara Carnes, who sort of heads up our business development and is also our general counsel, is working on a regular basis with two or three different sportsbook operators. We do have an outside consultant that we've had for a couple of years that continues to help support those types of conversations. Just as important, working with the Ohio Casino Control Commission to better understand and create awareness for them that it's important for us as a destination to have this opportunity.

Speaker Change: Can create a really magical experience for those guests when it comes down to economics, so to directly answer your question.

Speaker Change: Tara Karnes, who heads up our business development is also our general counsel is working on a regular basis with two or three different sports book operators. We do have an outside consultant that we've had for a couple of years that continues to help support those types of conversations just as.

Anne Grafis: Important working with our.

Speaker Change: Ohio Casino control commission to better understand and create awareness for them that it is important to us as a destination to have this opportunity and so we've asked for the potential extension of our license to give us that chance and then we're looking more creatively at the retail sports book itself something that can be.

Michael Anthony Crawford: So we've asked for the potential extension of our license to give us that chance. And then we're looking more creatively at the retail sportsbook itself, something that can be more interactive, something that could potentially leverage more mobile and technology in terms of an experience. So, in a long-winded way of saying it's a tough road because the economics are challenging for the operators, but we haven't given up on it, and I think there can still be an opportunity. We just need to find the right partner and nudge the deal so it's attractive to both sides.

Speaker Change: Be more interactive something that could potentially leverage more mobile and technology in terms of an experience so long winded way of saying it.

Speaker Change: It's a tough road because the economics are challenging for the operators, but we haven't given up on it and I think there still can be an opportunity. We just need to find the right partner in nuance of the deal so it's attractive to both sides.

David Marsh: Very helpful. Congratulations again on the quarter. Thanks, guys.

Anne Grafis: Okay very helpful.

Anne Grafis: Again on the quarter thanks, guys.

Anne Grafis: Thanks, Dave.

Michael Anthony Crawford: Thank you. I would now like to turn the conference back over to Michael Crawford for his closing remarks.

Anne Grafis: Thank you.

Anne Grafis: Now like to turn the conference back over to Michael Crawford for closing remarks.

Michael Anthony Crawford: Well, first, let me say I really appreciated all the questions. They sort of hit on the right points.

Speaker Change: Well first let me say I really appreciated all the questions as they sort of hit the right points, secondly, I want to say that.

Michael Anthony Crawford: Secondly, I want to say that if you've been following our company for the last several months, the last years, you're seeing exactly what we talked about back in June and July of 2020, facing a really difficult environment, putting a team together that is experienced, that understands what to look for, how to look for it, and is committed. And I will say again, this team is committed. We have a lot of very talented people that are dedicated to the success of our company.

Anne Grafis: We're watching our company and you have been over the last several.

Speaker Change: Months last years Youre seeing exactly what we talked about back in June July of 2020.

Anne Grafis: Facing a really difficult environment, putting a team together that is experienced and understand what to look for how to look for it and as committed and I will say again. This team is committed we have a lot of very talented people that are dedicated to the success of our company Q1 results I look at that as a very positive.

Michael Anthony Crawford: Q1 results: I look at that as a very positive step forward. Revenue growth in a non-peak period, expense management, and ensuring efficiency in everything that we do. Not only efficient in terms of cost, but efficient in terms of packaging, and in terms of the experiences we're creating.

Speaker Change: <unk> step forward revenue growth on a non peak period expense management and ensuring efficiency in everything that we do not only efficient in terms of cost, but efficient in terms of packaging in terms of the experiences we are creating our media content is growing and it's growing through distribution now our gaming and the <unk>.

Michael Anthony Crawford: Our media content is growing, and it's growing through distribution now. Our gaming and the way in which we're approaching gaming in traditional and non-traditional aspects of gaming, I anticipate that to grow as well. And so, look, I have high hopes and optimism for the future of this company. We're an early-stage company, and so there are going to be bumps, and there will continue to be those over the next couple of years as we complete assets like our football-themed water park, our on-site hotel, and potentially launch off-site asset development with partners in a very different financial model for that. But this is a company that is committed. It's continued to grow. I realize that stock performance is something that is always looked at as an indicator of positive momentum.

Speaker Change: Way in which we're approaching gaming.

Speaker Change: Traditional and non traditional sort of aspects of gaming I anticipate that to grow as well and so look I have hi.

Anne Zimmer: <unk> and optimism for the future of this company. We're an early stage company and so there are going to be bumps and theres going to continue to be those over the next couple of years as we complete assets like our football themed water Park, our onsite hotel potentially launching offsite asset development with partners in a very different financial.

Speaker Change: Model for that but this is a company that is committed its continued to grow I realize stock.

Speaker Change: Stock performance is something that is always looked at as an indicator of positive momentum I am confident that as we continue to build stabilize and grow stock performance will follow as well. So I just want to thank everyone for the results I want to thank the team for their commitment again in the community for their support and our largest shareholders.

Michael Anthony Crawford: I'm confident that as we continue to build, stabilize, and grow, stock performance will follow as well. So I just want to thank everyone for the results. I want to thank the team for their commitment again, and the community for their support, and our largest shareholders as well. I think everybody is focused on long-term success and doing all the right things to get us there. So, thank you very much. Thank you. This will conclude today's conference. Alliance at this time.

Operator: Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

unknown: [inaudible]

Speaker Change: As well I think everybody is focused on the long term success on all the right things to get US there. So thank you very much.

Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

Anne Grafis: Yeah.

Anne Grafis: [music].

Anne Grafis: Oh.

Anne Grafis: Mhm.

Anne Grafis: [music].

Anne Grafis: Oh.

Anne Grafis: Okay.

Anne Grafis: Hum.

Anne Grafis: [music].

Anne Grafis: No.

Anne Grafis: [music].

Anne Grafis: Hum.

Anne Grafis: Hmm.

Anne Grafis: Uh-huh.

Anne Grafis: Okay.

Anne Grafis: [music].

Anne Grafis: Okay.

Anne Grafis: [music].

Anne Grafis: Mhm.

Anne Grafis: [music].

Anne Grafis: Yeah.

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