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Fiscal Q2 2022 Revenues Increase 20% YoY to $9.3 million, Balance Sheet Fortified with $15.3 Million From Strategic Sale of Eden GamesNEW YORK, NY / ACCESSWIRE / April 14, 2022 / Engine Gaming and Media, Inc. (“Engine” or the “Company”) (NASDAQ: GAME) (TSX-V: GAME), a data-driven, gaming, media and social influencer advertising options firm, at this time introduced outcomes for its fiscal second quarter 2022 ended February 28, 2022. All quantities are said in U.S. {dollars} except in any other case indicated.FY Q2 2022 Financial Highlights (Current and historic outcomes recasted to replicate Eden Games in discontinued operations):Total income elevated 20.3% to $9.3 million within the fiscal second quarter of 2022, in comparison with $7.7 million in the identical year-ago quarter.Expenses decreased by 39.3% to $16.9 million within the fiscal second quarter of 2022, in comparison with $27.8 million in the identical year-ago quarter.Net loss improved considerably to $6.7 million, in comparison with a web lack of $21.3 million, additional defined under.Fortified stability sheet on April 7, 2022 by finishing the strategic sale of its subsidiary, Eden Games, for web proceeds of $15.3 million.Management Commentary”The fiscal second quarter of 2022 was highlighted by our continued year-over-year income development in our core promoting and SaaS companies, which more and more showcase our potential to pursue high-growth alternatives that deliver larger margins and predictability to our mannequin,” mentioned Lou Schwartz, Chief Executive Officer of Engine. “We have additionally taken aggressive steps to scale back prices, which will probably be extra obvious as we transfer by the second half of fiscal 2022 as we work in the direction of changing into money movement breakeven on a run-rate foundation in fiscal 2023.”Subsequent to the tip of the quarter, we fortified our stability sheet with the strategic sale of Eden Games, which supplied web proceeds of $15.3 million and supplies sufficient non-dilutive capital to satisfy our working wants for the foreseeable future as we drive shareholder worth and change into a a lot bigger, worthwhile firm.”Tom Rogers, Executive Chairman of the Company, added: “In this surroundings, it’s more and more clear that cash-flow unfavorable firms are dealing with important market headwinds with their inventory costs struggling. We consider that placing ourselves on a trajectory to realize money movement breakeven, coupled with the expansion alternatives that we’re placing our assets towards, will permit the inventory worth of Engine to raised replicate the total worth of the Company.”FY Q2 2022 and Year-To-Date Financial ResultsTotal income within the fiscal second quarter of 2022 elevated 20% to $9.3 million, in comparison with $7.7 million in the identical year-ago quarter. The enhance was primarily pushed by a 18.6% enhance in Advertising income to $7.1 million from $6.0 million in the identical year-ago quarter, and to a lesser extent, a 25.4% enhance in Software-as-a-Service (SaaS) income to $1.8 million from $1.4 million the identical year-ago quarter. For the six months ended February 28, 2022, complete income elevated 47% to $21.5 million from $14.7 million in the identical year-ago interval.Expenses within the fiscal second quarter of 2022 decreased by 39.3% to $16.9 million, in comparison with $27.8 million in the identical year-ago quarter. The lower in bills was primarily on account of non-cash costs, together with, $2.4 million lower in loss on extinguishment of debt, $1.2 million lower in honest worth of arbitration settlement reserve and $12.8 million lower in honest worth of convertible debt and warrant legal responsibility. For the six months ended February 28, 2022, bills decreased 18.7% to $30.9 million from $38.0 million in the identical year-ago interval.Net loss within the fiscal second quarter improved considerably to $6.7 million, or $(0.43) per diluted share, in comparison with a web lack of $21.3 million, or $(2.11) per diluted share, in the identical year-ago quarter. For the six months ended February 28, 2022, web loss improved considerably to $8.1 million, or $(0.52) per diluted share, in comparison with a web lack of $27.3 million, or $(3.08) per diluted share, in the identical year-ago interval.Adjusted EBITDA within the fiscal second quarter of 2022 was $(6.4) million, in comparison with $(4.0) million in the identical year-ago quarter. For the six months ended February 28, 2022, Adjusted EBITDA was $(12.0) million, in comparison with $(8.2) million in the identical year-ago interval.At February 28, 2022, the Company had money of $5.3 million. Subsequent to the tip of the fiscal second quarter of 2022, on April 7, 2022, the Company accomplished the strategic sale of its subsidiary, Eden Games, for web proceeds of $15.3 million.Recent Operational Highlights:Engine appointed extremely revered non-public fairness fund supervisor and one of many Company’s largest traders, Stuart Porter, to its Board of Directors, bringing three plus a long time of expertise evaluating, investing and advising firms.Stream Hatchet signed contract extensions with AAA publishers Riot Games and Blizzard LeisureSideqik added Cox Enterprises to its huge and rising checklist of blue-chip firms leveraging their suite of influencer advertising and social commerce expertiseSideqik & Stream Hatchet joint providing continues to take stride, including quite a few shoppers to its bundled analytics and activation companies throughout live-streaming and social media platforms, with the variety of shoppers now properly exceeding double digitsFrankly signed an company of file and software program companies settlement with Americano Media Group (“AMG”). AMG goals to be the #1 Hispanic centered information outlet reaching the over 500 million Spanish audio system globally. AMG strives to empower the Hispanic Community by credible and accessible information, frank dialogue, and fixed advocacy all by centered leisure content material that helps Hispanic core values.UMG Gaming launched Season 1 of the Lady Spartan Pro Series (LSPS), a $20,000 Pro Series aimed toward shining a highlight on the underserved feminine Halo neighborhood. Partners of the occasion embrace goodr, RESPAWN, Madrinas Coffee, Juked.gg, Version1 and TwitchFY Q2 2022 Earnings Conference NameManagement will host an investor convention name at 4:15 p.m. EDT (1:15 p.m. PDT) at this time, Thursday, April 14, 2022, to debate Engine Gaming and Media, Inc.’s fiscal second quarter 2022 monetary outcomes, present a company replace, and conclude with a Q&A from members. To take part, please use the next info:Date:Thursday, April 14, 2022Time:4:15 p.m. EDT (1:15 p.m. PDT)Dial-in:1-877-407-0784International Dial-in:1-201-689-8560Conference Code:13729113Webcast:GAME Conference CallPlease dial in at the least 10 minutes earlier than the beginning of the decision to make sure well timed participation.Non-IFRS MeasuresThe Company reviews earnings earlier than curiosity, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA, which aren’t monetary measures calculated and introduced in accordance with International Financial Reporting Standards (“IFRS”) and subsequently is probably not akin to comparable measures introduced by different issuers. EBITDA and Adjusted EBITDA shouldn’t be thought of in isolation or instead to web earnings (loss) or some other monetary measures of efficiency or liquidity calculated and introduced in accordance with IFRS. The Company defines Adjusted EBITDA as EBITDA, adjusted to exclude sure non-cash costs and different objects that we don’t consider are reflective of our ongoing working outcomes. The Company makes use of Adjusted EBITDA internally for functions of forecasting, figuring out compensation, and assessing the efficiency of our enterprise, subsequently, we consider this measure supplies helpful supplemental info that will help traders in assessing an funding within the Company.The following unaudited desk presents the reconciliation of web loss to Adjusted EBITDA for the three months ended February 28, 2022 and 2021, respectively. For the three months ended For the six months ended Note February 28, 2022 February 28, 2021 February 28, 2022 February 28, 2021 $ $ Net loss attributable to homeowners of the Company (6,732,169) (21,347,265) (8,085,689) (27,346,698)Interest expense 212,278 563,904 422,934 953,678 Amortization and depreciation(a) 907,224 873,020 1,836,976 1,728,890 Impairment expense(a) 266,470 – 266,470 – Restructuring Costs 126,286 – 126,286 – Share-based funds(a) 1,255,326 690,300 2,576,412 1,779,688 Loss on international change (10,431) 161,662 123,016 263,783 Loss on extinguishment of debt(a) – 2,428,900 – 2,428,900 Gain on retained curiosity in former affiliate(a) – (99,961) – (99,961)Transaction prices 349,404 – 356,523 – Non-operational skilled charges 625,944 – 1,600,391 – Arbitration settlement reserve(a) (1,208,556) – (3,948,608) – Change in honest worth of warrant legal responsibility(a) (998,757) 4,924,789 (3,940,303) 165,013 Change in honest worth of convertible debt(a) (293,762) 6,539,904 (1,976,934) 7,863,649 Share of web lack of affiliate(a) – 37,244 – 103,930 Loss on disposal of Motorsports(a) – – – 678,931 Loss from discontinued operations (940,860) 1,227,748 (1,393,028) 3,270,355 Adjusted EBITDA (6,441,603) (3,999,755) (12,035,554) (8,209,842) Note (a) – Non-cash expenseThis earnings launch needs to be learn along with the Company’s Interim Condensed Consolidated Financial Statements and accompanying notes that will probably be made obtainable on Engine’s investor relations web site on April 14, 2022 which will be discovered at https://ir.enginemediainc.com/.About Engine Gaming and Media, Inc.Engine Gaming and Media, Inc. (NASDAQ: GAME) (TSX-V: GAME) supplies premium social sports activities and esports gaming experiences, in addition to unparalleled information analytics, advertising, promoting, and mental property to assist its owned and operated direct-to-consumer properties, whereas additionally offering these companies to allow its shoppers and companions. The firm’s subsidiaries embrace Stream Hatchet, the worldwide chief in gaming video distribution analytics; Sideqik, a social influencer advertising discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play whereas watching dwell occasions; UMG, an end-to-end aggressive esports platform powering and broadcasting main esports occasions, in addition to each day neighborhood tournaments, matches, and ladders; and Frankly Media, a digital publishing platform used to create, distribute and monetize content material throughout all digital channels. Engine Media generates income by a mixture of direct-to-consumer and subscription charges, streaming expertise and information SaaS-based choices, programmatic promoting and sponsorships. For extra info, please go to www.enginegaming.com.Cautionary Statement on Forward-Looking InformationThis information launch accommodates forward-looking statements. Forward-looking statements contain recognized and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of Engine to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by the forward-looking statements. Often, however not all the time, forward-looking statements will be recognized by way of phrases similar to “plans”, “expects” or “doesn’t anticipate”, “is anticipated”, “estimates”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, or variations of such phrases and phrases or state that sure actions, occasions or outcomes “might”, “might”, “would”, “would possibly” or “will” be taken, happen or be achieved. In respect of the forward-looking info contained herein, Engine has supplied such statements and data in reliance on sure assumptions that administration believed to be affordable on the time. Forward-looking info includes recognized and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements said herein to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by the forward-looking info. Actual outcomes might differ materially from these at the moment anticipated on account of various elements and dangers. Accordingly, readers shouldn’t place undue reliance on forward-looking info contained on this information launch.The forward-looking statements contained on this information launch are made as of the date of this launch and, accordingly, are topic to alter after such date. Engine doesn’t assume any obligation to replace or revise any forward-looking statements, whether or not written or oral, which may be made occasionally by us or on our behalf, besides as required by relevant legislation.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that time period is outlined in insurance policies of the TSX Venture Exchange) accepts accountability for the adequacy or accuracy of this launch.Investor Relations Contact:Shannon DevineMZ North AmericaMain: [email protected] Contact:James GoldfarbSloane & CompanyPrimary: [email protected]: Engine Gaming & Media Holdings, Inc.View supply model on accesswire.com: https://www.accesswire.com/697565/Engine-Gaming-Media-Inc-Reports-Fiscal-Second-Quarter-2022-Financial-Results
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