Highlights on a pro forma basis of LEAF and ESG:
- Record Q1 2021 revenue of
$25.3M a 95% increase over$13.0M in Q1 2020 - Q1 2021 revenue increased by
$2.3M over Q4 2020 revenue of$23.0M , a 10% sequential increase - Adjusted EBITDA was
$3.0M in Q1 2021 compared to a loss of$1.4M in Q1 2020
"We are off to an excellent start in 2021 with record Q1 results for LEAF, doubling quarterly revenue over the previous year and achieving
On
Financial Highlights:
*All amounts in $CAD unless otherwise noted and figures are rounded-up to one decimal place*
Revenue Summary
(in millions) | 1Q21 | 1Q20 | % Change |
LEAF – as reported | 76% | ||
LEAF – pro forma | 95% |
1 Net of intercompany eliminations (in all tables) |
LEAF – As Reported Revenue
Revenue was
LEAF Pro Forma Revenue
Revenue was
Net income
(in millions) | 1Q21 | 1Q20 |
LEAF – as reported | ||
LEAF – pro forma |
Adjusted EBITDA1
(in millions) | 1Q21 | 1Q20 |
LEAF – as reported | ||
LEAF – pro forma |
1 - Adjusted EBITDA is a non-GAAP measure. Please refer to NON-GAAP FINANCIAL MEASURES for the reconciliation. |
Net income and Adjusted EBITDA
The company recorded significant increases in net income and Adjusted EBITDA during Q1 2021 as compared to Q1 2020. The increase is primarily driven by the strong revenue growth during the year. Pro forma Adjusted EBITDA for the combined company was
Q1 2021 Business Highlights
- Closed a public offering of subscription receipts for aggregate gross proceeds of
$23 million which included the full exercise of the over-allotment option - As noted above, completed the acquisition of East Side Games for
$159 million - Graduated to the TSX from the TSX Venture exchange
- Entered into a non-binding letter of intent to acquire Truly Social Games, a developer and publisher of mobile games headquartered in
Vancouver, Canada - Announced multi-year partnership with World of Wonder for the exclusive mobile game rights to Emmy Award-winning competition series, RuPaul's Drag Race
- Announced an IdleKit partnership with Kano Applications and announced IdleKit and publishing partnerships with
Night Garden Studios - Appointed
Jim MacCallum as Chief Financial Officer of LEAF
Significant Events Subsequent to
- Announced IdleKit and publishing partnerships with Bigfoot Gaming,
Mighty Kingdom Games , TinyRex Games and Game Masons - Launched the newly developed NFTKit and a partnership with WAX Blockchain to support ESG's new NFT game, Bud Farm Nifty Stash
- Proposed a special resolution for consideration at the Company's upcoming AGM to consolidate shares at a ratio of up to 10 old common shares for 1 new common share
Conference Call Information
The Company will hold a conference call to discuss its performance with the investment community at
Conference Call Details:
Toll Free Dial-In Number: | +1 (833) 772-0399 |
International Dial-In Number: | +1 (236) 738-2279 |
Conference ID: | 3318766 |
A replay will be available starting at
ABOUT LEAF
We are headquartered in
Additional information about
Forward Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, the Company cautions that the completion of the proposed transactions cannot be predicted with certainty, and there can be no assurance at this time that all required approvals and consents to effect the proposed transactions will be obtained in the manner noted above or at all. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
Non-GAAP Measures - EBITDA and Adjusted EBITDA
We believe that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs and fund development expenditures.
Adjusted EBITDA is intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adjusted EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore is not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate Adjusted EBITDA differently.
The following tables provide the reconciliation between net income and Adjusted EBITDA for LEAF, ESG and the Combined Company:
LEAF – As Reported
1Q21 | 1Q20 | |
Net Income | $ 1.3 | $ (1.6) |
Income tax | 1.2 | - |
Amortization | 1.1 | 0.1 |
Stock Based Comp | 2.6 | 0.2 |
One-time items | (4.7) | - |
Adjusted EBITDA | $ 2.7 | $ (1.3) |
LEAF – Pro Forma
1Q21 | 1Q20 | |
Net Income | $ - | $ (1.7) |
Income tax | 1.2 | - |
Amortization | 1.3 | 0.1 |
Stock Based Comp | 3.1 | 0.2 |
Listing and transaction fees | 2.0 | - |
One-time items | (4.7) | - |
Adjusted EBITDA | $ 3.0 | $ (1.4) |
SOURCE
© Canada Newswire, source