Category: Media and Entertainment

Release – Stars Come Out for The 6 Hours Of Spa Round Of The Le Mans Virtual Series By Motorsport Games

Posted on by [email protected]

Research, News, and Market Data on MSGM

NOVEMBER 2, 2022

Entry List for Round 3 Revealed, along with how to watch all of the action

MIAMI, Nov. 02, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”) announces today that Round 3 of the Le Mans Virtual Series descends on the track for the 6 Hours of Spa. The legendary Circuit de Spa-Francorchamps in Belgium has long been at the top of the “favourites” list for drivers throughout the world. This round – the third of the 2022-23 Le Mans Virtual Series – has enticed some big names to the entry list, which is revealed HERE. The Le Mans Virtual Series is a joint venture between the Automobile Club de l’Ouest (“ACO”) and Motorsport Games.

Two-time F1 World Champion Max Verstappen will compete in the #1 Team Redline LMP entry (Verstappen/Rietveld/Benecke) for the first time this season, and he will be joined by R8G Esports Team Owner and INDYCAR star Romain Grosjean who will be driving the #18 R8G Esports LMP car (Grosjean/Hemmingsen/Ozyildorim) on the increasingly-strong grid.

LMP Championship leaders Floyd Vanwall-Burst (Viscaal/Simončič/Pedersen) will be looking to stretch out its narrow 2-point advantage over Team Redline, while in the hotly-contested GTE category the Oracle Red Bull Racing team (Kasdorp/Siebel/Jordan) will be planning to put its disastrous Monza showing into the background and return its Porsche to its Bahrain-winning form. BMW Team Redline and SF Velas Esports (Ferrari) are close behind and all the manufacturer-led teams will have their eye on victory.

The race takes place on the rFactor 2 platform on the virtual, fast and technically challenging 4.35 mile/7km long Circuit de Spa-Francorchamps. Full, uninterrupted coverage will begin from 12:30 pm (GMT) on Saturday, November 5th. Expect some fireworks, hot track action and maybe some rain, a probability at Spa in the real world, whatever the season!

A total of 40 cars will battle it out in two different classes – 24 in LMP, with all competitors using an ORECA 07 LMP2 model, and 16 in GTE with teams having a choice of Ferrari, BMW, Porsche and Aston Martin Vantage models. Manufacturer support also comes to teams representing Alpine and Mercedes AMG.

Qualifying is on Friday, November 4th and all race action can be followed on the FIA WEC, Le Mans and TraxionGG’s YouTube channels, on twitch.tv/traxiongg, and on multiple social media channels.

For further media information contact Fiona Miller, Miller Media & Communications, on +44 7770 371332 or [email protected]

www.lemansvirtual.com

About Le Mans Virtual Series
Le Mans Virtual Series is a global, elite esports series made up of five rounds which bring together endurance racing and sim racing’ top teams to compete on some of the world’s most famous racetracks. International FIA-licensed real-world drivers are teamed up with elite esports squads to take on endurance classics for a total prize fund of US$250,000, culminating in the prestigious 24 Hours of Le Mans Virtual. Le Mans Virtual Series is a joint venture between leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, Motorsport Games, and the Automobile Club de l’Ouest (ACO) – the creator and organizer of the world-famous 24 Hours of Le Mans and promoter of the FIA World Endurance Championship (FIA WEC).

Round 18 Hours of Bahrain, BahrainSeptember 17, 2022
Round 24 Hours of Monza, ItalyOctober 8, 2022
Round 36 Hours of Spa, BelgiumNovember 5, 2022
Round 4500 Miles of Sebring, USADecember 3, 2022
Round 524 Hours of Le Mans VirtualJanuary 14/15, 2023

About Motorsport Games
Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), as well as the industry leading rFactor 2 and KartKraft simulations. RFactor 2 also serves as the official sim racing platform of Formula E, while also powering Formula 1™ centers through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.

Forward-Looking Statements:
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements concerning the timing, participants and expected benefits of the 2022-23 Le Mans Virtual Series. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation: difficulties, delays in or unanticipated events that may impact the timing and expected benefits of the Le Mans Virtual Series, such as due to unexpected changes in the event participants, as well as less than anticipated participation in or viewership of the Le Mans Virtual Series events. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, its Quarterly Reports on Form 10-Q filed with the SEC during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

WebsitesSocial Media
motorsportgames.comTwitter: @msportgames & @traxiongg
traxion.ggInstagram: msportgames & traxiongg
motorsport.comFacebook: Motorsport Games & traxiongg
 LinkedIn: Motorsport Games
 Twitch: traxiongg
 Reddit: traxiongg

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Contacts:
US Press: ASTRSK PR, [email protected] 
EU/UK Press: Swipe Right PR, [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a7d98cb7-085b-488f-a275-53e0c9b2f58b

Release – Digerati Technologies Reports 116% Revenue Growth to $8.2 Million for Fourth Quarter FY2022 Resulting in $32.8 Million Annual Revenue Run-Rate

Posted on by [email protected]

Research, News, and Market Data on DTGI

November 01, 2022 09:10 ET 

– FY2022 Non-GAAP Operating EBITDA of $3.6 Million –
– FY2022 Gross Profit of $14.8 Million –
– FY2022 Gross Margin Improvement to 61.3% –

SAN ANTONIO, Nov. 01, 2022 (GLOBE NEWSWIRE) — Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, announced today financial results for the three and twelve months ended July 31, 2022, the Company’s fourth quarter and annual year end for its Fiscal Year 2022.

Key Financial Highlights for the Fiscal Year 2022 (Ended July 31, 2022)

  • Revenue increased by 95% to $24.2 million compared to $12.4 million for FY2021.
  • Gross profit increased 103% to $14.8 million compared to $7.3 million for FY2021.
  • Gross margin improved 270 basis points to 61.3% compared to 58.6% for FY2021.
  • Non-GAAP Adjusted EBITDA income increased by 90% to $2.2 million for FY2022, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA income of $1.1 million for FY2021.
  • Non-GAAP Operating EBITDA (OPCO EBITDA) income increased by 64% to $3.6 million, excluding corporate expenses, compared to a non-GAAP operating EBITDA of $2.2 million for FY2021.

Key Financial Highlights for the Fourth Quarter Fiscal Year 2022 (Ended July 31, 2022)

  • Revenue increased by 116% to $8.2 million compared to $3.8 million for Q4 FY2021.
  • Gross profit increased 114% to $5.1 million compared to $2.4 million for Q4 FY2021.
  • Gross margin remained strong at 61.6% compared to 62.3% for Q4 FY2021.
  • Non-GAAP Adjusted EBITDA income decreased by 40% to $0.3 million for Q4 FY2022, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA income of $0.5 million for Q4 FY2021.
  • Non-GAAP Operating EBITDA (OPCO EBITDA) income increased by 44% to $1.3 million, excluding corporate expenses, compared to a non-GAAP operating EBITDA of $0.9 million for Q4 FY2021.

Arthur L. Smith, CEO of Digerati, commented, “Our fiscal year 2022 was highly successful as we closed two additional acquisitions, SkyNet Telecom and NextLevel Internet, and continued to execute on our acquisition playbook that improves operating efficiencies through integration while growing organically as demonstrated by our 4% increase in annualized revenue on a sequential quarterly basis. Our accomplishments over the past few years in building a significant UCaaS platform in Florida, Texas and California generating $32.8 million in annualized revenue and $5.3 million in annualized non-GAAP operating EBITDA has proven that our consolidation strategy works.”

Mr. Smith continued, “We are thrilled to have announced on September 6th our signing of a definitive business combination agreement with Minority Equality Opportunities Acquisition Inc. that will take us into the next chapter of our corporate development plan with a listing on NASDAQ. We believe that a NASDAQ listing is the final ingredient needed for the acceleration of our acquisition strategy in our highly fragmented industry. We will continue to work diligently on closing this key transaction and achieving a significant milestone for our Company.”

Antonio Estrada, CFO of Digerati, stated, “Due to our successful integration of acquisitions, we exited fiscal year end July 31, 2022 in a great financial position with annual run-rates of $32.8 million in revenue and $5.3 million in non-GAAP Operating EBITDA. Our team is successfully integrating the acquisitions of SkyNet Telecom and NextLevel Internet and we are now seeing the financial reward. We have proven that our operating and financial teams can execute on our acquisition strategy and believe our planned move to NASDAQ will greatly enhance our abilities to replicate this success with accretive acquisitions in the future.”

Accomplishments for the Fiscal Year ended July 31, 2022 include:

  • Closed acquisition of SkyNet Telecom, a leading provider of cloud communication and broadband solutions tailored for businesses. The acquisition of SkyNet expanded the Company’s footprint in Texas and increased its customer base by over 215% to 737 business customers in the Lone Star State.

  • Closed acquisition of NextLevel Internet, a leading provider of cloud communication and broadband solutions tailored for the SMB market. The acquisition of NextLevel expanded the Company’s growing nationwide footprint and added a strong West Coast presence with nearly 1,000 SMB clients in California. 

  • As a combined business, Digerati’s operating subsidiaries serve over 4,000 business customers and 45,000 users. The business model of the combined entities is supported by strong and predictable recurring revenue with high gross margins under contracts with business customers in various industries including banking, healthcare, financial services, legal, insurance, hotel, real estate, staffing, restaurant, education and municipalities.

Three Months ended July 31, 2022, Compared to Three Months ended July 31, 2021

Revenue for the three months ended July 31, 2022 was $8.2 million, an increase of $4.4 million or 116% compared to $3.8 million for the three months ended July 31, 2021. The increase in revenue between periods is primarily attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet during the period. The total number of customers increased from 2,655 for the three months ended July 31, 2021, to 4,023 customers for the three months ended July 31, 2022.

Gross profit for the three months ended July 31, 2022 was $5.1 million, resulting in a gross margin of 61.6%, compared to $2.4 million and 62.3% for the three months ended July 31, 2021. The slight decrease in gross margin is primarily due to the addition of slightly lower-margin revenue associated with SkyNet Telecom’s and NextLevel Internet’s broadband services.   

Selling, General and Administrative expenses (excluding legal and professional fees) for the three months ended July 31, 2022 increased by $2.4 million, or 114%, to $4.5 million compared to $2.1 million for the three months ended July 31, 2021. The increase in SG&A is attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet.

Operating loss for the three months ended July 31, 2022 was $0.15 million, a decrease of $0.27 million or 64%, compared to $0.42 million for the three months ended July 31, 2021.

Adjusted EBITDA income for the three months ended July 31, 2022 was $0.3 million, compared to an adjusted EBITDA income of $0.5 million for the three months ended July 31, 2021. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the three months ended July 31, 2022:
Company recognition of stock-based compensation and warrant expense of $0.15 million and depreciation and amortization expense of $0.40 million. Gain on derivative instruments was $1.65 million for the three months ended July 31, 2022.

Non-GAAP operating EBITDA (OPCO EBITDA) for the three months ended July 31, 2022 improved to income of $1.3 million, excluding corporate expenses, compared to a non-GAAP operating income of $0.9 million for the three months ended July 31, 2021.

Net loss for the three months ended July 31, 2022 was $3.3 million, an increase of $2.1 million as compared to a net loss of $1.2 million for the three months ended July 31, 2021. The resulting EPS for the three months ended July 31, 2022 was a loss of ($0.02) as compared to a loss of ($0.01) for the three months ended July 31, 2021.

At July 31, 2022, Digerati had $1.5 million of cash.

Twelve Months ended July 31, 2022, Compared to Twelve Months ended July 31, 2021

Revenue for the twelve months ended July 31, 2022 was $24.2 million, an increase of $11.7 million or 95% compared to $12.4 million for the twelve months ended July 31, 2021. The increase in revenue between periods is primarily attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet during the period. The total number of customers increased from 2,655 for the twelve months ended July 31, 2021, to 4,023 customers for the twelve months ended July 31, 2022.

Gross profit for the twelve months ended July 31, 2022 was $14.8 million, resulting in a gross margin of 61.3%, compared to $7.3 million and 58.6% for the twelve months ended July 31, 2021. The increase in gross margin is primarily due to the addition of high-margin revenue associated with SkyNet Telecom’s and NextLevel Internet’s UCaaS product line.

Selling, General and Administrative expenses (excluding legal and professional fees) for the twelve months ended July 31, 2022 increased by $5.4 million, or 77%, to $12.4 million compared to $7.0 million for the twelve months ended July 31, 2021. The increase in SG&A is attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet.

Operating loss for the twelve months ended July 31, 2022 was $3.7 million, an increase of $1.3 million or 53%, compared to $2.4 million for the twelve months ended July 31, 2021.

Adjusted EBITDA income for the twelve months ended July 31, 2022 was $2.17 million, an improvement of $1.03 million, compared to adjusted EBITDA income of $1.14 million for the twelve months ended July 31, 2021. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the twelve months ended July 31, 2022:
Company gain of $6.2 million on derivative instruments, loss of $5.5 million on settlement of debt and $6.0 million of interest expense.

Non-GAAP operating EBITDA (OPCO EBITDA) for the twelve months ended July 31, 2022 improved to income of $3.6 million, excluding corporate expenses, compared to a non-GAAP operating income of $2.2 million for the twelve months ended July 31, 2021.

Net loss for the twelve months ended July 31, 2022 was $8.0 million, a decrease of $8.7 million as compared to a net loss of $16.7 million for the twelve months ended July 31, 2021. The resulting EPS for the twelve months ended July 31, 2022 was a loss of ($0.05) as compared to a loss of ($0.13) for the twelve months ended July 31, 2021.

Use of Non-GAAP Financial Measurements

The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used in the cloud communications industry to evaluate companies on the basis of operating performance and leverage. Adjusted EBITDA provides an adjusted view of EBITDA that takes into account certain significant non-recurring transactions, if any, such as impairment losses and expenses associated with pending acquisitions, which vary significantly between periods and are not recurring in nature, as well as certain recurring non-cash charges such as changes in fair value of the Company’s derivative liabilities and stock-based compensation. The Company also believes that Adjusted EBITDA provides investors with a measure of the Company’s operational and financial progress that corresponds with the measurements used by management as a basis for allocating resources and making other operating decisions. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. Non-GAAP operating EBITDA (OPCO EBITDA) is useful to investors because it reflects EBITDA for the core operation of the business excluding corporate expenses, non-cash expenses and transactional expenses. EBITDA, Adjusted EBITDA, and Non-GAAP operating EBITDA are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).   In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

About Digerati Technologies, Inc.

Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries NextLevel Internet (NextLevelinternet.com), T3 Communications (T3com.com), Nexogy (Nexogy.com), and SkyNet Telecom (Skynettelecom.net), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including, cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™. For more information, please visit www.digerati-inc.com and follow DTGI on LinkedIn, Twitter and Facebook.

Forward-Looking Statements

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements such as a Nasdaq listing being the final ingredient needed for the acceleration of our acquisition strategy, annualized revenues of $32.8 million, annualized non-GAAP Operating EBITDA of $5.3 million, our abilities to replicate success with accretive acquisitions in the future, and an up-list to Nasdaq are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, a national securities exchange not approving Minority Equality Opportunities Acquisition Inc.’s (MEOA’s) initial listing application, the amount of redemption requests made by MEOA’s public shareholders, our inability to source suitable acquisition targets, failure to execute growth strategies, lack of product development and related market acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.

Facebook: Digerati Technologies, Inc.
Twitter: @DIGERATI_IR
LinkedIn: Digerati Technologies, Inc.

Investors

ClearThink
Brian Loper
[email protected]
(602) 785-4120

Release – Bowlero Corp. To Report First Quarter 2023 Financial Results

Posted on by [email protected]

Research, News, and Market Data on BOWL

11/01/2022

Prepared remarks via webcast on November 16 at 4:30 PM ET

RICHMOND, Va.–(BUSINESS WIRE)– Bowlero Corp. (NYSE: BOWL) (“Bowlero” or the “Company”), the world’s largest owner and operator of bowling centers, will report financial results for the first quarter of fiscal 2023 on Wednesday, November 16, 2022 after the U.S. stock market closes. Management will discuss the results via webcast at 4:30 PM ET on the same day.

The live webcast, replay and results presentation will be available in the Events & Presentations section of the Bowlero Investor Relations website at https://ir.bowlerocorp.com/overview/default.aspx.

About Bowlero Corp.

Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 27 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

For Media:
[email protected]

For Investors:
[email protected]

Source: Bowlero Corp.

Exploring an Interesting Opportunity in a Traditional Business

Posted on by [email protected]
Image: Pamela Silva, Univision (Wikimedia Commons)

The Investment Road Less Travelled Has More Opportunity, But Less Available Information

An expanding customer base has always been a solid reason for further exploration of an investment opportunity. An investor’s expectations of growth potential have the power to create initial intrigue and prompt further exploration. This exploration should, at a minimum, include actual data (not hunches), and outside estimates from experts in the field – along with a review of management’s plans.

One also has to understand competition, direct and indirect, and how that is expected to grow. And, of course, current profit and earnings breakdown with an idea of plans for the future. You may even explore if there is a chance the company is a possible acquisition target and how that may impact stock performance. Then, depending on the company or industry, less cursory digging should be done. This is where self-directed investors or small or mid-sized investment advisors get tripped up. They may not have access to someone knowledgeable enough about the company.

Opportunity to Think About

A co-worker asked the other day what I thought of traditional media companies in the U.S. as an investment, including TV and radio. Without thinking too deeply, I said what most people might say, the industry is spread thin as competition for people’s time and attention keeps growing. While anything is good at the right price, if the audience (customer base) is declining, that “right price” is going to be low.

He asked another question, how many Spanish-speaking people are immigrating to the U.S. each year, and what one product will they likely be using that is generally not consumed by English-speaking residents? Although I didn’t know there was a company that has approximately 65% market share of the Spanish-speaking market, I understood where his line of questioning was going – and became intrigued.

A Few Things I Learned

I did some Googling.

The Census Bureau’s monthly Current Population Survey (CPS) shows that the total foreign-born or immigrant population in the U.S. hit 47.9 million in September 2022. This is an increase of 2.9 million since January 2021.

Immigrants from Latin American countries other than Mexico account for 60 percent of the increase in the foreign-born population since January 2021. The Mexican-born population in the U.S. actually decreased by 4%.

At 143,000, the average monthly growth in the foreign-born population, which is 60% Hispanic, is at an all-time high pace.  

There is a company, Entravision (EVC), which is a diversified Spanish-language media company. They own both television and radio stations to reach Hispanic consumers across the United States.

Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network. They have television stations in 20 of the nation’s top 50 Hispanic markets. As far as radio, the company also operates one of the largest groups of primarily Spanish-language radio stations in the U.S.

My thoughts are while the business itself is getting fragmented, the rapidly growing demographic that is likely to tune in to an Entravision station is growing at a rapid pace. And there is very little competition.

 

An Interesting Time to Explore Spanish Language Media

While I’m still doing some due diligence and reading thoughts from the multiple analysts that cover EVC, including one whose research of the company is available on Channelchek (see it here), I’m waiting for their earnings report this Thursday (November 3).

If my intrigue is still high after Thursday, Noble Capital Markets is holding two lunches and a breakfast where investors can attend one and meet with management, hear them discuss their company, and ask any questions to clear up unanswered questions.

These meetings are in Florida, one in Boca Raton on November 8 and two in Central Florida (Orlando and Winter Park), on November 9. If you will be in the area and also find Entravision worth exploring, register for a breakfast or lunch meeting here.

Take Away

The investment “road less traveled” is often lined with gold but also requires a lot more digging to find useful information that makes you comfortable making a decision. Discovering actionable ideas and then exploring them is what Channelchek is about.

The In-Person “Meet the Management” Series, put on by Noble Capital Markets and Channelchek, is a good way for investment professionals and individuals to supplement the data and research on Channelchek with an opportunity most investors never get, a discussion over breakfast or lunch with management.

Paul Hoffman

Managing Editor, Channelchek

RCI Hospitality Holdings (RICK) – New Year, New Club

Posted on by [email protected]


Monday, October 31, 2022

With more than 60 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, Scarlett’s Cabaret, Diamond Cabaret, and PT’s Showclub. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Keeps Getting Clubs. RCI Hospitality announced last week the acquisition of Heartbreakers Adult Nightclub for $9 million. The 5-stage, 23,000 square foot Heartbreakers club is located at 3200 Gulf Freeway, Dickinson, TX, and the Company acquired the club using $4.0 million in cash and $5.0 million in a 15-year, 6% real estate seller financing note. The Company did not release any financials for the club but we would expect the price to be within RCI’s 3-5x adjusted EBITDA for the club.

Area Around the Club. Dickinson, Texas had a population of 20,870 in 2020 according to Data USA with a median household income of $70,468. The median household income is a positive for RICK in our view as it is higher than the median income in the United States ($67,521), which we believe provides the Company with higher spending customers as the population has higher disposable income. The location of the club is also a positive due to it being near a freeway, which provides visibility to potential customers. Established in 1986, Heartbreakers is the number one adult entertainment venue in the Galveston, Texas, area.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Harte Hanks Announces Date for Third Quarter 2022 Earnings Call

Posted on by [email protected]

Research, News, and Market Data on HHS

Thursday, October 27, 2022 4:05 PM

Company to Report Q3 2022 Results on November 10, 2022

CHELMSFORD, MA / ACCESSWIRE / October 27, 2022 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company, today announced that it will report its financial results for the third quarter ended September 30, 2022 after the market closes on Thursday, November 10, 2022 and host a conference call that day at 4:30 p.m. ET to discuss its results.

Interested parties may access the webcast at https://investors.hartehanks.com/events or may access the conference call by dialing in the United States 877-545-0523 or internationally 973-528-0016 and access code is 739004.

A replay of the call can also be accessed via phone through November 24, 2022 by dialing (877) 481-4010 from the U.S., or (919) 882-2331 from outside the U.S. The conference call replay passcode is 46932.

About Harte Hanks

Harte Hanks (Nasdaq: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers.

Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific.

For more information visit hartehanks.com

Investor Relations Contact:

FNK IR
Rob Fink or Tom Baumann
646.809.4048 / 646.349.6641
[email protected]

SOURCE: Harte Hanks, Inc.

Release – Motorsport Games To Report Third Quarter 2022 Financial Results

Posted on by [email protected]

Research, News, and Market Data on MSGM

MIAMI, Oct. 27, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world will report financial results for the third quarter ended September 30, 2022 on Thursday, November 10, 2022, after market close. Management will host a conference call and webcast on the same day at 5:00 p.m. ET to discuss the results.

Participants may access the live webcast on the Company’s investor relations website at https://ir.motorsportgames.com under “Events.” The call may also be accessed by dialing 1 (877) 407-0784 from the U.S., or by dialing 1 (201) 689-8560 internationally.

About Motorsport Games:
Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), as well as the industry leading rFactor 2 and KartKraft simulations. RFactor 2 also serves as the official sim racing platform of Formula E, while also powering Formula 1™ centers through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.

Contacts:
Investors:
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/90cf8d59-ce48-4ab2-ac0c-fbca9a4cabdd

Travelzoo (TZOO) – Are We On The Runway Or Still At The Gate?

Posted on by [email protected]


Thursday, October 27, 2022

Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Misses Fiscal Q3. Revenues increased a modest 1% to $15.8 million, versus our $18.0 million estimate. On a constant currency basis, revenues increased 6% to $16.7 million. Adj. EBITDA missed our estimate, $1.1 million versus our $2.7 million estimate, largely due to lower than expected gross profit margins, which were over 200 basis points lower than expected.

Business too good? Management indicated that the recent results were impacted by a strong rebound in travel, which increased occupancy rates and at very high prices. As such, travel related businesses did not need to advertise and they were unwilling to provide discounted “deals”. This was a consistent message from the “miss” in the second quarter, as well.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.