Company Posts Equally Impressive Improvement in Operating Margin
NEW YORK--Alliance MMA, Inc. ("Alliance MMA" or the "Company") (NASDAQ:AMMA), a professional mixed martial arts (MMA) company that brings together the best regional productions to build the next generation of MMA champions, today announced financial results for the second quarter ended June 30, 2017.
“Our strong second quarter operating results reflect impressive gains in each of the most important key performance indicators for an enterprise at our stage of development,” said Paul Danner, Chief Executive Officer of Alliance MMA. “We are especially pleased with our 48% increase in revenue over the previous quarter, based in part on the incremental contribution of our most recent acquisitions. Most importantly, we believe that this clear trend in improving revenue puts us on track to achieve a cash-flow positive position in the not too distant future. As previously reported, now that we’re operating in eleven regional MMA promotions, we are well on our way towards creating a persistent presence in the top 20 domestic media markets. Moreover, we are continuing to make positive strides in achieving our stated objective of producing at least 125 professional MMA events per year, which in turn will facilitate attracting national brand sponsorships, and securing a more robust broadcast video distribution presence.”
John Price, Chief Financial Officer, added,
“During the second quarter, the collective contribution of our regional MMA events, solid execution by our electronic ticketing platform CageTix.com, and strong performance by our fighter management firm SuckerPunch Entertainment, resulted in a 43% operating margin, a 14% increase over the first quarter of this year. The positive trend of these key financial performance metrics, which we expect to continue going forward, coupled with the recent cash infusion from our capital raise of approximately $1,500,000 to support our ongoing acquisition program, is highly encouraging as we proceed in executing our business plan in a methodical, expeditious manner.”
To date, Alliance MMA has built a family of regional MMA promotions in eleven separate geographical markets: New Jersey-based Cage Fury Fighting Championships (CFFC), Washington-based Combat Games MMA (COGA), Indiana-based Hoosier Fight Club (HFC), Tennessee-based V3Fights (V3), Maryland-based Shogun Fights, Ohio-based Iron Tiger Fight Series (IT Fight Series), Florida-based Fight Time Promotions, Georgia-based National Fighting Championship (NFC), and Los Angeles-based Roy Englebrecht Promotions (Fight Club OC), as well as a San Diego-based promotion under the guidance of MMA luminary Eric Del Fierro, and a Tampa-based promotion under the direction of veteran promoter John Prisco.
Please see our Form 10-K for the year ended December 31, 2016 and our Form 10-Q for the three months ended March 31, 2017, which can be found at http://ir.alliancemma.com, for more information concerning our financial condition and performance during such periods.
About Alliance MMA, Inc.
Alliance MMA (NASDAQ:AMMA) is a professional mixed martial arts (MMA) company that brings together the best regional productions. Alliance MMA's mission is to identify and cultivate the next generation of fighters and champions for the Ultimate Fighting Championship (UFC) and other premier MMA promotions.
With some of the world’s leading MMA promotions under the Alliance MMA umbrella, the organization aims eventually to host in excess of 125 events per year, showcasing more than 1,000 fighters. Alliance MMA is also dedicated to generating live original sports media content, attracting an international fan base, and securing major brand sponsorship revenue for live MMA events, digital media, and Alliance MMA fighters.
MMA is the world’s fastest growing sport with worldwide fans of approximately 300 million according to sports marketing research firm Repucom. MMA is a full contact sport that allows a wide range of fighting techniques, including striking and grappling from various martial arts and disciplines including Boxing, Wrestling, Brazilian Jiu Jitsu, Karate and Muay Thai. Professional MMA fights are legal and regulated by state athletic commissions in all 50 states.
Alliance MMA, Inc. was incorporated in 2015 for the purpose of acquiring businesses that engage in the promotion of mixed martial arts (MMA) events. In 2016, the company completed an initial public offering that culminated in a listing on the NASDAQ stock exchange. Alliance MMA is the only mixed martial arts promotion company that is publicly-traded.
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other comparable terminology. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, those discussed under the heading “Risk Factors” in our registration statement on Form S-1 (Registration No. 333-213166) declared effective by the Securities and Exchange Commission on September 2, 2016. Alliance MMA encourages you to review other factors that may affect its future results in Alliance MMA’s registration statement and in its other filings with the Securities and Exchange Commission.