theScore, Inc. Reports Fiscal 2013 Fourth Quarter and Year End Financial Results

TORONTO, Oct. 24, 2013 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the fourth quarter and the year ended August 31, 2013 in accordance with International Financial Reporting Standards ("IFRS").

(Photo: http://photos.prnewswire.com/prnh/20131024/TO826LOGO)

FISCAL 2013 OPERATIONAL HIGHLIGHTS

  • Average monthly active users of theScore's mobile platforms reached 4 million across F2013, an increase of 15% compared to 3.5 million average monthly mobile active users in F2012
  • In August 2013, theScore announced a major update to its iOS app, transforming its news offering to provide a truly mobile-first, comprehensive, curated and real-time experience for sports fans.
    • theScore assembled a mobile-first newsroom, powered by an in-house, custom-designed Content Management System (CMS) that allows journalists to deliver mobile news quicker than ever.
  • In May 2013, theScore announced the closing of a $16 million private placement financing, allowing the Company to accelerate the development and marketing of its mobile sports apps.
  • In January 2013, theScore re-launched its popular app for Android based on the functionality of theScore's critically acclaimed iOS app, including a completely re-designed interface.
  • In October 2012, theScore closed a plan of arrangement, pursuant to which Rogers Media Inc. acquired the television business of Score Media Inc., and the digital media business of Score Media was spun out to its shareholders

"This has been a great inaugural year for theScore as an independent mobile sports company," said John Levy, Chairman and CEO. "We've recorded record user numbers and delivered the biggest app update in our history, giving millions of sports fans a uniquely mobile-first experience. We now look forward to building on this success during F2014 and continuing the phenomenal growth of our user base by offering fans the best-in-class mobile sports experience they deserve."

FISCAL 2013 FINANCIAL RESULTS

Revenue for the year ending August 31, 2013 was $5.3 million, compared to $4.2 million the previous year, an increase of 26%.  Revenue for the three months ended August 31, 2013 was $1.3 million, no change from the same period the previous year.

EBITDA loss for the year ending August 31, 2013 was $8.3 million compared to $6.5 million the previous year.  This difference was primarily as a result of an increased investment in personnel related to the development of theScore's mobile apps.  EBITDA loss for the three months ended August 31, 2013 was $1.2 million compared to a loss of $1.9 million in the same period the previous year.  EBITDA loss for the three months and year ended August 31, 2013 was positively impacted by $1.0 million as a result of the Company's Ontario Interactive Digital Media Tax Credit accruals made in the quarter ended August 31, 2013.

STOCK OPTION GRANT

theScore today announced the grant of an aggregate of 5,145,000 options, including 2,440,000 options to directors and officers of the Company.  Options were granted to the following directors and officers: Norwest Video Inc. (John Levy) (1,200,000 options); Benjamin Levy (600,000 options); Tom Hearne (400,000 options); Ralph Lean (40,000 options); John Albright (40,000 options); Mark Scholes (40,000 options); Lorry Schneider (40,000 options); William Thomson (40,000 options); and Mark Zega (40,000 options).  Each option is exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.18, vests over three years and has a term of ten years.  Each option is exercisable in accordance with the terms and conditions of the Company's stock option plan.

About theScore Inc.
theScore creates mobile-first sports experiences, connecting fans to what they love through an addictive combination of real-time news, scores, fantasy information and alerts while creating and curating content that is mobile optimized, comprehensive, customizable and seamlessly shareable.

Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events or performances are forward-looking statements.  Any statement containing words such as "may", "would", "could", "will",  "believes", "plans", "anticipates", "estimates", "expects" or "intends" and other similar statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Such statements reflect theScore's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including among other things, those which are discussed under the heading "Risk Factors" in the Company's Listing Application as filed with the TSX Venture Exchange and available on SEDAR at www.sedar.com and elsewhere in documents that theScore files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results could differ materially from the expectations expressed in these forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as required by applicable law or regulatory requirements.

theScore, Inc.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)

         
                                                                                                                  August 31, 2013 August 31, 2012
ASSETS    
Current assets:    
  Cash and cash equivalents  $ 14,524 $          -
  Accounts receivable    1,621   1,124
  Other receivables    2,030   -
  Other assets    1,295   1,863
  Due from Remaining Group      -   80
  Prepaid expenses and deposits    386   142
    19,856   3,209
Non-current assets:    
  Property and equipment        2,313   246
  Intangible assets    6,523   7,206
  Investment        760   -
  Investment in equity accounted investee     -   916
  Other assets     1,782   -  
         
    11,378   8,368
Total assets                                                                                                      $ 31,234 $ 11,577
   
LIABILITIES AND SHAREHOLDERS' EQUITY/FUNDED DEFICIENCY  
Current liabilities:  
  Accounts payable and accrued liabilities  $   2,380 $ 1,799
  Due to Former Parent       23,574
  Due to Remaining Group     -   8,840
    2,380    34,213
Non-current liabilities:    
  Deferred lease obligation        495   -
         
Funded deficiency                                                                   -   (22,636)
Shareholders' equity     28,359   -
         
Commitments and contingencies    
     
Total liabilities and shareholders' equity/funded deficiency               $ 31,234 $   11,577

See accompanying notes to Consolidated Financial Statements

theScore, Inc.
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars, except per share amounts)
(unaudited)

         
  Three   Three  Year ended  Year ended
  months ended  months ended  August 31,  August 31, 
  August 31, 2013  August 31, 2012  2013  2012
Cash flows from (used in) operating activities:        
Net and comprehensive loss  $  (2,158)  $  (2,837)  $  (11,395)  $  (9,106)
Adjustments for:        
  Depreciation and amortization     1003   697    3,067    1,893
  Share of loss of equity accounted investee    -     9    33    20
  Share-based compensation     34     -     153    - 
  Investment loss     -     -     111     -
  Contributions by Former Parent and                
  Remaining Group     -    398    104          1,097
                   
Change in non-cash operating working capital:        
  Accounts receivable     (168)    201    (497)    114
  Other receivables     -     -    (230)     -
  Other assets     (979)     -     (979)    (984)
  Prepaid expenses and deposits     (148)    22    (244)    (105)
  Accounts payable and accrued liabilities     112     149    581     667
     Deferred lease obligation     55     -    495     - 
Net cash from (used in) operating activities    (2,249)    (1,361)     (8,801)     (6,404)
                     
Cash flows from financing activities:                
  Funding provided from Arrangement     -    -    9,794     -
  Issuance of shares on completion of private placement, net of transaction costs    -    -    15,874     -
  Due to Remaining Group     -     1,199    531    4,382
  Due to Former Parent     -    1,477     1,624    6,428
Net cash from financing activities     -     2,676    27,823    10,810
         
Cash flows used in investing activities:        
  Additions to property and equipment     (391)    (7)    (2,162)    (126)
  Additions of intangible assets    (420)    (1,308)     (2,336)    (4,280)
Net cash used in investing activities     (811)     (1,315)    (4,498)    (4,406)
                 
Cash and cash equivalents, beginning of period      17,584     -      -
                 
Cash and cash equivalents, end of period  $          14,524  $  -  $  14,524  $  -

See accompanying notes to Consolidated Financial Statements

theScore, Inc.
Consolidated Statements of Comprehensive Loss
(in thousands of Canadian dollars)
(unaudited)

                 
  Three    Three    Year ended    Year ended
  months ended    months ended    August 31,    August 31, 
  August 31, 2013    August 31, 2012    2013    2012
                 
Revenue  $  1,285 $   1,334 $   5,269 $   4,195 
                 
Operating expenses:                
  Personnel     913     1,356     6,443     3,592 
  Content     212     281     1,247     2,010
  Technology     445     963     2,346     2,725
  Facilities, administrative and other     909     367     3,314     1,621
  Management fees        216     48     713
  Depreciation of property and equipment    128     25     279     92
  Amortization of intangible assets     875     672     2,788            1,801
  Share of loss of equity accounted investee    -     4     33     41
     Investment loss     -     -     111     -
    3,482     3,884     16,609     12,595
                 
Operating loss     (2,197)     (2,550)     (11,340)             (8,400)
                 
Finance costs (income)     (41)     287     55     706 
                 
Net and comprehensive loss  $  (2,156) $   (2,837) $   (11,395) $  (9,106)
                 
Loss per share - basic and diluted $     (0.02) $         (0.03) $       (0.11) $          

See accompanying notes to Consolidated Financial Statements

The following tables reconcile net and comprehensive loss to EBITDA

                 
    Three    Three    Year ended    Year ended
    months ended    months ended    August 31,    August 31,
    August 31, 2013    August 31, 2012    2013    2012
                 
Net and comprehensive                
loss for the period  $  (2,156) $   (2,837) $  (11,395) $   (9,106)
                 
Adjustments:                
  Depreciation and amortization     1,003     697     3,067     1,893
     Finance costs (income)     (41)     287     55     706
EBITDA                                             $  (1,194) $   (1,853) $   (8,273) $   (6,507)

 

 

 

 

SOURCE: theScore, Inc.

For further information:

James Bigg
Manager, Communications
theScore, Inc.
Tel: 416.479.8812 ext. 2366
Email: james.bigg@thescore.com

Tom Hearne
Chief Financial Officer
theScore, Inc.
Tel: 416.479.8812 ext. 2206
Email: tom.hearne@thescore.com


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