Score Media Continues Robust Growth in Q3 Revenue and EBITDA
Q3 demonstrates continued audience growth across all platforms
TORONTO, July 14 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the third quarter ended May 31, 2010:
- Revenue for the quarter ended May 31, 2010 increased by $1.2 million or 11% to $12.0 million compared to $10.8 million in the quarter ended May 31, 2009 - EBITDA for the quarter ended May 31, 2010 increased by $262,000 or 16% to $1.9 million compared to $1.7 million in the quarter ended May 31, 2009
"At The Score, we have continued to find ways of bringing our viewers innovative, authentic, sports content and in doing so we have generated growing audiences on our TV network, our website, our mobile platforms and radio," says John Levy, Chairman & CEO, Score Media Inc.
- Score Media was, once again, the exclusive home of the NCAA Division I Men's Basketball tournament. All of the excitement from the 65 team championship was made available on The Score Television Network, with NCAA March Madness highlights and coverage appearing on theScore.com, ScoreMobile and The Score's Hardcore Sports Radio (HSR) SIRIUS Channel 98. Coverage included over 70 hours of tournament excitement, up-to-the-minute scores, video highlights, comprehensive blog coverage on www.theScore.com and instant scores, live blogging and video highlights on The Score's leading mobile app, ScoreMobile. - Score Media and the Canadian Broadcasting Corporation (CBC) announced a partnership to deliver exclusive 2010 FIFA World Cup South Africa(TM) content to viewers on The Score Television Network. The deal gave The Score access to extended highlights of each FIFA World Cup(TM) match as well as the ability to create additional exclusive FIFA World Cup(TM) content, including in-depth news content and behind-the-scenes coverage of every team. - The Score's 2010 FIFA World Cup South Africa(TM) coverage ran from May to July 2010 and also included: - "32 Countries in 32 Days" - a preview of one participating team in each of the 32 days leading up to the tournament - "FIFA World Cup(TM) Tonight" - hosted by The Score's James Sharman, Kristian Jack and Sid Seixeiro and airing everyday at 10 pm ET and PT throughout the tournament, this premier programming gave fans their nightly fix of FIFA World Cup(TM) action, including 10 minute extended highlight packages of every match, as well as all the day's news and stories - Short-form Content - in-depth player and team features, news reports and highlights throughout The Score's daily programming schedule - "Cabbie's Journey to South Africa" - hosted by the one and only Cabral "Cabbie" Richards, this exclusive programming captured the adventures of Cabbie as he experienced the fans, events and scenery of the tournament - Exclusive K'naan Footage - Canadian music superstar K'naan inked a deal with Score Media to provide exclusive South Africa 2010 content which appeared throughout the tournament on both on The Score Television Network and theScore.com - Score Media announced that The Basketball Jones, an irreverent web series covering the NBA, officially became a member of its talented roster of original content producers. Filled with inventive and humorous content, The Basketball Jones has been at the forefront of digital sports media producing over 500 episodes of its daily show. - Score Media announced that it secured the exclusive Canadian media rights to Serie A, Italy's world-renowned professional soccer league. The two-year deal, which includes full digital rights, represents the first time a major Canadian sports network will deliver exciting high-definition Serie A action to sports fans across Canada. - The Score and Procter & Gamble announced the return of Gillette DRAFTED, The Search for Canada's Next Sportscaster. Airing in Fall 2010, this year the competition will be even more exciting than before. More finalists. More challenges. More sportscasting. - ScoreMobile announced the launch of ScoreMobile for Android, specifically designed for the Android platform. Just like existing versions of the leading sports app, ScoreMobile, the Android version provides up-to-the-minute sports scores, stats and standings of every major sports league, a customizable home screen widget, original video content, interactive live blogs and breaking news among other exciting features. About Score Media Inc. ----------------------
Score Media is a media company committed to delivering interactive and authentic sports entertainment. Created in 1997 in response to the growing desire for increased participation in the consumption of sports, the Company has now established itself as the home for hardcore sports fans. Score Media's primary asset, The Score Television Network ("The Score"), is a national specialty television service providing sports news, information, highlights and live event programming in more than 6.8 million homes across Canada. The Company's digital media assets include theScore.com and the mobile sports applications ScoreMobile and ScoreMobile FC which are available on BlackBerry, iPhone and Android devices. Score Media also operates Hardcore Sports Radio, a satellite radio network available across North America on Sirius Satellite Radio. Growing from a team of 60 in 1997 to over 230 employees in 2010, Score Media is a revolutionizing interactive media company.
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 "believes", "plans", "expects" or "intends" and other 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. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
THIRD QUARTER RESULTS
The following tables reconcile net income to EBITDA:
------------------------------------------------------------------------- Three months ended Three months ended May 31, 2010 May 31, 2009 ------------------------------------------------------------------------- (000's) (000's) Net income for the period $ 568 $ 12 Add back: Depreciation and amortization 1,115 1,145 Interest expense, net 146 138 Gain on sale of investment (18) - Loss on disposal of fixed assets - 39 Income tax expense 105 320 ------------------------------------------------------------------------- EBITDA $ 1,916 $ 1,654 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Nine months ended Nine months ended May 31, 2010 May 31, 2009 ------------------------------------------------------------------------- (000's) (000's) Net income (loss) for the period $ 1,393 $ (758) Add back: Depreciation and amortization 3,164 3,386 Interest expense, net 449 261 Gain on sale of investment (18) - Loss on disposal of fixed assets - 39 Income tax expense 1,189 149 ------------------------------------------------------------------------- EBITDA $ 6,177 $ 3,077 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Score Media Inc. Consolidated Balance Sheets (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- May 31, 2010 August 31, 2009 (restated) ------------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 545 $ 276 Accounts receivable 10,221 6,875 Prepaid expenses and deposits 264 616 Future tax assets 648 663 ------------------------------- 11,678 8,430 Fixed assets 15,843 17,174 Intangible assets 2,264 1,735 Future tax assets 5,836 7,011 ------------------------------- $ 35,621 $ 34,350 ------------------------------- ------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities 5,195 5,132 Revolving credit facility 10,705 11,449 Shareholders' equity 19,721 17,769 ------------------------------- $ 35,621 $ 34,350 ------------------------------- ------------------------------- Score Media Inc. Consolidated Statements of Operations (in thousands of dollars, except share and per share amounts) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended Nine months ended May 31, May 31, May 31, May 31, 2010 2009 2010 2009 (restated) (restated) ------------------------------------------------------------------------- Revenue $ 11,986 $ 10,816 $ 33,315 $ 29,976 Production and other direct expenses 4,449 4,300 12,671 12,992 Selling, general and administration 3,291 2,976 9,335 9,520 Program rights 2,330 1,886 5,132 4,387 ---------------------------------------------------- 10,070 9,162 27,138 26,899 ---------------------------------------------------- Income before undernoted 1,916 1,654 6,177 3,077 Interest expense, net 146 138 449 261 Gain on sale of investment (18) - (18) - Loss on disposal of fixed assets - 39 - 39 Depreciation and amortization 1,115 1,145 3,164 3,386 ---------------------------------------------------- Income (loss) before income taxes 673 332 2,582 (609) Future income tax expense 105 320 1,189 149 ---------------------------------------------------- ---------------------------------------------------- Net income (loss) for the period $ 568 $ 12 $ 1,393 $ (758) ---------------------------------------------------- ---------------------------------------------------- Income (loss) per share - basic and diluted $ 0.01 $ 0.00 $ 0.02 $ (0.01) ---------------------------------------------------- ---------------------------------------------------- Weighted average number of Class A Subordinate Voting Shares and Special Voting Shares outstanding Basic 81,231,236 91,282,248 81,227,176 96,009,200 Diluted 82,405,535 91,357,758 81,393,963 96,009,200 ---------------------------------------------------- ---------------------------------------------------- Score Media Inc. Consolidated Statements of Cash Flows (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended Nine months ended May 31, May 31, May 31, May 31, 2010 2009 2010 2009 (restated) (restated) ------------------------------------------------------------------------- Cash provided by (used in): Operations: Net income (loss) for the period $ 568 $ 12 $ 1,393 $ (758) Items not involving cash: Depreciation and amortization 1,115 1,145 3,164 3,386 Loss on disposal of fixed assets - 39 - 39 Stock-based compensation expense 124 96 460 198 Future income tax expense 105 320 1,189 149 Change in non-cash operating working capital: Accounts receivable (841) (670) (3,346) (456) Prepaid expenses and deposits 1,218 1,323 352 (160) Accounts payable and accrued liabilities (743) (1,426) 205 1,283 ------------------------ ------------------------- 1,546 839 3,417 3,681 Financing: Draw from credit facility 10,146 19,413 29,502 40,444 Repayments to credit facility (11,229) (12,569) (30,246) (31,749) Repurchase of Class A subordinate voting shares - (7,271) - (7,271) Issuance of Class A subordinate voting shares 35 13 76 13 ------------------------ ------------------------- (1,048) (414) (668) 1,437 ------------------------ ------------------------- Investing: Additions to fixed assets (425) (311) (1,179) (2,143) Change in non-cash working capital related to fixed assets 191 136 (119) (2,331) Acquisition of intangible assets (417) (238) (1,182) (723) ------------------------ ------------------------- (651) (413) (2,480) (5,197) ------------------------ ------------------------- Increase (decrease) in cash and cash equivalents (153) 12 269 (79) Cash and cash equivalents, beginning of period 698 201 276 292 ------------------------ ------------------------- Cash and cash equivalents, end of period $ 545 $ 213 $ 545 $ 213 ------------------------ ------------------------- ------------------------ ------------------------- Supplemental Cash Flow information Interest paid $ 88 $ 88 $ 334 $ 207 ------------------------ ------------------------- ------------------------ -------------------------
The following selected quarterly financial data of the Corporation relates to the eight quarters ended May 31, 2010.
------------------------------------------------------------------------- Income (loss) per Net income share - basic and Quarterly Results Revenue EBITDA (loss) diluted ------------------------------------------------------------------------- ($000's) ($000's) ($000's) ($) ------------------------------------------------------------------------- May 31, 2010 11,986 1,916 586 0.01 ------------------------------------------------------------------------- February 28, 2010 9,958 980 (239) 0.00 ------------------------------------------------------------------------- November 30, 2009 11,371 3,281 1,065 0.01 ------------------------------------------------------------------------- August 31, 2009 8,909 677 (675) (0.01) ------------------------------------------------------------------------- May 31, 2009 10,816 1,654 12 0.00 ------------------------------------------------------------------------- February 28, 2009 8,662 204 (1,017) (0.01) ------------------------------------------------------------------------- November 30, 2008 10,498 1,220 248 0.00 ------------------------------------------------------------------------- August 31, 2008 8,524 1,565 1,169 0.01 -------------------------------------------------------------------------
The Company's revenues have historically reflected a seasonality trend, with the third quarter (ending May 31st) being the strongest, followed by the first quarter (ending November 30th), the fourth quarter (ending August 31st), and finally the second quarter (ending February 28th). This seasonality reflects general trends for sports media advertising, which in turn reflects the schedules (particularly the playoffs) of the major sports leagues.
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For further information: Tom Hearne, Chief Financial Officer, Score Media Inc., 416-977-6787 x2206, [email protected]; Sharon Lassman, Director, Communications, Score Media Inc., 416-977-6787 x2217, [email protected]
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