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.

%SEDAR: 00003035E

SOURCE Score Media Inc.

For further information: For further information: Tom Hearne, Chief Financial Officer, Score Media Inc., 416-977-6787 x2206, thearne@scoremedia.com; Sharon Lassman, Director, Communications, Score Media Inc., 416-977-6787 x2217, slassman@scoremedia.com

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