Score Media Reports Continued Growth in Revenue in Q2



    $8.7 million of revenue represents an increase of 4% compared to Q2 2008

    TORONTO, April 7 /CNW/ - Score Media Inc. (TSX: SCR) today announced its
financial results for the three and six months ended February 28, 2009:

    
    -   Revenue for the quarter ended February 28, 2009 increased by
        $0.3 million to $8.7 million compared to $8.4 million in the quarter
        ended February 29, 2008.

    -   EBITDA for the quarter ended February 28, 2009 was $0.2 million,
        compared to $0.9 million in the quarter ended February 29, 2008.
    

    "Score Media continues to grow," says John Levy, Chairman and Chief
Executive Officer, Score Media Inc. "In a difficult economic environment, we
continue to see revenue increases in all of our product lines. During fiscal
2009, we incurred increased expenses relating to additional HD programming and
certain non-recurring expenditures. In addition, our increased depreciation
and amortization expenses are reflecting the construction of The Score's new
street-front high definition studio. Moving forward into fiscal 2010, we
expect to translate our continued growth in revenue into growth in operating
profit and net income."

    
    -   On February 24, 2009, Score Media announced that its Board of
        Directors authorized management to proceed with an offer to purchase
        for cancellation up to 18,000,000 of its Class A subordinate voting
        shares ("Class A Shares") from CW Media Inc. and CanWest Global
        Communications Corp. at a price per share of $0.40 (the "Offer") or
        an aggregate amount of up to $7.2 million.

    -   On January 30, 2009, Score Media launched "The MMA Show" featuring
        Mauro Ranallo of The Fight Network. The program will give fans the
        opportunity to tune into a dedicated show that covers weekly news,
        highlights and interviews from the world of mixed martial arts. Every
        week viewers will be given a breakdown of the biggest events in North
        America and beyond.

    -   With more than 5.5 million average monthly page views, theScore.com
        web traffic continues to grow rapidly. In the second quarter of 2009,
        unique visitors and page views were both up approximately 25%
        compared to the same period in the prior year.

    -   ScoreMobile iPhone Edition, The Score's mobile sports application
        optimized specifically for the iPhone and its touch-screen
        capabilities, has been downloaded over 400,000 times since its launch
        in July and is generating approximately 7 million monthly page views.

    SECOND QUARTER RESULTS

    The following tables reconcile net income to EBITDA:

    -------------------------------------------------------------------------
                                                  Three months  Three months
                                                         ended         ended
                                                   February 28,  February 29,
                                                          2009          2008
    -------------------------------------------------------------------------
    Net income (loss) for the period              $     (1,026) $         34
    Less:
      Gain on sale of investments                            -           462
      Income tax recovery                                    -           226
      Interest income                                        -             3
    Add back:
      Restructuring charges                                  -           930
      Depreciation and amortization                      1,140           666
      Interest expense (net)                                65             -
      Income tax expense                                    25             -
    -------------------------------------------------------------------------
    EBITDA                                        $        204  $        939


    -------------------------------------------------------------------------
                                                    Six months    Six months
                                                         ended         ended
                                                   February 28,  February 29,
                                                          2009          2008
    -------------------------------------------------------------------------
    Net income (loss) for the period              $       (787) $        182
    Less:
      Gain on sale of investments:                           -           462
      Income tax recovery                                  171             -
    Add back:
      Restructuring charges                                  -           930
      Depreciation and amortization                      2,259         1,238
      Interest expense (net)                               123             9
      Income tax expense                                     -           249
    -------------------------------------------------------------------------
    EBITDA                                        $      1,424  $      2,146
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Score Media Inc.

    Consolidated Balance Sheets
    (in thousands of dollars)
    (unaudited)
    -------------------------------------------------------------------------
                                                   February 28,    August 31,
                                                          2009          2008
    -------------------------------------------------------------------------
    Assets
    Current assets:
      Cash and cash equivalents                   $        201  $        292
      Accounts receivable                                7,437         7,651
      Prepaid expenses and deposits                      2,052           569
      Future tax assets                                  1,665         1,665
                                                 ----------------------------
                                                        11,355        10,177

      Fixed assets                                      19,538        19,551

      Deferred charges                                     415           344

      Future tax assets                                  6,345         6,174
                                                 ----------------------------
                                                  $     37,653  $     36,246
                                                 ----------------------------
                                                 ----------------------------
    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities           6,600         6,358
    Revolving credit facility                            5,654         3,803
    Shareholders' equity                                25,399        26,085
                                                 ----------------------------
                                                  $     37,653  $     36,246
                                                 ----------------------------
                                                 ----------------------------



    Score Media Inc.

    Consolidated Statements of Operations and Retained Earnings
    (in thousands of dollars, except per share amounts)
    (unaudited)
    -------------------------------------------------------------------------
                      Three months  Three months    Six months    Six months
                             ended         ended         ended         ended
                       February 28,  February 29,  February 28,  February 29,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------
    Revenue           $      8,662  $      8,363  $     19,160  $     17,653
    Production and
     other direct
     expenses                4,043         3,586         8,349         8,024
    Selling, general
     and administration      2,853         2,493         6,887         5,033
    Program rights           1,562         1,345         2,500         2,450
    -------------------------------------------------------------------------
                             8,458         7,424        17,736        15,507
    -------------------------------------------------------------------------

    Income before
     undernoted                204           939         1,424         2,146

    Interest expense, net       65            (3)          123             9
    Depreciation             1,088           633         2,162         1,178
    Amortization                52            33            97            60
    Restructuring charges        -           930             -           930
    Gain on sale of
     investments                 -          (462)            -          (462)
    -------------------------------------------------------------------------

    Income (loss) before
     income taxes           (1,001)         (192)         (958)          431

    Future income tax
     expense (recovery)         25          (226)         (171)          249

    -------------------------------------------------------------------------
    Net income (loss)
     and comprehensive
     Income (loss)
     for the period   $     (1,026) $         34  $       (787) $        182
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings,
     beginning of
     period                  3,919         1,802         3,680         1,654
    -------------------------------------------------------------------------
    Retained earnings,
     end of period    $      2,893  $      1,836  $      2,893  $      1,836
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income (loss) per
     share - basic
     and diluted      $      (0.01) $       0.00  $      (0.01) $       0.00
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of Class A
     Subordinate
     Voting and
     Special Voting
     Shares
     Outstanding:
      -Basic            98,411,849    98,010,942    98,411,849    97,906,131
      -Diluted          98,411,849    99,520,256    98,411,849    99,418,597
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Score Media Inc.

    Consolidated Statements of Cash Flows
    (in thousands of dollars, except per share amounts)
    (unaudited)
    -------------------------------------------------------------------------
                      Three months  Three months    Six months    Six months
                             ended         ended         ended         ended
                       February 28,  February 29,  February 28,  February 29,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------
    Cash provided by
     (used in):
    Operations:
      Net income
      (loss) for the
      period          $     (1,026) $         34  $       (787) $        182
      Items not
       involving cash:
        Depreciation         1,088           633         2,162         1,178
        Amortization            52            33            97            60
        Non-cash
         compensation
         expense                33            89           101           154
        Gain on sale
         of investments          -          (462)            -          (462)
        Future income
         tax expenses
         (recovery)             25          (226)         (171)          249

    Change in non-cash
     operating working
     capital:
      Accounts receivable      388           530           214          (907)
      Prepaid expenses
       and deposits         (1,266)           55        (1,483)          228
      Accounts payable
       and accrued
       liabilities             819          (290)        2,709         1,634
    -------------------------------------------------------------------------

    Financing:
      Draw from
       (repayment of)
       credit facility         733        (3,678)        1,851        (7,693)
      Issuance of
       common shares             -           119             -           132
    -------------------------------------------------------------------------
                               733        (3,559)        1,851        (7,561)
    -------------------------------------------------------------------------

    Investing:
      Additions to
       fixed assets           (283)       (3,165)       (2,149)       (4,346)
      Change in non-cash
       working capital
       related to fixed
       assets                 (437)          698        (2,467)           45
      Deferred charges        (156)          (70)         (168)         (138)
      Proceeds on sale
       of investments            -           462             -           462
    -------------------------------------------------------------------------
                              (876)       (2,075)       (4,784)       (3,977)
    -------------------------------------------------------------------------

    Decrease in cash
     and cash equivalents      (30)       (5,238)          (91)       (9,222)

    Cash and cash
     equivalents,
     beginning of period       231         7,580           292        11,564
    -------------------------------------------------------------------------
    Cash and cash
     equivalents, end
     of period        $        201  $      2,342  $        201  $      2,342
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental Cash
     Flow information
      Interest paid   $         60  $         51  $        119  $        166
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    The following selected quarterly financial data of the Corporation relates
to the eight quarters ended February 28, 2009.

    -------------------------------------------------------------------------
                                                                      Income
                                                                 per share -
                                                                   basic and
    Quarterly Results       Revenue       EBITDA      Net income     diluted
    -------------------------------------------------------------------------
                            ($000's)     ($000's)      ($000's)         ($)
    -------------------------------------------------------------------------
    February 28, 2009         8,662          204        (1,026)        (0.01)
    -------------------------------------------------------------------------
    November 30, 2008        10,498        1,220           239          0.00
    -------------------------------------------------------------------------
    August 31, 2008           8,524        1,565         1,160          0.01
    -------------------------------------------------------------------------
    May 31, 2008             10,206        2,185           684          0.01
    -------------------------------------------------------------------------
    February 29, 2008         8,363          939            34          0.00
    -------------------------------------------------------------------------
    November 30, 2007         9,290        1,207           148          0.00
    -------------------------------------------------------------------------
    August 31, 2007           7,218          788           931          0.01
    -------------------------------------------------------------------------
    May 31, 2007              9,364        1,924           723          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.

    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 6.5 million homes across Canada. Score
Media also operates Hardcore Sports Radio, a satellite radio network available
across North America on SIRIUS Satellite Radio, and other interactive assets
including theScore.com and Score Mobile. Growing from a team of 60 in 1997 to
over 220 employees in 2009, 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.

    %SEDAR: 00003035E




For further information:

For further information: Tom Hearne, Chief Financial Officer, Score
Media Inc., (416) 977-6787 x2206, thearne@scoremedia.com

Organization Profile

Score Media Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890