Score Media Reports Growth in Revenue, EBITDA and Net Income in Q2

TORONTO, April 14 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the second quarter ended February 28, 2011:

  • Revenue for the quarter ended February 28, 2011 increased by $1.1 million or 11% to $11.1 million compared to $10.0 million in the quarter ended February 28, 2010
  • EBITDA for the quarter ended February 28, 2011 increased by $0.1 million to $1.1 million compared to $1.0 million in the quarter ended February 28, 2010
  • Net income for the quarter ended February 28, 2011 was $0.2 million compared to a net loss of $0.2 million in the quarter ended February 28, 2010

"Our results from this past quarter demonstrated continued growth across the company," says John Levy, Chairman & CEO, Score Media Inc.  "Our fan base increased and our team is working hard behind the scenes preparing for some exciting new launches across all of our platforms in the coming months."

  • On January 27th, 2011, the Company announced that its leading app, ScoreMobile, was made available on the Windows® Phone platform, becoming the first comprehensive multi-sport app to launch for Windows Phone 7
  • A leading sports app not just in North America but around the world, ScoreMobile is the #1 sports app in BlackBerry App World and Windows Marketplace and is also a top 10 app in Android Market and iTunes
  • In Q2, Score Media's digital properties generated record traffic.  Specifically, in January 2011:
    • ScoreMobile, ScoreMobile FC and theScore iPad Edition had 2.4 million unique visitors, our best month to date
    • theScore.com had 1.4 million monthly unique visitors, up 124% over January 2010
    • Our digital group displayed nearly 100 million pages of content, up over 100% from January 2010
  • On Feb 25 theScore® teamed up with Yahoo! Sports on its NHL® Trade Deadline Day coverage; from Puck Daddy's in-depth analysis throughout the day on theScore Satellite Radio™ SIRIUS Channel 98 and streamed online on theScore.com and Yahoo! Sports along with regular TV updates from Sid Seixeiro and in-depth analysis by 24hrs in 30mins personalities Tim Micallef and Cam Stewart, theScore along with special contributions from Yahoo! Sports analysts was the ultimate source for everything fans needed on trade deadline day

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, theScore Television Network ("theScore"), 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, theScore iPad Edition and the mobile sports applications ScoreMobile and ScoreMobile FC which are available on BlackBerry, iPhone, Android, and Windows Phone 7 devices. Score Media also operates theScore Satellite Radio which is available across North America on SIRIUS Satellite Radio Channel 98. Growing from a team of 60 in 1997 to over 270 employees in 2011, 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.

FISCAL YEAR RESULTS

The following tables reconcile net income to EBITDA:

         
    Three months ended   Three months ended
    February 28, 2011   February 28, 2010
    (000's)   (000's)
Net income (loss) for the period  $ 207  $ (239)
Add back:        
  Depreciation and amortization     1,117   1,049
  Interest expense, net     132   154
  Investment income     (25)   -
  Income tax expense (recovery)     (360)   16
EBITDA  $ 1,071 $ 980
         
    Six months ended   Six months ended
    February 28, 2011   February 28, 2010
    (000's)   (000's)
Net income for the period  $ 1,046  $ 826
Add back:        
  Depreciation and amortization     2,116   2,048
  Interest expense, net     237   303
  Investment income     (25)   -
  Income tax expense     340   1,084
EBITDA  $ 3,714 4,261

Score Media Inc.
Consolidated Balance Sheets
(in thousands of dollars)
(unaudited)

 
 
 
 


 

 

 
 



February 28, 2011 
 
August 31, 2010

Assets

 

 

 
 

Current assets:

 

 

 

 

  Cash and cash equivalents $
211

$

184

  Accounts receivable
 

10,323

 

9,828

  Prepaid expenses and deposits
 

1,606

 

1,254

  Future tax assets
 

1,723

 

847

 

 

13,863

 

12,113

Fixed assets

 

15,072

 

15,193

Intangible assets

 

3,931

 

2,818

Other asset

 

949

 

-

Future tax assets

 

5,442

 

6,658

 
$
39,257

$

36,782
Liabilities and Shareholders' Equity
 

 

 

 

Current liabilities:

 

 

 

 

  Accounts payable and accrued liabilities
 

8,795

 

6,285
Revolving credit facility
 

8,178

 

9,511

Shareholders' equity

 

22,284

 

20,986
  $
39,257

$

36,782

 

Score Media Inc.
Consolidated Statements of Operations
(in thousands of dollars, except share and per share amounts)
(unaudited)
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

February 28, 2011

February 28, 2010

 

February 28, 2011

 

February 28, 2010

Revenue

 

$

11,052

$

9,958

$

22,915

$

21,329

Production and other direct expenses

 

 

4,387

 

3,945

 

9,215

 

8,222

Selling, general and administration

 

 

3,189

 

3,349

 

6,284

 

6,044

Program rights

 

 

2,405

 

1,684

 

3,702

 

2,802

 

 

 

9,981

 

8,978

 

19,201

 

17,068

Income before undernoted

 

 

1,071

 

980

 

3,714

 

4,261

Interest expense, net

 

 

132

 

154

 

237

 

303

Investment income

 

 

(25)

 

-

 

(25)

 

-

Depreciation and amortization

 

 

1,117

 

1,049

 

2,116

 

2,048

Income (loss) before income taxes

 

 

(153)

 

(223)

 

1,386

 

1,910

Future income tax expense (recovery)

 

 

(360)

 

16

 

340

 

1,084

 

 

 

 

 

 

 

 

 

 

Net income (loss) for the period

 

$

207

$

(239)

$

1,046

$

826

Income (loss) per share - basic and diluted

 

$

0.00

$

(0.00)

$

0.01

$

0.01

Weighted average number of Class A Subordinate Voting
and Special Voting Shares outstanding

Basic

 

81,610,437

 

81,166,642

 

81,597,365

 

81,161,684

 

Diluted

 

83,185,548

 

81,353,504

 

83,210,467

 

81,227,489

 


Score Media Inc.
Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

February 28, 2011

February 28, 2010

 

February 28, 2011

 

February 28, 2010

Cash provided by (used in):

 

 

 

 

 

 

 

 

Operations:

 

 

 

 

 

 

 

 

Net income (loss) for the period
$

207

$

(239)

$

1,046

$

826

Items not involving cash:
 

 

 

 

 

 

 

 

  Depreciation and amortization
 

1,117

 

1,049

 

2,116

 

2,048

  Stock-based compensation expense
 

56

 

159

 

126

 

336

  Investment income
 

(25)

 

-

 

(25)

 

-

  Changes in other asset
 

(31)

 

-

 

(31)

 

-

  Future income tax expense (recovery)
 

(360)

 

16

 

340

 

1,084

Change in non-cash operating working capital:
 

 

 

 

 

 

 

 

  Accounts receivable
 

1,078

 

37

 

(495)

 

(2,505)

  Prepaid expenses and deposits
 

(265)

 

(539)

 

(352)

 

(866)

  Accounts payable and accrued liabilities
 

1,135

 

(175)

 

1,669

 

948

 

 

2,912

 

308

 

4,394

 

1,871

Financing:

 

 

 

 

 

 

 

 

Draws from credit facility
 

11,315

 

10,475

 

24,021

 

19,356

Repayments to credit facility
 

(12,949)

 

(9,713)

 

(25,354)

 

(19,017)

Issuance of Class A subordinate voting shares
 

16

 

37

 

126

 

41

 

 

(1,618)

 

799

 

(1,207)

 

380

Investing:

 

 

 

 

 

 

 

 

Additions to fixed assets
 

(608)

 

(277)

 

(1,380)

 

(754)

Change in non-cash working capital related to fixed assets
 

186

 

(77)

 

841

 

(310)

Acquisition of intangible assets
 

(831)

 

(454)

 

(1,728)

 

(765)

Acquisition of interest in NuLayer
 

-

 

-

 

(893)

 

-

 

 

(1,253)

 

(808)

 

(3,160)

 

(1,829)

Increase in cash and cash equivalents

 

41

 

299

 

27

 

422

Cash and cash equivalents, beginning of period

 

170

 

399

 

184

 

276

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

$

211

$

698

$

211

$

698

Supplemental cash flow information

 

 

 

 

 

 

 

 

Interest paid
$

111

$

97

$

194

$

246

See accompanying notes to unaudited interim consolidated financial statements

 

 

 

The following selected quarterly financial data of the Corporation relates to the eight quarters ended February 28, 2011.

Quarterly Results Revenue EBITDA Net income
(loss)
Income (loss) per share - basic and diluted
  ($000's) ($000's) ($000's) ($)
February 28, 2011 11,052 1,071 207 0.00
November 30, 2010 11,863 2,644 839 0.01
August 31, 2010 10,523 1,442 1,100 0.01
May 31, 2010 11,986 1,916 568 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 (676) (0.01)
May 31, 2009 10,816 1,654 12 0.00

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 North American sports leagues.

Want to connect with Score Media? 

http://twitter.com/scoremedia#
http://www.facebook.com/thescore
mediarelations@thescore.com
http://www.scoremedia.com/ 

 

SOURCE Score Media Inc.

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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