Score Media Reports Highest Quarterly Revenue and EBITDA in Company History

First quarter results demonstrate significant multi-platform revenue growth

TORONTO, Jan. 13 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the first quarter ended November 30, 2009:

    
    -  Revenue for the quarter ended November 30, 2009 increased by 8% or
       $0.9 million to $11.4 million compared to $10.5 million in the quarter
       ended November 30, 2008. This was the highest revenue quarter in the
       Company's history.

    -  EBITDA for the quarter ended November 30, 2009 was $3.3 million
       compared to $1.2 million in the previous year. This was the highest
       EBITDA quarter in the Company's history. Excluding the impact of the
       $0.8 million CRTC Part II regulatory fee reversal, EBITDA for the
       quarter ended November 30, 2009 more than doubled with an increase of
       $1.3 million to $2.5 million, compared to $1.2 million in the previous
       year.

    -  Net income for the quarter ended November 30, 2009 was $1.1 million,
       compared to $0.2 million in the previous year
    

"We continually strive to achieve growth across all areas of our business," says John Levy, Chairman & CEO, Score Media Inc. "I congratulate everyone at the Company in helping us realize both record revenue and EBITDA by remaining innovative and original in everything we do."

    
    -  ScoreMobile for BlackBerry and ScoreMobile iPhone Edition are growing
       rapidly in the North American market. In November 2009 alone, this
       application amassed more than 1 million combined unique users (over
       60% U.S.-based), and received over 300,000 application downloads.

    -  The Score's 2009-2010 NBA coverage kicked-off with a record audience
       during the Toronto Raptors first regular season game versus the
       Cleveland Cavaliers. With 20 Raptors games, 40 NBA games, multi-
       platform programming and an expanded line-up of basketball coverage,
       including weekly episodes of Court Surfing, Canadian basketball fans
       can expect a comprehensive round-up of live games, highlights and
       signature Score content throughout the NBA season.

    -  theScore.com web traffic is growing rapidly; in the three months ended
       November 30, 2009, page visits were up 11% compared to the same month
       in the previous year. theScore.com Sports Federation also experienced
       significant growth, jumping from 12 to 26 blogs since its inception in
       November 2008 and 247,000 unique visitors in November 2009 compared to
       21,000 unique visitors in the same month of 2008.

    -  The Score HD became available to Shaw Cable and Shaw Direct customers,
       expanding our high definition footprint amongst Canadian households.

    -  On August 31, 2009, BBM Canada launched a new national audience
       measurement service in the form of the Portable People Meter (PPM).
       The PPM is a small lightweight device, about the size of a pager which
       will be carried by 9,000 randomly-chosen panelists who are
       representative of the Canadian population. Audiences on The Score were
       up more than 50% in the first quarter of fiscal 2010 compared to the
       same period in the prior year. Additionally, in the strategic 18-34
       male demographic, audiences were up over 75% in the comparative
       periods. Viewers are increasingly tuning in for the Company's
       continued creation, production, and acquisition of entertaining
       content.

    -  On September 21st, 2009, The Score began airing Gillette DRAFTED, The
       Search for Canada's Next Sportscaster. Through this partnership with
       Procter & Gamble, one of North America's largest and most prolific
       marketers, The Score created integrated, multi-platform, branded
       entertainment for distribution both online and on-air.


    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 6.7 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.

    
    FIRST QUARTER RESULTS

    The following tables reconcile net income to EBITDA:

    -------------------------------------------------------------------------
                                                  Three                Three
                                           months ended         months ended
                                      November 30, 2009    November 30, 2008
    -------------------------------------------------------------------------

    Net income for the period              $      1,065         $        248

    Add back:
      Depreciation and amortization                 999                1,110
      Interest expense (net)                        149                   58
      Income tax expense (recovery)               1,068                 (196)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA                                 $      3,281         $      1,220

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    -------------------------------------------------------------------------
                                      November 30, 2009      August 31, 2009
                                                                   (restated)
    -------------------------------------------------------------------------

    Assets

    Current assets:
      Cash and cash equivalents            $        399        $         276
      Accounts receivable                         9,417                6,875
      Prepaid expenses and deposits                 943                  616
      Future tax assets                             663                  663
                                     ----------------------------------------
                                                 11,422                8,430

      Fixed assets                               16,828               17,174

      Intangible assets                           1,870                1,735

      Future tax assets                           5,943                7,011

                                     ----------------------------------------
                                                 36,063               34,350
                                     ----------------------------------------
                                     ----------------------------------------

    Liabilities and Shareholders'
     Equity

    Current liabilities:
      Accounts payable and accrued
       liabilities                                6,056                5,132

    Revolving credit facility                    11,026               11,449

    Shareholders' equity                         18,981               17,769

                                     ----------------------------------------
                                                 36,063               34,350
                                     ----------------------------------------
                                     ----------------------------------------


    Score Media Inc.

    Consolidated Statements of Operations
    (in thousands of dollars, except per share amounts)
    (unaudited)

    -------------------------------------------------------------------------
                                                  Three                Three
                                           months ended         months ended
                                      November 30, 2009    November 30, 2008
                                                                   (restated)
    -------------------------------------------------------------------------

    Revenue                                $     11,371        $      10,498

    Production and other direct expenses          4,277                4,495
    Selling, general and administration           2,695                3,845
    Program rights                                1,118                  938
                                     -------------------- -------------------
                                                  8,090                9,278
                                     -------------------- -------------------

    Income before undernoted                      3,281                1,220

    Interest expense, net                           149                   58
    Depreciation and amortization                   999                1,110
                                     -------------------- -------------------

    Income before income taxes                    2,133                   52

    Future income tax expense (recovery)          1,068                 (196)
                                     -------------------- -------------------

                                     -------------------- -------------------
    Net income for the period              $      1,065        $         248
                                     -------------------- -------------------
                                     -------------------- -------------------

    Income per share - basic and
     diluted                               $       0.01        $        0.00
                                     -------------------- -------------------
                                     -------------------- -------------------
    Weighted average number of Class
     A Subordinate Voting and Special
     Voting Shares outstanding
       Basic                                 81,152,056           98,411,849
       Diluted                               81,156,781           98,439,155
                                     -------------------- -------------------
                                     -------------------- -------------------



    Score Media Inc.
    Consolidated Statements of Cash Flows
    (in thousands of dollars)
    (unaudited)
    -------------------------------------------------------------------------
                                                  Three                Three
                                           months ended         months ended
                                      November 30, 2009    November 30, 2008
                                                                   (restated)
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
      Net income for the period            $      1,065        $         248
      Items not involving cash:
        Depreciation and amortization               999                1,110
        Stock based compensation expense            177                   68
        Future income tax expense
         (recovery)                               1,068                 (196)
      Change in non-cash operating
       working capital:
        Accounts receivable                      (2,542)                (174)
        Prepaid expenses and deposits              (327)                (217)
        Accounts payable and accrued
         liabilities                              1,123                1,842
                                     ----------------------------------------
                                                  1,563                2,681

    Financing:
      Draw from (repayment of) credit
       facility                                    (423)               1,118
      Issuance of common shares                       4                    -
                                     ----------------------------------------
                                                   (419)               1,118
                                     ----------------------------------------
    Investing:
      Additions to fixed assets                    (476)              (1,076)
      Change in non-cash working capital
       related to fixed assets                     (233)              (1,982)
      Acquisition of intangible assets             (312)                (802)
                                     ----------------------------------------
                                                 (1,021)              (3,860)
                                     ----------------------------------------

    Increase (decrease) in cash and cash
     equivalents                                    123                  (61)

    Cash and cash equivalents, beginning
     of period                                      276                  292

                                     ----------------------------------------
    Cash and cash equivalents, end of
     period                                $        399        $         231
                                     ----------------------------------------
                                     ----------------------------------------

    Supplemental Cash Flow information
      Interest paid                        $        149        $          59
                                     ----------------------------------------
                                     ----------------------------------------
    

The following selected quarterly financial data of the Corporation relates to the eight quarters ended November 30, 2009.

    
    -------------------------------------------------------------------------
                                                           Income (loss) per
                                               Net income  share - basic and
    Quarterly Results      Revenue    EBITDA     (loss)         diluted
    -------------------------------------------------------------------------
                           ($000's)  ($000's)   ($000's)          ($)
    -------------------------------------------------------------------------
    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
    -------------------------------------------------------------------------
    May 31, 2008            10,206     2,185        693           0.01
    -------------------------------------------------------------------------
    February 29, 2008        8,363       939         43           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 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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