Score Media Reports Record Q1 Results



    
    $10.5 million of revenue represents an increase of 13% compared to
    Q1 2008
    

    TORONTO, Jan. 7 /CNW/ - Score Media Inc. (TSX: SCR) today announced its
financial results for the first quarter ended November 30, 2008:

    
    -   Revenue for the quarter ended November 30, 2008 increased by
        $1.2 million to $10.5 million compared to $9.3 million in the quarter
        ended November 30, 2007.

    -   EBITDA for the quarter ended November 30, 2008 was $1.2 million,
        consistent with EBITDA for the first quarter of fiscal 2008.

    "Score Media continues to expand as we enter 2009," says John Levy,
Chairman and Chief Executive Officer, Score Media Inc. "In a challenging media
environment, we have experienced strong growth in advertising revenue across
all of our platforms."

    -   On September 2, 2008, Score Media launched its high definition (HD)
        broadcasting studio which now gives The Score's audience access to
        athletes, Score personalities and the broadcast environment. Over
        80 percent of The Score's programming in fiscal 2009 will be
        broadcast in high definition. The Score hosted a Street Party on
        September 20, 2008 which featured all of The Score's personalities in
        addition to athletes and musical guests.

    -   ScoreMobile iPhone Edition, a mobile sports application optimized
        specifically for the iPhone and its touch-screen capabilities, has
        been downloaded over 275,000 times and is generating over 5 million
        monthly page views.

    -   Score Media Ventures released the first North American mobile fantasy
        sports application that enables television viewers to interact with
        their TV using their phone. Score Predictor gives fans the
        opportunity to text in their picks for the outcome of three games per
        day per league, as league schedules permit, with the top performers
        being recognized on The Score.

    -   The Score introduced the only live morning sports program in Canada
        with Score in the Morning featuring Adnan Virk and Nikki Reyes.
        Score in the Morning gives hardcore sports fans everything they need
        to get up to speed on the latest sports news.

    -   Score Media Ventures launched theScore.com Sports Federation, a
        network of independent sports websites that empowers fans with a
        compelling voice to reach a larger audience with the support of a
        national multi-platform sports network. The Score has selected some
        of the most influential blogs in sports to be a part of this
        initiative that puts the hardcore fan front and centre.


    FIRST QUARTER RESULTS

    The following tables reconcile net income to net income before interest,
income taxes, depreciation and amortization:

    -------------------------------------------------------------------------
                                                Quarter ended  Quarter ended
                                                  November 30,   November 30,
                                                         2009           2008
    -------------------------------------------------------------------------
    Net income for the period                     $       239    $       148

    Add back:
      Depreciation and amortization                     1,119            572
      Interest expense, net                                58             12
      Future income tax expense (recovery)               (196)           475
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA                                        $     1,220    $     1,207

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



    Score Media Inc.

    Consolidated Balance Sheets

    (in thousands of dollars)

    (unaudited)
    -------------------------------------------------------------------------
                                                  November 30,     August 31,
                                                         2008           2008
    -------------------------------------------------------------------------

    Assets
    Current assets:
      Cash and cash equivalents                   $       231    $       292
      Accounts receivable                               7,825          7,651
      Prepaid expenses and deposits                       786            569
      Future tax assets                                 1,665          1,665
    -------------------------------------------------------------------------
                                                       10,507         10,177
    -------------------------------------------------------------------------

    Fixed assets                                       20,343         19,551
    Deferred charges                                      311            344
    Future tax assets                                   6,370          6,174
    -------------------------------------------------------------------------
                                                  $    37,531    $    36,246
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and shareholders' equity
    Current liabilities:
      Accounts payable and accrued liabilities    $     6,218    $     6,358

    Revolving credit facility                           4,921          3,803
    Shareholders' equity                               26,392         26,085

    Contingent liability
    Subsequent event
    -------------------------------------------------------------------------
                                                  $    37,531    $    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
                                                        ended          ended
                                                  November 30,     August 31,
                                                         2008           2008
    -------------------------------------------------------------------------

    Revenue                                       $    10,498    $     9,290

    Production and other direct expenses                4,306          4,438
    Selling, general and administration                 4,034          2,540
    Program rights                                        938          1,105
    -------------------------------------------------------------------------
                                                        9,278          8,083
    -------------------------------------------------------------------------

    Income before undernoted                            1,220          1,207

    Interest expense, net                                  58             12
    Depreciation                                        1,074            544
    Amortization                                           45             28
    -------------------------------------------------------------------------

    Income before income taxes                             43            623

    Future income tax expense (recovery)                 (196)           475
    -------------------------------------------------------------------------

    Net income and comprehensive income for
     the period                                   $       239    $       148
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Retained earnings, beginning of period              3,680          1,654
    -------------------------------------------------------------------------
    Retained earnings, end of period              $     3,919    $     1,802
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Income per share - basic and diluted          $      0.00    $      0.00
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of Class A
     Subordinate
      Voting and Special Voting Shares
       Outstanding:
      Basic                                        98,411,849     97,802,472
      Diluted                                      98,439,155     98,961,017
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Score Media Inc.

    Consolidated Statements of Cash Flows

    (in thousands of dollars)

    (unaudited)

    -------------------------------------------------------------------------
                                                 Three months   Three months
                                                        ended          ended
                                                  November 30,     August 31,
                                                         2008           2008
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
    Net income for the period                     $       239    $       148
    Items not involving cash:
      Depreciation                                      1,074            544
      Amortization                                         45             28
      Non-cash compensation expense                        68             64
      Future income tax expense (recovery)               (196)           475

    Change in non-cash operating working capital:
      Accounts receivable                                (174)        (1,437)
      Prepaid expenses and deposits                      (217)           173
      Accounts payable and accrued liabilities          1,842          1,601
    -------------------------------------------------------------------------
                                                        2,681          1,596
    -------------------------------------------------------------------------

    Financing:
      Draw from (repayment of) credit facility          1,118         (4,015)
      Issuance of common shares                             -             13
    -------------------------------------------------------------------------
                                                        1,118         (4,002)
    -------------------------------------------------------------------------

    Investing:
      Additions to fixed assets                        (1,866)        (1,179)
      Change in non-cash working capital related
       to fixed assets                                 (1,982)          (331)
      Deferred charges                                    (12)           (68)
    -------------------------------------------------------------------------
                                                       (3,860)        (1,578)
    -------------------------------------------------------------------------

    Decrease in cash and cash equivalents                 (61)        (3,984)

    Cash and cash equivalents, beginning of period        292         11,564

    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period      $       231    $     7,580
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental Cash Flow information
      Interest paid                               $        59    $       115
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    The following selected quarterly financial data of the Corporation relates
to the eight quarters ended November 30, 2008.

    -------------------------------------------------------------------------
                                                                   Income per
                                                                      share -
                                                                    basic and
    Quarterly Results            Revenue      EBITDA   Net income    diluted
    -------------------------------------------------------------------------
                                 ($000's)    ($000's)    ($000's)       ($)
    -------------------------------------------------------------------------
    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 28, 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
    -------------------------------------------------------------------------
    February 28, 2007              7,731       1,159         262        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.

    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 6.4 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, Score Mobile, and Score Poker. Growing from a team of
60 in 1997 to over 220 employees in 2008, 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; Sharon Lassman,
Director, Communications, Score Media Inc., (416) 977-6787 x2217,
slassman@scoremedia.com

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