Score Media Reports Revenue Growth in 2009

Year-end results demonstrate revenue growth across all media platforms

TORONTO, Oct. 21 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the fourth quarter and fiscal year ended August 31, 2009:

    
    -   Revenue for the year ended August 31, 2009 increased by $2.5 million
        to $38.9 million compared to $36.4 million in the year ended August
        31, 2008. The company had increases in TV revenues as well as web and
        mobile revenues.

    -   EBITDA for the year ended August 31, 2009 was $3.8 million compared
        to $5.9 million in the previous year, due mostly to planned
        investments in HD programming and marketing

    -   Net loss for the year ended August 31, 2009 was $1.5 million,
        compared to net income of $2.0 million in the previous year, due
        primarily to the above noted investments in HD programming and
        marketing, and increased depreciation expense of $1.5 million related
        to Score Media's new HD broadcasting facilities

    -   Fourth quarter revenue increased by $0.4 million to $8.9 million
        compared to $8.5 million in the prior year. Fourth quarter EBITDA was
        $0.7 million compared to $1.6 million in the prior year.
    

"We are pleased with our fiscal 2009 results," says John Levy, Chairman & CEO, Score Media Inc. "Continuing to grow revenue while making strategic investments across various departments and navigating through a tough economy is a noteworthy accomplishment that has left us well positioned for both revenue and EBITDA growth in 2010."

    
    -   On September 2, 2008, Score Media launched its high definition (HD)
        broadcasting studio. Over 80 percent of The Score's programming in
        fiscal 2009 was broadcast in high definition.

    -   In celebration of the launch, The Score hosted a Street Party on
        September 20, 2008 which featured all of The Score's personalities in
        addition to top athletes and musical guests

    -   In June 2009, the Company launched ScoreMobile for BlackBerry, an ad-
        supported mobile sports application optimized specifically for
        BlackBerry(R) smartphone devices. By year-end, the application was a
        top global download in BlackBerry App World(TM).

    -   ScoreMobile iPhone Edition continued to be popular with North
        American sports fans and averaged more than 10 million monthly page
        views during the peak period of Spring 2009. By the end of fiscal
        2009, ScoreMobile iPhone Edition had been downloaded over 900,000
        times.

    -   theScore.com web traffic continues to grow rapidly; unique visitors
        and page views were up approximately 23% compared to the previous
        year

    -   Score Media's March Madness coverage achieved record levels across
        all of the Company's platforms including a 22% growth in average
        tournament television viewership, over 1.4 million views on
        theScore.com's March Madness pages and 1.2 million views of NCAA
        basketball pages on ScoreMobile iPhone Edition

    -   The Company began a nation-wide search for the finest undiscovered
        sports broadcaster in Canada. Gillette DRAFTED: The Search for
        Canada's Next Sportscaster is the first Canadian endeavour with an
        unprecedented prize at stake: a contract with Score Media as a
        multiplatform sportscaster, contributing to the growth of the
        Company's television network, website and digital platforms.

    -   This year The Score was nominated for 3 Gemini Awards within the Best
        Sportscaster and Best Sports Feature categories

    -   On April 7, 2009, Score Media completed its previously announced
        Issuer Bid to purchase for cancellation 17,301,169 million Class A
        subordinate voting shares ("Class A Shares") at a price per share of
        $0.40 or $6.9 million. This represented 17.6% of Score Media's issued
        and outstanding Class A Shares.

    -   In fiscal 2009, The Score was named one of the top 10 media players
        in Canada by Marketing Magazine

    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 6.6 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.

    
    FOURTH QUARTER RESULTS

    The following tables reconcile net income to EBITDA:

    -------------------------------------------------------------------------
                                                         Three         Three
                                                  months ended  months ended
                                                     August 31,    August 31,
                                                          2009          2008
    -------------------------------------------------------------------------
    Net income (loss) for the period              $       (677) $      1,160
    Less:
      Gain on sale of investments:                           -           135
      Future income tax recovery                             -           438

    Add back:
      Depreciation and amortization                      1,166           930
      Interest expense (net)                               162            48
      Loss on disposal of fixed assets                      10             -
      Income tax expense                                    16             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA                                        $        677  $      1,565



                                                        Twelve        Twelve
                                                  months ended  months ended
                                                     August 31,    August 31,
                                                          2009          2008
    -------------------------------------------------------------------------
    Net income (loss) for the period              $     (1,457) $      2,026
    Less:
      Gain on sale of investments:                           -           597
    Add back:
      Restructuring charges                                  -           967
      Depreciation and amortization                      4,574         2,986
      Interest expense (net)                               423            72
      Loss on disposal of fixed assets                      49             -
      Income tax expense                                   165           442
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    EBITDA                                        $      3,754  $      5,896



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

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

    -------------------------------------------------------------------------
                                                     August 31,    August 31,
                                                          2009          2008
    -------------------------------------------------------------------------
    Assets

    Currents assets:
      Cash and cash equivalents                   $        276  $        292
      Accounts receivable                                6,875         7,651
      Prepaid expenses and deposits                        616           569
      Future tax assets                                    663         1,665
                                                 ----------------------------
                                                         8,430        10,177

      Fixed assets                                      18,584        19,551

      Deferred charges                                     327           344

      Future tax assets                                  7,011         6,174

                                                 ----------------------------
                                                  $     34,352  $     36,246
                                                 ----------------------------
                                                 ----------------------------


    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities           5,132         6,358

    Revolving credit facility                           11,449         3,803

    Shareholders' equity                                17,771        26,085

                                                 ----------------------------
                                                  $     34,352  $     36,246
                                                 ----------------------------
                                                 ----------------------------


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

    -------------------------------------------------------------------------
                             Three         Three        Twelve        Twelve
                      months ended  months ended  months ended  months ended
                         August 31,    August 31,    August 31,    August 31,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------

    Revenue           $      8,909  $      8,524  $     38,884  $     36,383

    Production and
     other direct
     expenses                3,734         3,063        15,596        14,798
    Selling, general
     and administration      3,540         3,517        14,190        11,512
    Program rights             958           379         5,344         4,177
    -------------------------------------------------------------------------
                             8,232         6,959        35,130        30,487
    -------------------------------------------------------------------------

    Income before
     undernoted                677         1,565         3,754         5,896

    Interest expense,
     net                       162            48           423            72
    Depreciation             1,122           893         4,386         2,853
    Amortization                44            37           188           133
    Loss on disposal of
     fixed assets               10             -            49             -
    Restructuring charges        -             -             -           967
    Gain on sale of
     investments                 -          (135)            -          (597)
    -------------------------------------------------------------------------

    Income (loss) before
     income taxes             (661)          722        (1,292)        2,468

    Future income tax
     expense (recovery)         16          (438)          165           442

    -------------------------------------------------------------------------
    Net income (loss)
     for the period   $       (677) $      1,160  $     (1,457) $      2,026
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income (loss) per
     share - basic
     and diluted      $      (0.01) $       0.01  $      (0.02) $       0.02
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average
     number of Class A
     Subordinate
     Voting and
     Special Voting
     Shares
     Outstanding:
      -Basic            81,146,781    98,409,023    91,504,735    98,137,287
      -Diluted          81,146,781    98,824,760    91,504,735    99,017,523
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    -------------------------------------------------------------------------
                             Three         Three        Twelve        Twelve
                      months ended  months ended  months ended  months ended
                         August 31,    August 31,    August 31,    August 31,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------
    Cash provided by
     (used in):

    Operations:
      Net income
       (loss) for the
       period         $       (677) $      1,160  $     (1,457) $      2,026
    Items not
     involving cash:
      Depreciation           1,122           893         4,386         2,853
      Amortization              44            37           188           133
      Loss on
       disposal of
       fixed assets             10             -            49             -
      Non-cash
       compensation
       expense                 231           271           429           496
      Gain on sale
       of investments            -          (135)            -          (597)
      Future income
       tax expenses             16          (438)          165           442

    Change in non-cash
     operating working
      capital:
      Accounts
       receivable            1,232         1,088           776        (1,009)
      Prepaid expenses
       and deposits            113          (103)          (47)          284
      Accounts payable
       and accrued
       liabilities            (343)          310           940         1,245
    -------------------------------------------------------------------------
                             1,748         3,083         5,429         5,873
    -------------------------------------------------------------------------

    Financing:
      Draw from
       (repayment of)
        credit facility     (1,049)           92         7,646        (5,447)
      Repurchase of
       Class A
       subordinate
       voting shares             -             -        (7,271)            -
      Issuance of
       common shares             -             7            13           233
    -------------------------------------------------------------------------
                            (1,049)           99         1,437        (5,214)
    -------------------------------------------------------------------------

    Investing:
      Additions to
       fixed assets           (798)       (3,869)       (3,496)      (14,370)
      Change in non-cash
       working capital
       related to fixed
       assets                  165           256        (2,166)        1,987
      Deferred charges          (3)            -          (171)         (145)
      Proceeds on sale
       of investments            -           135             -           497
    -------------------------------------------------------------------------
                              (636)       (3,478)       (5,833)      (11,931)
    -------------------------------------------------------------------------
    Increase (decrease)
     in cash and cash
     equivalents                63          (296)          (16)      (11,272)
    Cash and cash
     equivalents,
     beginning of period       213           588           292        11,564
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period    $        276  $        292  $        276  $        292
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental Cash
     Flow information
      Interest paid   $        224  $         45  $        431  $        232
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    The following selected quarterly financial data of the Corporation
    relates to the eight quarters ended August 31, 2009.

    -------------------------------------------------------------------------
                                                                Income (loss)
                                                                 per share -
                                                      Net income   basic and
    Quarterly Results       Revenue       EBITDA        (loss)       diluted
    -------------------------------------------------------------------------
                            ($000's)     ($000's)      ($000's)         ($)
    -------------------------------------------------------------------------
    August 31, 2009           8,909          677          (677)        (0.01)
    -------------------------------------------------------------------------
    May 31, 2009             10,816        1,654             8          0.00
    -------------------------------------------------------------------------
    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
    -------------------------------------------------------------------------
    

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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