Score Media Reports Significant Growth in Q2 Revenue and EBITDA
Second quarter results show continued growth across all platforms
TORONTO, April 13 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the second quarter ended February 28, 2010:
- Revenue for the quarter ended February 28, 2010 increased by $1.3 million or 15% to $10.0 million compared to $8.7 million in the quarter ended February 28, 2009. - EBITDA for the quarter ended February 28, 2010 increased by $0.8 million to $1.0 million compared to $0.2 million in the quarter ended February 28, 2009.
"We are proud to say that Q2 growth picked up right where Q1 left off with strong growth across all of our platforms and improvements in EBITDA in all areas of the business," says John Levy, Chairman & CEO, Score Media Inc.
- ScoreMobile for BlackBerry smartphones achieved its 1 millionth download, a significant milestone for the industry-leading mobile sports application. Together, ScoreMobile iPhone Edition and ScoreMobile for BlackBerry had over 1.1 million average monthly unique visitors during the quarter ended February 28, 2010. - Score Media and the Canadian Broadcasting Corporation (CBC) established a partnership to deliver exclusive 2010 FIFA World Cup South Africa(TM) content to viewers on The Score. The deal gives The Score access to extended highlights of each FIFA World Cup(TM) match as well as the ability to create additional exclusive FIFA World Cup(TM) content, including in-depth news content and behind-the-scenes coverage of every team. - In keeping with its reputation for unique sports coverage and its undeniable connection to hardcore sports fans, Score Media re-launched its website, theScore.com. The new site includes a new home-page ticker, enhanced news sections with real-time video, and a revamped TV section with features allowing fans to have their opinions heard on- air. - Renowned radio personality, Bomani Jones, joined the voices of Hardcore Sports Radio with his new morning show, The Morning Jones. The three-hour broadcast debuted on SIRIUS Channel 98 air waves on January 11, 2010 and airs weekdays from 7-10 a.m. - Score Media reached a deal with the National Hockey League (NHL) to bring video highlights and NHL content features to its newly relaunched website, www.theScore.com. - The Score inked an exclusive Canadian multi-platform partnership agreement with World Extreme Cagefighting ("WEC"), one of the world's leading mixed martial arts sports organizations. The deal, which kicked-off in January 2010, brings seven live WEC events, online content and exclusive features to The Score.
About Score Media Inc.
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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 230 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.
SECOND QUARTER RESULTS The following tables reconcile net income to EBITDA: ------------------------------------------------------------------------- Three months ended Three months ended February 28, 2010 February 28, 2009 ------------------------------------------------------------------------- (000's) (000's) Net loss for the period $ (239) $ (1,017) Add back: Depreciation and amortization 1,049 1,131 Interest expense, net 154 65 Income tax expense 16 25 ------------------------------------------------------------------------- EBITDA $ 980 $ 204 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Six months ended Six months ended February 28, 2010 February 28, 2009 ------------------------------------------------------------------------- (000's) (000's) Net income (loss) for the period $ 826 $ (769) Add back: Depreciation and amortization 2,048 2,241 Interest expense, net 303 123 Income tax expense (recovery) 1,084 (171) ------------------------------------------------------------------------- EBITDA $ 4,261 $ 1,424 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Score Media Inc. Consolidated Balance Sheets (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- February 28, 2010 August 31, 2009 (restated) ------------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 698 $ 276 Accounts receivable 9,380 6,875 Prepaid expenses and deposits 1,482 616 Future tax assets 834 663 -------------------------------------- 12,394 8,430 Fixed assets 16,269 17,174 Intangible assets 2,111 1,735 Future tax assets 5,756 7,011 -------------------------------------- $ 36,530 $ 34,350 -------------------------------------- -------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities 5,794 5,132 Revolving credit facility 11,788 11,449 Shareholders' equity 18,948 17,769 -------------------------------------- $ 36,530 $ 34,350 -------------------------------------- -------------------------------------- See accompanying notes to unaudited interim consolidated financial statements 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, February 28, February 28, February 28, 2010 2009 2010 2009 (restated) (restated) ------------------------------------------------------------------------- Revenue $ 9,958 $ 8,662 $ 21,329 $ 19,160 Production and other direct expenses 3,945 4,197 8,222 8,691 Selling, general and administration 3,349 2,699 6,044 6,545 Program rights 1,684 1,562 2,802 2,500 --------------------------------------------------- 8,978 8,458 17,068 17,736 --------------------------------------------------- Income before undernoted 980 204 4,261 1,424 Interest expense, net 154 65 303 123 Depreciation and amortization 1,049 1,131 2,048 2,241 --------------------------------------------------- Income (loss) before income taxes (223) (992) 1,910 (940) Future income tax expense (recovery) 16 25 1,084 (171) --------------------------------------------------- --------------------------------------------------- Net income (loss) for the period $ (239) $ (1,017) $ 826 $ (769) --------------------------------------------------- --------------------------------------------------- Income (loss) per share - basic and diluted $ 0.00 $ (0.01) $ 0.01 $ (0.01) --------------------------------------------------- --------------------------------------------------- Weighted average number of Class A Subordinate Voting and Special Voting Shares outstanding Basic 81,166,642 98,411,849 81,161,684 98,411,849 Diluted 81,353,504 98,411,849 81,227,489 98,411,849 --------------------------------------------------- --------------------------------------------------- See accompanying notes to unaudited interim consolidated financial statements Score Media Inc. Consolidated Statements of Cash Flows (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended Six months ended February 28, February 28, February 28, February 28, 2010 2009 2010 2009 (restated) (restated) ------------------------------------------------------------------------- Cash provided by (used in): Operations: Net income (loss) for the period $ (239) $ (1,017) $ 826 $ (769) Items not involving cash: Depreciation and amortization 1,049 1,131 2,048 2,241 Stock-based compensation expense 159 33 336 101 Future income tax expense (recovery) 16 25 1,084 (171) Change in non-cash operating working capital: Accounts receivable 37 388 (2,505) 214 Prepaid expenses and deposits (539) (1,266) (866) (1,483) Accounts payable and accrued liabilities (175) 819 948 2,709 ------------------------- ------------------------- 308 113 1,871 2,842 Financing: Draw from credit facility 10,475 13,500 19,356 21,031 Repayments to credit facility (9,713) (12,767) (19,017) (19,180) Issuance of Class A subordinate voting shares 37 - 41 - ------------------------- ------------------------- 799 733 380 1,851 ------------------------- ------------------------- Investing: Additions to fixed assets (277) (146) (754) (1,832) Change in non-cash working capital related to fixed assets (77) (437) (310) (2,467) Acquisition of intangible assets (454) (293) (765) (485) ------------------------- ------------------------- (808) (876) (1,829) (4,784) ------------------------- ------------------------- Increase (decrease) in cash and cash equivalents 299 (30) 422 (91) Cash and cash equivalents, beginning of period 399 231 276 292 ------------------------- ------------------------- Cash and cash equivalents, end of period $ 698 $ 201 $ 698 $ 201 ------------------------- ------------------------- ------------------------- ------------------------- Supplemental Cash Flow information Interest paid $ 97 $ 60 $ 246 $ 119 ------------------------- ------------------------- ------------------------- ------------------------- 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, 2010. ------------------------------------------------------------------------- Income (loss) per Net income share - basic and Quarterly Results Revenue EBITDA (loss) diluted ------------------------------------------------------------------------- ($000's) ($000's) ($000's) ($) ------------------------------------------------------------------------- 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 (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 -------------------------------------------------------------------------
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.
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For further information: Tom Hearne, Chief Financial Officer, Score Media Inc., (416) 977-6787 x2206, [email protected]; Sharon Lassman, Director, Communications, Score Media Inc., (416) 977-6787 x2217, [email protected]
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