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.

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

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.

%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

Organization Profile

Score Media Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890