Score Media Reports Strong Q1 Revenue Growth

Broadcast segment generates record revenue and EBITDA

Digital Media segment posts first $1 million revenue quarter

TORONTO, Jan. 9, 2012 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the first quarter ended November 30, 2011 in accordance with the newly adopted International Financial Reporting Standards ("IFRS").  For the first time, Score Media is also reporting its results in two core operating segments: Broadcast and Digital Media.

  • Revenue for the three months ended November 30, 2011 increased by $1.6 million or 14% to $13.4 million compared to $11.8 million in the three months ended November 30, 2010

    • Broadcast revenues for the three months ended November 30, 2011 increased by $1.5 million or 14% to $12.4 million compared to $10.9 million in the three months ended November 30, 2010

    • Digital Media revenues for the three months ended November 30, 2011 increased by $0.1 million or 16% to $1.0 million compared to $0.9 million in the three months ended November 30, 2010

  • EBITDA for the three months ended November 30, 2011 was $1.9 million compared to $2.7 million in the previous year, a decrease of $0.8 million, primarily as a result of a planned increase in expenditures on personnel and technology to support the significant growth in the audience of the Company's digital media platforms

    • Broadcast EBITDA for the three months ended November 30, 2011 increased by $0.4 million to $4.9 million compared to $4.5 million in the three months ended November 30, 2010

    • Digital Media EBITDA loss for the three months ended November 30, 2011 increased by $0.8 million to $1.1 million compared to a $0.3 million EBITDA loss in the three months ended November 30, 2010

"Q1 was an excellent quarter for Score Media," said John Levy, Chairman & CEO, Score Media Inc.  "Our Broadcast business delivered strong growth in revenue and EBITDA, and our Digital Media segment generated record revenues and audience growth.  We plan to continue to strategically invest in our Digital Media business to capitalize on the strong position we have established in the mobile sports market, while continuing to grow our Broadcast business."

  • The Company's digital media assets recorded record audience growth in Q1/12:

    • ScoreMobile applications averaged 3.3 million unique users per month in Q1/12, growing by more than 1 million unique users per month, or over 60%, from Q1/11

    • theScore.com averaged 1.2 million unique users per month in Q1/12, an increase of 140% or 0.7 million unique users per month over Q1/11

  • During the quarter, the Company announced the establishment of digital media sales offices in New York and Chicago and the appointment of Ethan Ross to the position of Vice President of Digital Sales. He will be responsible for the development and execution of Score Media's U.S. digital media sales strategy.

  • In November 2011 the Company announced a complete redesign of the ScoreMobile App for iPhone and iPod touch that introduces new features such as a customizable scoreboard to track any team or player from any league, the ability to follow your favorite teams and fantasy players in real-time, customizable feeds, detailed profiles of over 15,000 players and 800 teams, integration with iOS 5's Notification Center feature, and one-tap social sharing.

  • In September 2011, the Company announced that hockey pro turned writer, Justin Bourne, formally joined theScore. Son of Bob Bourne - winner of 4 Stanley Cups with the Islanders in the 80's - Justin brings a great combination of player insight, irreverence and humour to theScore's new hockey blog, Backhand Shelf. A frequent contributor to Yahoo!'s Puck Daddy Blog, USA Today and The Hockey News, he is one the select few high-level athletes who has made a successful transition to sports writing.

  • The Company, in partnership with Gillette, announced in November 2011 that Jackie Redmond has been crowned the winner of Gillette DRAFTED 3: The Search for Canada's Next Sportscaster. A former radio personality, Jackie is now theScore's newest sportscaster, contributing to theScore Television Network, ScoreMobile and theScore.com and the newest member of the Gillette spokesperson family.

Score Media's Annual General Meeting will be held on Monday, January 9th at 11:00 a.m.  A live webcast will be available at www.scoremedia.com.

About Score Media Inc.
Score Media is a media company committed to delivering interactive and authentic sports entertainment.  Score Media's primary asset, theScore Television Network ("theScore"), is a national specialty television service providing sports news, information, highlights and live event programming across Canada.  The Company's digital media assets include theScore.com and the industry leading mobile sports applications ScoreMobile, ScoreMobile FC and SportsTap which reach over three million unique users per month.  Growing from a team of 60 in 1997 to over 290 employees in fiscal 2012, 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 and comprehensive income to EBITDA:

         
                   Three months ended    Three months ended 
    November 30, 2011    November 30, 2010
    (000's)   (000's)
         
Net and comprehensive income for the period  $  212  $  856
Less:        
  Share of profit of equity accounted investee     (12)        -
Add back:        
  Depreciation and amortization     841       975
  Finance costs     208             123
  Income tax expense     653     700
EBITDA  $        1,902 $           2,654

Score Media Inc.
Condensed Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)

           
           
      November 30, 2011   August 31, 2011
           
Assets        
           
Current assets:        
  Cash  $ 206  $ 398
  Accounts and other receivable   15,023   12,227
  Prepaid expenses and deposits   1,433   1,510
      16,662   14,135
           
Non-current assets:        
  Fixed assets   13,671   13,654
  Intangible assets   7,029   6,553
  Investment in equity accounted investee   974   936
  Deferred tax assets   6,029   6,682
      27,703   27,825
           
Total assets  $   44,365  $ 41,960
           
Liabilities and Shareholders' Equity        
           
Current liabilities:        
  Accounts payable and accrued liabilities   7,210   6,442
           
Non-current liabilities:        
  Provisions   177   -
  Revolving credit facility   14,258   12,979
      14,435   12,979
           
Shareholders' equity   22,720   22,539
           
           
Total liabilities and shareholders' equity  $ 44,365  $ 41,960

See accompanying notes to unaudited condensed consolidated interim financial statements

Score Media Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars, except share and per share amounts)
(unaudited)

         
             
  Three months ended
        November 30, 2011   November 30, 2010
             
Revenues    $ 13,417  $   11,793
             
Operating costs     11,515   9,139
             
EBITDA     1,902   2,654
             
Finance costs     208   123
Depreciation and amortization     841   975
Share of profit of equity accounted investee     (12)   -
             
Income before income taxes     865   1,556
             
Income tax expense:          
  Current     -   -
  Deferred     653   700
        653   700
Net and comprehensive income for the period    $ 212  $   856
             
Earnings per share - basic and diluted    $ 0.00  $   0.01
             
Weighted average number of Class A Subordinate Voting 
and Special Voting Shares outstanding

Basic
 

 81,666,882
 
 81,505,332
  Diluted   83,178,605   83,152,274

See accompanying notes to unaudited condensed consolidated interim financial statements

Score Media Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)

       
       
    Three months ended
        November 30, 2011   November 30, 2010
             
Cash flows from operating activities        
  Net and comprehensive income  $ 212  $ 856
  Adjustments for:        
    Depreciation and amortization   841   975
    Share-based compensation expense   21   60
    Share of profit of equity accounted for investee, net of tax   (12)   -
    Income tax expense   653   700
    Finance costs   208   123
        1,923   2,714
  Change in non-cash operating working capital:        
    Accounts and other receivable   (2,796)   (1,573)
    Prepaid expenses and deposits   198   (87)
    Accounts payable and accrued liabilities   768   1,189
        (1,830)   (471)
Net cash from operating activities   93   2,243
             
Cash flows from investing activities        
  Additions to fixed assets   (677)   (772)
  Acquisition of intangible assets   (716)   (904)
  Acquisition of equity interest in NuLayer Inc.   -   (893)
Net cash used in investing activities   (1,393)   (2,569)
             
Cash flows from financing activities        
  Draws from credit facility   15,198   12,706
  Repayments of credit facility   (13,919)   (12,405)
  Interest paid, net   (182)   (99)
  Issuance of Class A subordinate voting shares   11   110
Net cash from financing activities   1,108   312
             
Net decrease in cash   (192)   (14)
             
Cash, beginning of period   398   184
             
Cash, end of period  $ 206  $ 170

See accompanying notes to unaudited condensed consolidated interim financial statements

Segmented Information:

                 
  Three months ended November 30, 2011
    Broadcast    Digital Media    Corporate    Consolidated
totals 
                 
Revenues $   12,402 $   1,015 $   - $   13,417
                 
Operating costs   7,483   2,159   1,873   11,515
                 
EBITDA   4,919   (1,144)   (1,873)   1,902
                 
Finance costs               208
Depreciation and amortization               841
Share of profit of equity accounted investee               (12)
                 
Income before income taxes             $   865
                 
Additions to fixed assets $   585   90   2 $   677
Additions to intangible assets $   43   668   5 $   716
                 
                 
                 
                 
  Three months ended November 30, 2010
    Broadcast    Digital Media    Corporate    Consolidated
totals 
                 
Revenues $   10,918 $   875 $   - $   11,793
                 
Operating costs   6,432   1,196   1,511   9,139
                 
EBITDA   4,486   (321)   (1,511)   2,654
                 
Finance costs               123
Depreciation and amortization               975
Share of profit of equity accounted investee               -
                 
Income before income taxes             $   1,556
                 
Additions to fixed assets $   726   46   - $   772
Additions to intangible assets $   26   854   24 $   904

 

The following selected quarterly financial data of the Corporation relates to the eight quarters ended November 30, 2011.

Quarterly Results Accounting
Basis
Revenue EBITDA Net and
comprehensive
income (loss)
Income per
share - basic
and diluted
    ($000's) ($000's) ($000's) ($)
November 30, 2011 IFRS 13,417 1,902 212 0.00
August 31, 2011 IFRS 11,530 1,901 (341) 0.00
May 31, 2011 IFRS 13,092 2,148 668 0.01
February 28, 2011 IFRS 10,982 1,079 225 0.00
November 30, 2010 IFRS 11,793 2,654 856 0.01
August 31, 2010 GAAP 10,523 1,442 1,100 0.01
May 31, 2010 GAAP 11,986 1,916 568 0.01
February 28, 2010 GAAP 9,958 980 (239) 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.

Want to connect with Score Media? 

http://twitter.com/#!/scoremedia

http://www.facebook.com/#!/thescore

mediarelations@thescore.com

http://www.scoremedia.com/  

 

 

 

 

 

SOURCE Score Media Inc.

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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