theScore Reports F2016 Q3 Results

- Mobile sports company grows quarterly advertising revenue by 101% year-over-year

TORONTO, July 14, 2016 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and nine months ended May 31, 2016 in accordance with International Financial Reporting Standards ("IFRS").

The Company posted quarterly revenue of $6.1 million compared to $3.2 million in the same period the previous year, an increase of 94%. Revenue for the nine months ended May 31, 2016 was $18.9 million compared to $9.4 million for the same period the previous year, an increase of 101%.

Advertising revenue for the quarter grew to $6.1 million from $3.0 million, an increase of 105%. Advertising revenue for the nine months ended May 31, 2016 was $18.9 million compared to $8.7 million for the same period the previous year, an increase of 116%.

Revenue growth was powered by theScore's US programmatic and Canadian direct sales businesses, driven in turn by growth in users and engagement within theScore's mobile apps.

Users of theScore's mobile applications* reached 4.3 million average monthly active users, an increase of 5% over the same period in F2015. Average monthly user sessions of theScore's mobile applications reached 358 million, up by 27% compared to the same period in F2015.

"This quarter saw us continue to achieve impressive revenue growth, broaden our esports coverage and also expand theScore experience to messaging platforms, becoming the first sports media company to launch a chatbot for Facebook Messenger," said John Levy, CEO and Founder of theScore.

"We believe the emergence of chatbots has the potential to be transformative in the way people consume content on their mobile devices. As sports fans discover new ways to follow their favorite teams, leagues and players, theScore will be there with them, delivering our unique brand of highly-personalized and engaging sports content to millions on these emerging platforms."

Adjusted EBITDA loss for the three and nine months ended May 31, 2016 was $3.0 million and $8.6 million compared to $3.2 million and $6.6 million in the same period the previous year. Net and comprehensive loss for the three and nine months ended May 31, 2016 was $4.4 million and $11.7 million compared to $4.0 million and $8.8 million in the same period the previous year.

The increase in the EBITDA loss year to date is a result of increased revenues offset by increased personnel and marketing costs associated with theScore's esports and fantasy sports' businesses 

theScore will be hosting a conference call at 8:30am EST on Thursday, July 14. Management will review the Company's Q3 F2016 results, followed by a question and answer session.

Conference Call Dial-In Numbers
Toronto: (+1) 416 764 8688
Toll Free North America: (+1) 888 390 0546

Instant Replay
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888 390 0541
Playback Passcode: 168416 #

The conference call will also be webcast live here.

Stay connected to theScore!

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About theScore Inc.
theScore, Inc. is an independent creator of mobile-first sports experiences, connecting fans to what they love through an addictive combination of comprehensive and personalized real-time news, scores, stats and alerts via its mobile sports platforms theScore and theScore esports and fantasy sports contests via QuickDraft.

Non-IFRS Financial Measures
In addition to disclosing results in accordance with IFRS as issued by the International Accounting Standards Board ("IASB"), theScore also provides supplementary non-IFRS financial measures as a method of evaluating the Company's performance. theScore utilizes earnings before interest, taxes, depreciation, amortization and acquisition costs ("Adjusted EBITDA") to measure operating performance.  theScore's definition of Adjusted EBITDA excludes depreciation and amortization, finance income, income taxes, and acquisition costs which in theScore's view do not adequately reflect its core operating results.  Adjusted EBITDA is used in the determination of short-term incentive compensation for all senior management personnel. The Company revised the non-GAAP measure in 2015 from EBITDA to adjusted EBITDA, as a result of the acquisition costs incurred related to Swoopt. Adjusted EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies.

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 "may", "would", "could", "will",  "believes", "plans", "anticipates", "estimates", "expects" or "intends" and other similar 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. Such statements reflect theScore's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including among other things, those which are discussed under the heading "Risk Factors" in the Company's Annual Information Form as filed with the TSX Venture Exchange and available on SEDAR at www.sedar.com and elsewhere in documents that theScore files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results could differ materially from the expectations expressed in these forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as required by applicable law or regulatory requirements.

* User and user engagement metrics in the current and comparative periods excludes the following platforms no longer supported by theScore: (i) theScore app on BlackBerry 7, BlackBerry Playbook, Kindle Fire and Windows Phone 7; and (ii) theScore's legacy soccer application, ScoreMobile FC.

 

theScore, Inc.




Condensed Consolidated Interim Statements of Financial Position




(in thousands of Canadian dollars)




(unaudited)











May 31,

2016


August 31,

2015



ASSETS




Current assets:





Cash and cash equivalents 

$        19,479


$   31,841


Accounts receivable

5,774


3,376


Tax credits recoverable 

5,192


4,777


Prepaid expenses and deposits

841


842



31,286


40,836

Non-current assets:





Property and equipment 

2,198


2,123


Intangible assets

6,233


7,361


Investment

760


760


Tax credits recoverable

1,399


1,399



10,590


11,643






Total assets 

$         41,876


$   52,479






LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:





Accounts payable and accrued liabilities

$           4,718


$     4,583

Non-current liabilities:





Deferred lease obligation

494


510






Shareholders' equity

36,664


47,386






Commitments 









Total liabilities and shareholders' equity 

$         41,876


$   52,479

 

theScore, Inc.

Condensed Consolidated Interim Statements of Comprehensive Loss

Three and nine months ended May 31, 2016 and 2015

(in thousands of Canadian dollars, except per share amounts)

(unaudited)

















Three months ended


Nine months ended


May 31, 2016


May 31, 2015


May 31, 2016


May 31, 2015









Revenue

$ 6,125


$ 3,161


$ 18,930


$ 9,426









Operating expenses:









Personnel

4,558


2,897


13,577


7,732


Content

726


377


1,890


984


Technology

482


531


1,590


1,469


Facilities, administrative and other

1,619


1,385


5,119


3,387


Marketing

1,383


975


4,430


1,827


Depreciation of property and equipment

166


146


473


410


Amortization of intangible assets

1,149


605


2,649


1,656


Stock based compensation

338


224


896


675


Acquisition expenses

-


-


-


397


10,421


7,140


30,624


18,537









Operating loss

(4,296)


(3,979)


(11,694)


(9,111)









Finance expense (income), net

150


8


3


(264)









Net and comprehensive loss

$ (4,446)


$ (3,987)


$ (11,697)


$ (8,847)









Loss per share - basic and diluted 

$ (0.02)


$ (0.01)


$ (0.04)


$ (0.03)

 

theScore, Inc.



Condensed Consolidated Interim Statements of Cash Flows



(in thousands of Canadian dollars)



(unaudited)











Nine months ended




May 31, 2016

May 31, 2015






Cash flows used in operating activities




Net and comprehensive loss

$              (11,697)

$                  (8,847)


Adjustments for:





Depreciation and amortization

3,122

2,066



Share-based compensation 

896

675



Acquisition costs

-

397




(7,679)

(5,709)


Change in non-cash operating assets and liabilities:





Accounts receivable

(2,398)

(1,733)



Tax credits recoverable

(159)

1,181



Prepaid expenses and deposits

1

(216)



Accounts payable and accrued liabilities

135

574



Deferred lease obligation

(16)

8




(2,437)

(186)

Net cash used in operating activities

(10,116)

(5,895)






Cash flows from financing activities




Exercise of stock options

79

57


Issuance of shares and warrants, net of transaction costs

-

24,866

Net cash from financing activities

79

24,923






Cash flows used in investing activities




Additions of property and equipment

(548)

(426)


Acquisition costs 

-

(397)


Business acquisitions

-

(659)


Additions of intangible assets 

(1,777)

(2,568)

Net cash used in investing activities

(2,325)

(4,050)






Increase (decrease) in cash and cash equivalents

(12,362)

14,978






Cash and cash equivalents, beginning of period

31,841

21,363






Cash and cash equivalents, end of period

$               19,479

$                  36,341

 













Three months ended May 31,

Nine months ended May 31,



2016

2015

2016

2015











Net and comprehensive loss for the period

$

(4,446)

$

(3,987)

$

(11,697)

$

(8,847)











Adjustments:










Depreciation and amortization


1,315


751


3,122


2,066


Finance income


150


8


3


(264)


Acquisition costs


-


-


-


397












Adjusted EBITDA loss

$

(2,981)

$

(3,228)

$

(8,572)

$

(6,648)

 

SOURCE theScore, Inc.

Image with caption: "theScore, Inc. (CNW Group/theScore, Inc.) (CNW Group/theScore, Inc.)". Image available at: http://photos.newswire.ca/images/download/20160714_C2671_PHOTO_EN_733566.jpg

For further information: James Bigg, Sr. Manager, Communications, theScore, Inc., Tel: 416.479.8812 ext. 2366, Email: james.bigg@thescore.com; Tom Hearne, Chief Financial Officer, theScore, Inc., Tel: 416.479.8812 ext. 2206, Email: tom.hearne@thescore.com

RELATED LINKS
http://www.thescore.com/

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