theScore Reports F2017 Q2 Results

TORONTO, April 13, 2017 /CNW/ -  theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and six months ended February 28, 2017 in accordance with International Financial Reporting Standards ("IFRS").

Revenue for the quarter grew to $6.7 million compared to $5.8 million in the same period the previous year. Revenue for the first six months of F2017 grew to $15.2 million versus $12.8 million for the same period in F2016. Revenue growth was powered by theScore's Canadian and US direct sales teams, as well as growth in engagement within theScore's mobile apps. 

EBITDA loss for the three months ended February 28, 2017 was $1.4 million versus $3.2 million in the same period the previous year. A combination of an increase in revenue plus savings in expenses led to direct improvements in the Company's profitability. Net and comprehensive loss for the three months ended February 28, 2017 was $2.1 million compared to $4.2 million in the same period the previous year.

Average monthly sessions of theScore's mobile apps reached 378 million compared to 335 million for the same period the previous year, with users opening our apps an average of 86 times a month each. Average monthly active users of theScore's mobile apps were 4.3 million versus 4.4 million in Q2 F2016.

"This quarter saw us once again strengthen the engagement within our mobile apps while increasing the sophistication of our advertising business to drive ongoing revenue growth and positively impact our pathway to profitability," said John Levy, Founder and CEO of theScore.

"Our product team remains focused on the continued enhancement of our flagship sports app, with new features being rolled out over the remainder of F2017, while also supporting other areas of our business, like esports and bots, to ensure we're meeting the evolving needs of sports fans."

theScore will be hosting a conference call at 8:30am EST on Thursday, April 13. Management will review the Company's Q2 F2017 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: 046499 #

The conference call will also be webcast live here.

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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 the sports content they love through an addictive combination of comprehensive and personalized real-time news, scores, stats, alerts and videos via emerging and established digital media platforms, including its mobile sports applications theScore and theScore esports, its web platforms theScore.com and thescoreesports.com and theScore Bot for Facebook Messenger and Kik Messenger.

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 and amortization ("EBITDA") to measure operating performance.  theScore's definition of 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. EBITDA is used in the determination of short-term incentive compensation for all senior management personnel.  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. 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.

theScore, Inc.

Condensed Consolidated Interim Statements of Financial Position

(in thousands of Canadian dollars)

(unaudited)





February 28,

August 31,


2017

2016

ASSETS



Current assets:




Cash and cash equivalents

$

9,119

$

15,554


Accounts receivable

7,030

5,326


Tax credits recoverable

5,192

5,192


Prepaid expenses and deposits

1,199

1,008



22,540

27,080

Non-current assets:




Property and equipment

1,993

2,141


Intangible assets 

6,190

5,807


Investment

760

760


Tax credits recoverable

1,616

1,616


10,559

10,324




 Total assets 

$

33,099

$

37,404




LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:




Accounts payable and accrued liabilities

$

3,256

$

5,180

Non-current liabilities:




Deferred lease obligation

497

495




Shareholders' equity

29,346

31,729




Commitments 






 Total liabilities and shareholders' equity 

$

33,099

$

37,404

 

 

theScore, Inc.

Condensed Consolidated Interim Statements of Comprehensive Loss

Three and six months ended February 28, 2017 and February 29, 2016

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

(unaudited)







Three months ended,

Six months ended,


February 28, 2017

February 29, 2016

February 28, 2017

February 29, 2016






Revenue 

$

6,691

$

5,802

$

15,239

$

12,805






Operating expenses:






Personnel

4,576

4,607

9,138

9,021


Content

398

524

1,005

1,164


Technology

629

514

1,279

1,108


Facilities, administrative and other

1,654

1,968

3,172

3,500


Marketing

628

1,061

1,954

3,047


Depreciation of property and equipment

120

158

237

307


Amortization of intangible assets

519

886

988

1,500


Stock based compensation

224

376

464

557


8,748

10,094

18,237

20,204






Operating loss

(2,057)

(4,292)

(2,998)

(7,399)






Finance expense (income), net

81

(99)

(107)

(147)






Net and comprehensive loss

$

(2,138)

$

(4,193)

$

(2,891)

$

(7,252)






Loss per share - basic and diluted

$

(0.01)

$

(0.01)

$

(0.01)

$

(0.02)

 

 

theScore, Inc.

Condensed Consolidated Interim Statements of Cash Flows

(in thousands of Canadian dollars)

(unaudited)









Six months ended




February 28, 2017

February 29, 2016






Cash flows used in operating activities




Net and comprehensive loss

$

(2,891)

$

(7,252)


Adjustments for:





Depreciation and amortization

1,226

1,807



Stock based compensation

464

557




(1,201)

(4,888)


Change in non-cash operating assets and liabilities:





Accounts receivable

(1,704)

(1,692)



Tax credits recoverable

-

(159)



Prepaid expenses and deposits

(191)

(125)



Accounts payable and accrued liabilities

(1,924)

(751)



Deferred lease obligation

2

(15)




(3,817)

(2,742)

Net cash used in operating activities

(5,018)

(7,630)






Cash flows from financing activities




Exercise of stock options

44

78

Net cash from financing activities

44

78






Cash flows used in investing activities




Additions of property and equipment

(89)

(374)


Additions of intangible assets 

(1,372)

(1,149)

Net cash used in investing activities

(1,461)

(1,523)






Decrease in cash and cash equivalents

(6,435)

(9,075)






Cash and cash equivalents, beginning of period

15,554

31,841






Cash and cash equivalents, end of period

$

9,119

$

22,766

 

 







Three months ended

Six months ended



February 28, 2017

February 29, 2016

February 28, 2017

February 29, 2016







Net and comprehensive loss for the period

$

(2,138)

$

(4,193)

$

(2,891)

$

(7,252)







Adjustments:






Depreciation and amortization

640

1,044

1,226

1,807


Finance expense (income), net

81

(99)

(107)

(147)







EBITDA loss

$

(1,417)

$

(3,248)

$

(1,772)

$

(5,592)

 

SOURCE theScore, Inc.

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

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