theScore Reports F2017 Q3 Results

TORONTO, July 26 2017 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and nine months ended May 31, 2017 in accordance with International Financial Reporting Standards ("IFRS").

Revenue for the quarter grew to $6.4 million compared to $6.1 million in the same period the previous year. Revenue for the first nine months of F2017 grew to $21.6 million versus $18.9 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. 

Adjusted EBITDA loss for the three months ended May 31, 2017 was $1.5 million versus $3.0 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 May 31, 2017 was $2.9 million compared to $4.4 million in the same period the previous year.

Average monthly sessions of theScore's mobile apps reached 379 million compared to 358 million for the same period the previous year, with users opening our apps an average of 92 times a month each. Average monthly active users of theScore's mobile apps were 4.1 million versus 4.3 million in Q3 F2016.

"Our team is very much focused on the imminent roll-out of some significant new features for our flagship app as the start of football season draws closer," said John Levy, Founder and CEO of theScore.

"We've already begun testing some of these with a small percentage of users and the early signs suggest we've got something that will further strengthen our position as the number one challenger app to ESPN in North America.

"The evolution of theScore app will be an ongoing process to ensure we're meeting the demands of sports fans on mobile devices. We're also seeing positive progress in growing the engagement and size of our off-platform audience, including theScore Bot for Facebook Messenger and with our esports video strategy.

"Our continued growth in revenue, underpinned by our diligent focus on managing our expenses, means we remain well on track to be adjusted EBITDA positive in F2018."

theScore will be hosting a conference call at 8:30am EST on Wednesday, July 26. Management will review the Company's Q3 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: 996482 #

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)











May 31,


August 31,



2017

2016






ASSETS




Current assets:





Cash and cash equivalents 

$

12,688


$

15,554


Accounts receivable

6,711


5,326


Tax credits recoverable 

-


5,192


Prepaid expenses and deposits

1,112


1,008



20,511


27,080

Non-current assets:





Property and equipment 

1,892


2,141


Intangible assets 

6,231


5,807


Investment 

-


760


Tax credits recoverable 

1,616


1,616



9,739


10,324






Total assets 

$

30,250


$    37,404






LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:





Accounts payable and accrued liabilities

$

3,138


$

5,180

Non-current liabilities:





Deferred lease obligation

499


495






Shareholders' equity

26,613


31,729






Commitments 









Total liabilities and shareholders' equity 

$

30,250


$

37,404

 

theScore, Inc.







Condensed Consolidated Interim Statements of Comprehensive Loss





Three and nine months ended May 31, 2017 and May 31, 2016






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






(unaudited)

















Three months ended,

Nine months ended,



May 31, 2017


May 31, 2016

May 31, 2017


May 31, 2016









Revenue 

$ 6,357


$ 6,125

$ 21,596


$ 18,930









Operating expenses:








Personnel

4,084


4,558

13,222


13,577


Content

391


726

1,394


1,890


Technology

610


482

1,889


1,590


Facilities, administrative and other

1,566


1,619

4,741


5,119


Marketing

1,000


1,383

2,954


4,430


Depreciation of property and  equipment

121


166

358


473


Amortization of intangible assets

799


1,149

1,786


2,649


Stock based compensation

192


338

656


896



8,763


10,421

27,000


30,624









Operating loss

(2,406)


(4,296)

(5,405)


(11,694)









Finance expense (income), net

(239)


150

(346)


3

Impairment of investment

760


-

760


-









Net and comprehensive loss

$ (2,927)


$ (4,446)

$ (5,819)


$ (11,697)









Loss per share - basic and diluted

$ (0.01)


$ (0.02)

$ (0.02)


$ (0.04)

 

theScore, Inc.



Condensed Consolidated Interim Statements of Cash Flows



(in thousands of Canadian dollars)



(unaudited)











Nine months ended




May 31, 2017

May 31, 2016






Cash flows used in operating activities




Net and comprehensive loss

$

(5,819)

$

(11,697)


Adjustments for:





Depreciation and amortization

2,144

3,122



Stock based compensation

656

896



Impairment  of investment

760

-




(2,259)

(7,679)


Change in non-cash operating assets and liabilities:





Accounts receivable

(1,385)

(2,398)



Tax credits recoverable

3,061

(159)



Prepaid expenses and deposits

(104)

1



Accounts payable and accrued liabilities

(2,042)

135



Deferred lease obligation

4

(16)




(466)

(2,437)

Net cash used in operating activities

(2,725)

(10,116)






Cash flows from financing activities




Exercise of stock options

47

79

Net cash from financing activities

47

79






Cash flows used in investing activities




Additions of property and equipment

(109)

(548)


Tax credits recoverable

2,131

-


Additions of intangible assets

(2,210)

(1,777)

Net cash used in investing activities

(188)

(2,325)






Decrease in cash and cash equivalents

(2,866)

(12,362)






Cash and cash equivalents, beginning of period

15,554

31,841






Cash and cash equivalents, end of period

$

12,688

$

19,479

 

Reconciliation of net and comprehensive loss to Adjusted EBITDA


Adjusted EBITDA










Three months ended

Nine months ended




May 31, 2017

May 31, 2016

May 31, 2017

May 31, 2016








Net and comprehensive loss for the period


$

(2,927)

$

(4,446)

$

(5,819)

$

(11,697)








Adjustments:







  Depreciation and amortization


920

1,315

2,144

3,122

  Finance expense (income), net


(239)

150

(346)

3

  Loss on investment


760

-

760

-








Adjusted EBITDA loss



$

(1,486)

$

(2,981)

$

(3,261)

$

(8,571)

 

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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