theScore Reports Record Quarterly Revenue

- Mobile sports company releases fiscal 2015 second quarter results

TORONTO, April 14, 2015 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and six months ended February 28, 2015 in accordance with International Financial Reporting Standards ("IFRS").

FISCAL 2015 Q2 OPERATIONAL HIGHLIGHTS

  • Achieved record quarterly revenue of $3.2 million in Q2 F2015, an increase of 68% compared to the same period in F2014.

    • Advertising revenue for Q2 F2015 increased by 78% compared to the same period in F2014.

  • Average monthly active users of theScore's mobile platforms reached 10 million in Q2 F2015, an increase of 100% compared to the same period in F2014.

    • Average monthly active users of theScore's mobile apps reached 4.6 million in Q2 F2015, an increase of 15% compared to the same period in F2014.

    • Average monthly active users of theScore's mobile web platform reached 5.4 million in Q2 F2015, an increase of 446% compared to the same period in F2014.

  • Average monthly sessions of theScore's mobile apps reached 264 million in Q2 F2015, an increase of 70% compared to the same period in F2014.

"Q2 saw us continue to strengthen the core foundations that power theScore's mobile sports offerings - our established brand as a leader in mobile sports, our best-in-class product development team and our cutting edge mobile newsroom," said John Levy, Founder and CEO of theScore.

"This was also an historic quarter for us with the expansion of our product offering. The acquisition of mobile-first daily fantasy sports game Swoopt gives us a foothold in a fast-growing space that enjoys a clear fit with our existing user base, while the launch of theScore eSports established us as the first major sports media company to treat competitive video gaming as a legitimate sport with a standalone app."

  • On December 19, 2014 theScore announced that it had closed a deal to acquire the daily fantasy sports game 'Swoopt.' The acquisition provides theScore with a strategic entry point into the daily fantasy sports space.

  • On February 4, 2015 theScore announced that it was the first major sports media company to launch a dedicated mobile app for eSports. Launching initially on Android, theScore eSports seamlessly combines mobile-first breaking news, live scores, stats, push alerts and link to video highlights and stream from across the world of eSports and competitive video gaming.

  • On February 11, 2015 theScore was included within the 2015 TSX Venture 50®, a list of the top 50 companies listed on the TSX Venture Exchange.

  • On February 12, 2015 theScore announced a bought deal offering whereby it sold 39.56 million Units for gross proceeds of $26.5 million. The deal was led by Mackie Research Capital Corporation and the syndicate also involved Canaccord Genuity Corp. and Beacon Securities Ltd. The Levy Family and Relay Ventures also participated in the offering. The net proceeds from the Offering will be used to support the ongoing development of the Company's mobile sports apps and the expansion of sales and marketing efforts and for general corporate and working capital purposes.

Q2 F2015 FINANCIAL RESULTS

Revenue for the three months ended February 28, 2015 was $3.2 million compared to $1.9 million the previous year, an increase of 68%. Revenue for the six months ended February 28, 2015 was $6.3 million compared to $4.0 million the previous year, an increase of 57%.

Adjusted EBITDA loss for the three month period was $1.9 million compared to $0.7 million in the same period in the prior year, an increase of $1.2 million. Adjusted EBITDA loss for the six month period was $3.4 million compared to $3.0 million in the same period in the prior year, an increase of $0.4 million. Excluding the impact of one time reductions of personnel costs of $1.7 million in the prior year related to tax credits, Adjusted EBITDA loss decreased by $0.5 million and $1.3 million respectively for the three and six month periods ending February 28, 2015, when compared to the prior year.

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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, alerts and daily fantasy sports contests via its mobile sports platforms 'theScore,' 'theScore eSports,' 'ScoreMobileFC' and  'Swoopt.'

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 and Short-form Prospectus 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, 2015


August 31, 2014






ASSETS





Current assets:






Cash and cash equivalents 


$      14,723


$      21,363


Accounts receivable


3,532


1,472


Tax credits recoverable 


-


2,060


Prepaid expenses and deposits


610


559




18,865


25,454

Non-current assets:






Property and equipment


2,225


2,155


Intangible assets 


6,832


4,959


Investment


760


760


Tax credits recoverable 


5,585


4,485




15,402


12,359







 Total assets 


$      34,267


$      37,813







LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities:






Accounts payable and accrued liabilities


$        3,039


$         3,052

Non-current liabilities:






Deferred lease obligation


521


513

Shareholders' equity


30,707


34,248







Commitments and contingencies 





Subsequent event











 Total liabilities and shareholders' equity 


$      34,267


$      37,813







theScore, Inc.








Condensed Consolidated Interim Statements of Comprehensive Loss







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








(unaudited)



















Three months ended


Six months ended



February 28, 2015


February 28, 2014









Revenue 

$ 3,219


$ 1,914


$ 6,265


$ 4,044










Operating expenses:









Personnel

2,811


653


5,286


2,865


Content

373


276


607


600


Technology

530


309


938


550


Facilities, administrative and other

1,095


912


2,002


1,867


Marketing

334


453


852


1,133


Depreciation of property and equipment

138


130


264


258


Amortization of intangible assets

593


157


1,051


827


Acquisition expenses

397


-


397


-



6,271


2,890


11,397


8,100











Operating loss

(3,052)


(976)


(5,132)


(4,056)











Finance income, net

(207)


(26)


(272)


(59)










Net and comprehensive loss

$ (2,845)


$ (950)


$ (4,860)


$ (3,997)









Loss per share - basic and diluted 

$ (0.01)


$ (0.00)


$ (0.02)


$ (0.02)









theScore, Inc.




Condensed Consolidated Interim Statements of Cash Flows




(in thousands of Canadian dollars)




(unaudited)











Six months ended

February 28, 2015


Six months ended

February 28, 2014






Cash flows used in operating activities




Net and comprehensive loss

$     (4,860)


$     (3,997)

Adjustments for:





Depreciation and amortization

1,315


1,085


Share-based compensation 

450


209


Acquisition costs

397


-



(2,698)


(2,703)

Change in non-cash operating assets and liabilities:





Accounts receivable

(1,988)


(11)


Other receivables

-


230


Tax credits recoverable

1,380


(1,986)


Prepaid expenses and deposits

(51)


(142)


Accounts payable and accrued liabilities

(366)


(40)


Deferred lease obligation

8


9



(1,017)


(1,940)

Net cash used in operating activities

(3,715)


(4,643)





Cash flows from financing activities





Exercise of stock options

30


5


Funding provided from Arrangement 

-


1,800

Net cash from financing activities

30


1,805





Cash flows used in investing activities





Additions of property and equipment

(316)


(248)


Acquisition costs

(397)


-


Business Acquisitions 

(659)


-


Additions of intangible assets

(1,583)


(921)

Net cash used in investing activities

(2,955)


(1,169)





Decrease in cash and cash equivalents

(6,640)


(4,007)





Cash and cash equivalents, beginning of period

21,363


14,524





Cash and cash equivalents, end of period

$      14,723


$     10,517





The following tables reconcile net and comprehensive loss to Adjusted EBITDA












Three months ended

February 28, 2015


Three months ended

February 28, 2014








Net and comprehensive loss for the period



$ (2,845)


$ (950)








Adjustments:








Depreciation and amortization




731


287


Finance income




(207)


(26)


Acquisition costs




397


-









Adjusted EBITDA loss




$ (1,924)


$ (689)

 

SOURCE theScore, Inc.

For further information: James Bigg, 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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