Score Media Continues Robust Growth in Q3 Revenue and EBITDA
Q3 demonstrates continued audience growth across all platforms
TORONTO, July 14 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the third quarter ended May 31, 2010:
- Revenue for the quarter ended May 31, 2010 increased by $1.2 million
or 11% to $12.0 million compared to $10.8 million in the quarter
ended May 31, 2009
- EBITDA for the quarter ended May 31, 2010 increased by $262,000 or
16% to $1.9 million compared to $1.7 million in the quarter ended
May 31, 2009
"At The Score, we have continued to find ways of bringing our viewers innovative, authentic, sports content and in doing so we have generated growing audiences on our TV network, our website, our mobile platforms and radio," says John Levy, Chairman & CEO, Score Media Inc.
- Score Media was, once again, the exclusive home of the NCAA
Division I Men's Basketball tournament. All of the excitement from
the 65 team championship was made available on The Score Television
Network, with NCAA March Madness highlights and coverage appearing on
theScore.com, ScoreMobile and The Score's Hardcore Sports Radio (HSR)
SIRIUS Channel 98. Coverage included over 70 hours of tournament
excitement, up-to-the-minute scores, video highlights, comprehensive
blog coverage on www.theScore.com and instant scores, live blogging
and video highlights on The Score's leading mobile app, ScoreMobile.
- Score Media and the Canadian Broadcasting Corporation (CBC) announced
a partnership to deliver exclusive 2010 FIFA World Cup South
Africa(TM) content to viewers on The Score Television Network. The
deal gave The Score access to extended highlights of each FIFA World
Cup(TM) match as well as the ability to create additional exclusive
FIFA World Cup(TM) content, including in-depth news content and
behind-the-scenes coverage of every team.
- The Score's 2010 FIFA World Cup South Africa(TM) coverage ran from
May to July 2010 and also included:
- "32 Countries in 32 Days" - a preview of one participating team
in each of the 32 days leading up to the tournament
- "FIFA World Cup(TM) Tonight" - hosted by The Score's
James Sharman, Kristian Jack and Sid Seixeiro and airing
everyday at 10 pm ET and PT throughout the tournament, this
premier programming gave fans their nightly fix of FIFA World
Cup(TM) action, including 10 minute extended highlight packages
of every match, as well as all the day's news and stories
- Short-form Content - in-depth player and team features, news
reports and highlights throughout The Score's daily programming
schedule
- "Cabbie's Journey to South Africa" - hosted by the one and only
Cabral "Cabbie" Richards, this exclusive programming captured
the adventures of Cabbie as he experienced the fans, events and
scenery of the tournament
- Exclusive K'naan Footage - Canadian music superstar K'naan
inked a deal with Score Media to provide exclusive South
Africa 2010 content which appeared throughout the tournament on
both on The Score Television Network and theScore.com
- Score Media announced that The Basketball Jones, an irreverent web
series covering the NBA, officially became a member of its talented
roster of original content producers. Filled with inventive and
humorous content, The Basketball Jones has been at the forefront of
digital sports media producing over 500 episodes of its daily show.
- Score Media announced that it secured the exclusive Canadian media
rights to Serie A, Italy's world-renowned professional soccer league.
The two-year deal, which includes full digital rights, represents the
first time a major Canadian sports network will deliver exciting
high-definition Serie A action to sports fans across Canada.
- The Score and Procter & Gamble announced the return of
Gillette DRAFTED, The Search for Canada's Next Sportscaster. Airing
in Fall 2010, this year the competition will be even more exciting
than before. More finalists. More challenges. More sportscasting.
- ScoreMobile announced the launch of ScoreMobile for Android,
specifically designed for the Android platform. Just like existing
versions of the leading sports app, ScoreMobile, the Android version
provides up-to-the-minute sports scores, stats and standings of every
major sports league, a customizable home screen widget, original
video content, interactive live blogs and breaking news among other
exciting features.
About Score Media Inc.
----------------------
Score Media is a media company committed to delivering interactive and authentic sports entertainment. Created in 1997 in response to the growing desire for increased participation in the consumption of sports, the Company has now established itself as the home for hardcore sports fans. Score Media's primary asset, The Score Television Network ("The Score"), is a national specialty television service providing sports news, information, highlights and live event programming in more than 6.8 million homes across Canada. The Company's digital media assets include theScore.com and the mobile sports applications ScoreMobile and ScoreMobile FC which are available on BlackBerry, iPhone and Android devices. Score Media also operates Hardcore Sports Radio, a satellite radio network available across North America on Sirius Satellite Radio. Growing from a team of 60 in 1997 to over 230 employees in 2010, 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.
THIRD QUARTER RESULTS
The following tables reconcile net income to EBITDA:
-------------------------------------------------------------------------
Three months ended Three months ended
May 31, 2010 May 31, 2009
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(000's) (000's)
Net income for the period $ 568 $ 12
Add back:
Depreciation and amortization 1,115 1,145
Interest expense, net 146 138
Gain on sale of investment (18) -
Loss on disposal of fixed assets - 39
Income tax expense 105 320
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EBITDA $ 1,916 $ 1,654
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Nine months ended Nine months ended
May 31, 2010 May 31, 2009
-------------------------------------------------------------------------
(000's) (000's)
Net income (loss) for the period $ 1,393 $ (758)
Add back:
Depreciation and amortization 3,164 3,386
Interest expense, net 449 261
Gain on sale of investment (18) -
Loss on disposal of fixed assets - 39
Income tax expense 1,189 149
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EBITDA $ 6,177 $ 3,077
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Score Media Inc.
Consolidated Balance Sheets
(in thousands of dollars)
(unaudited)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
May 31, 2010 August 31, 2009
(restated)
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Assets
Current assets:
Cash and cash equivalents $ 545 $ 276
Accounts receivable 10,221 6,875
Prepaid expenses and deposits 264 616
Future tax assets 648 663
-------------------------------
11,678 8,430
Fixed assets 15,843 17,174
Intangible assets 2,264 1,735
Future tax assets 5,836 7,011
-------------------------------
$ 35,621 $ 34,350
-------------------------------
-------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities 5,195 5,132
Revolving credit facility 10,705 11,449
Shareholders' equity 19,721 17,769
-------------------------------
$ 35,621 $ 34,350
-------------------------------
-------------------------------
Score Media Inc.
Consolidated Statements of Operations
(in thousands of dollars, except share and per share amounts)
(unaudited)
-------------------------------------------------------------------------
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Three months ended Nine months ended
May 31, May 31, May 31, May 31,
2010 2009 2010 2009
(restated) (restated)
-------------------------------------------------------------------------
Revenue $ 11,986 $ 10,816 $ 33,315 $ 29,976
Production and other
direct expenses 4,449 4,300 12,671 12,992
Selling, general and
administration 3,291 2,976 9,335 9,520
Program rights 2,330 1,886 5,132 4,387
----------------------------------------------------
10,070 9,162 27,138 26,899
----------------------------------------------------
Income before
undernoted 1,916 1,654 6,177 3,077
Interest expense, net 146 138 449 261
Gain on sale of
investment (18) - (18) -
Loss on disposal of
fixed assets - 39 - 39
Depreciation and
amortization 1,115 1,145 3,164 3,386
----------------------------------------------------
Income (loss) before
income taxes 673 332 2,582 (609)
Future income tax
expense 105 320 1,189 149
----------------------------------------------------
----------------------------------------------------
Net income (loss) for
the period $ 568 $ 12 $ 1,393 $ (758)
----------------------------------------------------
----------------------------------------------------
Income (loss) per
share - basic
and diluted $ 0.01 $ 0.00 $ 0.02 $ (0.01)
----------------------------------------------------
----------------------------------------------------
Weighted average number
of Class A Subordinate
Voting Shares and
Special Voting Shares
outstanding
Basic 81,231,236 91,282,248 81,227,176 96,009,200
Diluted 82,405,535 91,357,758 81,393,963 96,009,200
----------------------------------------------------
----------------------------------------------------
Score Media Inc.
Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)
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Three months ended Nine months ended
May 31, May 31, May 31, May 31,
2010 2009 2010 2009
(restated) (restated)
-------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net income (loss)
for the period $ 568 $ 12 $ 1,393 $ (758)
Items not involving
cash:
Depreciation and
amortization 1,115 1,145 3,164 3,386
Loss on disposal of
fixed assets - 39 - 39
Stock-based
compensation expense 124 96 460 198
Future income tax
expense 105 320 1,189 149
Change in non-cash
operating working capital:
Accounts receivable (841) (670) (3,346) (456)
Prepaid expenses and
deposits 1,218 1,323 352 (160)
Accounts payable and
accrued liabilities (743) (1,426) 205 1,283
------------------------ -------------------------
1,546 839 3,417 3,681
Financing:
Draw from credit
facility 10,146 19,413 29,502 40,444
Repayments to credit
facility (11,229) (12,569) (30,246) (31,749)
Repurchase of Class A
subordinate voting
shares - (7,271) - (7,271)
Issuance of Class A
subordinate
voting shares 35 13 76 13
------------------------ -------------------------
(1,048) (414) (668) 1,437
------------------------ -------------------------
Investing:
Additions to fixed
assets (425) (311) (1,179) (2,143)
Change in non-cash
working capital
related to fixed assets 191 136 (119) (2,331)
Acquisition of
intangible assets (417) (238) (1,182) (723)
------------------------ -------------------------
(651) (413) (2,480) (5,197)
------------------------ -------------------------
Increase (decrease) in cash
and cash equivalents (153) 12 269 (79)
Cash and cash equivalents,
beginning of period 698 201 276 292
------------------------ -------------------------
Cash and cash
equivalents, end of
period $ 545 $ 213 $ 545 $ 213
------------------------ -------------------------
------------------------ -------------------------
Supplemental Cash Flow
information
Interest paid $ 88 $ 88 $ 334 $ 207
------------------------ -------------------------
------------------------ -------------------------
The following selected quarterly financial data of the Corporation relates to the eight quarters ended May 31, 2010.
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Income (loss) per
Net income share - basic and
Quarterly Results Revenue EBITDA (loss) diluted
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($000's) ($000's) ($000's) ($)
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May 31, 2010 11,986 1,916 586 0.01
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February 28, 2010 9,958 980 (239) 0.00
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November 30, 2009 11,371 3,281 1,065 0.01
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August 31, 2009 8,909 677 (675) (0.01)
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May 31, 2009 10,816 1,654 12 0.00
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February 28, 2009 8,662 204 (1,017) (0.01)
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November 30, 2008 10,498 1,220 248 0.00
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August 31, 2008 8,524 1,565 1,169 0.01
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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.
%SEDAR: 00003035E
For further information: Tom Hearne, Chief Financial Officer, Score Media Inc., 416-977-6787 x2206, [email protected]; Sharon Lassman, Director, Communications, Score Media Inc., 416-977-6787 x2217, [email protected]
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