Score Media Reports Highest Quarterly Revenue and EBITDA in Company History
First quarter results demonstrate significant multi-platform revenue growth
- Revenue for the quarter ended November 30, 2009 increased by 8% or
$0.9 million to $11.4 million compared to $10.5 million in the quarter
ended November 30, 2008. This was the highest revenue quarter in the
Company's history.
- EBITDA for the quarter ended November 30, 2009 was $3.3 million
compared to $1.2 million in the previous year. This was the highest
EBITDA quarter in the Company's history. Excluding the impact of the
$0.8 million CRTC Part II regulatory fee reversal, EBITDA for the
quarter ended November 30, 2009 more than doubled with an increase of
$1.3 million to $2.5 million, compared to $1.2 million in the previous
year.
- Net income for the quarter ended November 30, 2009 was $1.1 million,
compared to $0.2 million in the previous year
"We continually strive to achieve growth across all areas of our business," says
- ScoreMobile for BlackBerry and ScoreMobile iPhone Edition are growing
rapidly in the North American market. In November 2009 alone, this
application amassed more than 1 million combined unique users (over
60% U.S.-based), and received over 300,000 application downloads.
- The Score's 2009-2010 NBA coverage kicked-off with a record audience
during the Toronto Raptors first regular season game versus the
Cleveland Cavaliers. With 20 Raptors games, 40 NBA games, multi-
platform programming and an expanded line-up of basketball coverage,
including weekly episodes of Court Surfing, Canadian basketball fans
can expect a comprehensive round-up of live games, highlights and
signature Score content throughout the NBA season.
- theScore.com web traffic is growing rapidly; in the three months ended
November 30, 2009, page visits were up 11% compared to the same month
in the previous year. theScore.com Sports Federation also experienced
significant growth, jumping from 12 to 26 blogs since its inception in
November 2008 and 247,000 unique visitors in November 2009 compared to
21,000 unique visitors in the same month of 2008.
- The Score HD became available to Shaw Cable and Shaw Direct customers,
expanding our high definition footprint amongst Canadian households.
- On August 31, 2009, BBM Canada launched a new national audience
measurement service in the form of the Portable People Meter (PPM).
The PPM is a small lightweight device, about the size of a pager which
will be carried by 9,000 randomly-chosen panelists who are
representative of the Canadian population. Audiences on The Score were
up more than 50% in the first quarter of fiscal 2010 compared to the
same period in the prior year. Additionally, in the strategic 18-34
male demographic, audiences were up over 75% in the comparative
periods. Viewers are increasingly tuning in for the Company's
continued creation, production, and acquisition of entertaining
content.
- On September 21st, 2009, The Score began airing Gillette DRAFTED, The
Search for Canada's Next Sportscaster. Through this partnership with
Procter & Gamble, one of North America's largest and most prolific
marketers, The Score created integrated, multi-platform, branded
entertainment for distribution both online and on-air.
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 6.7 million homes across
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.
FIRST QUARTER RESULTS
The following tables reconcile net income to EBITDA:
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Three Three
months ended months ended
November 30, 2009 November 30, 2008
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Net income for the period $ 1,065 $ 248
Add back:
Depreciation and amortization 999 1,110
Interest expense (net) 149 58
Income tax expense (recovery) 1,068 (196)
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EBITDA $ 3,281 $ 1,220
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Score Media Inc.
Consolidated Balance Sheets
(in thousands of dollars)
(unaudited)
-------------------------------------------------------------------------
November 30, 2009 August 31, 2009
(restated)
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Assets
Current assets:
Cash and cash equivalents $ 399 $ 276
Accounts receivable 9,417 6,875
Prepaid expenses and deposits 943 616
Future tax assets 663 663
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11,422 8,430
Fixed assets 16,828 17,174
Intangible assets 1,870 1,735
Future tax assets 5,943 7,011
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36,063 34,350
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----------------------------------------
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable and accrued
liabilities 6,056 5,132
Revolving credit facility 11,026 11,449
Shareholders' equity 18,981 17,769
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36,063 34,350
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Score Media Inc.
Consolidated Statements of Operations
(in thousands of dollars, except per share amounts)
(unaudited)
-------------------------------------------------------------------------
Three Three
months ended months ended
November 30, 2009 November 30, 2008
(restated)
-------------------------------------------------------------------------
Revenue $ 11,371 $ 10,498
Production and other direct expenses 4,277 4,495
Selling, general and administration 2,695 3,845
Program rights 1,118 938
-------------------- -------------------
8,090 9,278
-------------------- -------------------
Income before undernoted 3,281 1,220
Interest expense, net 149 58
Depreciation and amortization 999 1,110
-------------------- -------------------
Income before income taxes 2,133 52
Future income tax expense (recovery) 1,068 (196)
-------------------- -------------------
-------------------- -------------------
Net income for the period $ 1,065 $ 248
-------------------- -------------------
-------------------- -------------------
Income per share - basic and
diluted $ 0.01 $ 0.00
-------------------- -------------------
-------------------- -------------------
Weighted average number of Class
A Subordinate Voting and Special
Voting Shares outstanding
Basic 81,152,056 98,411,849
Diluted 81,156,781 98,439,155
-------------------- -------------------
-------------------- -------------------
Score Media Inc.
Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)
-------------------------------------------------------------------------
Three Three
months ended months ended
November 30, 2009 November 30, 2008
(restated)
-------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net income for the period $ 1,065 $ 248
Items not involving cash:
Depreciation and amortization 999 1,110
Stock based compensation expense 177 68
Future income tax expense
(recovery) 1,068 (196)
Change in non-cash operating
working capital:
Accounts receivable (2,542) (174)
Prepaid expenses and deposits (327) (217)
Accounts payable and accrued
liabilities 1,123 1,842
----------------------------------------
1,563 2,681
Financing:
Draw from (repayment of) credit
facility (423) 1,118
Issuance of common shares 4 -
----------------------------------------
(419) 1,118
----------------------------------------
Investing:
Additions to fixed assets (476) (1,076)
Change in non-cash working capital
related to fixed assets (233) (1,982)
Acquisition of intangible assets (312) (802)
----------------------------------------
(1,021) (3,860)
----------------------------------------
Increase (decrease) in cash and cash
equivalents 123 (61)
Cash and cash equivalents, beginning
of period 276 292
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Cash and cash equivalents, end of
period $ 399 $ 231
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Supplemental Cash Flow information
Interest paid $ 149 $ 59
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The following selected quarterly financial data of the Corporation relates to the eight quarters ended
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Income (loss) per
Net income share - basic and
Quarterly Results Revenue EBITDA (loss) diluted
-------------------------------------------------------------------------
($000's) ($000's) ($000's) ($)
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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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May 31, 2008 10,206 2,185 693 0.01
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February 29, 2008 8,363 939 43 0.00
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The Company's revenues have historically reflected a seasonality trend, with the third quarter (ending
%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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