Year-end results demonstrate revenue growth across all media platforms
- Revenue for the year ended August 31, 2009 increased by $2.5 million to $38.9 million compared to $36.4 million in the year ended August 31, 2008. The company had increases in TV revenues as well as web and mobile revenues. - EBITDA for the year ended August 31, 2009 was $3.8 million compared to $5.9 million in the previous year, due mostly to planned investments in HD programming and marketing - Net loss for the year ended August 31, 2009 was $1.5 million, compared to net income of $2.0 million in the previous year, due primarily to the above noted investments in HD programming and marketing, and increased depreciation expense of $1.5 million related to Score Media's new HD broadcasting facilities - Fourth quarter revenue increased by $0.4 million to $8.9 million compared to $8.5 million in the prior year. Fourth quarter EBITDA was $0.7 million compared to $1.6 million in the prior year.
"We are pleased with our fiscal 2009 results," says
- On September 2, 2008, Score Media launched its high definition (HD) broadcasting studio. Over 80 percent of The Score's programming in fiscal 2009 was broadcast in high definition. - In celebration of the launch, The Score hosted a Street Party on September 20, 2008 which featured all of The Score's personalities in addition to top athletes and musical guests - In June 2009, the Company launched ScoreMobile for BlackBerry, an ad- supported mobile sports application optimized specifically for BlackBerry(R) smartphone devices. By year-end, the application was a top global download in BlackBerry App World(TM). - ScoreMobile iPhone Edition continued to be popular with North American sports fans and averaged more than 10 million monthly page views during the peak period of Spring 2009. By the end of fiscal 2009, ScoreMobile iPhone Edition had been downloaded over 900,000 times. - theScore.com web traffic continues to grow rapidly; unique visitors and page views were up approximately 23% compared to the previous year - Score Media's March Madness coverage achieved record levels across all of the Company's platforms including a 22% growth in average tournament television viewership, over 1.4 million views on theScore.com's March Madness pages and 1.2 million views of NCAA basketball pages on ScoreMobile iPhone Edition - The Company began a nation-wide search for the finest undiscovered sports broadcaster in Canada. Gillette DRAFTED: The Search for Canada's Next Sportscaster is the first Canadian endeavour with an unprecedented prize at stake: a contract with Score Media as a multiplatform sportscaster, contributing to the growth of the Company's television network, website and digital platforms. - This year The Score was nominated for 3 Gemini Awards within the Best Sportscaster and Best Sports Feature categories - On April 7, 2009, Score Media completed its previously announced Issuer Bid to purchase for cancellation 17,301,169 million Class A subordinate voting shares ("Class A Shares") at a price per share of $0.40 or $6.9 million. This represented 17.6% of Score Media's issued and outstanding Class A Shares. - In fiscal 2009, The Score was named one of the top 10 media players in Canada by Marketing Magazine 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 6.6 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.
FOURTH QUARTER RESULTS The following tables reconcile net income to EBITDA: ------------------------------------------------------------------------- Three Three months ended months ended August 31, August 31, 2009 2008 ------------------------------------------------------------------------- Net income (loss) for the period $ (677) $ 1,160 Less: Gain on sale of investments: - 135 Future income tax recovery - 438 Add back: Depreciation and amortization 1,166 930 Interest expense (net) 162 48 Loss on disposal of fixed assets 10 - Income tax expense 16 - ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA $ 677 $ 1,565 Twelve Twelve months ended months ended August 31, August 31, 2009 2008 ------------------------------------------------------------------------- Net income (loss) for the period $ (1,457) $ 2,026 Less: Gain on sale of investments: - 597 Add back: Restructuring charges - 967 Depreciation and amortization 4,574 2,986 Interest expense (net) 423 72 Loss on disposal of fixed assets 49 - Income tax expense 165 442 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA $ 3,754 $ 5,896 Score Media Inc. Consolidated Balance Sheets (in thousands of dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- August 31, August 31, 2009 2008 ------------------------------------------------------------------------- Assets Currents assets: Cash and cash equivalents $ 276 $ 292 Accounts receivable 6,875 7,651 Prepaid expenses and deposits 616 569 Future tax assets 663 1,665 ---------------------------- 8,430 10,177 Fixed assets 18,584 19,551 Deferred charges 327 344 Future tax assets 7,011 6,174 ---------------------------- $ 34,352 $ 36,246 ---------------------------- ---------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities 5,132 6,358 Revolving credit facility 11,449 3,803 Shareholders' equity 17,771 26,085 ---------------------------- $ 34,352 $ 36,246 ---------------------------- ---------------------------- Score Media Inc. Consolidated Statements of Operations and Retained Earnings (in thousands of dollars, except per share amounts) (unaudited) ------------------------------------------------------------------------- Three Three Twelve Twelve months ended months ended months ended months ended August 31, August 31, August 31, August 31, 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue $ 8,909 $ 8,524 $ 38,884 $ 36,383 Production and other direct expenses 3,734 3,063 15,596 14,798 Selling, general and administration 3,540 3,517 14,190 11,512 Program rights 958 379 5,344 4,177 ------------------------------------------------------------------------- 8,232 6,959 35,130 30,487 ------------------------------------------------------------------------- Income before undernoted 677 1,565 3,754 5,896 Interest expense, net 162 48 423 72 Depreciation 1,122 893 4,386 2,853 Amortization 44 37 188 133 Loss on disposal of fixed assets 10 - 49 - Restructuring charges - - - 967 Gain on sale of investments - (135) - (597) ------------------------------------------------------------------------- Income (loss) before income taxes (661) 722 (1,292) 2,468 Future income tax expense (recovery) 16 (438) 165 442 ------------------------------------------------------------------------- Net income (loss) for the period $ (677) $ 1,160 $ (1,457) $ 2,026 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income (loss) per share - basic and diluted $ (0.01) $ 0.01 $ (0.02) $ 0.02 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of Class A Subordinate Voting and Special Voting Shares Outstanding: -Basic 81,146,781 98,409,023 91,504,735 98,137,287 -Diluted 81,146,781 98,824,760 91,504,735 99,017,523 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Score Media Inc. Consolidated Statements of Cash Flows (in thousands of dollars, except per share amounts) (unaudited) ------------------------------------------------------------------------- Three Three Twelve Twelve months ended months ended months ended months ended August 31, August 31, August 31, August 31, 2009 2008 2009 2008 ------------------------------------------------------------------------- Cash provided by (used in): Operations: Net income (loss) for the period $ (677) $ 1,160 $ (1,457) $ 2,026 Items not involving cash: Depreciation 1,122 893 4,386 2,853 Amortization 44 37 188 133 Loss on disposal of fixed assets 10 - 49 - Non-cash compensation expense 231 271 429 496 Gain on sale of investments - (135) - (597) Future income tax expenses 16 (438) 165 442 Change in non-cash operating working capital: Accounts receivable 1,232 1,088 776 (1,009) Prepaid expenses and deposits 113 (103) (47) 284 Accounts payable and accrued liabilities (343) 310 940 1,245 ------------------------------------------------------------------------- 1,748 3,083 5,429 5,873 ------------------------------------------------------------------------- Financing: Draw from (repayment of) credit facility (1,049) 92 7,646 (5,447) Repurchase of Class A subordinate voting shares - - (7,271) - Issuance of common shares - 7 13 233 ------------------------------------------------------------------------- (1,049) 99 1,437 (5,214) ------------------------------------------------------------------------- Investing: Additions to fixed assets (798) (3,869) (3,496) (14,370) Change in non-cash working capital related to fixed assets 165 256 (2,166) 1,987 Deferred charges (3) - (171) (145) Proceeds on sale of investments - 135 - 497 ------------------------------------------------------------------------- (636) (3,478) (5,833) (11,931) ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents 63 (296) (16) (11,272) Cash and cash equivalents, beginning of period 213 588 292 11,564 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 276 $ 292 $ 276 $ 292 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplemental Cash Flow information Interest paid $ 224 $ 45 $ 431 $ 232 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The following selected quarterly financial data of the Corporation relates to the eight quarters ended August 31, 2009. ------------------------------------------------------------------------- Income (loss) per share - Net income basic and Quarterly Results Revenue EBITDA (loss) diluted ------------------------------------------------------------------------- ($000's) ($000's) ($000's) ($) ------------------------------------------------------------------------- August 31, 2009 8,909 677 (677) (0.01) ------------------------------------------------------------------------- May 31, 2009 10,816 1,654 8 0.00 ------------------------------------------------------------------------- February 28, 2009 8,662 204 (1,026) (0.01) ------------------------------------------------------------------------- November 30, 2008 10,498 1,220 239 0.00 ------------------------------------------------------------------------- August 31, 2008 8,524 1,565 1,160 0.01 ------------------------------------------------------------------------- May 31, 2008 10,206 2,185 684 0.01 ------------------------------------------------------------------------- February 29, 2008 8,363 939 34 0.00 ------------------------------------------------------------------------- November 30, 2007 9,290 1,207 148 0.00 -------------------------------------------------------------------------
The Company's revenues have historically reflected a seasonality trend, with the third quarter (ending
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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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