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
%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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