theScore, Inc. Reports Fiscal 2014 Second Quarter Results

Mobile sports company maintains strong revenue and user growth

TORONTO, April 7, 2014 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months and six months ended February 28, 2014 in accordance with International Financial Reporting Standards ("IFRS").

FISCAL 2014 Q2 OPERATIONAL HIGHLIGHTS

  • Average monthly active users of theScore's mobile platforms reached 5.0 million in Q2 F2014, an increase of 43% compared to the same period in F2013. *

  • Average monthly user sessions of theScore's mobile platforms reached more than 155 million in Q2 F2014, an increase of 84% compared to the same period in F2013. *

  • theScore launched 'Feed' on its iOS app - allowing users to create their own continuously updated stream of sports content, combining all the information on the leagues, teams and players the user is following in one place.

  • theScore for Android was named as one of the "Best Apps of 2013" by Google Play and was updated with full Player Alerts for NBA, NHL, MLB and NFL, as well as deeper soccer coverage.

  • theScore for iOS and Android delivered mobile-first coverage of the Winter Olympic Games.

"During Q2 we introduced our newest feature to theScore with the launch of Feed," said John Levy, Chairman and CEO of theScore, Inc. "This unique flow of personalized data and information provides theScore fans with a completely new level of engagement as they follow their teams, players and stories in real-time from their mobile device."

FISCAL 2014 Q2 FINANCIAL RESULTS

Revenue for the three months ended February 28, 2014 was $1.9 million compared to $1.1 million for the same period the previous year, an increase of 73%. Revenue for the six months ended February 28, 2014 was $4.0 million compared to $2.6 million for the same period the previous year, an increase of 54%. Mobile advertising revenue for the three and six months ended February 28, 2014 increased by 143% and 112% respectively compared to the same periods in the previous year.

EBITDA loss for the three months ended February 28, 2014 was $0.7 million compared to a loss of $2.6 million for the same period the previous year. EBITDA loss for the six months ended February 28, 2014 was $3.0 million compared to a loss of $4.7 million for the same period the previous year. The reduction in EBITDA loss was primarily due to increased revenue and the Ontario Interactive Digital Media Tax Credit recognized in this period.

______________________________
*User metrics from Q1 and Q2 F2014 and Q1 and Q2 F2013 exclude theScore's secondary mobile sports application, SportsTap, which was retired September 30, 2013.

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About theScore Inc.
theScore creates mobile-first sports experiences, connecting fans to what they love through an addictive combination of real-time news, scores, fantasy information and alerts while creating and curating content that is mobile optimized, comprehensive, customizable and seamlessly shareable.

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 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, 2014     August 31, 2013
ASSETS                      
Current assets:                      
  Cash and cash equivalents             $ 10,517       $ 14,524
  Accounts receivable             1,632       1,621
  Other receivables             -       2,030
  Other assets             2,060       1,295
  Prepaid expenses and deposits             528       386
              14,737       19,856
Non-current assets:                      
  Property and equipment             2,303       2,313
  Intangible assets             5,302       6,523
  Investment             760       760
  Other assets             4,318       1,782
              12,683       11,378
                       
Total assets             $ 27,420       $ 31,234
                       
LIABILITIES AND SHAREHOLDERS' EQUITY                      
Current liabilities:                      
  Accounts payable and accrued liabilities             $ 2,340       $ 2,380
Non-current liabilities:                      
  Deferred lease obligation             504       495
                       
Shareholders' equity             24,576       28,359
                       
Commitments and contingencies                      
                       
Total liabilities and shareholders' equity             $ 27,420       $ 31,234
                       
                       

theScore, Inc.                        
Condensed Consolidated Interim Statements of Comprehensive Loss                        
(in thousands of Canadian dollars, except per share amounts)                        
(unaudited)                        
                         
    Three months ended February 28,     Six months ended February 28,
      2014     2013     2014     2013
                         
Revenue   $ 1,914   $ 1,110   $ 4,044   $ 2,616
                         
Operating expenses:                        
  Personnel, net     653     1,943     2,865     3,658
  Content     276     530     600     946
  Technology     309     559     550     1,231
  Facilities, administrative and other     912     499     1,867     1,188
  Marketing     453     57     1,133     132
  Management fees                 48
  Depreciation of property and equipment     130     33     258     56
  Amortization of intangible assets, net     157     627     827     1,228
  Share of loss of equity accounted for investee         31         33
  Investment loss         111         111
      2,890     4,390     8,100     8,631
                         
Operating loss     (976)     (3,280)     (4,056)     (6,015)
                           
Finance costs (income), net     (26)         (59)     99
                         
Net and comprehensive loss   $ (950)   $ (3,280)   $ (3,997)   $ (6,114)
                         
Loss per share - basic and diluted   $ (0.00)   $ (0.03)   $ (0.02)   $ (0.06)
                         

theScore, Inc.                              
Condensed Consolidated Statements of Cash Flows                              
(in thousands of Canadian dollars)                              
(unaudited)                              
                               
                      Six months ended February 28,
                        2014     2013
                               
Cash flows from (used in) operating activities                              
  Net and comprehensive loss                     $ (3,997)   $ (6,114)
  Adjustments for:                              
    Depreciation and amortization                       1,085     1,284
    Share of loss of equity accounted investee                           33
    Share-based compensation                       209     60
    Investment loss                           111
    Contributions by Former Parent and Remaining Group                           107
                        (2,703)     (4,519)
  Change in non-cash operating working capital:                              
    Accounts receivable                       (11)     (627)
    Other receivables                       230    
    Other assets                       (1,986)    
    Prepaid expenses and deposits                       (142)     (149)
    Accounts payable and accrued liabilities                       (40)     631
    Deferred lease obligation                       9    
                        (1,940)     (145)
Net cash used in operating activities                       (4,643)     (4,664)
                               
Cash flows from financing activities                              
  Exercise of stock options                       5    
  Funding provided from Arrangement                       1,800     9,794
  Due to Remaining Group                           531
  Due to Former Parent                           1,624
Net cash from financing activities                       1,805     11,949
                               
Cash flows used in investing activities                              
  Additions of property and equipment                       (248)     (694)
  Additions of intangible assets                       (921)     (1,527)
Net cash used in investing activities                       (1,169)     (2,221)
                               
Cash, beginning of period                       14,524    
                               
Cash, end of period                     $ 10,517   $ 5,064
                               
                               

                                             
                                             
                    Three months ended February 28,     Six months ended February 28,
                        2014     2013       2014     2013
                                             
Net and comprehensive loss for the period                     $ (950)   $ (3,280)     $ (3,997)   $ (6,114)
                                             
Adjustments:                                            
  Depreciation and amortization                       287     660       1,085     1,284
  Finance costs (income)                       (26)           (59)     99
                                             
EBITDA loss                     $ (689)   $ (2,620)     $ (2,971)   $ (4,731)
                                             

 

 

 

 

SOURCE theScore, Inc.



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