theScore, Inc. Reports Fiscal 2013 Fourth Quarter and Year End Financial Results
TORONTO, Oct. 24, 2013 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the fourth quarter and the year ended August 31, 2013 in accordance with International Financial Reporting Standards ("IFRS").
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FISCAL 2013 OPERATIONAL HIGHLIGHTS
- Average monthly active users of theScore's mobile platforms reached 4 million across F2013, an increase of 15% compared to 3.5 million average monthly mobile active users in F2012
- In August 2013, theScore announced a major update to its iOS app, transforming its news offering to provide a truly mobile-first, comprehensive, curated and real-time experience for sports fans.
- theScore assembled a mobile-first newsroom, powered by an in-house, custom-designed Content Management System (CMS) that allows journalists to deliver mobile news quicker than ever.
- In May 2013, theScore announced the closing of a $16 million private placement financing, allowing the Company to accelerate the development and marketing of its mobile sports apps.
- In January 2013, theScore re-launched its popular app for Android based on the functionality of theScore's critically acclaimed iOS app, including a completely re-designed interface.
- In October 2012, theScore closed a plan of arrangement, pursuant to which Rogers Media Inc. acquired the television business of Score Media Inc., and the digital media business of Score Media was spun out to its shareholders
"This has been a great inaugural year for theScore as an independent mobile sports company," said John Levy, Chairman and CEO. "We've recorded record user numbers and delivered the biggest app update in our history, giving millions of sports fans a uniquely mobile-first experience. We now look forward to building on this success during F2014 and continuing the phenomenal growth of our user base by offering fans the best-in-class mobile sports experience they deserve."
FISCAL 2013 FINANCIAL RESULTS
Revenue for the year ending August 31, 2013 was $5.3 million, compared to $4.2 million the previous year, an increase of 26%. Revenue for the three months ended August 31, 2013 was $1.3 million, no change from the same period the previous year.
EBITDA loss for the year ending August 31, 2013 was $8.3 million compared to $6.5 million the previous year. This difference was primarily as a result of an increased investment in personnel related to the development of theScore's mobile apps. EBITDA loss for the three months ended August 31, 2013 was $1.2 million compared to a loss of $1.9 million in the same period the previous year. EBITDA loss for the three months and year ended August 31, 2013 was positively impacted by $1.0 million as a result of the Company's Ontario Interactive Digital Media Tax Credit accruals made in the quarter ended August 31, 2013.
STOCK OPTION GRANT
theScore today announced the grant of an aggregate of 5,145,000 options, including 2,440,000 options to directors and officers of the Company. Options were granted to the following directors and officers: Norwest Video Inc. (John Levy) (1,200,000 options); Benjamin Levy (600,000 options); Tom Hearne (400,000 options); Ralph Lean (40,000 options); John Albright (40,000 options); Mark Scholes (40,000 options); Lorry Schneider (40,000 options); William Thomson (40,000 options); and Mark Zega (40,000 options). Each option is exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.18, vests over three years and has a term of ten years. Each option is exercisable in accordance with the terms and conditions of the Company's stock option plan.
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 Listing Application 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.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
| August 31, 2013 | August 31, 2012 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 14,524 | $ | - | |
| Accounts receivable | 1,621 | 1,124 | |||
| Other receivables | 2,030 | - | |||
| Other assets | 1,295 | 1,863 | |||
| Due from Remaining Group | - | 80 | |||
| Prepaid expenses and deposits | 386 | 142 | |||
| 19,856 | 3,209 | ||||
| Non-current assets: | |||||
| Property and equipment | 2,313 | 246 | |||
| Intangible assets | 6,523 | 7,206 | |||
| Investment | 760 | - | |||
| Investment in equity accounted investee | - | 916 | |||
| Other assets | 1,782 | - | |||
| 11,378 | 8,368 | ||||
| Total assets | $ | 31,234 | $ | 11,577 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY/FUNDED DEFICIENCY | |||||
| Current liabilities: | |||||
| Accounts payable and accrued liabilities | $ | 2,380 | $ | 1,799 | |
| Due to Former Parent | - | 23,574 | |||
| Due to Remaining Group | - | 8,840 | |||
| 2,380 | 34,213 | ||||
| Non-current liabilities: | |||||
| Deferred lease obligation | 495 | - | |||
| Funded deficiency | - | (22,636) | |||
| Shareholders' equity | 28,359 | - | |||
| Commitments and contingencies | |||||
| Total liabilities and shareholders' equity/funded deficiency | $ | 31,234 | $ | 11,577 | |
See accompanying notes to Consolidated Financial Statements
theScore, Inc.
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars, except per share amounts)
(unaudited)
| Three | Three | Year ended | Year ended | ||||||
| months ended | months ended | August 31, | August 31, | ||||||
| August 31, 2013 | August 31, 2012 | 2013 | 2012 | ||||||
| Cash flows from (used in) operating activities: | |||||||||
| Net and comprehensive loss | $ | (2,158) | $ | (2,837) | $ | (11,395) | $ | (9,106) | |
| Adjustments for: | |||||||||
| Depreciation and amortization | 1003 | 697 | 3,067 | 1,893 | |||||
| Share of loss of equity accounted investee | - | 9 | 33 | 20 | |||||
| Share-based compensation | 34 | - | 153 | - | |||||
| Investment loss | - | - | 111 | - | |||||
| Contributions by Former Parent and | |||||||||
| Remaining Group | - | 398 | 104 | 1,097 | |||||
| Change in non-cash operating working capital: | |||||||||
| Accounts receivable | (168) | 201 | (497) | 114 | |||||
| Other receivables | - | - | (230) | - | |||||
| Other assets | (979) | - | (979) | (984) | |||||
| Prepaid expenses and deposits | (148) | 22 | (244) | (105) | |||||
| Accounts payable and accrued liabilities | 112 | 149 | 581 | 667 | |||||
| Deferred lease obligation | 55 | - | 495 | - | |||||
| Net cash from (used in) operating activities | (2,249) | (1,361) | (8,801) | (6,404) | |||||
| Cash flows from financing activities: | |||||||||
| Funding provided from Arrangement | - | - | 9,794 | - | |||||
| Issuance of shares on completion of private placement, net of transaction costs | - | - | 15,874 | - | |||||
| Due to Remaining Group | - | 1,199 | 531 | 4,382 | |||||
| Due to Former Parent | - | 1,477 | 1,624 | 6,428 | |||||
| Net cash from financing activities | - | 2,676 | 27,823 | 10,810 | |||||
| Cash flows used in investing activities: | |||||||||
| Additions to property and equipment | (391) | (7) | (2,162) | (126) | |||||
| Additions of intangible assets | (420) | (1,308) | (2,336) | (4,280) | |||||
| Net cash used in investing activities | (811) | (1,315) | (4,498) | (4,406) | |||||
| Cash and cash equivalents, beginning of period | 17,584 | - | - | - | |||||
| Cash and cash equivalents, end of period | $ | 14,524 | $ | - | $ | 14,524 | $ | - | |
See accompanying notes to Consolidated Financial Statements
theScore, Inc.
Consolidated Statements of Comprehensive Loss
(in thousands of Canadian dollars)
(unaudited)
| Three | Three | Year ended | Year ended | ||||||
| months ended | months ended | August 31, | August 31, | ||||||
| August 31, 2013 | August 31, 2012 | 2013 | 2012 | ||||||
| Revenue | $ | 1,285 | $ | 1,334 | $ | 5,269 | $ | 4,195 | |
| Operating expenses: | |||||||||
| Personnel | 913 | 1,356 | 6,443 | 3,592 | |||||
| Content | 212 | 281 | 1,247 | 2,010 | |||||
| Technology | 445 | 963 | 2,346 | 2,725 | |||||
| Facilities, administrative and other | 909 | 367 | 3,314 | 1,621 | |||||
| Management fees | - | 216 | 48 | 713 | |||||
| Depreciation of property and equipment | 128 | 25 | 279 | 92 | |||||
| Amortization of intangible assets | 875 | 672 | 2,788 | 1,801 | |||||
| Share of loss of equity accounted investee | - | 4 | 33 | 41 | |||||
| Investment loss | - | - | 111 | - | |||||
| 3,482 | 3,884 | 16,609 | 12,595 | ||||||
| Operating loss | (2,197) | (2,550) | (11,340) | (8,400) | |||||
| Finance costs (income) | (41) | 287 | 55 | 706 | |||||
| Net and comprehensive loss | $ | (2,156) | $ | (2,837) | $ | (11,395) | $ | (9,106) | |
| Loss per share - basic and diluted | $ | (0.02) | $ | (0.03) | $ | (0.11) | $ | ||
See accompanying notes to Consolidated Financial Statements
The following tables reconcile net and comprehensive loss to EBITDA
| Three | Three | Year ended | Year ended | ||||||
| months ended | months ended | August 31, | August 31, | ||||||
| August 31, 2013 | August 31, 2012 | 2013 | 2012 | ||||||
| Net and comprehensive | |||||||||
| loss for the period | $ | (2,156) | $ | (2,837) | $ | (11,395) | $ | (9,106) | |
| Adjustments: | |||||||||
| Depreciation and amortization | 1,003 | 697 | 3,067 | 1,893 | |||||
| Finance costs (income) | (41) | 287 | 55 | 706 | |||||
| EBITDA | $ | (1,194) | $ | (1,853) | $ | (8,273) | $ | (6,507) | |
SOURCE theScore, Inc.
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