theScore, Inc. Reports Fiscal 2013 Third Quarter Financial Results
TORONTO, July 25, 2013 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and nine months ended May 31, 2013 in accordance with International Financial Reporting Standards ("IFRS").
FISCAL 2013 Q3 OPERATIONAL HIGHLIGHTS
- Average monthly active users of theScore's mobile platforms reached 4.5 million in Q3 F2013 compared to 3.6 million in Q3 F2012, an increase of 25%.
- In May, 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 May, theScore recorded more than one million subscribers to Breaking News Alerts on iOS and Android devices.
"More sports fans than ever are using theScore," said John Levy, Chairman and CEO of theScore. "Accelerating user growth remains our top priority, and our recent private placement financing has allowed us to significantly bolster our product development and content teams. We can't wait to unveil our next game-changing features this fall."
LEADERSHIP TEAM APPOINTMENTS
Mr. Levy also announced the following changes to the Company's senior leadership team, which will take effect September 1, 2013:
Benjie Levy, currently Executive Vice President and Chief Operating Officer will be appointed President and Chief Operating Officer. Benjie will be responsible for the development and execution of theScore's business strategy and management of theScore's operations.
Jonathan Savage, currently Vice President, Product will be appointed Senior Vice President, Product. In this role, Jonathan will lead the design and development of theScore's products and services, and oversee theScore's product development, engineering, growth and analytics teams.
Ethan Ross, currently Vice President, US Sales, will be appointed Senior Vice President, Sales. Ethan will expand his responsibilities and assume responsibility for theScore's global advertising sales efforts, including sales, client services and ad operations.
Joe Ross, currently Director, Content will be appointed Vice President, Content. Joe will be responsible for the leadership of theScore's content strategy, overseeing theScore's editorial and original content teams.
FISCAL 2013 Q3 FINANCIAL RESULTS
Revenue for the three months ended May 31, 2013 was $1.37 million compared to $1.15 million in the same period the previous year, an increase of 19%. Revenue for the nine months ended May 31, 2013 was $3.97 million compared to $2.86 million for the same period the previous year, an increase of 39%.
EBITDA loss for the three months ended May 31, 2013 was $2.35 million compared to $2.07 million in the same period the previous year and $7.08 million for the nine months ended May 31, 2013 compared to $4.65 million for the same period 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 as well as the impact of the Ontario Interactive Digital Media Tax Credit, which reduced the comparative EBITDA loss by $1.48 million for the same nine-month period last year.
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About theScore Inc.
theScore is the ultimate, personalized mobile experience which serves a new generation of sports fans. By providing an insanely addictive combination of real-time engagement and shared experiences, theScore connects sports fans to what they love, dispensing real-time sports news, scores, fantasy information and alerts while creating and curating content which is compelling, relevant 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. Condensed Consolidated Interim Statements of Financial Position (in thousands of Canadian dollars) (unaudited) |
||||||||||
| May 31, 2013 | August 31, 2012 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 17,584 | $ | - | ||||||
| Accounts receivable | 1,453 | 1,124 | ||||||||
| Other receivables | 3,893 | 1,863 | ||||||||
| Due from Remaining Group | - | 80 | ||||||||
| Prepaid expenses and deposits | 238 | 142 | ||||||||
| 23,168 | 3,209 | |||||||||
| Non-current assets: | ||||||||||
| Property and equipment | 2,051 | 246 | ||||||||
| Intangible assets | 7,213 | 7,206 | ||||||||
| Investment | 760 | - | ||||||||
| Investment in equity accounted investee | - | 916 | ||||||||
| 10,024 | 8,368 | |||||||||
| Total assets | $ | 33,192 | $ | 11,577 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY/FUNDED DEFICIENCY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | $ | 2,268 | $ | 1,799 | ||||||
| Due to Former Parent | - | 23,574 | ||||||||
| Due to Remaining Group | - | 8,840 | ||||||||
| 2,268 | 34,213 | |||||||||
| Non-current liabilities: | ||||||||||
| Deferred lease obligation | 440 | - | ||||||||
| Funded deficiency | - | (22,636) | ||||||||
| Shareholders' equity | 30,484 | - | ||||||||
| Commitments and contingencies | ||||||||||
| Total liabilities and shareholders' equity/funded deficiency | $ | 33,192 | $ | 11,577 | ||||||
| See accompanying notes to Condensed Consolidated Interim Financial Statements | ||||||||||
| theScore, Inc. Condensed Consolidated Interim Statements of Comprehensive Loss (in thousands of Canadian dollars, except per share amounts) (unaudited) |
||||||||||||||||||
| Three | Three | Nine | Nine | |||||||||||||||
| months ended | months ended | months ended | months ended | |||||||||||||||
| May 31, 2013 | May 31, 2012 | May 31, 2013 | May 31, 2012 | |||||||||||||||
| Revenue | $ | 1,368 | $ | 1,145 | $ | 3,974 | $ | 2,861 | ||||||||||
| Operating expenses: | ||||||||||||||||||
| Personnel | 1,901 | 1,380 | 5,530 | 2,236 | ||||||||||||||
| Content | 256 | 625 | 1,035 | 1,729 | ||||||||||||||
| Technology | 530 | 683 | 1,901 | 1,762 | ||||||||||||||
| Facilities, administrative and other | 1,031 | 343 | 2,395 | 1,254 | ||||||||||||||
| Management fees | - | 167 | 48 | 497 | ||||||||||||||
| Depreciation of property and equipment | 94 | 24 | 151 | 67 | ||||||||||||||
| Amortization of intangible assets | 687 | 611 | 1,913 | 1,129 | ||||||||||||||
| Share of loss of equity accounted investee | - | 14 | 33 | 37 | ||||||||||||||
| Investment loss | - | - | 111 | - | ||||||||||||||
| 4,499 | 3,847 | 13,117 | 8,711 | |||||||||||||||
| Operating loss | (3,131) | (2,702) | (9,143) | (5,850) | ||||||||||||||
| Interest expense (income) | (5) | 171 | 94 | 419 | ||||||||||||||
| Net and comprehensive loss | $ | (3,126) | $ | (2,873) | $ | (9,237) | $ | (6,269) | ||||||||||
| Loss per share - basic and diluted | $ | (0.03) | $ | (0.03) | $ | (0.09) | $ | (0.07) | ||||||||||
| See accompanying notes to Condensed Consolidated Interim Financial Statements | ||||||||||||||||||
| theScore, Inc. Condensed Consolidated Interim Statements of Cash Flows (in thousands of Canadian dollars) (unaudited) |
||||||||||
| Nine months ended | Nine months ended | |||||||||
| May 31, 2013 | May 31, 2012 | |||||||||
| Cash flows from (used in) operating activities | ||||||||||
| Net and comprehensive loss | $ | (9,237) | $ | (6,269) | ||||||
| Adjustments for: | ||||||||||
| Depreciation and amortization | 2,064 | 1,196 | ||||||||
| Share of loss of equity accounted investee | 33 | 11 | ||||||||
| Share-based compensation | 119 | - | ||||||||
| Investment loss | 111 | - | ||||||||
| Contributions by Former Parent and Remaining Group | 104 | 699 | ||||||||
| (6,806) | (4,363) | |||||||||
| Change in non-cash operating working capital: | ||||||||||
| Accounts receivable | (329) | (87) | ||||||||
| Other receivable | (230) | (984) | ||||||||
| Prepaid expenses and deposits | (96) | (127) | ||||||||
| Accounts payable and accrued liabilities | 469 | 518 | ||||||||
| Deferred lease obligation | 440 | - | ||||||||
| 254 | (680) | |||||||||
| Net cash used in operating activities | (6,552) | (5,043) | ||||||||
| Cash flows from financing activities | ||||||||||
| Funding provided from Arrangement | 9,794 | - | ||||||||
| Issuance of shares on completion of private placement, | 15,876 | - | ||||||||
| net of transaction costs | ||||||||||
| Due to Remaining Group | 531 | 3,183 | ||||||||
| Due to Former Parent | 1,624 | 4,951 | ||||||||
| Net cash from financing activities | 27,825 | 8,134 | ||||||||
| Cash flows used in investing activities | ||||||||||
| Additions of property and equipment | (1,773) | (119) | ||||||||
| Additions of intangible assets | (1,916) | (2,972) | ||||||||
| Net cash used in investing activities | (3,689) | (3,091) | ||||||||
| Cash, beginning of period | - | - | ||||||||
| Cash, end of period | $ | 17,584 | $ | - | ||||||
| See accompanying notes to Condensed Consolidated Interim Financial Statements | ||||||||||
The following tables reconcile net and comprehensive income (loss) to EBITDA
| Three | Three | Nine | Nine | |||||||||||||||
| months ended | months ended | months ended | months ended | |||||||||||||||
| May 31, 2013 | May 31, 2012 | May 31, 2013 | May 31, 2012 | |||||||||||||||
| Net and comprehensive | ||||||||||||||||||
| loss for the period | $ | (3,126) | $ | (2,873) | $ | (9,237) | $ | (6,269) | ||||||||||
| Adjustments: | ||||||||||||||||||
| Depreciation and amortization | 781 | 635 | 2,064 | 1,196 | ||||||||||||||
| Interest expense (income) | (5) | 171 | 94 | 419 | ||||||||||||||
| EBITDA | $ | (2,350) | $ | (2,067) | $ | (7,079) | $ | (4,654) | ||||||||||
SOURCE theScore, Inc.
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