theScore, Inc. Reports Fiscal 2014 First Quarter Results

Jan 16, 2014, 08:00 ET from theScore, Inc.

Mobile sports company achieves record quarterly revenue and user numbers

TORONTO, Jan. 16, 2014 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months ended November 30, 2013 in accordance with International Financial Reporting Standards ("IFRS").

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FISCAL 2014 Q1 OPERATIONAL HIGHLIGHTS

  • Average monthly active users of theScore's mobile platforms reached 4.8 million in Q1 F2014, an increase of 48% compared to the same period in F2013. *

  • Average monthly user sessions of theScore's mobile platforms reached more than 191 million in Q1 F2014, an increase of 142% compared to the same period in F2013. *

  • Released a fully optimized iOS 7 experience for theScore for iPhone and iPad, delivering even faster news, scores and stats along with a stylish new design.

  • theScore for Android was updated with Breaking News Alerts, Top News and a revamped news offering, as well as delivering full tablet support.

"We're off to a great start in 2014, with record quarterly revenue and a record number of sports fans using theScore to follow the leagues, teams and players they care about," said John Levy, Chairman and CEO. "Our unflinching mobile-first approach, comprehensive coverage and deep personalization features has made theScore a regular part of sports fans' daily lives, as our strong year-over-year growth in user sessions shows."

FISCAL 2014 Q1 FINANCIAL RESULTS

theScore achieved record quarterly revenue of $2.1 million for the three months ended November 30, 2013, compared to $1.5 million for the same period in F2013, an increase of 41%.

EBITDA loss for the three months ended November 30, 2013 was $2.3 million compared to a loss of $2.1 million in the same period the previous year. The increase in expenses was due to increased marketing and promotional efforts during the period, and increased corporate and personnel costs, offset by lower technology costs as a result of efficiencies in relation to hosting and content management systems.

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)        
           
     November 30, 2013 August 31, 2013
ASSETS        
Current assets:        
  Cash and cash equivalents    $ 12,966    $ 14,524
  Accounts receivable   1,923   1,621
  Other receivables   -   2,030
  Other assets   1,295   1,295
  Prepaid expenses and deposits   510   386
      16,694   19,856
Non-current assets:        
  Property and equipment   2,403   2,313
  Intangible assets   6,225   6,523
  Investment   760   760
  Other assets   2,032   1,782
      11,420   11,378
           
 Total assets     $ 28,114    $ 31,234
           
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
  Accounts payable and accrued liabilities    $ 2,222    $ 2,380
Non-current liabilities:        
  Deferred lease obligation   500   495
Shareholders' equity    25,392   28,359
           
Commitments and contingencies        
           
 Total liabilities and shareholders' equity     $ 28,114    $ 31,234
           
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 months ended Three months ended
    November 30, 2013 November 30, 2012
       
Revenue  $ 2,130  $ 1,506
       
Operating expenses:    
  Personnel 2,212 1,715
  Content 324 418
  Technology 241 672
  Facilities, administrative and other 1,637 762
  Management fees - 48
  Depreciation of property and equipment 128 24
  Amortization of intangible assets  670 599
  Share of loss of equity accounted for investee - 2
    5,212 4,240
       
  Operating loss (3,082) (2,734)
       
  Finance costs (income) (34) 99
       
Net and comprehensive loss  $ (3,048)  $ (2,833)
       
Loss per share - basic and diluted  $ (0.02)  $ (0.03)
       
See accompanying notes to condensed consolidated interim financial statements

 

theScore, Inc.    
Condensed Consolidated Interim Statements of Cash Flows    
(in thousands of Canadian dollars)    
(unaudited)    
         
      Three months ended Three months ended
      November 30, 2013 November 30, 2012
         
Cash flows used in operating activities    
  Net and comprehensive loss  $ (3,048)  $ (2,833)
  Adjustments for:    
    Depreciation and amortization 798 623
    Share of loss of equity accounted investee - (12)
    Share-based compensation 80 -
    Contributions by Former Parent and Remaining Group - 107
      (2,170) (2,115)
  Change in non-cash operating working capital:    
    Accounts receivable (302) (1,295)
    Other receivables 230 -
    Other assets (150) -
    Prepaid expenses and deposits (124) (308)
    Accounts payable and accrued liabilities (158) 1,030
    Deferred lease obligation 5 -
      (499) (573)
Net cash used in operating activities (2,669) (2,688)
         
Cash flows from financing activities    
  Funding provided from Arrangement 1,800 9,794
  Due to Remaining Group - 531
  Due to Former Parent - 1,624
Net cash from financing activities 1,800 11,949
         
Cash flows used in investing activities    
  Additions of property and equipment (218) (26)
  Additions of intangible assets (471) (1,136)
Net cash used in investing activities (689) (1,162)
         
Cash, beginning of period 14,524 -
         
Cash, end of period  $ 12,966  $ 8,099
         
         
See accompanying notes to condensed consolidated interim financial statements
         

The following tables reconcile net and comprehensive loss to EBITDA

           
      Three months ended   Three months ended
      November 30, 2013   November 30, 2012
           
Net and comprehensive loss  $ (3,048)    $ (2,833)
           
Adjustments:        
  Depreciation and amortization   798   623
  Finance costs (income)   (34)   99
EBITDA    $ (2,284)    $ (2,111)
           

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

 

 

 

 

 

SOURCE theScore, Inc.