TORONTO, Jan. 12, 2017 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months ended November 30, 2016 in accordance with International Financial Reporting Standards ("IFRS").
Revenue for the quarter grew to $8.5 million compared to $7.0 million in the same period the previous year. Revenue growth was powered by theScore's Canadian and US direct sales teams, as well as growth in engagement within theScore's mobile apps.
EBITDA loss for the three months ended November 30, 2016 was $0.4 million versus $2.3 million in Q1 F2016. A combination of an increase in revenue plus savings in expenses led to direct improvements in the Company's profitability. Net and comprehensive loss for the three months ended November 30, 2016 was $0.8 million compared to $3.1 million in the same period the previous year.
Average monthly sessions of theScore's mobile apps reached 459 million compared to 414 million for the same period the previous year, with users opening our apps an average of 98 times a month each, a new quarterly record. Average monthly active users of theScore's mobile apps were 4.7 million versus 4.8 million in Q1 F2016.
"We again saw record levels of engagement across our mobile apps and also recorded our best ever quarter in terms of EBITDA," said John Levy, Founder and CEO of theScore. "Our proficiency in driving engagement and revenue from our existing user base means we will be able to consistently improve profitability.
"Our priority now is focusing on audience growth, something we've been actively working on through an exciting new feature roadmap for our flagship app, while continuing to explore opportunities and strengthen our early foothold in new and exciting areas with high growth potential, like bots and esports."
theScore will be hosting a conference call at 8:30am EST on Thursday, January 12. Management will review the Company's Q1 F2017 results, followed by a question and answer session.
Conference Call Dial-In Numbers
Toronto: (+1) 416 764 8688
Toll Free North America: (+1) 888 390 0546
Instant Replay
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888 390 0541
Playback Passcode: 943037 #
The conference call will also be webcast live here.
theScore will also be hosting its Annual General Meeting at 11:00am EST on Thursday, January 12 at the Company's Toronto office at: 500 King Street West, Fourth Floor, Toronto, Ontario, M5V 1L9.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About theScore Inc.
theScore, Inc. is an independent creator of mobile-first sports experiences, connecting fans to the sports content they love through an addictive combination of comprehensive and personalized real-time news, scores, stats, alerts and videos via emerging and established digital media platforms, including its mobile sports applications theScore and theScore esports, its web platforms theScore.com and thescoreesports.com and theScore Bot for Facebook Messenger and Kik Messenger.
Non-IFRS Financial Measures
In addition to disclosing results in accordance with IFRS as issued by the International Accounting Standards Board ("IASB"), theScore also provides supplementary non-IFRS financial measures as a method of evaluating the Company's performance. theScore utilizes earnings before interest, taxes, depreciation and amortization ("EBITDA") to measure operating performance. theScore's definition of EBITDA excludes depreciation and amortization, finance income, income taxes, and acquisition costs which in theScore's view do not adequately reflect its core operating results. EBITDA is used in the determination of short-term incentive compensation for all senior management personnel. EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability. EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies.
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, |
August 31, |
|||||
| 2016 |
2016 |
|||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ |
11,693 |
$ |
15,554 |
||
| Accounts receivable |
7,685 |
5,326 |
||||
| Tax credits recoverable |
5,192 |
5,192 |
||||
| Prepaid expenses and deposits |
922 |
1,008 |
||||
| 25,492 |
27,080 |
|||||
| Non-current assets: |
||||||
| Property and equipment |
2,097 |
2,141 |
||||
| Intangible assets |
6,077 |
5,807 |
||||
| Investment |
760 |
760 |
||||
| Tax credits recoverable |
1,616 |
1,616 |
||||
| 10,550 |
10,324 |
|||||
| Total assets |
$ |
36,042 |
$ |
37,404 |
||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
| Current liabilities: |
||||||
| Accounts payable and accrued liabilities |
$ |
4,309 |
$ |
5,180 |
||
| Non-current liabilities: |
||||||
| Deferred lease obligation |
496 |
495 |
||||
| Shareholders' equity |
31,237 |
31,729 |
||||
| Commitments |
||||||
| Total liabilities and shareholders' equity |
$ |
36,042 |
$ |
37,404 |
||
| theScore, Inc. |
||||||
| Condensed Consolidated Interim Statements of Comprehensive Loss |
||||||
| Three months ended November 30, 2016 and 2015 |
||||||
| (in thousands of Canadian dollars, except per share amounts) |
||||||
| (unaudited) |
||||||
| Three months ended November 30, |
||||||
| 2016 |
2015 |
|||||
| Revenue |
$ |
8,548 |
$ |
7,003 |
||
| Operating expenses: |
||||||
| Personnel |
4,562 |
4,413 |
||||
| Content |
607 |
640 |
||||
| Technology |
650 |
594 |
||||
| Facilities, administrative and other |
1,518 |
1,532 |
||||
| Marketing |
1,326 |
1,986 |
||||
| Depreciation of property and equipment |
117 |
149 |
||||
| Amortization of intangible assets |
469 |
614 |
||||
| Stock based compensation |
240 |
182 |
||||
| 9,489 |
10,110 |
|||||
| Operating loss |
(941) |
(3,107) |
||||
| Finance income |
(188) |
(48) |
||||
| Net and comprehensive loss |
$ |
(753) |
$ |
(3,059) |
||
| Loss per share - basic and diluted |
$ |
(0.00) |
$ |
(0.01) |
||
| theScore, Inc. |
||||||
| Condensed Consolidated Interim Statements of Cash Flows |
||||||
| (in thousands of Canadian dollars) |
||||||
| (unaudited) |
||||||
| Three months ended November 30, |
||||||
| 2016 |
2015 |
|||||
| Cash flows used in operating activities |
||||||
| Net and comprehensive loss |
$ |
(753) |
$ |
(3,059) |
||
| Adjustments for: |
||||||
| Depreciation and amortization |
586 |
763 |
||||
| Stock based compensation |
240 |
182 |
||||
| 73 |
(2,114) |
|||||
| Change in non-cash operating assets and liabilities: |
||||||
| Accounts receivable |
(2,359) |
(3,111) |
||||
| Prepaid expenses and deposits |
86 |
(17) |
||||
| Accounts payable and accrued liabilities |
(871) |
(893) |
||||
| Deferred lease obligation |
1 |
(9) |
||||
| (3,143) |
(4,030) |
|||||
| Net cash used in operating activities |
(3,070) |
(6,144) |
||||
| Cash flows from financing activities |
||||||
| Exercise of stock options |
21 |
38 |
||||
| Net cash from financing activities |
21 |
38 |
||||
| Cash flows used in investing activities |
||||||
| Additions of property and equipment |
(73) |
(271) |
||||
| Additions of intangible assets |
(739) |
(635) |
||||
| Net cash used in investing activities |
(812) |
(906) |
||||
| Decrease in cash and cash equivalents |
(3,861) |
(7,012) |
||||
| Cash and cash equivalents, beginning of period |
15,554 |
31,841 |
||||
| Cash and cash equivalents, end of period |
$ |
11,693 |
$ |
24,829 |
||
| Three months ended November 30, |
||||||||
| 2016 |
2015 |
|||||||
| Net and comprehensive loss for the period |
$ |
(753) |
$ |
(3,059) |
||||
| Adjustments: |
||||||||
| Depreciation and amortization |
586 |
763 |
||||||
| Finance income |
(188) |
(48) |
||||||
| EBITDA loss |
$ |
(355) |
$ |
(2,344) |
||||
SOURCE theScore, Inc.
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