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.
