- Mobile sports company grows quarterly revenue by 80% year-over-year
TORONTO, April 14, 2016 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and six months ended February 29, 2016 in accordance with International Financial Reporting Standards ("IFRS").
The Company posted quarterly revenue of $5.8 million compared to $3.2 million in the same period the previous year, an increase of 80%. Revenue for the six months ended February 29, 2016 was $12.8 million compared to $6.3 million for the same period the previous year, an increase of 104%.
Advertising revenue for the quarter grew to $5.8 million from $3.0 million, an increase of 95%. Advertising revenue for the six months ended February 29, 2016 was $12.8 million compared to $5.8 million for the same period the previous year, an increase of 122%.
Revenue growth was powered by theScore's US programmatic and Canadian direct sales businesses, driven in turn by strong user engagement within theScore's mobile apps.
Users of theScore's mobile applications* reached 4.4 million average monthly active users, an increase of 5% over the same period in F2015. Average monthly user sessions of theScore's mobile applications reached 335 million, up by 39% compared to the same period in F2015.
"We're monetizing our user base better than ever before," said John Levy, CEO and Founder of theScore. "The strong user engagement within our mobile apps, along with our proficiency in mobile ad-technology and the continued demand from brands to connect with fans on one of North America's leading sports apps has made for a very powerful combination.
"We're now looking ahead to a very busy summer for our flagship app, with major events including the Olympics, Euro 2016 and Copa America all taking place, while also building on the momentum created by the investment made in the product development and content teams of our newest offerings, theScore esports and QuickDraft."
Adjusted EBITDA loss for the three and six months ended February 29, 2016 was $3.2 million and $5.6 million compared to $1.9 million and $3.4 million in the same period the previous year. Net and comprehensive loss for the three and six months ended February 29, 2016 was $4.2 million and $7.3 million compared to $2.8 million and $4.9 million in the same period the previous year. This was primarily a result of increased personnel and marketing costs associated with theScore's esports and fantasy sports' businesses.
theScore will be hosting a conference call at 8:30am EST on Thursday, April 14. Management will review the Company's Q2 F2016 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
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The conference call will also be webcast live here.
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About theScore Inc.
theScore, Inc. is an independent creator of mobile-first sports experiences, connecting fans to what they love through an addictive combination of comprehensive and personalized real-time news, scores, stats and alerts via its mobile sports platforms theScore and theScore esports and fantasy sports contests via QuickDraft.
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, amortization and acquisition costs ("Adjusted EBITDA") to measure operating performance. theScore's definition of Adjusted 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. Adjusted EBITDA is used in the determination of short-term incentive compensation for all senior management personnel. The Company revised the non-GAAP measure in 2015 from EBITDA to adjusted EBITDA, as a result of the acquisition costs incurred related to Swoopt. Adjusted 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. Adjusted 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.
* User and user engagement metrics in the current and comparative periods excludes the following platforms no longer supported by theScore: (i) theScore app on BlackBerry 7, BlackBerry Playbook, Kindle Fire and Windows Phone 7; and (ii) theScore's legacy soccer application, ScoreMobile FC.
theScore, Inc. | |||||
Condensed Consolidated Interim Statements of Financial Position | |||||
(in thousands of Canadian dollars) | |||||
(unaudited) | |||||
February 29, | August 31, | ||||
2016 | 2015 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 22,766 | $ | 31,841 | |
Accounts receivable | 5,068 | 3,376 | |||
Tax credits recoverable | 5,192 | 4,777 | |||
Prepaid expenses and deposits | 967 | 842 | |||
33,993 | 40,836 | ||||
Non-current assets: | |||||
Property and equipment | 2,190 | 2,123 | |||
Intangible assets | 6,754 | 7,361 | |||
Investment | 760 | 760 | |||
Tax credits recoverable | 1,399 | 1,399 | |||
11,103 | 11,643 | ||||
Total assets | $ | 45,096 | $ | 52,479 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | $ | 3,832 | $ | 4,583 | |
Non-current liabilities: | |||||
Deferred lease obligation | 495 | 510 | |||
Shareholders' equity | 40,769 | 47,386 | |||
Commitments | |||||
Total liabilities and shareholders' equity | $ | 45,096 | $ | 52,479 | |
theScore, Inc. | |||||||||
Condensed Consolidated Interim Statements of Comprehensive Loss | |||||||||
Three and six months ended February 29, 2016 and February 28, 2015 | |||||||||
(in thousands of Canadian dollars, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three months ended | Six months ended | ||||||||
February 29, 2016 | February 28, 2015 | February 29, 2016 | February 28, 2015 | ||||||
Revenue | $ | 5,802 | $ | 3,219 | $ | 12,805 | $ | 6,265 | |
Operating expenses: | |||||||||
Personnel | 4,983 | 2,811 | 9,578 | 5,286 | |||||
Content | 524 | 373 | 1,164 | 607 | |||||
Technology | 514 | 530 | 1,108 | 938 | |||||
Facilities, administrative and other | 1,968 | 1,095 | 3,500 | 2,002 | |||||
Marketing | 1,061 | 334 | 3,047 | 852 | |||||
Depreciation of property and equipment | 158 | 138 | 307 | 264 | |||||
Amortization of intangible assets | 886 | 593 | 1,500 | 1,051 | |||||
Acquisition expenses | - | 397 | - | 397 | |||||
10,094 | 6,271 | 20,204 | 11,397 | ||||||
Operating loss | (4,292) | (3,052) | (7,399) | (5,132) | |||||
Finance income | (99) | (207) | (147) | (272) | |||||
Net and comprehensive loss | $ | (4,193) | $ | (2,845) | $ | (7,252) | $ | (4,860) | |
Loss per share - basic and diluted | $ | (0.01) | $ | (0.01) | $ | (0.02) | $ | (0.02) | |
theScore, Inc. | ||||||
Condensed Consolidated Interim Statements of Cash Flows | ||||||
(in thousands of Canadian dollars) | ||||||
(unaudited) | ||||||
Six months ended | ||||||
February 29, 2016 | February 28, 2015 | |||||
Cash flows used in operating activities | ||||||
Net and comprehensive loss | $ | (7,252) | $ | (4,860) | ||
Adjustments for: | ||||||
Depreciation and amortization | 1,807 | 1,315 | ||||
Share-based compensation (note 10) | 557 | 450 | ||||
Acquisition costs | - | 397 | ||||
(4,888) | (2,698) | |||||
Change in non-cash operating assets and liabilities: | ||||||
Accounts receivable | (1,692) | (1,988) | ||||
Tax credits recoverable | (159) | 1,380 | ||||
Prepaid expenses and deposits | (125) | (51) | ||||
Accounts payable and accrued liabilities | (751) | (366) | ||||
Deferred lease obligation | (15) | 8 | ||||
(2,742) | (1,017) | |||||
Net cash used in operating activities | (7,630) | (3,715) | ||||
Cash flows from financing activities | ||||||
Exercise of stock options | 78 | 30 | ||||
Net cash from financing activities | 78 | 30 | ||||
Cash flows used in investing activities | ||||||
Additions of property and equipment | (374) | (316) | ||||
Acquisition costs | - | (397) | ||||
Business acquisitions | - | (659) | ||||
Additions of intangible assets | (1,149) | (1,583) | ||||
Net cash used in investing activities | (1,523) | (2,955) | ||||
Decrease in cash and cash equivalents | (9,075) | (6,640) | ||||
Cash and cash equivalents, beginning of period | 31,841 | 21,363 | ||||
Cash and cash equivalents, end of period | $ | 22,766 | $ | 14,723 | ||
Three months ended | Six months ended | ||||||||||
February 29, 2016 | February 28, 2015 | February 29, 2016 | February 28, 2015 | ||||||||
Net and comprehensive loss for the period | $ | (4,193) | $ | (2,845) | $ | (7,252) | $ | (4,860) | |||
Adjustments: | |||||||||||
Depreciation and amortization | 1,044 | 731 | 1,807 | 1,315 | |||||||
Finance income | (99) | (207) | (147) | (272) | |||||||
Acquisition costs | - | 397 | - | 397 | |||||||
Adjusted EBITDA loss | $ | (3,248) | $ | (1,924) | $ | (5,592) | $ | (3,420) | |||
SOURCE theScore, Inc.
