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Press release from CNW Group

theScore, Inc. Reports Fiscal 2013 First Quarter Financial Results

Tuesday, January 29, 2013

theScore, Inc. Reports Fiscal 2013 First Quarter Financial Results07:00 EST Tuesday, January 29, 2013TORONTO, Jan. 29, 2013 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore" or the "Company") today announced the financial results for the three months ended November 30, 2012 in accordance with International Financial Reporting Standards ("IFRS"). FISCAL 2013 Q1 OPERATIONAL HIGHLIGHTSIn November 2012, theScore re-launched its popular app for iPad and iPad mini; the app is based on the design of theScore's critically acclaimed iPhone app, has been optimized for iOS 6 and offers users a fluid tablet experience including MyScore customization, fantasy tracking features and seamless social sharingAverage monthly active users on theScore's mobile platforms exceeded 3.75 million in Q1 F2013, with its flagship application for iPhone growing 73% over the comparable period in F2012theScore was ranked as a Top 10 Sports App in Nielsen's State of the Media: 2012 Year in Sports report, alongside apps from ESPN, Yahoo, MLB and the NBA.[1]Closed plan of arrangement on October 19, 2012, pursuant to which Rogers Media Inc. acquired the television business of Score Media Inc., and the digital media business of Score Media was spun out to its shareholders"We are off to a great start at theScore," said John Levy, Chairman and CEO, theScore, Inc. "We are very pleased with our users' response to our new iPad app.  Our entire team is energized and focused on executing our product roadmap and delivering our users a unique, mobile-first sports experience."FISCAL 2013 Q1 FINANCIAL RESULTSRevenue for the three months ended November 30, 2012 was $1.5 million compared to $1.0 million in the same period of the previous year, an increase of 50%.EBITDA loss for the three months ended November 30, 2012 was $2.1 million compared to $1.5 million in the same period in the previous year, primarily as a result of the increased investment in personnel, and associated facilities and infrastructure costs, related to the development of theScore's mobile sports platform.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.About theScore, Inc.theScore, Inc. creates, aggregates and distributes sports content via established and emergent digital media assets, including mobile sports applications and its website, theScore's mission is to create the ultimate digital service for sports fans across web and mobile platforms.Forward-looking (safe harbour) statementStatements 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 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.1 Source:  Nielsen State of the Media: 2012 Year in Sports.  Top 10 Sports Apps for 2012 by average monthly time spent per user.  January 22, 2013.theScore, Inc.Condensed Consolidated Interim Statements of Financial Position(in thousands of Canadian dollars)(unaudited)   November 30, 2012  August 31, 2012         Assets               Current assets:       Cash $8,099 $- Accounts receivable  2,419  1,124 Other receivables  3,663  1,863 Due from Remaining Group  -  80 Prepaid expenses and deposits  450  142     14,631  3,209         Non-current assets:       Equipment  444  246 Intangible assets  7,747  7,206 Investment in equity accounted investee  902  916     9,093  8,368          Total assets  $23,724 $11,577         Liabilities and Shareholders' Equity/Funded Deficiency               Current liabilities:       Accounts payable and accrued liabilities $2,829 $1,799 Due to Former Parent  -  23,574 Due to Remaining Group  -  8,840     2,829  34,213         Funded deficiency  -  (22,636)Shareholders' Equity  20,895            Commitments and contingencies                         Total liabilities and shareholders' equity/funded deficiency  $23,724 $11,577 theScore, Inc.      Condensed Consolidated Interim Statements of Comprehensive Loss   (in thousands of Canadian dollars)      (unaudited)                  Three months ended    November 30, 2012  November 30, 2011        Revenue  $1,506 $1,015        Operating costs       Personnel  1,715  713 Content  380  195 Technology  789  920 Facilities, administrative, and other  683  479 Management fees  48  194 Depreciation of equipment  24  20 Amortization of intangible assets  599  158    4,238  2,679        Operating loss  (2,732)  (1,664)        Finance costs  99  119Share of loss (profit) of equity accounted investee 2  (12)        Loss and comprehensive loss $(2,833) $(1,771)        Earnings per share - basic and diluted  $(0.03) $(0.02) theScore, Inc.      Reconciliation of Net and Comprehensive Income to EBITDA     Three months ended    November 30, 2012  November 30, 2011        Net and comprehensive loss for the period $  (2,833) $(1,771)        Adjustments:       Share of loss (profit) of equity accounted investee 2  (12) Finance costs  99  119 Depreciation and amortization  623  178        EBITDA loss  $(2,109) $(1,486)  SOURCE: theScore, Inc.For further information: Tom Hearne Chief Financial Officer theScore, Inc. 416-977-6787 x2206