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Press release from CNW Group

theScore, Inc. Reports Fiscal 2013 Second Quarter Financial Results

Tuesday, April 23, 2013

theScore, Inc. Reports Fiscal 2013 Second Quarter Financial Results

16:05 EDT Tuesday, April 23, 2013

TORONTO, April 23, 2013 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and six months ended February 28, 2013 in accordance with International Financial Reporting Standards ("IFRS").

FISCAL 2013 Q2 OPERATIONAL HIGHLIGHTS

  • In January, theScore's mobile platforms achieved a record 4.2 million monthly active users.
  • Average monthly active users of theScore's mobile platforms exceeded 3.9 million in Q2 F2013, while average monthly active users for its flagship application for iPhone grew by 63% over the comparable period in F2012.
  • In January, theScore re-launched its popular app for Android; the app was based on the design of theScore's critically acclaimed iPhone and iPad apps and included a completely re-designed interface with an emphasis on fantasy sports, to give users the ultimate mobile sports experience.
  • In February, theScore announced the re-design of its BlackBerry® app for the BlackBerry® 10 platform. It was built using BlackBerry® 10 development best practices and design patterns, giving it the clean look and the brand consistency of other mobile applications by theScore.

"We find ourselves at the start of an exciting new chapter in the history of theScore," said John Levy, Chairman and CEO, theScore, Inc. "We've just celebrated record mobile monthly active user numbers and also moved to a fantastic new office space, which perfectly fits our unique, creative and innovative company culture. theScore is now perfectly positioned to further capitalize on the industry-wide explosion in mobile advertising spending."

FISCAL 2013 Q2 FINANCIAL RESULTS

Revenue for the three months ended February 28, 2013 was $1.1 million compared to $700k in the same period the previous year, an increase of 57%. Revenue for the six months ended February 28, 2013 was $2.6 million compared to $1.7 million for the same period the previous year, an increase of 53%.

EBITDA loss for the three months ended February 28, 2013 was $2.6 million compared to $1.1 million in the same period the previous year, and $4.7 million for the six months ended February 28, 2013 compared to $2.6 million for the same period the previous year. This difference was primarily as a result of an increased investment in personnel related to the development of theScore's mobile apps as well as the impact of the Ontario Interactive Digital Media Tax Credit, which reduced EBITDA loss by $1.0 million and $1.5 million for the same three and six month period last year.

About theScore Inc.
theScore's mission is to provide a full digital service to sports fans, delivering a personalized user experience across all major mobile platforms through our mobile apps and website. Users are provided with a comprehensive, customizable service that dispenses real-time sports news, scores, fantasy information and alerts, alongside compelling, relevant content that allows for seamless social sharing by users. theScore also enables advertisers to engage with users across theScore's mobile and web platforms and offers them a combination of reach, relevance, and customizable advertising and sponsorship products.

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 Listing Application 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, 2013       August 31, 2012
                   
ASSETS                  
Current Assets:                  
  Cash        $      5,064     $          -
  Accounts receivable          1,751       1,124
  Other receivables          3,663       1,863
  Due from Remaining Group            -       80
  Prepaid expenses and deposits          291       142
          10,769       3,209
Non-current assets:                  
  Property and equipment          1,066       246
  Intangible assets          7,509       7,206
  Investment               760       -
  Investment in equity accounted investee           -       916
          9,335       8,368
                   
Total assets         $    20,104     $     11,577
                   
LIABILITIES AND SHAREHOLDERS' EQUITY/FUNDED DEFICIENCY                  
Current Liabilities:                  
  Accounts payable and accrued liabilities        $ 2,430     $      1,799
  Due to Former Parent           -       23,574
                     
  Due to Remaining Group         -       8,840
          2,430       34,213
                   
Funded deficiency          -       (22,636)
Shareholders' equity           17,674       -
                   
Commitments and contingencies                  
Subsequent Event                  
                     
Total liabilities and shareholders' equity/funded deficiency       $    20,104     $     11,577
                   
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       Three       Six       Six
          months ended       months ended       months ended       months ended 
          February 28, 2013       February 29, 2012       February 28, 2013       February 29, 2012
                                   
Revenue        $  1,110     $  701     $  2,616     $  1,716 
                                   
Operating expenses:                                  
  Personnel           1,943       101       3,658       856
  Content           424       656       804       1,104
  Technology           665       384       1,454       1,079
  Facilities, administrative and other           556       502       1,239        911
  Management fees           -       136       48       330
  Depreciation of equipment           33       23       56       43
  Amortization of intangible assets           627       360       1,228       518
  Share of loss of equity accounted investee          31       35        33       23
  Investment loss           111       -       111      
          4,390       2,197       8,631       4,864
                                   
Operating loss           (3,280)       (1,496)       (6,015)       (3,148)
                                   
Interest expense           -       129       99       248
                                   
Net and comprehensive loss        $  (3,280)     $  (1,625)     $  (6,114)     $  (3,396)
                                   
Earnings per share - basic and diluted        $    (0.03)     $   (0.02)     $   (0.06)     $   (0.04)
                                   
See accompanying notes to Condensed Consolidated Interim Financial Statements
 

theScore, Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
                       
              Six months ended       Six months ended
              February 28, 2013       February 29, 2012
                       
Cash flows from (used in) operating activities                      
Net and comprehensive loss            $      (6,114)     $ (3,396)
Adjustments for:                       
  Depreciation and amortization              1,284        561
  Share of loss of equity accounted investee                33        23
  Stock-based compensation               60        -
  Investment loss                111       -
  Contributions by Former Parent and Remaining Group              107       448
              (4,519)       (2,364)
Change in non-cash operating working capital:                       
  Accounts receivable                (627)       (877)
  Other receivable              -       (984)
  Prepaid expenses and deposits                (149)        (78)
  Accounts payable and accrued liabilities                   631       491
              (145)       (1,448)
Net cash used in operating activities             (4,664)        (3,812)
                       
Cash flows from financing activities                       
  Funding provided from Arrangement              9,794       -
  Due to Remaining Group                531        2,723
  Due to Former Parent                                        1,624        3,055
Net cash from financing activities              11,949       5,778
                       
Cash flows used in investing activities                       
  Additions of property and equipment               (694)            (94)
  Additions of intangible assets              (1,527)       (1,871)
Net cash used in investing activities                 (2,221)       (1,965)
                       
Cash, beginning of period               -       -
                       
Cash, end of period            $      5,064     $          -
                       
See accompanying notes to Condensed Consolidated Interim Financial Statements
 

The following tables reconcile net and comprehensive income (loss) to EBITDA

                                       
              Three       Three       Six       Six
              months ended       months ended       months ended       months ended
              February 28, 2013       February 29, 2012       February 28, 2013       February 29, 2012
Net and comprehensive                                      
loss for the period            $  (3,280)     $  (1,625)     $  (6,114)     $  (3,396)
                                       
Adjustments:                                      
  Depreciation and Amortization               660       383       1,284       561
  Interest expense               -       129       99       248
EBITDA                    $  (2,620)     $  (1,113)     $  (4,731)     $  (2,587)
                 

 

SOURCE: theScore, Inc.

For further information:

James Bigg
Manager, Communications
theScore, Inc.
Tel: 416.479.8812 ext. 2366
Email: james.bigg@thescore.com

Tom Hearne
Chief Financial Officer
theScore, Inc.
Tel: 416.560.0528
Email: tom.hearne@thescore.com

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