Score Media Reports Strong Q1 Revenue Growth
Broadcast segment generates record revenue and EBITDA
Digital Media segment posts first $1 million revenue quarter
TORONTO, Jan. 9, 2012 /CNW/ - Score Media Inc. (TSX: SCR) today announced its financial results for the first quarter ended November 30, 2011 in accordance with the newly adopted International Financial Reporting Standards ("IFRS"). For the first time, Score Media is also reporting its results in two core operating segments: Broadcast and Digital Media.
- Revenue for the three months ended November 30, 2011 increased by $1.6 million or 14% to $13.4 million compared to $11.8 million in the three months ended November 30, 2010
- Broadcast revenues for the three months ended November 30, 2011 increased by $1.5 million or 14% to $12.4 million compared to $10.9 million in the three months ended November 30, 2010
- Digital Media revenues for the three months ended November 30, 2011 increased by $0.1 million or 16% to $1.0 million compared to $0.9 million in the three months ended November 30, 2010
- EBITDA for the three months ended November 30, 2011 was $1.9 million compared to $2.7 million in the previous year, a decrease of $0.8 million, primarily as a result of a planned increase in expenditures on personnel and technology to support the significant growth in the audience of the Company's digital media platforms
- Broadcast EBITDA for the three months ended November 30, 2011 increased by $0.4 million to $4.9 million compared to $4.5 million in the three months ended November 30, 2010
- Digital Media EBITDA loss for the three months ended November 30, 2011 increased by $0.8 million to $1.1 million compared to a $0.3 million EBITDA loss in the three months ended November 30, 2010
"Q1 was an excellent quarter for Score Media," said John Levy, Chairman & CEO, Score Media Inc. "Our Broadcast business delivered strong growth in revenue and EBITDA, and our Digital Media segment generated record revenues and audience growth. We plan to continue to strategically invest in our Digital Media business to capitalize on the strong position we have established in the mobile sports market, while continuing to grow our Broadcast business."
- The Company's digital media assets recorded record audience growth in Q1/12:
- ScoreMobile applications averaged 3.3 million unique users per month in Q1/12, growing by more than 1 million unique users per month, or over 60%, from Q1/11
- theScore.com averaged 1.2 million unique users per month in Q1/12, an increase of 140% or 0.7 million unique users per month over Q1/11
- During the quarter, the Company announced the establishment of digital media sales offices in New York and Chicago and the appointment of Ethan Ross to the position of Vice President of Digital Sales. He will be responsible for the development and execution of Score Media's U.S. digital media sales strategy.
- In November 2011 the Company announced a complete redesign of the ScoreMobile App for iPhone and iPod touch that introduces new features such as a customizable scoreboard to track any team or player from any league, the ability to follow your favorite teams and fantasy players in real-time, customizable feeds, detailed profiles of over 15,000 players and 800 teams, integration with iOS 5's Notification Center feature, and one-tap social sharing.
- In September 2011, the Company announced that hockey pro turned writer, Justin Bourne, formally joined theScore. Son of Bob Bourne - winner of 4 Stanley Cups with the Islanders in the 80's - Justin brings a great combination of player insight, irreverence and humour to theScore's new hockey blog, Backhand Shelf. A frequent contributor to Yahoo!'s Puck Daddy Blog, USA Today and The Hockey News, he is one the select few high-level athletes who has made a successful transition to sports writing.
- The Company, in partnership with Gillette, announced in November 2011 that Jackie Redmond has been crowned the winner of Gillette DRAFTED 3: The Search for Canada's Next Sportscaster. A former radio personality, Jackie is now theScore's newest sportscaster, contributing to theScore Television Network, ScoreMobile and theScore.com and the newest member of the Gillette spokesperson family.
Score Media's Annual General Meeting will be held on Monday, January 9th at 11:00 a.m. A live webcast will be available at www.scoremedia.com.
About Score Media Inc.
Score Media is a media company committed to delivering interactive and authentic sports entertainment. Score Media's primary asset, theScore Television Network ("theScore"), is a national specialty television service providing sports news, information, highlights and live event programming across Canada. The Company's digital media assets include theScore.com and the industry leading mobile sports applications ScoreMobile, ScoreMobile FC and SportsTap which reach over three million unique users per month. Growing from a team of 60 in 1997 to over 290 employees in fiscal 2012, Score Media is a revolutionizing interactive media company.
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 "believes", "plans", "expects" or "intends" and other 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. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
FIRST QUARTER RESULTS
The following tables reconcile net and comprehensive income to EBITDA:
| Three months ended | Three months ended | ||||
| November 30, 2011 | November 30, 2010 | ||||
| (000's) | (000's) | ||||
| Net and comprehensive income for the period | $ | 212 | $ | 856 | |
| Less: | |||||
| Share of profit of equity accounted investee | (12) | - | |||
| Add back: | |||||
| Depreciation and amortization | 841 | 975 | |||
| Finance costs | 208 | 123 | |||
| Income tax expense | 653 | 700 | |||
| EBITDA | $ | 1,902 | $ | 2,654 | |
Score Media Inc.
Condensed Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
| November 30, 2011 | August 31, 2011 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash | $ | 206 | $ | 398 | |
| Accounts and other receivable | 15,023 | 12,227 | |||
| Prepaid expenses and deposits | 1,433 | 1,510 | |||
| 16,662 | 14,135 | ||||
| Non-current assets: | |||||
| Fixed assets | 13,671 | 13,654 | |||
| Intangible assets | 7,029 | 6,553 | |||
| Investment in equity accounted investee | 974 | 936 | |||
| Deferred tax assets | 6,029 | 6,682 | |||
| 27,703 | 27,825 | ||||
| Total assets | $ | 44,365 | $ | 41,960 | |
| Liabilities and Shareholders' Equity | |||||
| Current liabilities: | |||||
| Accounts payable and accrued liabilities | 7,210 | 6,442 | |||
| Non-current liabilities: | |||||
| Provisions | 177 | - | |||
| Revolving credit facility | 14,258 | 12,979 | |||
| 14,435 | 12,979 | ||||
| Shareholders' equity | 22,720 | 22,539 | |||
| Total liabilities and shareholders' equity | $ | 44,365 | $ | 41,960 | |
See accompanying notes to unaudited condensed consolidated interim financial statements
Score Media Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars, except share and per share amounts)
(unaudited)
| Three months ended | |||||||
| November 30, 2011 | November 30, 2010 | ||||||
| Revenues | $ | 13,417 | $ | 11,793 | |||
| Operating costs | 11,515 | 9,139 | |||||
| EBITDA | 1,902 | 2,654 | |||||
| Finance costs | 208 | 123 | |||||
| Depreciation and amortization | 841 | 975 | |||||
| Share of profit of equity accounted investee | (12) | - | |||||
| Income before income taxes | 865 | 1,556 | |||||
| Income tax expense: | |||||||
| Current | - | - | |||||
| Deferred | 653 | 700 | |||||
| 653 | 700 | ||||||
| Net and comprehensive income for the period | $ | 212 | $ | 856 | |||
| Earnings per share - basic and diluted | $ | 0.00 | $ | 0.01 | |||
| Weighted average number of Class A Subordinate Voting and Special Voting Shares outstanding |
Basic |
|
81,666,882 |
81,505,332 |
|||
| Diluted | 83,178,605 | 83,152,274 | |||||
See accompanying notes to unaudited condensed consolidated interim financial statements
Score Media Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
| Three months ended | ||||||
| November 30, 2011 | November 30, 2010 | |||||
| Cash flows from operating activities | ||||||
| Net and comprehensive income | $ | 212 | $ | 856 | ||
| Adjustments for: | ||||||
| Depreciation and amortization | 841 | 975 | ||||
| Share-based compensation expense | 21 | 60 | ||||
| Share of profit of equity accounted for investee, net of tax | (12) | - | ||||
| Income tax expense | 653 | 700 | ||||
| Finance costs | 208 | 123 | ||||
| 1,923 | 2,714 | |||||
| Change in non-cash operating working capital: | ||||||
| Accounts and other receivable | (2,796) | (1,573) | ||||
| Prepaid expenses and deposits | 198 | (87) | ||||
| Accounts payable and accrued liabilities | 768 | 1,189 | ||||
| (1,830) | (471) | |||||
| Net cash from operating activities | 93 | 2,243 | ||||
| Cash flows from investing activities | ||||||
| Additions to fixed assets | (677) | (772) | ||||
| Acquisition of intangible assets | (716) | (904) | ||||
| Acquisition of equity interest in NuLayer Inc. | - | (893) | ||||
| Net cash used in investing activities | (1,393) | (2,569) | ||||
| Cash flows from financing activities | ||||||
| Draws from credit facility | 15,198 | 12,706 | ||||
| Repayments of credit facility | (13,919) | (12,405) | ||||
| Interest paid, net | (182) | (99) | ||||
| Issuance of Class A subordinate voting shares | 11 | 110 | ||||
| Net cash from financing activities | 1,108 | 312 | ||||
| Net decrease in cash | (192) | (14) | ||||
| Cash, beginning of period | 398 | 184 | ||||
| Cash, end of period | $ | 206 | $ | 170 | ||
See accompanying notes to unaudited condensed consolidated interim financial statements
Segmented Information:
| Three months ended November 30, 2011 | ||||||||
| Broadcast | Digital Media | Corporate | Consolidated totals |
|||||
| Revenues | $ | 12,402 | $ | 1,015 | $ | - | $ | 13,417 |
| Operating costs | 7,483 | 2,159 | 1,873 | 11,515 | ||||
| EBITDA | 4,919 | (1,144) | (1,873) | 1,902 | ||||
| Finance costs | 208 | |||||||
| Depreciation and amortization | 841 | |||||||
| Share of profit of equity accounted investee | (12) | |||||||
| Income before income taxes | $ | 865 | ||||||
| Additions to fixed assets | $ | 585 | 90 | 2 | $ | 677 | ||
| Additions to intangible assets | $ | 43 | 668 | 5 | $ | 716 | ||
| Three months ended November 30, 2010 | ||||||||
| Broadcast | Digital Media | Corporate | Consolidated totals |
|||||
| Revenues | $ | 10,918 | $ | 875 | $ | - | $ | 11,793 |
| Operating costs | 6,432 | 1,196 | 1,511 | 9,139 | ||||
| EBITDA | 4,486 | (321) | (1,511) | 2,654 | ||||
| Finance costs | 123 | |||||||
| Depreciation and amortization | 975 | |||||||
| Share of profit of equity accounted investee | - | |||||||
| Income before income taxes | $ | 1,556 | ||||||
| Additions to fixed assets | $ | 726 | 46 | - | $ | 772 | ||
| Additions to intangible assets | $ | 26 | 854 | 24 | $ | 904 | ||
The following selected quarterly financial data of the Corporation relates to the eight quarters ended November 30, 2011.
| Quarterly Results | Accounting Basis |
Revenue | EBITDA | Net and comprehensive income (loss) |
Income per share - basic and diluted |
| ($000's) | ($000's) | ($000's) | ($) | ||
| November 30, 2011 | IFRS | 13,417 | 1,902 | 212 | 0.00 |
| August 31, 2011 | IFRS | 11,530 | 1,901 | (341) | 0.00 |
| May 31, 2011 | IFRS | 13,092 | 2,148 | 668 | 0.01 |
| February 28, 2011 | IFRS | 10,982 | 1,079 | 225 | 0.00 |
| November 30, 2010 | IFRS | 11,793 | 2,654 | 856 | 0.01 |
| August 31, 2010 | GAAP | 10,523 | 1,442 | 1,100 | 0.01 |
| May 31, 2010 | GAAP | 11,986 | 1,916 | 568 | 0.01 |
| February 28, 2010 | GAAP | 9,958 | 980 | (239) | 0.00 |
The Company's revenues have historically reflected a seasonality trend, with the third quarter (ending May 31st) being the strongest, followed by the first quarter (ending November 30th), the fourth quarter (ending August 31st), and finally the second quarter (ending February 28th). This seasonality reflects general trends for sports media advertising, which in turn reflects the schedules (particularly the playoffs) of the major sports leagues.
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Tom Hearne
Chief Financial Officer
Score Media Inc.
416-977-6787 x2206
[email protected]
Sharon Lassman
Director, Communications
Score Media Inc.
416-977-6787 x2217
[email protected]
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