theScore Achieves Record User Numbers, Ad Revenue Grows 73%

- Mobile sports company releases fiscal 2015 third quarter results

TORONTO, July 16 2015 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and nine months ended May 31, 2015 in accordance with International Financial Reporting Standards ("IFRS").

FISCAL 2015 Q3 USER METRICS AND REVENUE HIGHLIGHTS

• Average monthly active users of theScore's mobile platforms reached a record 10.5 million in Q3 F2015, comprised of 4.4 million mobile app users and 6.1 million mobile web users, an increase of 91% compared to the same period in F2014.
  
  
  • Average monthly active users of theScore's iOS and Android mobile apps increased by 18% compared to the same period in F2014.
    
    
  • Average monthly active users of theScore's mobile web platform increased 310% compared to the same period in F2014.
    
    
• Average monthly sessions of theScore's iOS and Android mobile apps reached 285 million in Q3 F2015, an increase of 79% compared to the same period in F2014.
  
  
• Achieved revenue of $3.2 million in Q3 F2015, an increase of 60% compared to the same period in F2014.
  
  
  • Advertising revenue for Q3 F2015 increased by 73% compared to the same period in F2014.

"Q3 broke new records and we've already surpassed the total revenue achieved in F2014 with a full quarter remaining," said John Levy, Founder and CEO of theScore.

"User engagement of our mobile apps continues to soar, with our session numbers proving that theScore is very much a part of sports fans' daily lives. Q3 also saw the continued roll-out of our eSports offering, reinforcing our reputation as the go-to mobile destination for eSports coverage.

"We're now looking ahead to the upcoming re-launch of Swoopt, the mobile-first daily fantasy sports game we acquired in Q2. Our product development team has been working extremely hard on delivering improvements and enhancements to gameplay that we're excited to introduce to our existing user base as well as fans of fantasy sports everywhere."

FISCAL 2015 Q3 OPERATIONAL HIGHLIGHTS

• theScore eSports was launched on iOS, giving fans of competitive gaming on iPhones an app for breaking news, live scores, stats, push alerts and links to streams from across the world of eSports.
  
  
  • theScore eSports further expanded its real-time coverage of competitive gaming by adding live scores and stats for the games Dota 2 and Counter-Strike: Global Offensive to its Android and iOS apps.
    
    
• theScore became one of the first apps to be available for the newly released Apple Watch, delivering real-time scores, stats and breaking news notifications on users' favorite leagues, teams and players right to their wrist.
  
  
• theScore closed a bought deal offering whereby it sold 39.56 million Units for gross proceeds of $26.5 million. The deal was led by Mackie Research Capital Corporation and the syndicate also involved Canaccord Genuity Corp. and Beacon Securities Ltd. The Levy Family and Relay Ventures also participated in the offering, with net proceeds from the Offering to be used to support the ongoing development of the Company's mobile sports apps and the expansion of sales and marketing efforts and for general corporate and working capital purposes.

Q3 F2015 FINANCIAL RESULTS

Revenue for the three months ended May 31, 2015 was $3.2 million compared to $2.0 million the previous year, an increase of 60%. Revenue for the nine months ended May 31, 2015 was $9.4 million compared to $6.0 million the previous year, an increase of 57%.

Adjusted EBITDA loss for the three month period was $3.2 million compared to $2.1 million in the same period in the prior year, an increase of $1.1 million. Adjusted EBITDA loss for the nine month period was $6.6 million compared to $5.1 million in the same period in the prior year, an increase of $1.5 million. Excluding the impact of a one time reduction of personnel costs of $1.7 million in Q2 of the prior year related to tax credits, year-over-year Adjusted year-over-year EBITDA loss decreased by $0.2 million for the nine month period ending May 31, 2015.

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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, alerts and daily fantasy sports contests via its mobile sports platforms 'theScore,' 'theScore eSports,' 'ScoreMobileFC' and  'Swoopt.'

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 and Short-form Prospectus 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)
			May 31,		August 31,
		2015		2014
ASSETS
Current assets:
	Cash and cash equivalents	$	36,341	$	21,363
	Accounts receivable		3,277		1,472
	Tax credits recoverable		-		2,060
	Prepaid expenses and deposits		775		559
			40,393		25,454
Non-current assets:
	Property and equipment		2,189		2,155
	Intangible assets		7,088		4,959
	Investment		760		760
	Tax credits recoverable		5,908		4,485
			15,945		12,359
Total assets		$	56,338	$	37,813
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities	$	3,979	$	3,052
Non-current liabilities:
	Deferred lease obligation		521		513
Shareholders' equity			51,838		34,248
Commitments and contingencies
Total liabilities and shareholders' equity		$	56,338	$	37,813

theScore, Inc.
Condensed Consolidated Interim Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share amounts)
(unaudited)
		Three months ended May 31,			Nine months ended May 31,
		2015		2014	2015		2014
Revenue		$ 3,161		$ 1,972	$ 9,426		$ 6,016
Operating expenses:
	Personnel	3,121		2,311	8,407		5,176
	Content	377		316	984		916
	Technology	531		245	1,469		794
	Facilities, administrative and other	1,385		849	3,387		2,716
	Marketing	975		389	1,827		1,522
	Depreciation of property and equipment	146		132	410		390
	Amortization of intangible assets	605		499	1,656		1,327
	Acquisition expenses	-		-	397		-
		7,140		4,741	18,537		12,841
Operating loss		(3,979)		(2,769)	(9,111)		(6,825)
Finance expense (income), net		8		(13)	(264)		(72)
Net and comprehensive loss		$ (3,987)		$ (2,756)	$ (8,847)		$ (6,753)
Loss per share - basic and diluted		$ (0.01)		$ (0.01)	$ (0.03)		$ (0.03)

theScore, Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
				Nine months ended May 31,
				2015		2014
Cash flows used in operating activities
	Net and comprehensive loss		$	(8,847)	$	(6,753)
	Adjustments for:
		Depreciation and amortization		2,066		1,717
		Share-based compensation		675		319
		Acquisition costs		397		-
				(5,709)		(4,717)
	Change in non-cash operating assets and liabilities:
		Accounts receivable		(1,733)		(477)
		Other receivables		-		230
		Tax credits recoverable		1,181		(2,150)
		Prepaid expenses and deposits		(216)		(222)
		Accounts payable and accrued liabilities		574		355
		Deferred lease obligation		8		13
				(186)		(2,251)
Net cash used in operating activities				(5,895)		(6,968)
Cash flows from financing activities
	Exercise of stock options			57		12
	Funding provided from Arrangement			-		1,800
	Issuance of shares, net of transaction costs			24,866		16,164
Net cash from financing activities				24,923		17,976
Cash flows used in investing activities
	Additions of property and equipment			(426)		(280)
	Acquisition costs			(397)		-
	Business Acquisition			(659)		-
	Additions of intangible assets			(2,568)		(1,458)
Net cash used in investing activities				(4,050)		(1,738)
Increase in cash and cash equivalents				14,978		9,270
Cash and cash equivalents, beginning of period				21,363		14,524
Cash and cash equivalents, end of period			$	36,341	$	23,794

			Three months ended May 31,					Nine months ended May 31,
				2015			2014		2015			2014
Net and comprehensive loss for the period			$	(3,987)		$	(2,756)	$	(8,847)		$	(6,753)
Adjustments:
	Depreciation and amortization			751			631		2,066			1,717
	Finance expense (income)			8			(13)		(264)			(72)
	Acquisition expenses			-			-		397			-
Adjusted EBITDA loss			$	(3,228)		$	(2,138)	$	(6,648)		$	(5,108)

SOURCE theScore, Inc.

James Bigg, Manager, Communications, theScore, Inc., Tel: [phone] ext. 2366, Email: [email protected]; Tom Hearne, Chief Financial Officer, theScore, Inc., Tel: [phone] ext. 2206, Email: [email protected]