theScore, Inc. Reports Fiscal 2014 Third Quarter Results

- Revenue grows 44% year-over-year as mobile sports company attracts record user numbers

TORONTO, July 24, 2014 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months and nine months ended May 31, 2014 in accordance with International Financial Reporting Standards ("IFRS").

(Photo: http://photos.prnewswire.com/prnh/20140116/TO803)

FISCAL 2014 Q3 OPERATIONAL HIGHLIGHTS

• Average monthly active users of theScore's mobile platforms reached 5.5 million in Q3 F2014, an increase of 33% compared to the same period in F2013.*
  
  
• Average monthly user sessions of theScore's mobile platforms reached more than 182 million in Q3 F2014, an increase of 38% compared to the same period in F2013.*
  
  
• Mobile advertising revenues for the three and nine months ended May 31, 2014 increased by 60% and 90%, respectively, compared to the same periods the previous year.
  
  
• In May, theScore closed its public offering and concurrent private placement of Class A Subordinate Voting Shares to raise aggregate gross proceeds of approximately $17,250,000.
  
  
• theScore was named an 'Official Honoree' in the category of 'Sports: Handheld Devices' in one of the digital world's most prestigious awards - The Webby Awards.
  
  
• theScore launched 'Feed' on its Android app - allowing users to create their own continuously updated stream of sports content, combining all the information on the leagues, teams and players the user is following in a single view.
  
  
• theScore.com was redesigned, making it fully responsive and providing a great viewing experience for sports fans across a wide range of devices and screens, combined with all the news and data fans have come to expect from its flagship mobile app.
  
  
• theScore significantly enhanced its soccer coverage on its iOS and Android apps, offering news, scores and stats from all major English domestic league and cup competitions as well as those in Spain, Italy, Germany, France, Mexico, MLS and the UEFA Europa League and World Cup.

"We set new records for sports fans using theScore on their mobile devices during what proved to be a very strong Q3," said John Levy, Chairman and CEO of theScore. "Our round of financing has equipped us to continue improving our already outstanding mobile-first sports experience while also expanding our marketing efforts. Q4 is off to a great start thanks to our great World Cup coverage, and we're excited about what we'll achieve during the remainder of F2014."

FISCAL 2014 Q3 FINANCIAL RESULTS

Revenue for the three months ended May 31, 2014 was $2.0 million compared to $1.4 million for the same period the previous year, an increase of 44%. Revenue for the nine months ended May 31, 2014 was $6.0 million compared to $4.0 million for the same period the previous year, an increase of 51%.

EBITDA loss for the three months ended May 31, 2014 was $2.1 million compared to a loss of $2.4 million for the same period the previous year. EBITDA loss for the nine months ended May 31, 2014 was $5.1 million compared to a loss of $7.1 million in the same period the previous year. This was a result of increased revenues of $0.6 million and $2.1 million respectively, and increased operating expenses related mainly to increased headcount and marketing expenses, offset by Ontario Interactive Digital Media Tax Credit.

*User metrics from Q3 F2013 exclude theScore's secondary mobile sports application, SportsTap, which was retired September 30, 2013.

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About theScore Inc.
theScore creates mobile-first sports experiences, connecting fans to what they love through an addictive combination of real-time news, scores, fantasy information and alerts while creating and curating content that is mobile optimized, comprehensive, customizable and seamlessly shareable. theScore is available on iOS, Android, BlackBerry and Windows Phone devices.

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.

theScore, Inc.
Condensed Consolidated Interim Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)

			May 31, 2014		August 31, 2013
ASSETS
Current assets:
		Cash and cash equivalents	$	23,794	$	14,524
		Accounts receivable		2,098		1,621
		Other receivables		-		2,030
		Other assets		2,060		1,295
		Prepaid expenses and deposits		608		386
				28,560		19,856
Non-current assets:
		Property and equipment		2,203		2,313
		Intangible assets		5,202		6,523
		Investment		760		760
		Other assets		4,619		1,782
				12,784		11,378
Total assets			$	41,344	$	31,234
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
		Accounts payable and accrued liabilities	$	2,735	$	2,380
Non-current liabilities:
		Deferred lease obligation		508		495
Shareholders' equity				38,101		28,359
Commitments and contingencies
Total liabilities and shareholders' equity			$	41,344	$	31,234

theScore, Inc.
Condensed Consolidated Interim Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share amounts)
(unaudited)

		Three months ended			Three months ended
		May 31, 2014			May 31, 2013
Revenue		$	1,972		$	1,368
Operating expenses:
	Personnel		2,311			1,914
	Content		316			298
	Technology		245			459
	Facilities, administrative and other		849			861
	Management fees		-			-
	Depreciation of property and equipment		132			95
	Amortization of intangible assets		499			687
	Share of loss of equity accounted for investee		-			-
			4,741			4,513
	Operating loss		(2,769)			(3,145)
	Finance costs (income)		(13)			(19)
Net and comprehensive loss		$	(2,756)		$	(3,126)
Loss per share - basic and diluted		$	(0.01)		$	(0.03)

theScore, Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)

		Three months ended			Three months ended
		May 31, 2014			May 31, 2013
Cash flows used in operating activities
Net and comprehensive loss		$	(6,753)		$	(9,237)
Adjustments for:
	Depreciation and amortization		1,717			2,064
	Share of loss of equity accounted investee		-			33
	Share-based compensation		319			119
	Investment loss		-			111
	Contributions by Former Parent and Remaining Group		-			104
			(4,717)			(6,806)
Change in non-cash operating working capital:
	Accounts receivable		(477)			(329)
	Other receivables		230			(230)
	Other assets		(2,150)			-
	Prepaid expenses and deposits		(222)			(96)
	Accounts payable and accrued liabilities		355			469
	Deferred lease obligation		13			440
			(2,251)			254
Net cash used in operating activities			(6,968)			(6,552)
Cash flows from financing activities
	Exercise of stock options		12			-
	Funding provided from Arrangement		1,800			9,794
	Issuance of shares, net of transaction costs		16,164			15,876
	Due to Remaining Group		-			531
	Due to Former Parent		-			1,624
Net cash from financing activities			17,976			27,825
Cash flows used in investing activities
	Additions of property and equipment		(280)			(1,773)
	Additions of intangible assets		(1,458)			(1,916)
Net cash used in investing activities			(1,738)			(3,689)
Cash, beginning of period			14,524			-
Cash, end of period		$	23,794		$	17,584

The following tables reconcile net and comprehensive loss to EBITDA

		Three months ended			Three months ended
		May 31, 2014			May 31, 2013
Net and comprehensive loss		$	(2,756)		$	(3,126)
Adjustments for:
	Depreciation and amortization		631			782
	Finance costs (income)		(13)			(19)
EBITDA			(2,138)			(2,363)

  

 

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]