theScore Reports 9.2 Million Monthly Active Users and Record Revenue

- Mobile sports company releases fiscal 2014 fourth quarter and year-end results

TORONTO, Oct. 15, 2014 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months and year ended August 31, 2014 in accordance with International Financial Reporting Standards ("IFRS").

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

FISCAL 2014 Q4 OPERATIONAL HIGHLIGHTS

• Average monthly active users of theScore's mobile platforms reached a record 9.18 million in Q4 F2014, an increase of 151% compared to the same period in F2013.*
• Average monthly active users of theScore's mobile apps reached 4.04 million in Q4 F2014, an increase of 42% compared to the same period in F2013.
• Average monthly active users of theScore's mobile web platform reached 5.14 million in Q4 F2014, an increase of 527% compared to the same period in F2013.
• Average monthly sessions of theScore's mobile apps reached 151 million in Q4 F2014, an increase of 88% compared to the same period in F2013.*
• Mobile advertising revenue for Q4 increased by 68%, compared to the same period the previous year.

"2014 further strengthened theScore's position as a leader in mobile sports," said John Levy, Chairman and CEO of theScore. "We grew our mobile user base to exciting new levels, powered by the core foundations that run throughout our company - a best-in-class engineering team and an industry-leading mobile-first newsroom.

"Our mobile app user numbers go from strength-to-strength as sports fans devour our powerful mix of personalized, real-time scores, stats, news and alerts. On top of that, we also achieved explosive growth in our mobile web traffic as we began to harness its true potential through our re-launched, responsive website and a newly assembled, full-time social media team. This served as another way to introduce theScore brand to millions of new sports fans all over the world."

FISCAL 2014 OPERATIONAL HIGHLIGHTS

• 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. Proceeds were used to support development of the Company's flagship mobile sports app 'theScore' and the expansion of sales and marketing efforts.
• theScore launched 'Feed' on its iOS and Android apps - 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 one place.
• theScore worked with a number of globally recognized brands, including PUMA, Nike, Reebok, VW, NBC, HBO, Universal and Pepsi, to deliver customized, highly-engaging, mobile-first advertising and sponsorship campaigns.
• theScore.com was re-launched, 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 for Android was named as one of the "Best Apps of 2013" by Google Play and was updated with full Player Alerts for NBA, NHL, MLB and NFL.
• 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 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.

FISCAL 2014 FINANCIAL RESULTS

Revenue for the year ended August 31, 2014 was $7.8 million, compared to $5.3 million the previous year, an increase of 47%. Revenue for the three months ended August 31, 2014 was $1.8 million compared to $1.3 million the previous year, an increase of 39%. Mobile advertising revenue for the year ended August 31, 2014 increased by 84% compared to the same period the previous year.

EBITDA loss for the year ending August 31, 2014 was $8.4 million compared to $8.3 million the previous year. Planned increases in personnel, marketing, facilities and administrative costs in the current year, combined with lower Ontario Interactive Digital Media Tax Credits recoverable recognized in F2014 versus F2013, offset the impact of higher revenues in F2014. EBITDA loss for the three months ended August 31, 2014 was $3.2 million compared to an EBITDA loss in the current year of $1.2 million in the same period the previous year, for the same reasons noted above.

STOCK OPTION GRANT

theScore announced the grant of an aggregate of 5,665,000 options on October 14, 2014, including 2,440,000 options to directors and officers of the Company. Options were granted to the following directors and officers: Norwest Video Inc. (1,200,000 options); Benjamin Levy (600,000 options); Tom Hearne (400,000 options); Ralph Lean (40,000 options); John Albright (40,000 options); Mark Scholes (40,000 options); Lorry Schneider (40,000 options); William Thomson (40,000 options); and Mark Zega (40,000 options). Each option is exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.29, vests over three years and has a term of ten years. Each option is exercisable in accordance with the terms and conditions of the Company's stock option plan.

* User metrics from Q4 F2013 exclude theScore's secondary mobile sports application, SportsTap, which was retired September 30, 2013.

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.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
				August 31, 2014		August 31, 2013
ASSETS
Current assets:
	Cash and cash equivalents			$ 21,363		$ 14,524
	Accounts receivable			1,472		1,621
	Other receivables			-		2,030
	Tax credits recoverable			2,060		1,295
	Prepaid expenses and deposits			559		386
				25,454		19,856
Non-current assets:
	Property and equipment			2,155		2,313
	Intangible assets			4,959		6,523
	Investment			760		760
	Tax credits recoverable			4,485		1,782
				12,359		11,378
Total assets				$ 37,813		$ 31,234
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities			$ 3,052		$ 2,380
Non-current liabilities:
	Deferred lease obligation			513		495
Shareholders' equity				34,248		28,359
Commitments and contingencies
Total liabilities and shareholders' equity				$ 37,813		$ 31,234

 

theScore, Inc.
Consolidated Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share amounts)
		Year ended August 31, 2014		Year ended August 31, 2013
Revenue		$ 7,820		$ 5,269
Operating expenses:
Personnel, net		7,918		6,443
Content		1,215		1,473
Technology		1,249		1,991
Facilities, administrative and other		3,858		3,032
Marketing		1,934		603
Depreciation of property and equipment		527		279
Amortization of intangible assets		1,919		2,788
		18,620		16,609
Operating loss		(10,800)		(11,340)
Finance costs (income)		(114)		55
Loss and comprehensive loss		$ (10,686)		$ (11,395)
Loss per share - basic and diluted		$ (0.05)		$ (0.11)

theScore, Inc. Consolidated Statements of Comprehensive Loss (in thousands of Canadian dollars, except per share amounts) (unaudited)
			Three months ended August 31, 2014		Three months ended August 31, 2013
Revenue			$ 1,804		$ 1,285
Operating expenses:
		Personnel, net	2,742		871
		Content	299		229
		Technology	455		301
		Facilities, administrative and other	1,142		791
		Marketing	412		285
		Depreciation of property and equipment	137		128
		Amortization of intangible assets, net	592		873
			5,779		3,478
		Operating loss	(3,974)		(2,193)
		Finance costs (income)	(41)		(37)
Loss and comprehensive loss			$ (3,933)		$ (2,156)
Loss per share - basic and diluted			$ (0.02)		$ (0.02)

 

 

theScore, Inc.
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
			Year ended August 31, 2014	Year ended August 31, 2013
Cash flows from (used in) operating activities
Net and comprehensive loss			$ (10,686)	$ (11,395)
Adjustments for:
	Depreciation and amortization		2,446	3,067
	Share-based compensation		396	153
	Loss on impairment of intangible assets		200	-
	Share of loss of equity accounted investee		-	33
	Investment loss		-	111
	Contributions by Former Parent and Remaining Group		-	104
			(7,644)	(7,927)
Change in non-cash operating working capital:
	Accounts receivable		149	(497)
	Other receivables		230	(230)
	Tax credits recoverable		(1,994)	(979)
	Prepaid expenses and deposits		(173)	(244)
	Accounts payable and accrued liabilities		672	581
	Deferred lease obligation		18	495
			(1,099)	(874)
Net cash used in operating activities			(8,743)	(8,801)
Cash flows from financing activities
	Exercise of stock options		14	3
	Funding provided from Arrangement		1,800	9,794
	Issuance of shares, net of transaction costs		16,165	15,874
	Due to Remaining Group		-	531
	Due to Former Parent		-	1,621
Net cash from financing activities			17,979	27,823
Cash flows used in investing activities
	Additions of property and equipment		(369)	(2,150)
	Additions of intangible assets		(2,028)	(2,348)
Net cash used in investing activities			(2,397)	(4,498)
Increase in cash and cash equivalents			6,839	14,524
Cash and cash equivalents, beginning of year			14,524	-
Cash and cash equivalents, end of year			$ 21,363	$ 14,524

 

The following tables reconcile net and comprehensive loss to EBITDA
		Year ended	Year ended
		August 31, 2014	August 31, 2013
Loss and comprehensive loss		$(10,686)	$(11,395)
Adjustments for:
	Amortization	2,446	3,067
	Finance costs (income)	(114)	55
EBITDA		$(8,354)	$(8,273)

 

 

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]