theScore Reports F2016 Q1 Results

- Mobile sports company achieves record 130% revenue growth -

TORONTO, Jan. 14, 2016 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months ended November 30, 2015 in accordance with International Financial Reporting Standards ("IFRS").

The Company posted record quarterly revenue of $7.0 million compared to $3.0 million in the same period the previous year, an increase of 130%. Advertising revenue grew to $7.0M from $2.8M, an increase of 150%.

Revenue growth was powered by theScore's programmatic and direct sales business, driven in turn by strong user engagement within theScore's mobile apps.

Users of theScore's mobile applications[*] reached a record 4.7 million average monthly active users, an increase of 10% over the same period in F2015. Average monthly user sessions of theScore's mobile applications reached 415 million, up by 51% compared to the same period in F2015. Audience for the Company's eSports platforms, which launched in March 2015, reached a milestone of more than 750K users for the first time in Q1 F2016.

"This was the best-ever quarter in theScore's history," said John Levy, Founder and CEO of theScore. "We more than doubled our revenue, a direct result of how often fans are now engaging with theScore's mobile apps. They're opening us 80 to 90 times a month each on average – and this incredible engagement is driving powerful revenue growth."

"These results, combined with the continued growth of our eSports platform and the recent launch of QuickDraft, our unique fantasy sports game, has given us a great start to what we expect will be a very exciting 2016."

Adjusted EBITDA loss for the three months ended November 30, 2015 was $2.3 million compared to $1.5 million in the same period the previous year. Net and comprehensive loss for the three months ended November 30, 2015 was $3.1 million compared to $2.0 million in the same period the previous year. This was primarily a result of increased personnel and marketing costs associated with theScore's eSports and fantasy sports' businesses.

theScore will be hosting a conference call at 8:30am EST on Thursday, January 14. Management will review the Company's Q1 F2016 results, followed by a question and answer session.

Conference Call Dial-In Numbers
Toronto: ([phone]
Toll Free North America: ([phone]

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Toll Free: North America ([phone]
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A live webcast of the call can be accessed by clicking here.

theScore will also be hosting its Annual General Meeting at 11:00am EST on Thursday, January 14 at the Company's Toronto office at: 500 King Street West, Fourth Floor, Toronto, Ontario, M5V 1L9.

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 and alerts via its mobile sports platforms theScore and theScore eSports and fantasy sports contests via QuickDraft.

Non-IFRS Financial Measures
In addition to disclosing results in accordance with IFRS as issued by the International Accounting Standards Board ("IASB"), theScore also provides supplementary non-IFRS financial measures as a method of evaluating the Company's performance. theScore utilizes earnings before interest, taxes, depreciation, amortization and acquisition costs ("Adjusted EBITDA") to measure operating performance.  theScore's definition of Adjusted EBITDA excludes depreciation and amortization, finance income, income taxes, and acquisition costs which in theScore's view do not adequately reflect its core operating results.  Adjusted EBITDA is used in the determination of short-term incentive compensation for all senior management personnel. The Company revised the non-GAAP measure in 2015 from EBITDA to adjusted EBITDA, as a result of the acquisition costs incurred related to Swoopt. Adjusted EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies.

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.

[*] User and user engagement metrics in the current and comparative periods excludes the following platforms no longer supported by theScore: (i) theScore app on BlackBerry 7, BlackBerry Playbook, Kindle Fire and Windows Phone 7; and (ii) theScore's legacy soccer application, ScoreMobile FC.

theScore, Inc.
Condensed Consolidated Interim Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
		November 30,		August 31,
		2015		2015
ASSETS
Current assets:
	Cash and cash equivalents	$         24,829		$   31,841
	Accounts receivable	6,487		3,376
	Tax credits recoverable	4,777		4,777
	Prepaid expenses and deposits	859		842
		36,952		40,836
Non-current assets:
	Property and equipment	2,245		2,123
	Intangible assets	7,382		7,361
	Investment	760		760
	Tax credits recoverable	1,399		1,399
		11,786		11,643
Total assets		$         48,738		$   52,479
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities	$           3,690		$     4,583
Non-current liabilities:
	Deferred lease obligation	501		510
Shareholders' equity		44,547		47,386
Commitments
Total liabilities and shareholders' equity		$         48,738		$   52,479
See accompanying notes to consolidated financial statements

theScore, Inc.
Condensed Consolidated Interim Statements of Comprehensive Loss
Three months ended November 30, 2015 and 2014
(in thousands of Canadian dollars, except per share amounts)
(unaudited)
		Three months ended November 30,
		2015		2014
Revenue		$ 7,003		$ 3,046
Operating expenses:
	Personnel	4,595		2,475
	Content	640		234
	Technology	594		408
	Facilities, administrative and other	1,532		907
	Marketing	1,986		518
	Depreciation of property and equipment	149		126
	Amortization of intangible assets	614		458
		10,110		5,126
	Operating loss	(3,107)		(2,080)
	Finance income	(48)		(65)
	Net and comprehensive loss	$ (3,059)		$ (2,015)
	Loss per share - basic and diluted	$ (0.01)		$ (0.01)
See accompanying notes to consolidated financial statements

theScore, Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
			Three months ended November 30,
			2015	2014
Cash flows used in operating activities
	Net and comprehensive loss		$ (3,059)	$ (2,015)
	Adjustments for:
		Depreciation and amortization	763	584
		Share-based compensation	182	176
			(2,114)	(1,255)
	Change in non-cash operating assets and liabilities:
		Accounts receivable	(3,111)	(1,297)
		Tax credits recoverable	-	(340)
		Prepaid expenses and deposits	(17)	2
		Accounts payable and accrued liabilities	(893)	(695)
		Deferred lease obligation	(9)	4
			(4,030)	(2,326)
Net cash used in operating activities			(6,144)	(3,581)
Cash flows from financing activities
	Exercise of stock options		38	8
Net cash from financing activities			38	8
Cash flows used in investing activities
	Additions of property and equipment		(271)	(233)
	Additions of intangible assets		(635)	(694)
Net cash used in investing activities			(906)	(927)
Decrease in cash and cash equivalents			(7,012)	(4,500)
Cash and cash equivalents, beginning of period			31,841	21,363
Cash and cash equivalents, end of period			$ 24,829	$ 16,863
See accompanying notes to consolidated financial statements

			Three months ended November 30,
			2015		2014
Net and comprehensive loss for the period			$           (3,059)		$       (2,015)
Adjustments:
	Depreciation and amortization		763		584
	Finance income		(48)		(65)
Adjusted EBITDA loss			$           (2,344)		$       (1,496)

SOURCE theScore, Inc.

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