theScore Reports F2017 Q4 and Year End Results

TORONTO, Oct. 19, 2017 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and 12 months ended August 31, 2017 in accordance with International Financial Reporting Standards ("IFRS").

The Company posted quarterly revenue of $4.8 million compared to $5.0 million in the same period the previous year. This year-over-year decrease was primarily due to the absence of the major sporting events that took place in Q4 F2016, including the Rio Olympics and the 2016 UEFA EURO and Copa America soccer tournaments, which in turn lead to a decrease in programmatic sales.

Revenue for the 12 months ended August 31, 2017 was $26.3 million compared to $23.9 million for the same period the previous year.

Adjusted EBITDA loss for the three-month period ended August 31, 2017 was $1.9 million compared to $3.8 million in the same period in the prior year, an improvement of $1.9 million. Adjusted EBITDA loss for the year ended August 31, 2017 was $5.2 million compared to $12.4 million in the same period in the prior year, an improvement of $7.2 million. This was primarily the result of increased revenues and reduced operating expenses relating to personnel, content, and marketing.

During the three months ended August 31, 2017, theScore's mobile applications had 3.7 million average monthly active users, compared to 4.0 million average monthly active users during the three months ended August 31, 2016. Average monthly user sessions of theScore's mobile applications reached 261 million compared to 278 million for the three months ended August 31, 2016. As above, the year-over-year decrease in audience and engagement was primarily a result of the significantly quieter sports season during June-August 2017 compared with the same period in 2016.

"While audience and revenue this quarter reflected the much slower sports season compared to last year, we hit the start of fiscal 2018 running thanks to the successful launch of the biggest update to our flagship app in its history," said John Levy, Founder and CEO of theScore.

"Early signs are promising. Our analytics shows that existing users are quickly adapting to, and enjoying, the big change, with our deeper and more dynamic content offering making us highly attractive to new audiences. This includes deeper coverage of teams, curated content from selected third-party sources, and news rivers rich in multimedia and trending content.

"This approach also more clearly aligns our app offering with what's being shared and engaged with across our social platforms, including Facebook, Instagram, Twitter, and our chatbot for Facebook Messenger. We're now reaching over 30 million people a month on social, further amplifying our brand.

"This approach of ensuring our app continually meets the evolving demands of our users, while also introducing theScore brand to millions of potential users and younger sports fans through our social content and on emerging platforms, will ensure we continue to lead the pack as a world class digital sports innovator."

theScore will be hosting a conference call at 8:30am EST on Thursday, October 19. Management will review the Company's Q4 F2017 and year-end results, followed by a question and answer session.

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

Instant Replay
Toronto: ([phone]
Toll Free: North America ([phone]
Playback Passcode: 400297 #

The conference call will also be webcast live here.

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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's mission is to create highly-engaging digital products and content that empower the sports fan's experience. Its flagship mobile app 'theScore' is one of the most popular multi-sport news and data apps in North America, serving millions of fans a month. The Company also creates innovative digital sports experiences through its web, social and esports platforms.

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.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
		2017			2016
ASSETS
Current assets:
	Cash and cash equivalents	$	10,114		$	15,554
	Accounts receivable	5,578			5,326
	Tax credits recoverable	-			5,192
	Prepaid expenses and deposits	1,238			1,008
		16,930			27,080
Non-current assets:
	Property and equipment	1,789			2,141
	Intangible assets	6,292			5,807
	Investment	-			760
	Tax credits recoverable	1,616			1,616
		9,697			10,324
Total assets		$	26,627		$	37,404
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities	$	2,801		$	5,180
Non-current liabilities:
	Deferred lease obligation	490			495
Shareholders' equity		23,336				31,729
Commitments
Total liabilities and shareholders' equity		$	26,627		$	37,404

theScore, Inc. Consolidated Statements of Comprehensive Loss (in thousands of Canadian dollars, except per share amounts)
		Three months ended August 31,				Years ended August 31,
		2017		2016		2017		2016
Revenue		$ 4,752		$ 4,986		$ 26,348		$ 23,916
Operating expenses:
	Personnel	3,633		4,714		16,855		18,285
	Content	352		669		1,746		2,559
	Technology	590		534		2,478		2,124
	Facilities, administrative and other	1,310		1,312		6,050		6,431
	Marketing	631		1,362		3,585		5,792
	Depreciation of property and equipment	122		173		481		646
	Amortization of intangible assets	813		1,145		2,600		3,794
	Stock based compensation	133		224		789		1,119
		7,584		10,133		34,584		40,750
Operating loss		(2,832)		(5,147)		(8,236)		(16,834)
Finance expense, net		587		18		240		29
Loss on investment		-		-		760		-
Net and comprehensive loss		$ (3,419)		$ (5,165)		$ (9,236)		$ (16,863)
Loss per share - basic and diluted		$ (0.01)		$ (0.02)		$ (0.03)		$ (0.06)

theScore, Inc.
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
			2017		2016
Cash flows used in operating activities
		Loss for the year	$	(9,236)	$	(16,863)
	Adjustments for:
		Depreciation and amortization	3,081		4,440
		Stock based compensation	789		1,119
		Loss on investment	760		-
			(4,606)		(11,304)
	Change in non-cash operating assets and liabilities:
		Accounts receivable	(252)		(1,950)
		Tax credits recoverable	3,061		(296)
		Prepaid expenses and deposits	(230)		(166)
		Accounts payable and accrued liabilities	(2,379)		597
		Deferred lease obligation	(5)		(15)
			195		(1,830)
Net cash used in operating activities			(4,411)		(13,134)
Cash flows from financing activities
	Exercise of stock options		54		87
Net cash from financing activities			54		87
Cash flows used in investing activities
	Additions of property and equipment		(129)		(664)
	Additions of intangible assets		(3,085)		(2,576)
	Tax credits recoverable		2,131		-
Net cash used in investing activities			(1,083)		(3,240)
Decrease in cash and cash equivalents			(5,440)		(16,287)
Cash and cash equivalents, beginning of year			15,554		31,841
Cash and cash equivalents, end of year			$	10,114	$	15,554

EBITDA
			Three months ended August 31,					Year ended August 31,
			2017			2016		2017			2016
Net and comprehensive loss for the period			$	(3,419)		$	(5,165)	$	(9,236)		$	(16,863)
Adjustments:
	Depreciation and amortization		935			1,318		3,081			4,440
	Finance expense, net		587			26		240			29
	Loss on investment		-			-		760			-
Adjusted EBITDA loss			$	(1,897)		$	(3,821)	$	(5,155)		$	(12,394)

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: [email protected]

Related Links

http://www.thescore.com/