theScore Reports F2018 Q1 Results

- Company achieves positive EBITDA for first time in history

TORONTO, Jan. 11, 2018 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months ended November 30, 2017 in accordance with International Financial Reporting Standards ("IFRS").

In Q1 F2018 the Company achieved the first EBITDA positive quarter in its history. EBITDA was $0.5M, versus a loss of $0.4M for the same period the previous year.

"After previously forecasting that we would be EBITDA positive in F2018, we are very pleased to get this fiscal year off to a strong start, something which puts a solid foundation in place for the rest of the year," said John Levy, CEO and Founder of theScore.

The Company achieved revenue of $8.4M for Q1 F2018 versus $8.5M for the same period the previous year. Increased US programmatic revenue and Canadian direct sales revenue was offset by lower direct sales in the US.

Average monthly active users of theScore app* for Q1 F2018 were 4.3M versus 4.4M for the same period the previous year, while average monthly app sessions-per-user were 103 versus 102 for Q1 F2017.

theScore app on iOS showed positive momentum this quarter, breaking new single-month user records in both October and November. For Q1 F2018, monthly active users of theScore app on iPhone and iPad were up by 6% for the same period the previous year. Monthly active users of theScore app on Android were down by 11% over the previous year.

"Following the launch of our newly designed flagship app at the end of Q4, we've seen some extremely encouraging growth on our iOS platforms, twice breaking records for users in a single month in Q1," said Mr. Levy. "While the change in Android users is reflective of trends we've seen with other apps in the free sports category in Google Play over the past year, we believe a combination of product and marketing initiatives will enable us to tackle this platform-specific challenge head-on by improving both user acquisition and retention.

"Our priority now is building on this momentum through the continued improvement of our offering through ongoing experimentation and maintaining our regular bi-weekly release cycles to get updates into the hands of sports fans as quickly as possible."

theScore's esports team also reinforced its focus on the creation of original video content during Q1 F2018, doubling-down on the production of successful video franchises which regularly generate six-figure viewing figures across YouTube, Facebook and other social platforms. In Q1 F2018, theScore esports recorded a total of 18M video views, up from 3.5M for the same period the previous year.

theScore's Emerging Platforms team continued to work on developing for new platforms and technologies to further amplify theScore brand and product offering. In Q1 F2018, theScore launched its Skill for Amazon Alexa across North America, continued to grow and improve its chatbot for Facebook Messenger and, only last week, launched the first-ever fantasy sports game for Facebook's Instant Games platform on Messenger.

"We continue to be encouraged by the growth potential we're seeing with our esports video and emerging platforms initiatives, with the recent launch of our pioneering fantasy sports game on Instant Games being a prime example," said Mr. Levy. "This, combined with the strong reach of more than 30M people a month across our social platforms, enables us to focus on our core app business while also looking to the future to ensure theScore stays one step ahead of the ever-evolving demands of sports fans."

theScore announced that, if the proposed amendments to its stock option plan are approved by shareholders at today's annual and special meeting,  the board of directors intends to grant today 9,940,000 options to acquire Class A subordinate voting shares to employees of the Company, including 1,660,000 options to directors and officers of the Company.  Assuming the requisite shareholder approval is obtained, options will be granted to the following directors and officers: Norwest Video Inc. (600,000 options); Benjamin Levy (500,000 options); Ralph Lean (80,000 options); John Albright (80,000 options); Mark Scholes (80,000 options); Lorry Schneider (80,000 options); Thomson Associates Inc. (80,000 options), Mark Zega (80,000 options) and Kirstine Stewart (80,000 options). Each option will be exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.145 in accordance with the terms and conditions of the Company's employee stock option plan.

theScore will be hosting a conference call at 8:30am EST on Thursday, January 11. Management will review the Company's Q1 F2018 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: 513838 #

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.
Condensed Consolidated Interim Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
			As at
			November 30,			August 31,
			2017		2017
ASSETS
Current assets:
		Cash and cash equivalents	$	7,414		$	10,114
		Accounts receivable	8,570			5,578
		Prepaid expenses and deposits	1,254			1,238
			17,238			16,930
Non-current assets:
		Property and equipment	1,693			1,789
		Intangible assets	6,149			6,292
		Tax credits recoverable	1,616			1,616
			9,458			9,697
	Total assets		$	26,696		$	26,627
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
		Accounts payable and accrued liabilities	$	3,015		$	2,801
Non-current liabilities:
		Deferred lease obligation	475			490
Shareholders' equity			23,206			23,336
Commitments
	Total liabilities and shareholders' equity		$	26,696		$	26,627

theScore, Inc.
Condensed Consolidated Interim Statements of Comprehensive Loss
Three months ended November 30, 2017 and 2016
(in thousands of Canadian dollars, except per share amounts)
(unaudited)
		Three months ended November 30,
		2017			2016
Revenue		$	8,351		$	8,548
Operating expenses:
	Personnel	4,418			4,562
	Content	462			607
	Technology	668			650
	Facilities, administrative and other	1,353			1,518
	Marketing	806			1,326
	Depreciation of property and equipment	103			117
	Amortization of intangible assets	864			469
	Stock based compensation	113			240
		8,787			9,489
Operating loss		(436)			(941)
Finance income, net		176			188
Net and comprehensive loss		$	(260)		$	(753)
Loss per share - basic and diluted		$	0.00		$	0.00

theScore, Inc.
Condensed Consolidated Interim Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
			Three months ended November 30,
			2017		2016
Cash flows used in operating activities
		Net and comprehensive loss	$	(260)	$	(753)
	Adjustments for:
		Depreciation and amortization	967		586
		Stock based compensation	113		240
			820		73
	Change in non-cash operating assets and liabilities:
		Accounts receivable	(2,992)		(2,359)
		Prepaid expenses and deposits	(16)		86
		Accounts payable and accrued liabilities	213		(871)
		Deferred lease obligation	(14)		1
			(2,809)		(3,143)
Net cash used in operating activities			(1,989)		(3,070)
Cash flows from financing activities
		Exercise of stock options	17		21
Net cash from financing activities			17		21
Cash flows used in investing activities
	Additions to property and equipment		(7)		(73)
	Additions to intangible assets		(721)		(739)
Net cash used in investing activities			(728)		(812)
Decrease in cash and cash equivalents			(2,699)		(3,861)
Cash and cash equivalents, beginning of year			10,114		15,554
Cash and cash equivalents, end of year			$	7,414	$	11,693

EBITDA
		Three months ended
		November 30, 2017			November 30, 2016
Net and comprehensive loss for the period		$	(260)		$	(753)
Adjustments:
	Depreciation and amortization	967			586
	Finance expense (income), net	(176)			(188)
EBITDA (loss)		$	531		$	(355)

___________________________________________
* User metrics for theScore app do not include audience or engagement numbers from theScore esports platforms, Squad Up, or products from its Emerging Platforms team, including theScore Bot for Facebook Messenger.

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/