theScore Reports Fourth Quarter and Year End Results

TORONTO, Nov. 17, 2015 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and twelve months ended August 31, 2015 in accordance with International Financial Reporting Standards ("IFRS").  

FISCAL 2015 Q4 USER METRICS AND REVENUE HIGHLIGHTS

• Achieved revenue of $2.9 million in Q4 F2015, an increase of 63% compared to the same period in F2014.
  
  
  • Advertising revenue for Q4 F2015 also increased by 89% compared to the same period in F2014.
    
    
• Audience for the Company's mobile platforms reached a record 10.5 million average monthly active users in Q4 F2015, an increase of 21% compared to the same period in F2014.^*
  
  
  • Mobile web users were 6.8 million, an increase of 32% over the same period in F2014.
    
    
  • Mobile app users were 3.7 million, an increase of 4% over the same period in F2014, and 21% after normalizing for the impact of the 2014 FIFA World Cup, which occurred in Q4 F2014.
    
    
  • Mobile app user engagement grew by 50% over the same period in F2014, with over 210 million average monthly user sessions in Q4 F2015.
    
    
• Audience for the Company's eSports platforms, which launched in March 2015, reached a milestone of more than 500,000 monthly active users for the first time in Q4 F2015.

"Our audience continues to grow and they're coming back to us more often too, as our strong session growth demonstrates," said John Levy, Founder and CEO of theScore.

"We're forging a deeper connection between sports fans and our mobile products by creating powerful engagement that helped achieve strong revenue during a quarter that's traditionally quieter in terms of major sports leagues and competitions.

"Combined with the first major user milestone for our eSports platform, the imminent re-launch of our fantasy sports offering as well as the huge strides we're making in our mobile advertising business and theScore is perfectly placed to continue reinforcing our position as a true leader in mobile sports in F2016."

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^* User and user engagement metrics in the current and comparative periods exclude the following platforms which are 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.

FISCAL 2015 Q4 OPERATIONAL HIGHLIGHTS

• User Accounts were launched for theScore app on iOS and Android, allowing users to save and synchronize their favorite leagues, teams and players across multiple devices. The functionality also allowed theScore to suggest teams to follow based on user location and what a user has 'liked' on Facebook when using social sign-in.
• theScore eSports for iOS and Android was updated to include live scores and stats from Counter-Strike: Global Offensive tournaments, allowing fans of the first-person shooter to follow every kill, assist and round won from the biggest professional contests in the world in real-time.
  
  
• theScore eSports partnered with major eSports tournaments including Dreamhack Summer, ESL One Cologne, and ESL's CS:GO Pro League Finals, resulting in valuable exposure and brand awareness across multiple eSports.

FISCAL 2015 and Q4 FINANCIAL HIGHLIGHTS

Revenue for the year ended August 31, 2015 was $12.4 million compared to $7.8 million in the same period the previous year, an increase of 58%. Advertising revenue for the year ended August 31, 2015 was $11.7 million compared to $6.8 million in the same period the previous year, an increase of 71%.

Revenue for the three months ended August 31, 2015 was $2.9 million compared to $1.8 million in the same period the previous year, an increase of 63%. Advertising revenue for the three months ended August 31, 2015 was $2.9 million compared to $1.6 million in the same period the previous year, an increase of 89%.

Adjusted EBITDA loss for the year ended August 31, 2015 was $10.7 million compared to $8.4 million in the same period the previous year. Adjusted EBITDA loss for the three months ended August 31, 2015 was $4.0 million compared to an Adjusted EBITDA loss of $3.2 million in the same period the previous year.

Net and comprehensive loss for the year ended August 31, 2015 was $13.5 million compared to $10.7 million in the same period the previous year. Net and comprehensive loss for the three months ended August 31, 2015 was $4.6 million compared to $3.9 million in the same period the previous year.

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.

STOCK OPTION GRANT

theScore announced the grant of an aggregate of 7,515,000 options on November 16, 2015, 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 (120,000 options); John Albright (120,000 options); Mark Scholes (120,000 options); Lorry Schneider (120,000 options); William Thomson (120,000 options); and Mark Zega (120,000 options). Each option is exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.31, 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.

theScore will be hosting a conference call at 8:30am EST on Tuesday, November 17 where management will review the Company's Q4 F2015 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: 296570 #

A live webcast of the call can be accessed by clicking here.  

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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 Swoopt.

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)
		August 31, 2015			August 31, 2014
ASSETS
Current assets:
	Cash and cash equivalents	$       31,841			$   21,363
	Accounts receivable	3,376			1,472
	Tax credits recoverable	4,777			2,060
	Prepaid expenses and deposits	842			559
		40,836			25,454
Non-current assets:
	Property and equipment	2,123			2,155
	Intangible assets	7,361			4,959
	Investment	760			760
	Tax credits recoverable	1,399			4,485
		11,643			12,359
Total assets		$       52,479			$   37,813
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities	$         4,583			$     3,052
Non-current liabilities:
	Deferred lease obligation	510			513
Shareholders' equity		47,386			34,248
Total liabilities and shareholders' equity		$       52,479			$   37,813

theScore, Inc.
Consolidated Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share amounts)
		Year ended August 31, 2015		Year ended August 31, 2014
Revenue		$ 12,359		$ 7,820
Operating expenses:
	Personnel	12,075		7,918
	Content	1,401		1,215
	Technology	2,058		1,249
	Facilities, administrative and other	4,706		3,858
	Marketing	2,787		1,934
	Depreciation of property and equipment	553		527
	Amortization of intangible assets	2,180		1,919
	Acquisition costs	397		-
		26,157		18,620
	Operating loss	(13,798)		(10,800)
	Finance income	329		114
Net and comprehensive loss		$ (13,469)		$ (10,686)
Loss per share - basic and diluted		$ (0.05)		$ (0.05)

theScore, Inc.
Consolidated Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share amounts)
		Three months ended  August 31, 2015		Three months ended  August 31, 2014
Revenue		$ 2,933		$ 1,804
Operating expenses:
	Personnel	3,668		2,742
	Content	417		299
	Technology	589		455
	Facilities, administrative and other	1,319		1,142
	Marketing	960		412
	Depreciation of property and equipment	143		137
	Amortization of intangible assets	524		592
		7,620		5,779
	Operating loss	(4,688)		(3,975)
	Finance income (costs)	66		(41)
Net and comprehensive loss		$ (4,622)		$ (3,933)
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, 2015	Year ended  August 31, 2014
Cash flows from operating activities
Net and comprehensive loss			$            (13,469)	$                 (10,686)
Adjustments for:
		Depreciation and amortization	2,733	2,446
		Share-based compensation	838	396
		Loss on impairment of intangible assets	-	200
		Acquisition costs	397	-
			(9,501)	(7,644)
Change in non-cash operating working capital:
		Accounts receivable	(1,861)	379
		Tax credits recoverable	464	(1,995)
		Prepaid expenses and deposits	(283)	(173)
		Accounts payable and accrued liabilities	1,179	672
		Deferred lease obligation	(3)	18
			(504)	(1,099)
Net cash used in operating activities			(10,005)	(8,743)
Cash flows from financing activities
	Exercise of stock options		64	14
	Funding provided from Arrangement		-	1,800
	Issuance of shares and warrants, net of transaction costs		24,866	16,165
Net cash from financing activities			24,930	17,979
Cash flows used in investing activities
	Additions of property and equipment		(503)	(369)
	Acquisition costs		(397)	-
	Business Combinations		(659)	-
	Additions of intangible assets		(2,888)	(2,028)
Net cash used in investing activities			(4,447)	(2,397)
Increase in cash and cash equivalents			10,478	6,839
Cash and cash equivalents, beginning of period			21,363	14,524
Cash and cash equivalents, end of period			$             31,841	$                  21,363

The following tables reconcile net and comprehensive loss to Adjusted EBITDA loss

		Year ended August 31, 2015	Year ended August 31, 2014
Loss and comprehensive loss		$ (13,469)	$ (10,686)
Adjustments for:
	Depreciation and amortization	2,733	2,446
	Finance income	(329)	(114)
	Acquisition expenses	397	-
Adjusted EBITDA loss		$ (10,668)	$ (8,354)

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]