TORONTO, Jan. 12, 2017 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months ended November 30, 2016 in accordance with International Financial Reporting Standards ("IFRS").
Revenue for the quarter grew to $8.5 million compared to $7.0 million in the same period the previous year. Revenue growth was powered by theScore's Canadian and US direct sales teams, as well as growth in engagement within theScore's mobile apps.
EBITDA loss for the three months ended November 30, 2016 was $0.4 million versus $2.3 million in Q1 F2016. A combination of an increase in revenue plus savings in expenses led to direct improvements in the Company's profitability. Net and comprehensive loss for the three months ended November 30, 2016 was $0.8 million compared to $3.1 million in the same period the previous year.
Average monthly sessions of theScore's mobile apps reached 459 million compared to 414 million for the same period the previous year, with users opening our apps an average of 98 times a month each, a new quarterly record. Average monthly active users of theScore's mobile apps were 4.7 million versus 4.8 million in Q1 F2016.
"We again saw record levels of engagement across our mobile apps and also recorded our best ever quarter in terms of EBITDA," said John Levy, Founder and CEO of theScore. "Our proficiency in driving engagement and revenue from our existing user base means we will be able to consistently improve profitability.
"Our priority now is focusing on audience growth, something we've been actively working on through an exciting new feature roadmap for our flagship app, while continuing to explore opportunities and strengthen our early foothold in new and exciting areas with high growth potential, like bots and esports."
theScore will be hosting a conference call at 8:30am EST on Thursday, January 12. Management will review the Company's Q1 F2017 results, followed by a question and answer session.
Conference Call Dial-In Numbers
Toronto: (+1) 416 764 8688
Toll Free North America: (+1) 888 390 0546
Instant Replay
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888 390 0541
Playback Passcode: 943037 #
The conference call will also be webcast live here.
theScore will also be hosting its Annual General Meeting at 11:00am EST on Thursday, January 12 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 the sports content they love through an addictive combination of comprehensive and personalized real-time news, scores, stats, alerts and videos via emerging and established digital media platforms, including its mobile sports applications theScore and theScore esports, its web platforms theScore.com and thescoreesports.com and theScore Bot for Facebook Messenger and Kik Messenger.
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 and amortization ("EBITDA") to measure operating performance. theScore's definition of 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. EBITDA is used in the determination of short-term incentive compensation for all senior management personnel. 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. 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.
theScore, Inc.
Condensed Consolidated Interim Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)
November
30, August 31,
2016 2016
---- ----
ASSETS
Current assets:
Cash and cash equivalents $11,693 $15,554
Accounts receivable 7,685 5,326
Tax credits recoverable 5,192 5,192
Prepaid expenses and deposits 922 1,008
25,492 27,080
Non-current assets:
Property and equipment 2,097 2,141
Intangible assets 6,077 5,807
Investment 760 760
Tax credits recoverable 1,616 1,616
10,550 10,324
Total assets $36,042 $37,404
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $4,309 $5,180
Non-current liabilities:
Deferred lease obligation 496 495
Shareholders' equity 31,237 31,729
Commitments
Total liabilities and shareholders'
equity $36,042 $37,404
======= =======
theScore, Inc.
Condensed Consolidated Interim Statements of
Comprehensive Loss
Three months ended November
30, 2016 and 2015
(in thousands of Canadian
dollars, except per share
amounts)
(unaudited)
Three months ended November
30,
2016 2015
---- ----
Revenue $8,548 $7,003
Operating expenses:
Personnel 4,562 4,413
Content 607 640
Technology 650 594
Facilities, administrative and
other 1,518 1,532
Marketing 1,326 1,986
Depreciation of property and
equipment 117 149
Amortization of intangible assets 469 614
Stock based compensation 240 182
-----------
9,489 10,110
Operating loss (941) (3,107)
Finance income (188) (48)
Net and comprehensive loss $(753) $(3,059)
===== =======
Loss per share -basic and
diluted $(0.00) $(0.01)
====== ======
theScore, Inc.
Condensed Consolidated Interim
Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
Three months ended
November 30,
2016 2015
---- ----
Cash flows used in operating activities
Net and
comprehensive
loss $(753) $(3,059)
Adjustments for:
Depreciation and amortization 586 763
Stock based compensation 240 182
--- ---
73 (2,114)
--- ------
Change in non-
cash operating
assets and
liabilities:
Accounts receivable (2,359) (3,111)
Prepaid expenses and deposits 86 (17)
Accounts payable and accrued
liabilities (871) (893)
Deferred lease obligation 1 (9)
--- ---
(3,143) (4,030)
------ ------
Net cash used in operating activities (3,070) (6,144)
------ ------
Cash flows from financing activities
Exercise of stock
options 21 38
--- ---
Net cash from financing activities 21 38
--- ---
Cash flows used in investing activities
Additions of
property and
equipment (73) (271)
Additions of
intangible assets (739) (635)
----- ----
Net cash used in investing activities (812) (906)
---- ----
Decrease in cash and cash equivalents (3,861) (7,012)
Cash and cash equivalents, beginning of
period 15,554 31,841
Cash and cash equivalents, end of
period $11,693 $24,829
------- -------
Three months ended November
30,
2016 2015
==== ====
Net and comprehensive loss for
the period $(753) $(3,059)
Adjustments:
Depreciation and amortization 586 763
Finance income (188) (48)
EBITDA loss $(355) $(2,344)
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SOURCE theScore, Inc.
