TORONTO, July 26 2017 /CNW/ - theScore, Inc. (TSX
Venture: SCR) ("theScore") today announced the financial results
for the three and nine months ended May 31,
2017 in accordance with International Financial Reporting
Standards ("IFRS").
Revenue for the quarter grew to $6.4
million compared to $6.1
million in the same period the previous year. Revenue for
the first nine months of F2017 grew to $21.6
million versus $18.9 million
for the same period in F2016. Revenue growth was powered by
theScore's Canadian and US direct sales teams, as well as growth in
engagement within theScore's mobile apps.
Adjusted EBITDA loss for the three months ended
May 31, 2017 was $1.5 million versus $3.0
million in the same period the previous year. 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 May 31,
2017 was $2.9 million
compared to $4.4 million in the
same period the previous year.
Average monthly sessions of theScore's mobile apps reached 379
million compared to 358 million for the same period the previous
year, with users opening our apps an average of 92 times a month
each. Average monthly active users of theScore's mobile apps were
4.1 million versus 4.3 million in Q3 F2016.
"Our team is very much focused on the imminent roll-out of some
significant new features for our flagship app as the start of
football season draws closer," said John
Levy, Founder and CEO of theScore.
"We've already begun testing some of these with a small
percentage of users and the early signs suggest we've got something
that will further strengthen our position as the number one
challenger app to ESPN in North
America.
"The evolution of theScore app will be an ongoing process to
ensure we're meeting the demands of sports fans on mobile devices.
We're also seeing positive progress in growing the engagement and
size of our off-platform audience, including theScore Bot for
Facebook Messenger and with our esports video strategy.
"Our continued growth in revenue, underpinned by our diligent
focus on managing our expenses, means we remain well on track to be
adjusted EBITDA positive in F2018."
theScore will be hosting a conference call at 8:30am EST on Wednesday,
July 26. Management will review the Company's Q3 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: 996482 #
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, 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)
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
August 31,
|
|
|
2017
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
12,688
|
|
$
|
15,554
|
|
Accounts
receivable
|
6,711
|
|
5,326
|
|
Tax credits
recoverable
|
-
|
|
5,192
|
|
Prepaid expenses and
deposits
|
1,112
|
|
1,008
|
|
|
20,511
|
|
27,080
|
Non-current
assets:
|
|
|
|
|
Property and
equipment
|
1,892
|
|
2,141
|
|
Intangible
assets
|
6,231
|
|
5,807
|
|
Investment
|
-
|
|
760
|
|
Tax credits
recoverable
|
1,616
|
|
1,616
|
|
|
9,739
|
|
10,324
|
|
|
|
|
|
Total
assets
|
$
|
30,250
|
|
$
37,404
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
3,138
|
|
$
|
5,180
|
Non-current
liabilities:
|
|
|
|
|
Deferred lease
obligation
|
499
|
|
495
|
|
|
|
|
|
Shareholders'
equity
|
26,613
|
|
31,729
|
|
|
|
|
|
Commitments
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
30,250
|
|
$
|
37,404
|
theScore,
Inc.
|
|
|
|
|
|
|
Condensed
Consolidated Interim Statements of Comprehensive Loss
|
|
|
|
|
Three and nine months
ended May 31, 2017 and May 31, 2016
|
|
|
|
|
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended,
|
Nine months
ended,
|
|
|
May 31,
2017
|
|
May 31,
2016
|
May 31,
2017
|
|
May 31,
2016
|
|
|
|
|
|
|
|
|
Revenue
|
$ 6,357
|
|
$ 6,125
|
$ 21,596
|
|
$ 18,930
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Personnel
|
4,084
|
|
4,558
|
13,222
|
|
13,577
|
|
Content
|
391
|
|
726
|
1,394
|
|
1,890
|
|
Technology
|
610
|
|
482
|
1,889
|
|
1,590
|
|
Facilities,
administrative and other
|
1,566
|
|
1,619
|
4,741
|
|
5,119
|
|
Marketing
|
1,000
|
|
1,383
|
2,954
|
|
4,430
|
|
Depreciation of
property and equipment
|
121
|
|
166
|
358
|
|
473
|
|
Amortization of
intangible assets
|
799
|
|
1,149
|
1,786
|
|
2,649
|
|
Stock based
compensation
|
192
|
|
338
|
656
|
|
896
|
|
|
8,763
|
|
10,421
|
27,000
|
|
30,624
|
|
|
|
|
|
|
|
|
Operating
loss
|
(2,406)
|
|
(4,296)
|
(5,405)
|
|
(11,694)
|
|
|
|
|
|
|
|
|
Finance expense
(income), net
|
(239)
|
|
150
|
(346)
|
|
3
|
Impairment of
investment
|
760
|
|
-
|
760
|
|
-
|
|
|
|
|
|
|
|
|
Net and comprehensive
loss
|
$ (2,927)
|
|
$ (4,446)
|
$ (5,819)
|
|
$ (11,697)
|
|
|
|
|
|
|
|
|
Loss per share -
basic and diluted
|
$ (0.01)
|
|
$ (0.02)
|
$ (0.02)
|
|
$ (0.04)
|
theScore,
Inc.
|
|
|
Condensed
Consolidated Interim Statements of Cash Flows
|
|
|
(in thousands of
Canadian dollars)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
May 31,
2017
|
May 31,
2016
|
|
|
|
|
|
Cash flows used in
operating activities
|
|
|
|
Net and comprehensive
loss
|
$
|
(5,819)
|
$
|
(11,697)
|
|
Adjustments
for:
|
|
|
|
|
Depreciation and
amortization
|
2,144
|
3,122
|
|
|
Stock based
compensation
|
656
|
896
|
|
|
Impairment of
investment
|
760
|
-
|
|
|
|
(2,259)
|
(7,679)
|
|
Change in non-cash
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(1,385)
|
(2,398)
|
|
|
Tax credits
recoverable
|
3,061
|
(159)
|
|
|
Prepaid expenses and
deposits
|
(104)
|
1
|
|
|
Accounts payable and
accrued liabilities
|
(2,042)
|
135
|
|
|
Deferred lease
obligation
|
4
|
(16)
|
|
|
|
(466)
|
(2,437)
|
Net cash used in
operating activities
|
(2,725)
|
(10,116)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Exercise of stock
options
|
47
|
79
|
Net cash from
financing activities
|
47
|
79
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
Additions of property
and equipment
|
(109)
|
(548)
|
|
Tax credits
recoverable
|
2,131
|
-
|
|
Additions of
intangible assets
|
(2,210)
|
(1,777)
|
Net cash used in
investing activities
|
(188)
|
(2,325)
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(2,866)
|
(12,362)
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
15,554
|
31,841
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
12,688
|
$
|
19,479
|
Reconciliation of net
and comprehensive loss to Adjusted EBITDA
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
|
May 31,
2017
|
May 31,
2016
|
May 31,
2017
|
May 31,
2016
|
|
|
|
|
|
|
|
Net and comprehensive
loss for the period
|
|
$
|
(2,927)
|
$
|
(4,446)
|
$
|
(5,819)
|
$
|
(11,697)
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
920
|
1,315
|
2,144
|
3,122
|
Finance
expense (income), net
|
|
(239)
|
150
|
(346)
|
3
|
Loss on
investment
|
|
760
|
-
|
760
|
-
|
|
|
|
|
|
|
|
Adjusted EBITDA
loss
|
|
|
$
|
(1,486)
|
$
|
(2,981)
|
$
|
(3,261)
|
$
|
(8,571)
|
SOURCE theScore, Inc.