- 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: (+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: 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.