theScore, Inc. Reports Fiscal 2013 Second Quarter Financial Results
TORONTO, April 23, 2013 /PRNewswire/ – theScore, Inc. (TSX Venture: SCR)
(“theScore”) today announced the financial results for the three and
six months ended February 28, 2013 in accordance with International
Financial Reporting Standards (“IFRS”).
FISCAL 2013 Q2 OPERATIONAL HIGHLIGHTS
-- In January, theScore's mobile platforms achieved a record 4.2 million monthly active users. -- Average monthly active users of theScore's mobile platforms exceeded 3.9 million in Q2 F2013, while average monthly active users for its flagship application for iPhone grew by 63% over the comparable period in F2012. -- In January, theScore re-launched its popular app for Android; the app was based on the design of theScore's critically acclaimed iPhone and iPad apps and included a completely re-designed interface with an emphasis on fantasy sports, to give users the ultimate mobile sports experience. -- In February, theScore announced the re-design of its BlackBerry® app for the BlackBerry® 10 platform. It was built using BlackBerry® 10 development best practices and design patterns, giving it the clean look and the brand consistency of other mobile applications by theScore.
“We find ourselves at the start of an exciting new chapter in the
history of theScore,” said John Levy, Chairman and CEO, theScore, Inc.
“We’ve just celebrated record mobile monthly active user numbers and
also moved to a fantastic new office space, which perfectly fits our
unique, creative and innovative company culture. theScore is now
perfectly positioned to further capitalize on the industry-wide
explosion in mobile advertising spending.”
FISCAL 2013 Q2 FINANCIAL RESULTS
Revenue for the three months ended February 28, 2013 was $1.1 million
compared to $700k in the same period the previous year, an increase of
57%. Revenue for the six months ended February 28, 2013 was $2.6
million compared to $1.7 million for the same period the previous year,
an increase of 53%.
EBITDA loss for the three months ended February 28, 2013 was $2.6
million compared to $1.1 million in the same period the previous year,
and $4.7 million for the six months ended February 28, 2013 compared to
$2.6 million for the same period the previous year. This difference was
primarily as a result of an increased investment in personnel related
to the development of theScore’s mobile apps as well as the impact of
the Ontario Interactive Digital Media Tax Credit, which reduced EBITDA
loss by $1.0 million and $1.5 million for the same three and six month
period last year.
About theScore Inc.
theScore’s mission is to provide a full digital service to sports fans,
delivering a personalized user experience across all major mobile
platforms through our mobile apps and website. Users are provided with
a comprehensive, customizable service that dispenses real-time sports
news, scores, fantasy information and alerts, alongside compelling,
relevant content that allows for seamless social sharing by users.
theScore also enables advertisers to engage with users across
theScore’s mobile and web platforms and offers them a combination of
reach, relevance, and customizable advertising and sponsorship
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 Listing Application
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) February 28, 2013 August 31, 2012 ASSETS Current Assets: Cash $ 5,064 $ - Accounts receivable 1,751 1,124 Other receivables 3,663 1,863 Due from Remaining - 80 Group Prepaid expenses and 291 142 deposits 10,769 3,209 Non-current assets: Property and 1,066 246 equipment Intangible assets 7,509 7,206 Investment 760 - Investment in equity - 916 accounted investee 9,335 8,368 Total assets $ 20,104 $ 11,577 LIABILITIES AND SHAREHOLDERS' EQUITY/FUNDED DEFICIENCY Current Liabilities: Accounts payable and $ 2,430 $ 1,799 accrued liabilities Due to Former - 23,574 Parent Due to Remaining - 8,840 Group 2,430 34,213 Funded deficiency - (22,636) Shareholders' equity 17,674 - Commitments and contingencies Subsequent Event Total liabilities and shareholders' $ 20,104 $ 11,577 equity/funded deficiency See accompanying notes to Condensed Consolidated Interim Financial Statements
theScore, Inc. Condensed Consolidated Interim Statements of Comprehensive Loss (in thousands of Canadian dollars, except per share amounts) (unaudited) Three Three Six Six months months months months ended ended ended ended February February February February 28, 2013 29, 2012 28, 2013 29, 2012 Revenue $ 1,110 $ 701 $ 2,616 $ 1,716 Operating expenses: Personnel 1,943 101 3,658 856 Content 424 656 804 1,104 Technology 665 384 1,454 1,079 Facilities, administrative 556 502 1,239 911 and other Management - 136 48 330 fees Depreciation 33 23 56 43 of equipment Amortization of intangible 627 360 1,228 518 assets Share of loss of equity 31 35 33 23 accounted investee Investment 111 - 111 - loss 4,390 2,197 8,631 4,864 Operating loss (3,280) (1,496) (6,015) (3,148) Interest - 129 99 248 expense Net and comprehensive $ (3,280) $ (1,625) $ (6,114) $ (3,396) loss Earnings per share - basic $ (0.03) $ (0.02) $ (0.06) $ (0.04) and diluted See accompanying notes to Condensed Consolidated Interim Financial Statements
theScore, Inc. Condensed Consolidated Interim Statements of Cash Flows (in thousands of Canadian dollars) (unaudited) Six Six months months ended ended February February 28, 2013 29, 2012 Cash flows from (used in) operating activities Net and comprehensive loss $ $ (3,396) (6,114) Adjustments for: Depreciation and amortization 1,284 561 Share of loss of equity accounted 33 23 investee Stock-based compensation 60 - Investment loss 111 - Contributions by Former Parent 107 448 and Remaining Group (4,519) (2,364) Change in non-cash operating working capital: Accounts receivable (627) (877) Other receivable - (984) Prepaid expenses and deposits (149) (78) Accounts payable and accrued 631 491 liabilities (145) (1,448) Net cash used in operating (4,664) (3,812) activities Cash flows from financing activities Funding provided from Arrangement 9,794 - Due to Remaining Group 531 2,723 Due to Former 1,624 3,055 Parent Net cash from financing activities 11,949 5,778 Cash flows used in investing activities Additions of property and (694) equipment (94) Additions of intangible assets (1,527) (1,871) Net cash used in investing (2,221) (1,965) activities Cash, beginning of period - - Cash, end of period $ $ 5,064 - See accompanying notes to Condensed Consolidated Interim Financial Statements
The following tables reconcile net and comprehensive income (loss) to
Three Three Six Six months months months months ended ended ended ended February February February February 28, 2013 29, 2012 28, 2013 29, 2012 Net and comprehensive loss for the $ (3,280) $ (1,625) $ (6,114) $ (3,396) period Adjustments: Depreciation and 660 383 1,284 561 Amortization Interest - 129 99 248 expense EBITDA $ (2,620) $ (1,113) $ (4,731) $ (2,587)
SOURCE theScore, Inc.