TORONTO, July 26 2017 /PRNewswire/ - 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.
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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.
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