TORONTO, Oct. 19, 2017 /CNW/ - theScore, Inc. (TSX
Venture: SCR) ("theScore") today announced the financial results
for the three and 12 months ended August 31,
2017 in accordance with International Financial Reporting
Standards ("IFRS").
The Company posted quarterly revenue of $4.8 million compared to $5.0 million in the same period the previous
year. This year-over-year decrease was primarily due to the absence
of the major sporting events that took place in Q4 F2016, including
the Rio Olympics and the 2016 UEFA EURO and Copa America soccer tournaments, which in turn
lead to a decrease in programmatic sales.
Revenue for the 12 months ended August
31, 2017 was $26.3 million
compared to $23.9 million for the
same period the previous year.
Adjusted EBITDA loss for the three-month period ended
August 31, 2017 was $1.9 million compared to $3.8 million in the same period in the prior
year, an improvement of $1.9 million.
Adjusted EBITDA loss for the year ended August 31, 2017 was $5.2
million compared to $12.4
million in the same period in the prior year, an improvement
of $7.2 million. This was primarily
the result of increased revenues and reduced operating
expenses relating to personnel, content, and marketing.
During the three months ended August 31,
2017, theScore's mobile applications had 3.7 million average
monthly active users, compared to 4.0 million average monthly
active users during the three months ended August 31, 2016. Average monthly user sessions of
theScore's mobile applications reached 261 million compared to 278
million for the three months ended August
31, 2016. As above, the year-over-year decrease in audience
and engagement was primarily a result of the significantly quieter
sports season during June-August 2017
compared with the same period in 2016.
"While audience and revenue this quarter reflected the much
slower sports season compared to last year, we hit the start of
fiscal 2018 running thanks to the successful launch of the biggest
update to our flagship app in its history," said John Levy, Founder and CEO of theScore.
"Early signs are promising. Our analytics shows that
existing users are quickly adapting to, and enjoying, the big
change, with our deeper and more dynamic content offering making us
highly attractive to new audiences. This includes deeper coverage
of teams, curated content from selected third-party sources, and
news rivers rich in multimedia and trending content.
"This approach also more clearly aligns our app offering with
what's being shared and engaged with across our social
platforms, including Facebook, Instagram, Twitter, and our
chatbot for Facebook Messenger. We're now reaching over 30 million
people a month on social, further amplifying our brand.
"This approach of ensuring our app continually meets the
evolving demands of our users, while also introducing theScore
brand to millions of potential users and younger sports fans
through our social content and on emerging platforms, will ensure
we continue to lead the pack as a world class digital sports
innovator."
theScore will be hosting a conference call at 8:30am EST on Thursday,
October 19. Management will review the Company's Q4 F2017
and year-end 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: 400297 #
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.
|
|
|
|
Consolidated
Statements of Financial Position
|
|
|
|
(in thousands of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
10,114
|
|
$
|
15,554
|
|
Accounts
receivable
|
5,578
|
|
5,326
|
|
Tax credits
recoverable
|
-
|
|
5,192
|
|
Prepaid expenses and
deposits
|
1,238
|
|
1,008
|
|
|
16,930
|
|
27,080
|
Non-current
assets:
|
|
|
|
|
Property and
equipment
|
1,789
|
|
2,141
|
|
Intangible
assets
|
6,292
|
|
5,807
|
|
Investment
|
-
|
|
760
|
|
Tax credits
recoverable
|
1,616
|
|
1,616
|
|
|
9,697
|
|
10,324
|
|
|
|
|
|
Total
assets
|
$
|
26,627
|
|
$
|
37,404
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
2,801
|
|
$
|
5,180
|
Non-current
liabilities:
|
|
|
|
|
Deferred lease
obligation
|
490
|
|
495
|
|
|
|
|
|
Shareholders'
equity
|
23,336
|
|
|
31,729
|
|
|
|
|
|
Commitments
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
|
26,627
|
|
$
|
37,404
|
theScore,
Inc.
Consolidated Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
August 31,
|
|
Years ended August
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 4,752
|
|
$ 4,986
|
|
$ 26,348
|
|
$ 23,916
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Personnel
|
3,633
|
|
4,714
|
|
16,855
|
|
18,285
|
|
Content
|
352
|
|
669
|
|
1,746
|
|
2,559
|
|
Technology
|
590
|
|
534
|
|
2,478
|
|
2,124
|
|
Facilities,
administrative and other
|
1,310
|
|
1,312
|
|
6,050
|
|
6,431
|
|
Marketing
|
631
|
|
1,362
|
|
3,585
|
|
5,792
|
|
Depreciation of
property and equipment
|
122
|
|
173
|
|
481
|
|
646
|
|
Amortization of
intangible assets
|
813
|
|
1,145
|
|
2,600
|
|
3,794
|
|
Stock based
compensation
|
133
|
|
224
|
|
789
|
|
1,119
|
|
|
7,584
|
|
10,133
|
|
34,584
|
|
40,750
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(2,832)
|
|
(5,147)
|
|
(8,236)
|
|
(16,834)
|
|
|
|
|
|
|
|
|
|
Finance expense,
net
|
587
|
|
18
|
|
240
|
|
29
|
Loss on
investment
|
-
|
|
-
|
|
760
|
|
-
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
loss
|
$ (3,419)
|
|
$ (5,165)
|
|
$ (9,236)
|
|
$ (16,863)
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic and diluted
|
$ (0.01)
|
|
$ (0.02)
|
|
$ (0.03)
|
|
$ (0.06)
|
|
|
|
|
|
|
|
|
|
theScore,
Inc.
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
(in thousands of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
2016
|
|
|
|
|
|
Cash flows used in
operating activities
|
|
|
|
|
Loss for the
year
|
$
|
(9,236)
|
$
|
(16,863)
|
|
Adjustments
for:
|
|
|
|
|
Depreciation and
amortization
|
3,081
|
4,440
|
|
|
Stock based
compensation
|
789
|
1,119
|
|
|
Loss on
investment
|
760
|
-
|
|
|
|
(4,606)
|
(11,304)
|
|
Change in non-cash
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(252)
|
(1,950)
|
|
|
Tax credits
recoverable
|
3,061
|
(296)
|
|
|
Prepaid expenses and
deposits
|
(230)
|
(166)
|
|
|
Accounts payable and
accrued liabilities
|
(2,379)
|
597
|
|
|
Deferred lease
obligation
|
(5)
|
(15)
|
|
|
|
195
|
(1,830)
|
Net cash used in
operating activities
|
(4,411)
|
(13,134)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Exercise of stock
options
|
54
|
87
|
Net cash from
financing activities
|
54
|
87
|
|
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
Additions of property
and equipment
|
(129)
|
(664)
|
|
Additions of
intangible assets
|
(3,085)
|
(2,576)
|
|
Tax credits
recoverable
|
2,131
|
-
|
Net cash used in
investing activities
|
(1,083)
|
(3,240)
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(5,440)
|
(16,287)
|
|
|
|
|
|
Cash and cash
equivalents, beginning of year
|
15,554
|
31,841
|
|
|
|
|
|
Cash and cash
equivalents, end of year
|
$
|
10,114
|
$
|
15,554
|
EBITDA
|
|
|
|
|
|
|
Three months ended
August 31,
|
Year ended August
31,
|
|
|
|
2017
|
|
2016
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
loss for the period
|
|
$
|
(3,419)
|
|
$
|
(5,165)
|
$
|
(9,236)
|
|
$
|
(16,863)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
935
|
|
1,318
|
3,081
|
|
4,440
|
|
Finance expense,
net
|
|
587
|
|
26
|
240
|
|
29
|
|
Loss on
investment
|
|
-
|
|
-
|
760
|
|
-
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
loss
|
|
$
|
(1,897)
|
|
$
|
(3,821)
|
$
|
(5,155)
|
|
$
|
(12,394)
|
SOURCE theScore, Inc.