EBITDA increases by 100% to $7.6 million on
strong revenue growth across all platforms
TORONTO, Oct. 20 /PRNewswire-FirstCall/ - Score
Media Inc. (TSX: SCR) today announced its financial results for the
fourth quarter and year ended August 31, 2010:
- Revenue for the year ended August 31st, 2010
increased by $4.9 million, or 12.6%, to $43.8 million compared to
$38.9 million in the year ended August 31, 2009. Revenue
increased across the Company's TV and digital media platforms.
- EBITDA for the year ended August 31, 2010 was $7.6 million
compared to $3.8 million in the previous year, due mostly to the
increases in TV and digital media revenues.
- Net income for the year ended August 31, 2010 was $2.5 million,
compared to a net loss of $1.4 million in the previous year, due
primarily to the above noted increases in revenues.
- Fourth quarter revenue increased by $1.6 million, or 18%, to
$10.5 million compared to $8.9 million in the prior year.
Fourth quarter EBITDA was $1.4 million compared to $0.7 million in
the prior year.
"Fiscal 2010 was a breakthrough year for Score Media," says John
Levy, Chairman and CEO, Score Media Inc. "We achieved
tremendous growth with TV and mobile experiencing exceptional
revenue increases. We look forward to continuing to make our
mark during the next year and beyond."
- In Fiscal 2010, ScoreMobile and ScoreMobile FC attracted over
1.4 million monthly unique visitors who viewed over 50 million
pages of content in peak months
- ScoreMobile continued to impress sports fans worldwide while
ScoreMobile FC - launched on June 10, 2010, just in time for the
2010 FIFA World Cup™ - quickly attracted numerous soccer fans
around the globe including ones from the United Kingdom, the United
States and Indonesia. The soccer app is a free, comprehensive
source of information for world football fans that provides live
scores, stats and standings of over 50 international soccer leagues
from over 15 countries worldwide.
- ScoreMobile also received a great deal of media attention in
Fiscal 2010. The app was crowned a "Top 10 Sports App" in
Beckett Media's Guide to Phone Apps and a "Top 20 free BlackBerry
App" by PC Magazine. ScoreMobile also continues to be the #1
free sports app on BlackBerry anywhere in the world.
- Audiences on theScore were up more than 50% in fiscal 2010
compared to the prior year. Additionally, in the strategic
18-34 male demographic, audiences were up over 75% in the
comparative periods. Viewers are increasingly tuning in for
the Company's continued creation, production, and acquisition of
authentic and engaging sports content. In addition,
theScore's ratings benefited from the launch of BBM Canada's
Portable People Meter (PPM) which more effectively captures out of
home and group viewing and generally increased viewer ratings for
sports television networks.
- Score Media and World Wrestling Entertainment, Inc. continued
their partnership and announced a 3-year agreement on September 24,
2009 that brings WWE fans a full slate of exciting WWE
programming.
- On December 9, 2009, Score Media Inc. and presenting sponsor
Gillette crowned Paul Brothers the winner of Gillette DRAFTED:
The Search for Canada's Next Sportscaster. In a fierce
competition that attracted over 3,000 entrants, Paul Brothers
prevailed as the winner of both a one-year sportscaster contract
with Score Media contributing to theScore Television Network,
theScore.com and ScoreMobile, as well as a one-year spokesperson
contract with Gillette. On May 5, 2010 Score Media revealed the
return of the program with the announcement of Gillette DRAFTED
Season 2.
- Score Media was, once again, the exclusive home of the NCAA
Division I Men's Basketball tournament. All of the excitement from
the 65 team championship was made available on theScore Television
Network, with NCAA March Madness highlights and coverage appearing
on theScore.com, ScoreMobile and theScore Satellite Radio.
- On April 14, 2010, Score Media announced that it secured the
exclusive Canadian media rights to Serie A, Italy's world-renowned
professional soccer league. The two-year deal, which includes full
digital rights, represents the first time a major Canadian sports
network secured the rights to deliver exciting high-definition
Serie A action to sports fans across Canada.
- In April, 2010, Score Media and the Canadian Broadcasting
Corporation (CBC) inked a partnership to deliver exclusive 2010
FIFA World Cup South Africa™ content to viewers on theScore
Television Network. The deal gave theScore access to extended
highlights of each FIFA World Cup™ match as well as the ability to
create additional exclusive FIFA World Cup™ content, including
in-depth news content and behind-the-scenes coverage of every
team.
- The launch of theScore iPad Edition was an important milestone
for the company. On July 27, 2010, the app - offering sports
fans the latest stats, news, scores and standings from every major
sports league, while integrating the best content from theScore's
multiplatform properties - became one of the first free sports apps
on the market.
About Score Media Inc.
Score Media is a media company committed to delivering interactive
and authentic sports entertainment. Created in 1997 in response to
the growing desire for increased participation in the consumption
of sports, the Company has now established itself as the home for
hardcore sports fans. Score Media's primary asset, theScore
Television Network ("theScore"), is a national specialty television
service providing sports news, information, highlights and live
event programming in more than 6.8 million homes across Canada. The
Company's digital media assets include theScore.com, theScore iPad
Edition and the mobile sports applications ScoreMobile and
ScoreMobile FC which are available on BlackBerry, iPhone and
Android devices. Score Media also operates theScore Satellite Radio
which is available across North America on SIRIUS Satellite Radio
Channel 98. Growing from a team of 60 in 1997 to over 240 employees
in 2010, Score Media is a revolutionizing interactive media
company.
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 "believes", "plans",
"expects" or "intends" and other 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. Consequently, actual results could
differ materially from the expectations expressed in these
forward-looking statements.
FOURTH QUARTER RESULTS
The following tables reconcile net income to EBITDA:
| |
| |
Three |
Three |
| |
months ended |
months ended |
|
|
August 31, 2010 |
August
31, 2009 |
| Net income (loss) for the
period |
$ 1,100 |
$ (676) |
| Less: |
| |
Future income tax recovery |
1,020 |
- |
| |
| Add back: |
| |
Depreciation and
amortization |
1,188 |
1,165 |
| |
Interest expense,
net |
174 |
162 |
| |
Loss on disposal of fixed
assets |
- |
10 |
| |
Future income tax
expense |
- |
16 |
|
EBITDA
|
$
1,442 |
$
677 |
| |
| |
Year ended |
Year ended |
| |
August 31, |
August 31, |
| |
2010 |
2009 |
| Net income (loss) for the
period |
$ 2,494 |
$ (1,433) |
| Less: |
| |
Gain on sale of
investments |
18 |
- |
| |
| Add back: |
| |
Loss on disposal of fixed
assets |
- |
49 |
| |
Depreciation and
amortization |
4,352 |
4,550 |
| |
Interest expense,
net |
622 |
423 |
| |
Future income tax
expense |
169 |
165 |
|
EBITDA
|
$ 7,619 |
$ 3,754 |
| |
|
|
|
| |
|
|
|
| Score Media
Inc. |
|
|
|
| Consolidated Balance
Sheets |
|
|
|
| (in thousands of dollars) |
|
|
|
| (unaudited) |
|
|
|
| |
|
|
|
|
| |
|
|
August 31, 2010 |
August 31, 2009 |
| |
|
|
|
(restated) |
| |
|
|
|
|
| Assets |
|
|
|
| |
|
|
|
|
| Current assets: |
|
|
|
| |
Cash and cash equivalents |
|
$
184 |
$
276 |
| |
Accounts receivable |
|
9,828 |
6,875 |
| |
Prepaid expenses and other
assets |
|
1,254 |
616 |
| |
Future tax assets |
|
847 |
663 |
| |
|
|
12,113 |
8,430 |
| |
|
|
|
|
| Fixed assets |
|
15,193 |
17,174 |
| |
|
|
|
|
| Intangible assets |
|
2,818 |
1,735 |
| |
|
|
|
|
| Future tax assets |
|
6,658 |
7,011 |
| |
|
|
|
|
| |
|
|
$
36,782 |
$
34,350 |
| |
|
|
|
|
| Liabilities and Shareholders'
Equity |
|
|
|
| |
|
|
|
|
| Current liabilities: |
|
|
|
| |
Accounts payable and accrued liabilities |
|
6,285 |
5,132 |
| |
|
|
|
|
| Revolving credit
facility |
|
9,511 |
11,449 |
| |
|
|
|
|
| Shareholders' equity |
|
20,986 |
17,769 |
| |
|
|
|
|
| |
|
|
$
36,782 |
$
34,350 |
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Score Media Inc. |
|
|
|
|
|
|
|
|
| Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
| (in thousands of dollars, except share
and per share amounts) |
|
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
Three months
ended |
|
Twelve months
ended |
| |
|
|
August 31, 2010 |
|
August 31, 2009 |
|
August 31, 2010 |
|
August 31, 2009 |
| |
|
|
|
|
(restated) |
|
|
|
(restated) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Revenue |
|
$
10,523 |
|
$
8,909 |
|
$
43,838 |
|
$
38,884 |
| |
|
|
|
|
|
|
|
|
|
| Production and other direct
expenses |
|
5,279 |
|
4,029 |
|
17,950 |
|
17,020 |
| Selling, general and administration
expenses |
|
3,412 |
|
3,244 |
|
12,747 |
|
12,766 |
| Program rights |
|
390 |
|
959 |
|
5,522 |
|
5,344 |
| |
|
|
9,081 |
|
8,232 |
|
36,219 |
|
35,130 |
| |
|
|
|
|
|
|
|
|
|
| Income before undernoted |
|
1,442 |
|
677 |
|
7,619 |
|
3,754 |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
174 |
|
162 |
|
622 |
|
423 |
| Gain on sale of investments |
|
- |
|
- |
|
(18) |
|
- |
| Loss on disposal of fixed assets |
|
- |
|
10 |
|
- |
|
49 |
| Depreciation and amortization |
|
1,188 |
|
1,165 |
|
4,352 |
|
4,550 |
| |
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
80 |
|
(660) |
|
2,663 |
|
(1,268) |
| |
|
|
|
|
|
|
|
|
|
| Future income tax expense
(recovery) |
|
(1,020) |
|
16 |
|
169 |
|
165 |
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ 1,100 |
|
$ (676) |
|
$ 2,494 |
|
$
(1,433) |
| |
|
|
|
|
|
|
|
|
|
| Income (loss) per share - basic and
diluted |
|
$ 0.01 |
|
$ (0.01) |
|
$ 0.03 |
|
$
(0.02) |
| |
|
|
|
|
|
|
|
|
|
| Weighted average number
of Class A Subordinate Voting |
|
|
|
|
|
|
| |
and Special Voting Shares
outstanding |
Basic |
81,357,794 |
|
81,146,781 |
|
81,232,182 |
|
91,504,735 |
| |
|
Diluted |
82,669,667 |
|
81,146,781 |
|
81,524,086 |
|
91,504,735 |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| Score Media
Inc. |
|
|
|
|
|
| Consolidated Statements of Cash
Flows |
|
|
|
|
|
| (in thousands of dollars) |
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
Three months
ended |
|
Twelve months
ended |
| |
|
|
August 31, 2010 |
August 31, 2009 |
|
August 31, 2010 |
August 31, 2009 |
| |
|
|
|
(restated) |
|
|
(restated) |
| |
|
|
|
|
|
|
|
| Cash provided by (used in): |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Operations: |
|
|
|
|
|
| |
Net income (loss) |
$
1,100 |
$ (677) |
|
$
2,494 |
$
(1,433) |
| |
Items not involving
cash: |
|
|
|
|
|
| |
|
Depreciation and amortization |
1,188 |
1,166 |
|
4,352 |
4,550 |
| |
|
Loss on disposal of fixed assets |
- |
10 |
|
- |
49 |
| |
|
Stock-based compensation expense |
87 |
231 |
|
547 |
429 |
| |
|
Gain on sale of investments |
(18) |
- |
|
(18) |
- |
| |
|
Future income tax expense
(recovery) |
(1,020) |
16 |
|
169 |
165 |
| |
|
Change in fair value of derivative
instruments |
26 |
- |
|
26 |
- |
| |
Change in non-cash
operating working capital: |
|
|
|
|
|
| |
|
Accounts receivable |
393 |
1,232 |
|
(2,953) |
776 |
| |
|
Prepaid expenses and other
assets |
(990) |
113 |
|
(638) |
(47) |
| |
|
Accounts payable and accrued
liabilities |
1,387 |
(343) |
|
1,591 |
940 |
| |
|
|
2,153 |
1,748 |
|
5,570 |
5,429 |
| |
|
|
|
|
|
|
|
| Financing: |
|
|
|
|
|
| |
Draws from credit
facility |
12,121 |
11,905 |
|
41,623 |
52,349 |
| |
Repayments to credit
facility |
(13,315) |
(12,954) |
|
(43,561) |
(44,703) |
| |
Repurchase of Class A
Subordinate Voting shares |
- |
- |
|
- |
(7,271) |
| |
Issuance of Class A
Subordinate Voting shares |
72 |
- |
|
148 |
13 |
| |
|
|
(1,122) |
(1,049) |
|
(1,790) |
388 |
| |
|
|
|
|
|
|
|
| Investments: |
|
|
|
|
|
| |
Proceeds from sale of
investments |
18 |
- |
|
18 |
- |
| |
Additions to fixed
assets |
(233) |
(798) |
|
(1,412) |
(2,605) |
| |
Change in non-cash
working capital related to fixed assets |
(319) |
165 |
|
(438) |
(2,166) |
| |
Acquisition and
development of intangible assets |
(858) |
(3) |
|
(2,040) |
(1,062) |
| |
|
|
(1,392) |
(636) |
|
(3,872) |
(5,833) |
| |
|
|
|
|
|
|
|
| Decrease in cash and cash
equivalents |
(361) |
63 |
|
(92) |
(16) |
| |
|
|
|
|
|
|
|
| Cash and cash equivalents, beginning
of period |
545 |
213 |
|
276 |
292 |
| |
|
|
|
|
|
|
|
| Cash and cash equivalents, end of
period |
$
184 |
$ 276 |
|
$
184 |
$
276 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Supplemental cash flow
information |
|
|
|
|
|
| |
Interest paid |
$ 84 |
$ 106 |
|
$ 418 |
$
431 |
| |
|
|
|
|
|
The following selected quarterly financial data of the
Corporation relates to the eight quarters ended August 31,
2010.
| Quarterly Results |
Revenue |
EBITDA |
Net income
(loss) |
Income (loss) per share - basic
and diluted |
| |
($000's) |
($000's) |
($000's) |
($) |
| August 31, 2010 |
10,523 |
1,442 |
1,100 |
0.01 |
| May 31, 2010 |
11,986 |
1,916 |
568 |
0.01 |
| February 28, 2010 |
9,958 |
980 |
(239) |
0.00 |
| November 30, 2009 |
11,371 |
3,281 |
1,065 |
0.01 |
| August 31, 2009 |
8,909 |
677 |
(676) |
(0.01) |
| May 31, 2009 |
10,816 |
1,654 |
12 |
0.00 |
| February 28, 2009 |
8,662 |
204 |
(1,017) |
(0.01) |
| November 30, 2008 |
10,498 |
1,220 |
248 |
0.00 |
The Company's revenues have historically
reflected a seasonality trend, with the third quarter (ending May
31st) being the strongest, followed by the first quarter
(ending November 30th), the fourth quarter (ending
August 31st), and finally the second quarter (ending
February 28th). This seasonality reflects general trends
for sports media advertising, which in turn reflects the schedules
(particularly the playoffs) of the major sports leagues.
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SOURCE Score Media Inc.
Copyright . 20 PR Newswire
