- Digital Media segment posts 46% growth in web and mobile
revenues
- Broadcast segment maintains strong EBITDA
performance
TORONTO,
July 12, 2012 /CNW/ - Score Media
Inc. (TSX: SCR) today announced its financial results for the third
quarter ended May 31, 2012 in
accordance with International Financial Reporting Standards
("IFRS").
- Revenues for the three months ended May
31, 2012 were $12.7 million
compared to $13.1 million in the
three months ended May 31, 2011.
-
- Digital media revenues for the three months ended May 31, 2012 were $1.1
million compared to $0.8
million in the three months ended May
31, 2011.
-
- Digital media revenue growth reflects our success in monetizing
our growing user base across our digital platforms in Canada and the
United States.
- Broadcast revenues for the three months ended May 31, 2012 were $11.5
million compared to $12.3
million in the three months ended May
31, 2011.
-
- Broadcast revenues were impacted by anticipated revenue
reductions from the closure of theScore Satellite Radio and lower
contra revenues, as well as recent softness in the overall
television advertising market.
- EBITDA (see "Definitions") for the three months ended
May 31, 2012 was $0.5 million compared to $2.1 million in the previous year, primarily as a
result of a planned increase in expenditures on personnel and
technology to support the significant growth in the audience of the
Company's digital media platforms
-
- Broadcast EBITDA for the three months ended May 31, 2012 was $3.8
million compared to $4.5
million in the three months ended May
31, 2011, primarily related to revenue reductions noted
above and increased rights fees related to the Company's expanded
content partnership with WWE (World Wrestling Entertainment).
- Digital media EBITDA loss for the three months ended
May 31, 2012 was $1.7 million compared to a $0.7 million EBITDA loss in the three months
ended May 31, 2011. This was
primarily related to planned increases to our product development
and US direct sales teams, and traffic dependent technology
costs.
- Corporate costs for the three months ended May 31, 2012 were $1.6
million compared to $1.7
million in the three months ended May
31, 2011.
"Through investment in our digital platforms, we
have again enjoyed significant audience growth year-over-year,"
said John Levy, Chairman and CEO,
Score Media Inc. "This has enabled us to increase revenues
generated through our industry leading mobile apps ScoreMobile and
ScoreMobile FC, theScore.com website as well as the exclusive
content showcased on our dedicated YouTube channel and on
iTunes.
"Despite the recent softness in the television
advertising market, our broadcast business remains solid and
profitable and we remain strongly committed to developing and
incorporating new and unique programming for theScore Television
Network, such as our flagship afternoon show Live @theScore. This
strategy leaves us well placed as the market begins to shows signs
of recovery."
- The Company's digital media assets registered significant
audience growth in Q3/12:
-
- ScoreMobile applications averaged 3.5 million unique users per
month in Q3/12, growing by more than 1.1 million unique users per
month, or more than 46%, from Q3/11.
- theScore.com averaged 1.4 million unique users per month in
Q3/12, an increase of 38% or 0.4 million unique users per month
over Q3/11.
- In Q3/12, Score Media Inc. announced a partnership with
William Hill, allowing UK-based
users of its ScoreMobile FC app to bet on live football matches at
the touch of a button. The partnership with the UK's leading sports
betting and gaming provider enabled users of ScoreMobile FC to
place bets with their iPhone, BlackBerry or Windows smartphones via
their williamhill.com account.
- Score Media and Gillette Canada announced a partnership to
produce Season 4 of Gillette DRAFTED. For the first time in
the show's history, viewers of theScore would decide who would be
crowned winner, earning a one-year contract as Score Media's newest
sportscaster - contributing to theScore Television Network,
theScore.com and ScoreMobile - plus a one-year spokesperson
contract with Gillette.
- A version of Score Media's popular free sports mobile
application ScoreMobile was released for the Kindle Fire tablet.
Already available for the iPad and BlackBerry PlayBook as well as
for iPhone, BlackBerry, Android and Windows Phone smartphones,
ScoreMobile has become a must-have app for sports fans, reaching
more than 3.5 million unique users each month.
- Score Media's dedicated soccer mobile application ScoreMobile
FC was updated in time for the Euro
2012 tournament in Poland
and Ukraine, including free
customizable push alerts (including goals and key incidents); daily
video "vodcasts" featuring special guests; synchronized tournament
fixtures to user calendars; up-to-the-second live scores; live
blogs or text commentary for every game; comprehensive list of
match times, tables and statistics and the latest Euro 2012 news, previews and post-match analysis
in video format.
THIRD QUARTER RESULTS
The following tables reconcile net and comprehensive income
(loss) to EBITDA:
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
Three months
ended |
| |
|
|
|
May 31, 2012 |
|
|
May 31, 2011 |
| |
|
|
|
|
|
|
|
| Net and comprehensive income (loss) for the
period |
|
$ |
(1,595) |
|
$ |
608 |
| |
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
| |
Share of loss of equity accounted investee |
|
|
14 |
|
|
21 |
| |
Depreciation and amortization |
|
|
1,373 |
|
|
1,174 |
| |
Finance costs |
|
|
238 |
|
|
156 |
| |
Income tax expense |
|
|
423 |
|
|
189 |
| |
|
|
|
|
|
|
|
| EBITDA |
|
$ |
453 |
|
$ |
2,148 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
Nine months
ended |
| |
|
|
|
May 31, 2012 |
|
|
May 31, 2011 |
| |
|
|
|
|
|
|
|
| Net and comprehensive income (loss) for the
period |
|
$ |
(2,684) |
|
$ |
1,248 |
| |
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
| |
Share of loss (profit) of equity accounted investee |
|
|
37 |
|
|
(4) |
| |
Depreciation and amortization |
|
|
3,293 |
|
|
3,242 |
| |
Finance costs |
|
|
677 |
|
|
425 |
| |
Income tax expense |
|
|
1,072 |
|
|
970 |
| |
|
|
|
|
|
|
|
| EBITDA |
|
$ |
2,395 |
|
$ |
5,881 |
| Score Media Inc. |
|
|
|
|
| Condensed
Consolidated Statements of Financial
Position |
|
|
| (in thousands of Canadian
dollars) |
|
|
|
|
| (unaudited) |
|
|
|
|
| |
|
|
|
|
|
| |
|
|
May 31, 2012 |
|
August 31, 2011 |
| |
|
|
|
|
|
| Assets |
|
|
|
|
| |
|
|
|
|
|
| Current assets: |
|
|
|
|
| |
Cash |
$ |
103 |
$ |
398 |
| |
Accounts and other receivable |
|
13,280 |
|
12,227 |
| |
Prepaid expenses and other
assets |
|
1,390 |
|
1,976 |
| |
|
|
14,773 |
|
14,601 |
| |
|
|
|
|
|
| Non-current assets: |
|
|
|
|
| |
Fixed assets |
|
12,911 |
|
13,654 |
| |
Intangible assets |
|
7,045 |
|
6,087 |
| |
Investment in equity accounted
investee |
|
925 |
|
936 |
| |
Deferred tax assets |
|
5,610 |
|
6,682 |
| |
|
|
26,491 |
|
27,359 |
| |
|
|
|
|
|
| Total assets |
$ |
41,264 |
$ |
41,960 |
| |
|
|
|
|
|
| Liabilities and Shareholders'
Equity |
|
|
|
|
| |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
| |
Accounts payable and accrued
liabilities |
|
8,189 |
|
6,442 |
| |
|
|
|
|
|
| Non-current liabilities: |
|
|
|
|
| |
Provisions |
|
184 |
|
- |
| |
Revolving credit facility |
|
13,092 |
|
12,979 |
| |
|
|
13,276 |
|
12,979 |
| |
|
|
|
|
|
| Shareholders' equity |
|
19,799 |
|
22,539 |
| |
|
|
|
|
|
| Total liabilities and
shareholders' equity |
$ |
41,264 |
$ |
41,960 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| See accompanying notes
to unaudited interim financial statements |
| Score Media Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of
Comprehensive Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
| (in thousands of Canadian
dollars, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three months
ended |
|
Nine months
ended |
| |
|
|
|
May 31, 2012 |
|
|
May 31, 2011 |
|
|
May 31, 2012 |
|
|
May 31, 2011 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ |
12,690 |
|
$ |
13,092 |
|
$ |
36,553 |
|
$ |
35,867 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating costs |
|
|
12,237 |
|
|
10,944 |
|
|
34,158 |
|
|
29,986 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
453 |
|
|
2,148 |
|
|
2,395 |
|
|
5,881 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
238 |
|
|
156 |
|
|
677 |
|
|
425 |
| Depreciation and amortization |
|
|
1,373 |
|
|
1,174 |
|
|
3,293 |
|
|
3,242 |
| Share of loss (profit) of equity accounted
investee |
|
|
14 |
|
|
21 |
|
|
37 |
|
|
(4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
(1,172) |
|
|
797 |
|
|
(1,612) |
|
|
2,218 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred income tax expense |
|
|
423 |
|
|
189 |
|
|
1,072 |
|
|
970 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net and comprehensive income (loss) for the
period |
|
$ |
(1,595) |
|
$ |
608 |
|
$ |
(2,684) |
|
$ |
1,248 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per share - basic and
diluted |
|
$ |
(0.02) |
|
$ |
0.01 |
|
$ |
(0.03) |
|
$ |
0.02 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| See accompanying notes
to unaudited interim financial statements |
| Score Media Inc. |
|
|
|
|
|
| Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
|
| (in thousands of Canadian dollars) |
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
Nine months
ended |
|
| |
|
|
|
May 31, 2012 |
|
May 31, 2011 |
|
| |
|
|
|
|
|
|
|
| Cash flows from operating activities |
|
|
|
|
|
| |
Net and comprehensive income (loss) |
$ |
(2,684) |
$ |
1,248 |
|
| |
Adjustments for: |
|
|
|
|
|
| |
|
Depreciation and amortization |
|
3,293 |
|
3,242 |
|
| |
|
Share-based compensation expense |
|
38 |
|
148 |
|
| |
|
Share of loss (profit) of equity accounted for investee |
|
11 |
|
(48) |
|
| |
|
Income tax expense |
|
1,072 |
|
970 |
|
| |
|
Provisions |
|
184 |
|
- |
|
| |
|
Finance costs |
|
677 |
|
425 |
|
| |
|
|
|
2,591 |
|
5,985 |
|
| |
Change in non-cash operating working capital: |
|
|
|
|
|
| |
|
Accounts and other receivable |
|
(1,053) |
|
(3,159) |
|
| |
|
Prepaid expenses and other assets |
|
475 |
|
(483) |
|
| |
|
Accounts payable and accrued liabilities |
|
1,747 |
|
1,160 |
|
| |
|
|
|
1,169 |
|
(2,482) |
|
| Net cash from operating activities |
|
3,760 |
|
3,503 |
|
| |
|
|
|
|
|
|
|
| Cash flows used in investing activities |
|
|
|
|
|
| |
Additions to fixed assets |
|
(1,304) |
|
(1,588) |
|
| |
Acquisition of intangible assets |
|
(2,285) |
|
(3,343) |
|
| |
Acquisition of interest in equity investee |
|
- |
|
(893) |
|
| Net cash used in investing activities |
|
(3,589) |
|
(5,824) |
|
| |
|
|
|
|
|
|
|
| Cash flows used in financing activities |
|
|
|
|
|
| |
Draws from credit facility |
|
44,963 |
|
28,131 |
|
| |
Repayments of credit facility |
|
(44,850) |
|
(25,354) |
|
| |
Interest paid, net |
|
(596) |
|
(326) |
|
| |
Issuance of Class A subordinate voting shares |
|
17 |
|
135 |
|
| Net cash used in financing activities |
|
(466) |
|
2,586 |
|
| |
|
|
|
|
|
|
|
| Net increase (decrease) in cash |
|
(295) |
|
265 |
|
| |
|
|
|
|
|
|
|
| Cash, beginning of period |
|
398 |
|
184 |
|
| |
|
|
|
|
|
|
|
| Cash, end of period |
$ |
103 |
$ |
449 |
|
| |
|
|
|
|
|
|
|
| See accompanying notes
to unaudited interim financial statements |
| Segmented Information: |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three
months ended May 31, 2012 |
Nine
months ended May 31, 2012 |
| |
|
|
|
|
Corporate |
Consolidated
totals |
|
|
Corporate |
Consolidated
totals |
| |
|
|
Broadcast |
Digital Media |
Broadcast |
Digital Media |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ 11,545 |
$ 1,145 |
$ - |
$ 12,690 |
$ 33,692 |
$ 2,861 |
$ - |
$ 36,553 |
| |
|
|
|
|
|
|
|
|
|
|
| Operating costs |
|
7,725 |
2,875 |
1,637 |
12,237 |
22,742 |
6,545 |
4,871 |
34,158 |
| |
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
3,820 |
(1,730) |
(1,637) |
453 |
10,950 |
(3,684) |
(4,871) |
2,395 |
| |
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
|
|
238 |
|
|
|
677 |
| Depreciation and
amortization |
|
|
|
|
1,373 |
|
|
|
3,293 |
| Share of loss of
equity accounted investee |
|
|
|
|
14 |
|
|
|
37 |
| |
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
|
|
$ (1,172) |
|
|
|
$ (1,612) |
| |
|
|
|
|
|
|
|
|
|
|
| Additions to fixed assets |
|
$ 249 |
26 |
1 |
$ 276 |
$ 1,173 |
119 |
12 |
$ 1,304 |
| Additions to intangible assets |
|
$ 20 |
1,126 |
- |
$ 1,146 |
$ 162 |
2,118 |
5 |
$ 2,285 |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three
months ended May 31, 2011 |
Nine months ended May 31, 2011 |
| |
|
|
|
|
Corporate |
Consolidated totals |
|
|
Corporate |
Consolidated totals |
| |
|
|
Broadcast |
Digital
Media |
Broadcast |
Digital
Media |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ 12,310 |
$ 782 |
$ - |
$ 13,092 |
$ 33,392 |
$ 2,475 |
$ - |
$ 35,867 |
| |
|
|
|
|
|
|
|
|
|
|
| Operating costs |
|
7,767 |
1,479 |
1,698 |
10,944 |
21,228 |
4,099 |
4,659 |
29,986 |
| |
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
4,543 |
(697) |
(1,698) |
2,148 |
12,164 |
(1,624) |
(4,659) |
5,881 |
| |
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
|
|
156 |
|
|
|
425 |
| Depreciation and
amortization |
|
|
|
|
1,174 |
|
|
|
3,242 |
| Share of loss of
equity accounted investee |
|
|
|
|
21 |
|
|
|
(4) |
| |
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
|
|
$ 797 |
|
|
|
$ 2,218 |
| |
|
|
|
|
|
|
|
|
|
|
| Additions to fixed assets |
|
$ 175 |
24 |
9 |
$ 208 |
$ 1,502 |
75 |
11 |
$ 1,588 |
| Additions to intangible assets |
|
$ 9 |
1,589 |
- |
$ 1,598 |
$ 116 |
3,204 |
23 |
$ 3,343 |
The following selected quarterly financial data
of the Corporation relates to the eight quarters ended May 31, 2012.
| Quarterly Results |
Accounting
Basis |
Revenues |
EBITDA |
Net and
comprehensive
income (loss) |
Earnings (loss)
per share - basic
and diluted |
| |
|
($000's) |
($000's) |
($000's) |
($) |
| May 31, 2012 |
IFRS |
12,690 |
453 |
(1,595) |
(0.02) |
| February 29, 2012 |
IFRS |
10,446 |
40 |
(1,303) |
(0.02) |
| November 30, 2011 |
IFRS |
13,417 |
1,902 |
212 |
0.00 |
| August 31, 2011 |
IFRS |
11,530 |
1,901 |
160 |
0.00 |
| May 31, 2011 |
IFRS |
13,092 |
2,148 |
608 |
0.01 |
| February 28, 2011 |
IFRS |
10,982 |
1,079 |
(215) |
0.00 |
| November 30, 2010 |
IFRS |
11,793 |
2,654 |
856 |
0.01 |
| August 31, 2010 |
GAAP |
10,523 |
1,442 |
1,100 |
0.01 |
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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About Score Media Inc.
Score Media is a media company committed to delivering interactive
and authentic sports entertainment. Score Media's primary
asset, theScore Television Network ("theScore"), is a national
specialty television service providing sports news, information,
highlights and live event programming across Canada. The Company's digital media
assets include theScore.com and the industry leading mobile sports
applications ScoreMobile, ScoreMobile FC and SportsTap which reach
over three million unique users per month. Growing from a
team of 60 in 1997 to over 290 employees in fiscal 2012, 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.
SOURCE Score Media Inc.