TORONTO--(BUSINESS WIRE)--
(TSX Venture: SCR) (“theScore”) today announced the financial results for the three months ended November 30, 2018 in accordance with International Financial Reporting Standards (“IFRS”). All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Q1 F2019 Highlights
- The Company achieved record quarterly EBITDA in Q1 F2019 of $1.0 million.
- The Company achieved record quarterly revenue in Q1 F2019 of $9.5 million.
- The Company grew average monthly user sessions to a new quarterly record of 469 million during Q1 F2019, with users opening theScore app an average of 111 times a month each.
- In December the Company became the first media company in North America to for a mobile sportsbook in the United States, which the company anticipates will launch in New Jersey in mid-2019 subject to receipt of required regulatory approvals and licenses.
- The Company’s esports’ video content achieved a new record of 40.3 million total views in Q1 F2019.
“Sports betting is a core focus this fiscal year and a huge opportunity for theScore,” said John Levy, Founder and CEO of theScore. “We’re excited to launch what we believe will be a unique and best-in-class mobile sportsbook in New Jersey in mid-2019.
“We’re uniquely positioned as a media company to succeed in sports betting. The record engagement achieved this quarter on our mobile app demonstrates the power of our audience, which spans every single U.S. state and indexes highly with sports betting enthusiasts.
“This is a big advantage, as is the rapid growth of mobile and in-game sports wagering, which aligns perfectly with the product expertise that has made theScore one of the most popular sports apps in North America.
“On top of this, we continue to create value across our Company, achieving record quarterly revenue and EBITDA while significantly growing our esports and social audiences. We look forward to further strengthening our reputation as a leader in digital sports media in 2019 and beyond.”
Financial Results
The Company achieved record EBITDA for Q1
F2019 of $1.0 million versus EBITDA of $0.5 million in Q1 F2018. The
Company also achieved record revenue for Q1 F2019, which grew 13% to
$9.5 million versus $8.4 million in Q1 F2018, and included record
quarterly revenue for the Company’s Canadian direct sales business and
strong year-over-year growth of U.S. programmatic revenue.
Audience Metrics
Total average monthly user sessions of
theScore mobile app on iOS and Android reached a new quarterly record of
469 million in Q1 F2019, or 111 sessions-per-user per-month on a base of
4.2 million average monthly app users.
Total video views of theScore’s esports’ content were 40.3 million for Q1 F2019, representing year-over-year growth of 123%. Total watch minutes for reached 296 million in Q1 F2019, growth of 867% year-over-year, with during the period.
theScore’s content on its social channels reached approximately 67 million users per month in Q1 F2019, growth of 119% year-over-year, serving to further amplify theScore brand globally. This included a new monthly reach record of approximately 77 million in November.
Credit Facility
In December 2018 the Company entered into a
$5 million demand credit facility with a Canadian chartered bank. The
credit facility is available for working capital purposes and the amount
available is based on a percentage of the Company’s accounts receivable
and those of certain of its subsidiaries. The facility is secured by
substantially all of the assets of the Company and certain of its
subsidiaries.
Stock Option Plan
theScore announced that the board of
directors has granted 5,537,500 options to acquire Class A subordinate
voting shares to employees of, and consultants to, the Company,
including 1,700,000 options to directors and officers of the Company.
Assuming the requisite shareholder approval is obtained, options will be
granted to the following directors and officers: Norwest Video Inc.
(600,000 options); Benjamin Levy (500,000 options); Ralph Lean (100,000
options); John Albright (100,000 options); Mark Scholes (100,000
options); Lorry Schneider (100,000 options); Thomson Associates Inc.
(100,000 options), and Mark Zega (100,000 options). Each option will be
exercisable for one Class A Subordinate Voting Share of theScore at an
exercise price of $0.30 in accordance with the terms and conditions of
the Company’s employee stock option plan.
Conference Call
theScore will host a conference call at 4:30pm ET on Wednesday, January 23 where management will review the Company’s Q1 F2019 results, followed by a Q&A session:
Conference Call Dial-In
Local: (+1) 647 689-5637
Toll Free North America: (+1) 877 396-4208
The conference call will also be webcast live. Register now .
Instant Replay
Local: (+1) 416 621-4642
Toll Free North America: (+1) 800 585-8367
Playback Passcode: 7389200 #
Annual General Meeting
theScore will be hosting its Annual
General Meeting at 11:00am EST on Thursday, January 24, 2019 at the
Company’s Toronto office at: 500 King Street West, Fourth Floor,
Toronto, Ontario, M5V 1L9.
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 ‘’
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
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) | ||||||
| As at | ||||||
| November 30, | August 31, | |||||
| 2018 | 2018 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 11,736 | $ | 6,347 | ||
| Accounts receivable | 9,340 | 5,839 | ||||
| Prepaid expenses and deposits | 1,382 | 1,078 | ||||
| 22,458 | 13,264 | |||||
| Non-current assets: | ||||||
| Property and equipment | 1,401 | 1,453 | ||||
| Intangible assets | 6,146 | 6,074 | ||||
| Tax credits recoverable | 1,616 | 1,616 | ||||
| 9,163 | 9,143 | |||||
| Total assets | $ | 31,621 | $ | 22,407 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ | 4,111 | $ | 3,710 | ||
| Non-current liabilities: | ||||||
| Deferred lease obligation | 395 | 415 | ||||
| Shareholders' equity | 27,115 | 18,282 | ||||
| Commitments | ||||||
| Total liabilities and shareholders' equity | $ | 31,621 | $ | 22,407 | ||
| theScore, Inc. | |||||
| Condensed Consolidated Interim Statements of Comprehensive Income (Loss) | |||||
| Three months ended November 30, 2018 and 2017 | |||||
| (in thousands of Canadian dollars, except per share amounts) | |||||
| (unaudited) | |||||
| Three months ended November 30, | |||||
| 2018 | 2017 | ||||
| Revenue from contracts with customers | 9,475 | 8,351 | |||
| Operating expenses: | |||||
| Personnel | 4,674 | 4,418 | |||
| Content | 500 | 462 | |||
| Technology | 712 | 668 | |||
| Facilities, administrative and other | 1,971 | 1,353 | |||
| Marketing | 535 | 806 | |||
| Depreciation of property and equipment | 93 | 103 | |||
| Amortization of intangible assets | 735 | 864 | |||
| Stock based compensation | 119 | 113 | |||
| 9,339 | 8,787 | ||||
| Operating Income (loss) | 136 | (436 | ) | ||
| Finance income, net | 27 | 176 | |||
| Net and comprehensive income (loss) | 163 | (260 | ) | ||
| Income (Loss) per share - basic and diluted | 0.00 | (0.00 | ) | ||
| theScore, Inc. | |||||||
| Condensed Consolidated Interim Statements of Cash Flows | |||||||
| (in thousands of Canadian dollars) | |||||||
| (unaudited) | |||||||
| Three months ended November 30, | |||||||
| 2018 | 2017 | ||||||
| Cash flows used in operating activities | |||||||
| Net and comprehensive income/(loss) | 163 | (260 | ) | ||||
| Adjustments for: | |||||||
| Depreciation and amortization | 828 | 967 | |||||
| Stock based compensation | 119 | 113 | |||||
| 1,110 | 820 | ||||||
| Change in non-cash operating assets and liabilities: | |||||||
| Accounts receivable | (3,501 | ) | (2,992 | ) | |||
| Prepaid expenses and deposits | (304 | ) | (16 | ) | |||
| Accounts payable and accrued liabilities | 401 | 213 | |||||
| Deferred lease obligation | (20 | ) | (14 | ) | |||
| (3,424 | ) | (2,809 | ) | ||||
| Net cash used in operating activities | (2,314 | ) | (1,989 | ) | |||
| Cash flows from financing activities | |||||||
| Exercise of stock options | 51 | 17 | |||||
| Issuance of shares, net of transaction costs | 8,500 | - | |||||
| Net cash from financing activities | 8,551 | 17 | |||||
| Cash flows used in investing activities | |||||||
| Additions to property and equipment | (41 | ) | (7 | ) | |||
| Additions to intangible assets | (807 | ) | (721 | ) | |||
| Tax credits recoverable | - | - | |||||
| Net cash used in investing activities | (848 | ) | (728 | ) | |||
| Increase (decrease) in cash and cash equivalents | 5,389 | (2,699 | ) | ||||
| Cash and cash equivalents, beginning of period | 6,347 | 10,114 | |||||
| Cash and cash equivalents, end of period | 11,736 | 7,414 | |||||
|
|
||||||||||
| Three months ended | ||||||||||
| November 30, 2018 | November 30, 2017 | |||||||||
| Net and comprehensive income (loss) for the period | $ | 163 | $ | (260 | ) | |||||
| Adjustments: | ||||||||||
| Depreciation and amortization | 828 | 967 | ||||||||
| Finance expense, net | (27 | ) | (176 | ) | ||||||
| EBITDA | $ | 964 | $ | 531 | ||||||
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