theScore, Inc. Reports Fiscal 2012 Fourth Quarter and Year End Financial Results

theScore, Inc. Reports Fiscal 2012 Fourth Quarter and Year End Financial 
Results 
TORONTO, Nov. 29, 2012 /CNW/ - theScore, Inc. (TSXV: SCR) ("theScore" or the 
"Company") today announced the financial results for Score Digital (see 
definition below) for the fourth quarter and year ended August 31, 2012 in 
accordance with International Financial Reporting Standards ("IFRS"). 
FISCAL 2012 OPERATIONAL HIGHLIGHTS 


    --  Announced a plan of arrangement pursuant to which Rogers Media
        Inc. would acquire the television business of Score Media Inc.,
        and the digital media business of Score Media would be spun-out
        to its shareholders; the plan of arrangement closed on October
        19, 2012
    --  Mobile sports applications achieved record growth in Fiscal
        2012, registering 3.5 million monthly active users and 120
        million user sessions in its peak month, March 2012, up 154%
        and 164% respectively, over March 2011
    --  theScore.com also achieved record growth in Fiscal 2012, with
        1.9 million monthly active users in March 2012, up 208% from
        March 2011
    --  theScore re-launched its flagship ScoreMobile application for
        iPhone in November 2011;  this app was named the best iPhone
        Sports App in both the United States and Canada by Apple in its
        iTunes Rewind 2011 and was inducted into the Apple iTunes "Hall
        of Fame" for Canada in 2012

"With the plan of arrangement now complete, we are excited to be moving 
forward with theScore as a stand-alone business," said John Levy, Chairman and 
CEO, theScore, Inc. "Our goal is to create the ultimate digital service for 
sports fans across web and mobile platforms, and we are hitting the ground 
running. Our mobile apps and website both achieved substantial growth in 
monthly active users over the past year, and we will build on this success 
with a robust product roadmap planned for fiscal 2013."

Q4 2012 and FISCAL 2012 FINANCIAL RESULTS FOR SCORE DIGITAL

Revenues for the year ended August 31, 2012 were $4.2 million compared to $4.1 
million in the year ended August 31, 2011. Revenues for the fourth quarter 
ended August 31, 2012 were $1.3 million compared to $1.0 million in the fourth 
quarter ended August 31, 2011. Revenues for the year and fourth quarter 
ended August 31, 2011 included $0.9 million and $0.2 million, respectively, of 
revenues related to theScore Satellite Radio which ceased operations in August 
2011.

EBITDA loss for the year ended August 31, 2012 was $6.5 million compared to 
$4.3 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. EBITDA loss for 
the fourth quarter ended August 31, 2012 was $1.8 million compared to $1.3 
million in the previous year.

STOCK OPTION GRANT

theScore today announced the grant of an aggregate of 4,580,000 options, 
including 2,790,000 options to directors and officers of the Company. 
Options were granted to the following directors and officers: Norwest Video 
Inc. (1,600,000 options); Tom Hearne (400,000 options); Benjamin Levy (400,000 
options); Brian Merker (150,000 options); Ralph Lean (40,000 options); Ken 
Read (40,000 options); Mark Scholes (40,000 options); Lorry Schneider (40,000 
options); William Thomson (40,000 options); and Mark Zega (40,000 options). 
Each option is exercisable for one Class A Subordinate Voting Share of 
theScore at an exercise price of $0.13, vests over three years and has a term 
of ten years. Each option is exercisable in accordance with the terms and 
conditions of the Company's stock option plan.

CLOSING OF PLAN OF ARRANGEMENT

On October 19, 2012, Score Media Inc. (the "Parent") closed the Arrangement 
Agreement with Rogers pursuant to which, by way of the Arrangement: (a) Rogers 
acquired the television business of the Parent via an acquisition of all of 
the outstanding shares of the Parent for $1.62 per share; and (b) the digital 
media business of the Parent was spun out to the Parent's shareholders as a 
new corporation, theScore, Inc., incorporated on August 30, 2012 and formed to 
acquire Score Digital and certain assets of the Parent and its subsidiaries.

Under the terms of the Arrangement Agreement, Rogers acquired all of the 
outstanding shares of the Parent and an interest in theScore, Inc.

Pursuant to the business separation agreement, the Parent capitalized 
theScore, Inc. for $11.6 million and inclusive of $1.8 million held in escrow 
until the first anniversary of the closing of the transaction.

Prior to the closing of the Arrangement the balances due to and due from the 
Parent and Remaining Group were either settled or acquired by theScore, Inc. 
In both instances as at October 19, 2012, these amounts are no longer balances 
due to or due from the Parent and Remaining Group.

DEFINITION OF SCORE DIGITAL

Score Digital consists of the following entities, which as of August 31, 2012, 
were wholly owned subsidiaries of Score Media Inc. and were consolidated by 
and under the control of Score Media Inc.: Score Media Ventures Inc. 
(together with its wholly-owned consolidated subsidiaries ScoreMobile Inc. and 
2283546 Ontario Inc.), Hardcore Sports Radio Inc., St. Clair Group Investments 
Inc., Score Productions Inc., and SMI International Holdings Inc. (together 
with its wholly-owned consolidated subsidiary SMI International Ltd.). Score 
Digital represents a portion of Score Media's businesses and does not 
constitute a separate legal entity.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that 
term is defined in policies of the TSX Venture Exchange) accepts 
responsibility for the adequacy or accuracy of this release.

About theScore, Inc.
theScore, Inc. creates, aggregates and distributes sports content via 
established and emergent digital media assets, including mobile sports 
applications and its website, theScore.com. theScore's mission is to create 
the ultimate digital service for sports fans across web and mobile 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 Listing Application 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.
    Score Digital      

Combined Consolidated Carve-out Statements of Financial Position      

(in thousands of Canadian dollars)      
                                                                       
                                      August 31, 2012   August 31, 2011
                                                                       

Assets                                                                 
                                                                       

Current assets:                                                        

  Accounts receivable               $           1,124 $           1,238

  Other receivable                              1,863                 -

  Due from Remaining Group                         80                30

  Prepaid expenses                                142                37
                                                3,209             1,305
                                                                       

Non-current assets:                                                    

  Equipment                                       246               212

  Intangible assets                             7,206             5,765

  Investment in equity accounted
  investee                                        916               936
                                                8,368             6,913
                                                                       

Total assets                        $          11,577 $           8,218
                                                                       

Liabilities and Shareholders'
Equity                                                                 
                                                                       

Current liabilities:                                                   

  Accounts payable and accrued
  liabilities                       $           1,799 $           1,291

  Dur to Parent                                23,574            17,146

  Due to Remaining Group                        8,840             4,408
                                               34,213            22,845
                                                                       

Funded deficiency                            (22,636)          (14,627)
                                                                       

Commitments and contingencies                                          

Subsequent events                                                      
                                                                       

Total liabilities and shareholders'
equity                              $          11,577 $           8,218
                                                                       
                                                                       

See accompanying notes to the Combined Consolidated Carve-out financial
statements





Score Digital           
Combined Consolidated Carve-out Statements of Comprehensive Loss       

(in thousands of Canadian dollars)           


                                                                       
                                                       Year ended
                                      August 31, 2012   August 31, 2011
                                                                       

Revenue:                                                               

  Digital media                     $           4,195 $           3,245

  Radio, productions and other                                      854
                                                4,195             4,099
                                                                       

Operating costs                                                        

  Personnel                                     3,592             3,193

  Content                                       2,010             2,266

  Technology                                    2,725             1,101

  Facilities, administrative, and
  other                                         1,621               860

  Management fees                                 713               909

  Depreciation of equipment                        92               103

  Amortization of intangible assets             1,801             1,223

  Write-off of equipment                                            108
                                               12,554             9,763
                                                                       

Operating loss                                (8,359)           (5,664)
                                                                       

Finance costs                                     706               283

Share of loss of equity accounted
investee                                           41                14
                                                                       

Loss and comprehensive loss                   (9,106)           (5,961)
                                                                       

See accompanying notes to the Combined Consolidated Carve-out financial
statements
                                                                       

   

Score Digital          

Combined Consolidated Carve-out Statements of Comprehensive Loss      



(in thousands of Canadian dollars)           


                                                                       
                                               Fourth quarter ended
                                      August 31, 2012   August 31, 2011
                                                                       

Revenue:                                                               

  Digital media                     $           1,334 $             769

  Radio, productions and other                                      200
                                                1,334               969
                                                                       

Operating costs                                                        

  Personnel                                     1,356               946

  Content                                         281               536

  Technology                                      963               377

  Facilities, administrative, and
  other                                           367               165

  Management fees                                 216               242

  Depreciation of equipment                        25                24

  Amortization of intangible assets               672               369

  Write-off of equipment                                            108
                                                3,880             2,767
                                                                       

Operating loss                                (2,546)           (1,798)
                                                                       

Finance costs                                     287               114

Share of loss of equity accounted
investee                                            4                18
                                                                       

Loss and comprehensive loss                   (2,837)           (1,930)
                                                                       

See accompanying notes to the Combined Consolidated Carve-out financial
statements

   

Score Digital

Reconciliation of Net and Comprehensive Income to EBITDA           
                                                       Year ended
                                      August 31, 2012   August 31, 2011
                                                                       

Net and comprehensive loss for the
period                              $         (9,106) $         (5,961)
                                                                       

Adjustments:                                                           

  Share of loss of equity accounted
  investee                                         41                14

  Depreciation and amortization                 1,893             1,326

  Finance costs                                   706               283

  Write-off of equipment                           -                108
                                                                       

EBITDA                              $         (6,466) $         (4,230)
                                                                       
                                                                       
                                                 Three months ended
                                      August 31, 2012   August 31, 2011
                                                                       

Net and comprehensive loss for the
period                              $         (2,837) $         (1,930)
                                                                       

Adjustments:                                                           

  Share of loss of equity accounted
  investee                                          4                18

  Depreciation and amortization                   697               393

  Finance costs                                   287               114

  Write-off of equipment                           -                108
                                                                       

EBITDA                              $         (1,849) $         (1,297)







Tom Hearne Chief Financial Officer theScore, Inc. 416-977-6787 x2206 
tom.hearne@thescore.com  

SOURCE: theScore, Inc.

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CO: theScore, Inc.
ST: Ontario
NI: INTERNET SPORTS ERN 

-0- Nov/29/2012 12:00 GMT


 
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