Destiny Media Technologies, Inc. Announces First Quarter Fiscal Year 2015 Results

VANCOUVER, Jan. 14, 2015 /CNW/ - Destiny Media Technologies (TSXV: DSY) (OTCQX: DSNY), the makers of Play MPE^®, a system for the secure distribution of pre-release music to radio and the developer of Clipstream^®, a cross-platform player-less video streaming format, today announced its financial results for its first quarter fiscal 2015.

First Quarter Results

First quarter revenue increased four percent over the prior year quarter to $955,070. During the first quarter, revenue from the Play MPE segment increased 7% percent over the prior  year, driven by a 14% increase in revenue in the United States and a 145% increase in revenue in Australia. Contributing to the growth in Play MPE revenue in the United States is an 8% growth in the independent label segment, which has grown in 25 of the last 26 quarters.

Net loss for the first quarter was ($56,309), or ($0.00) per share, versus net income of $44,393, or $0.00 during the prior year. The reduction in income was due primarily to increased staffing for the technical development of Clipstream, increased director compensation and a decline in the value of the Euro, resulting in a reduction in European revenue.

"We continue to make progress and are very optimistic about our prospects for fiscal 2015," said Steve Vestergaard, Chief Executive Officer of Destiny Media Technologies. "Our Play MPE business continues to grow. In addition, our Clipstream operation is finalizing its cloud offering for launch in March 2015 and in parallel is developing go-to-market plans that should result in meaningful revenue traction this year."

First Quarter Fiscal 2015 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on January 14, 2015, to further discuss its first quarter fiscal 2015 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 09360338. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com in the Company's proprietary Clipstream^® format.

About Destiny Media Technologies, Inc. 

Destiny Media Technologies (DSY.V) (DSNY) provides services that enable content owners to securely display and distribute their audio and video content digitally through the internet. The Company's two major services are Clipstream and Play MPE^®. Clipstream (www.clipstream.com) is a video format that plays on any modern smart phone, tablet, internet, TV, or computer. With Clipstream, there is no player to configure or install, videos never go obsolete, and there are up to 90% cost savings from caching.  Play MPE (www.plaympe.com) provides a standardized method to securely and cost effectively distribute pre-release music to radio stations and other music industry professionals, before it is ready for sale.  More information can be found at www.dsny.com.

Forward-Looking Statements

This release contains forward-looking statements that reflect current views with respect to future events and operating performance. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Destiny Media Technologies is not obligated to update these statements in the future. For more information on the Company's risks and uncertainties relating to those forward-looking statements, please refer to the Risk Factors section in our Annual Form 10-K ending August 31, 2014, which is available on www.sedar.com or www.sec.gov. 

Destiny Media Technologies, Inc.
CONDENSED STATEMENT OF OPERATIONS
(Expressed in United States dollars)
Unaudited

Three months ended November 30,
		2014	2013
		$	$
Service revenue		955,070	922,541
Operating expenses
General and administrative		293,658	243,499
Sales and marketing		331,013	331,641
Research and development		363,969	264,484
Depreciation and amortization		35,785	31,347
		1,024,425	870,971
Income (loss) from operations		(69,355)	51,570
Other income
Interest income		13,046	16,823
Income (loss) before provision for income taxes		(56,309)	68,393
Deferred income tax expense		—	(24,000)
Net income (loss)		(56,309)	44,393
Other comprehensive loss, net of tax
Foreign currency translation adjustments		(100,960)	(14,550)
Total comprehensive income (loss)		(157,269)	29,843
Net income per common share, basic and diluted		(0.00)	0.00
Weighted average common shares outstanding:
	Basic	52,993,874	51,998,397
	Diluted	52,993,874	53,418,156

Destiny Media Technologies, Inc.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
Unaudited

As at
				November 30,	August 31,
				2014	2014
				$	$
ASSETS
Current
Cash and cash equivalents				876,527	990,007
Accounts receivable, net of allowance for
		doubtful accounts of $6,129 [Aug 31, 2014 – $5,513]		575,955	544,609
Other receivables				83,713	78,040
Current portion of long term receivable				107,830	115,464
Prepaid expenses				107,928	147,206
Total current assets				1,751,953	1,875,326
Deposits				21,795	22,870
Long term receivable				286,830	345,830
Property and equipment, net				282,608	315,180
Deferred tax assets – long term portion				842,000	842,000
Total assets				3,185,186	3,401,206
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable				126,135	172,617
Accrued liabilities				203,849	203,353
Deferred revenue				2,627	22,589
Total liabilities				332,611	398,559
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001
		Authorized: 100,000,000 shares
		Issued and outstanding: 52,993,874 shares
			[Aug 31, 2014 – issued and outstanding 52,993,874 shares]	52,994	52,994
Additional paid-in capital				9,068,522	9,061,325
Accumulated deficit				(6,167,724)	(6,111,415)
Accumulated other comprehensive (loss)				(101,217)	(257)
Total stockholders' equity				2,852,575	3,002,647
Total liabilities and stockholders' equity				3,185,186	3,401,206

Destiny Media Technologies, Inc.
REG G RECONCILIATION OF NON-GAAP MEASURES
Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA

	Three Months Ended November 30, 2014		Three Months Ended November 30, 2013
Net (loss)income	($56,309)		$44,393
Interest income (expense)	($13,046)		($16,823)
Deferred income tax expense	—		$24,000
Depreciation and amortization	$35,785		$31,347
Stock based compensation	$7,197		$22,819
Adjusted EBITDA	($26,373)		$105,736

SOURCE Destiny Media Technologies, Inc.

Contacts: Fred Vandenberg, CFO, Destiny Media Technologies, Inc., 604 609 7736 x236; Investor Relations: Dave Mossberg, Three Part Advisors, 817-310-0051