Destiny Media Technologies, Inc. Announces Fourth Quarter and Fiscal Year 2014 Results

VANCOUVER, Nov. 24, 2014 /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 the fourth quarter and  fiscal year ended August 31, 2014.

Fourth Quarter Results

Fourth quarter revenue increased four percent over the prior year quarter to $896,681. Revenue from the Play MPE segment increased six percent versus last year, driven by increased usage by independent labels. This segment has grown in 24 of the last 25 quarters.

Net loss for the fourth quarter was ($74,059), or ($0.00) per share, versus net income of $26,171, or $0.00 in the prior year. The reduction in income was primarily related to increased sales and marketing expenses due to increased staffing for its Clipstream product.  

Fiscal 2014 Results

Total revenue for fiscal 2014 decreased three percent to $3.57 million from $3.68 million during the prior year. The decrease in revenue was primarily related to the impact of a contract with our largest customer during the first half of fiscal 2014 partially offset by increased usage by U.S. independent labels and in Australia. 

Net loss for fiscal 2014 was ($324,399), or ($0.01) per share, versus net income of $226,014, or $0.00 per share in the prior year. The reduction was primarily related to costs related to the purchase of stock options. 

"Fiscal 2014 was a transitional year for our company," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "We shifted our focus from research and development to more of a sales and marketing approach, and hired staff and key personnel as we prepare for growth."

"We are optimistic about our prospects for fiscal 2015. Our Play MPE business continues to gain acceptance by additional independent labels and we expect growth with our major clients.."

"We began to build our Clipstream sales and marketing team and are incorporating the feedback received from existing customers and recent exhibitions at major industry conferences. We believe we should see sales from these efforts beginning in the second quarter of fiscal 2015. We are also building our advertising vertical and expect to receive validation of these products later this year.""  

Fourth Quarter and Fiscal 2014 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on November 24, 2014, to further discuss its fourth quarter and fiscal 2014 results. Investors and interested parties may participate in the call by dialing [phone] or [phone] and referring to conference ID # 42111430. 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 http://www.sedar.com or www.sec.gov. 

Destiny Media Technologies, Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars)
audited
Years ended August 31
			2014	2013
			$	$
Service revenue			3,572,376	3,679,029
Operating expenses
General and administrative			1,351,991	890,415
Sales and marketing			1,378,335	1,221,160
Research and development			1,062,668	1,207,700
Depreciation and amortization			148,165	123,875
			3,941,159	3,443,150
Income (loss) from operations			(368,783)	235,879
Other income (expenses)
Interest income			61,366	78,135
Other income			18	—
Income (loss) before provision for income taxes			(307,399)	314,014
Income tax expense - deferred			(17,000)	(88,000)
Net income (loss)			(324,399)	226,014
Foreign currency translation adjustments			(88,914)	(144,260)
Total comprehensive income (loss)			(413,313)	81,754
Net income (loss) per common share, basic and diluted			(0.01)	0.00
Weighted average common shares outstanding:
		Basic	52,486,401	52,006,459
		Diluted	52,486,401	52,965,805

Destiny Media Technologies, Inc.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
audited
As at August 31
		2014	2013
		$	$
ASSETS
Current
Cash and cash equivalents		990,007	1,521,552
Accounts receivable, net of allowance for
doubtful accounts of $5,513 [2013 – $11,392]		544,609	419,697
Other receivables		78,040	16,636
Current portion of long term receivable		115,464	99,649
Prepaid expenses		147,206	29,653
Deferred tax assets – current portion		—	130,000
Total current assets		1,875,326	2,217,187
Deposits		22,870	35,611
Long term receivable		345,830	440,889
Property and equipment, net		315,180	234,969
Deferred tax assets – long term portion		842,000	729,000
Total assets		3,401,206	3,657,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable		172,617	79,622
Accrued liabilities		203,353	221,720
Deferred leasehold inducement		—	2,892
Deferred revenue		22,589	70,415
Total liabilities		398,559	374,649
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001
	Authorized: 100,000,000 shares
	Issued and outstanding: 52,993,874 shares
	[2013 – issued and outstanding 51,981,964 shares]	52,994	51,982
Additional paid-in capital		9,061,325	8,929,384
Accumulated deficit		(6,111,415)	(5,787,016)
Accumulated other comprehensive income (loss)		(257)	88,657
Total stockholders' equity		3,002,647	3,283,007
Total liabilities and stockholders' equity		3,401,206	3,657,656

Destiny Media Technologies, Inc. REG G RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA
	Fiscal Year Ended August 31,  2014		Fiscal Year Ended August 31,  2013
Net (loss) income	($324,399)		$226,014
Interest (income)	($61,366)		($78,135)
Deferred income tax expense	$17,000		$88,000
Depreciation and amortization	$148,165		$123,875
Stock based compensation	$32,948		$20,080
Adjusted EBITDA	($187,652)		$379,834

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