Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results

VANCOUVER, April 10, 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 new cross-platform player-less video streaming format, today announced its financial results for the second quarter of fiscal 2014.

Highlights

Highlights during and subsequent to the end of the second quarter include:

• Launched the Clipstream video cloud service for commercial use
• Became the exclusive supplier of digital distribution services for Sony Music Australia
• Received approval for our first watermarking technology patent in Europe
• Signed an agreement with Shazam to license digital fingerprints and metadata to its servers

"This quarter marked a significant milestone for our company with the launch of the Clipstream^® video cloud service," said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. "We believe this product has the capability to disrupt the $5 billion dollar video encoding market. We continue to build our sales and support staff and as the service gains traction, we have the opportunity to rapidly grow our revenues and profitability. We are making our Play MPE service more user friendly with the introduction of applications for multiple devices and pursuing opportunities beyond music delivery."

Second Quarter Results

Service revenue for the second quarter was $810,682, versus $880,322 during the prior year quarter. As previously discussed, the year-over-year decrease in revenue was primarily related to a multi-year renewal of agreements with the Company's largest customer.  While the renewal affected year over year revenue comparisons during the quarter, it is expected to facilitate an increase in usage and global expansion.

Net loss for the second quarter was ($374,833), or ($0.01) per share, versus net income of $13,198, or $0.00 per diluted share, in the prior year quarter. This quarter's results include an expense of $344,352 related to stock based compensation and payouts made for the repurchase of stock options by the Company. Excluding this expense, net loss for the second quarter was ($30,481), or ($0.00) per share, compared to net income of $13,198, or $0.00 per diluted share in the prior year quarter.

Second Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on April 10, 2014, to further discuss its second quarter fiscal 2014 results. Investors and interested parties may participate in the call by dialing [phone] or [phone] and referring to conference ID # 07868883. 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, 2013, 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 February 28,  2014 $	Three Months  Ended February 28,  2013 $	Six Months  Ended   February 28,  2014 $	Six Months Ended  February 28,  2013 $
Revenue	810,682	880,322	1,733,223	1,944,189
Operating expenses
General and administrative	526,166	198,340	769,665	389,597
Sales and marketing	394,750	203,382	726,391	443,600
Research and development	268,362	457,080	532,846	857,432
Amortization	33,061	28,390	64,408	56,046
	1,222,339	887,192	2,093,310	1,746,675
Income (loss) from operations	(411,657)	(6,870)	(360,087)	197,514
Other income
Interest income	15,824	20,068	32,647	40,734
Income (loss) before income taxes	(395,833)	13,198	(327,440)	238,248
Income tax recovery (expense) - deferred	21,000	—	(3,000)	(65,000)
Net Income (loss)	(374,833)	13,198	(330,440)	173,248
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(140,131)	(77,448)	(154,681)	(82,964)
Total comprehensive income (loss)	(514,964)	(64,250)	(485,121)	90,284
Net income (loss) per common share,
basic and diluted	(0.01)	0.00	(0.01)	0.00

 

Destiny Media Technologies, Inc. CONSOLIDATED BALANCE SHEETS (Expressed in United States dollars) Unaudited
	February 28, 2014 $	August 31, 2013  $
ASSETS
Current
Cash and cash equivalents	870,939	1,521,552
Accounts receivable, net of allowance for  doubtful accounts of $3,143 [August 31, 2013 - $11,392]	616,665	419,697
Other receivables	73,852	16,636
Current portion of long term receivable	105,077	99,649
Prepaid expenses	42,093	29,653
Deposits	22,355	35,611
Deferred tax assets - current portion	130,000	130,000
Total current assets	1,860,981	2,252,798
Long term receivable	387,900	440,889
Property and equipment, net	262,902	234,969
Deferred tax assets - long term portion	726,000	729,000
Total assets	3,237,783	3,657,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable	159,824	79,622
Accrued liabilities	317,625	221,720
Deferred leasehold inducement	—	2,892
Deferred revenue	5,528	70,415
Total liabilities	482,977	374,649
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001
Authorized: 100,000,000 shares
Issued and outstanding: 52,680,845 shares     [August 31, 2013 - issued outstanding 51,981,964 shares]	52,681	51,982
Additional paid-in capital	8,885,605	8,929,384
Accumulated deficit	(6,117,456)	(5,787,016)
Accumulated other comprehensive income (loss)	(66,024)	88,657
Total stockholders' equity	2,754,806	3,283,007
Total liabilities and stockholders' equity	3,237,783	3,657,656

 

Destiny Media Technologies, Inc. REG G RECONCILIATION OF NON-GAAP MEASURES Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA
						Three Months Ended February 28, 2014				Three Months Ended February 28, 2013
Net (loss) income						($374,833)				$13,198
(Benefit) provision for income taxes						($21,000)				$0
Interest (income) expense						($15,824)				($20,068)
Depreciation and amortization expense						$33,061				$28,390
Share-based compensation						$344,352				$0
Adjusted EBITDA						($34,244)				$21,520

 

SOURCE: Destiny Media Technologies, Inc.

Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236

Investor Relations:
Dave Mossberg
Three Part Advisors
817-310-0051