Destiny Media Technologies, Inc. Announces Third Quarter Fiscal 2014 Results
VANCOUVER, July 14, 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 third quarter of fiscal 2014 ended May 31, 2014.
Highlights
- 3Q FY14 revenue increased eight percent year over year to $942,472, and 16 percent sequentially from 2Q FY14
- 3Q FY14 net income of $80,100 versus $26,595 during 3Q FY13
- 3Q FY14 operating cash flow of $148,597 during the quarter
- Licensing agreement to transmit digital fingerprints and meta data to Shazam
- Commenced service as exclusive supplier of digital distribution services to Sony Music Entertainment Australia
- Chargeable transactions with Universal Music Group grew by 83% and exceeded the global commitment two of three months during the quarter
"We saw meaningful revenue traction in our Play MPE business this quarter and continue to take a disciplined approach to adding sales, marketing and development resources to the enhancement and new service offerings of our Clipstream® video cloud service," said Steve Vestergaard, President and Chief Executive Officer at Destiny Media Technologies. "To further accelerate the growth of our Play MPE business, we are developing a web based encoder to allow for a more user friendly experience, and pursuing opportunities to expand Play MPE into content segments beyond music delivery."
"Continued expansion of Play MPE® use within the U.S. independent music sector was a key contributor to the growth in third quarter revenue. This segment has experienced growth in 23 of the last 24 comparable quarters. Also, in two months during the quarter, our largest major label customer exceeded their level of committed usage. Continued growth in usage from this customer will now drive Play MPE® revenue going forward," said Fred Vandenberg, Chief Financial Officer of Destiny Media Technologies. "Through our licensing agreement with Shazam, we have simplified the process for the labels to introduce new music, and have strengthened Play MPE's position as the industry's leading secure delivery of pre-release music."
Third Quarter Results
Service revenue for the third quarter of 2014 increased eight percent to $942,472, versus $873,866 during the prior year quarter. On a sequential basis, revenue increased 16 percent from the second quarter of fiscal 2014. The increase in revenue was primarily related to increased usage by U.S. independent labels and in Australia, as well as a more favorable exchange rate versus the Euro.
Net income for the third quarter was $80,100, or $0.00 per diluted share, versus net income of $26,595, or $0.00 per diluted share, in the prior year quarter.
Cash and cash equivalents on hand at the end of the third quarter was $1,038,930 versus $870,939 at the end of the second quarter. The company generated $148,597 of operating cash flow during the third quarter.
Third Quarter Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 14, 2014, to further discuss its third quarter fiscal 2014 results. Investors and interested parties may participate in the call by dialing (416) 764-8688 or (888) 390-0546 and referring to conference ID # 03977398. 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 | Three Months | Nine Months | Nine Months | |||||
Ended | Ended | Ended | Ended | |||||
May 31, | May 31, | May 31, | May 31, | |||||
2014 | 2013 | 2014 | 2013 | |||||
$ | $ | $ | $ | |||||
Revenue | 942,472 | 873,866 | 2,675,695 | 2,818,055 | ||||
Operating expenses | ||||||||
General and administrative | 271,855 | 285,857 | 1,041,520 | 675,454 | ||||
Sales and marketing | 330,830 | 207,492 | 1,057,221 | 651,092 | ||||
Research and development | 237,790 | 336,083 | 770,636 | 1,193,515 | ||||
Amortization | 39,655 | 28,746 | 104,063 | 84,792 | ||||
880,130 | 858,178 | 2,973,440 | 2,604,853 | |||||
Income (loss) from operations | 62,342 | 15,688 | (297,745) | 213,202 | ||||
Other income | ||||||||
Interest income | 14,758 | 18,907 | 47,405 | 59,641 | ||||
Income (loss) before income taxes | 77,100 | 34,595 | (250,340) | 272,843 | ||||
Income tax recovery (expense) - deferred | 3,000 | (8,000) | — | (73,000) | ||||
Net Income (loss) | 80,100 | 26,595 | (250,340) | 199,843 | ||||
Other comprehensive income (loss), net of tax | ||||||||
Foreign currency translation adjustments | 75,804 | (13,465) | (78,877) | (96,429) | ||||
Total comprehensive income (loss) | 155,904 | 13,130 | (329,217) | 103,414 | ||||
Net income (loss) per common share, | ||||||||
basic and diluted | 0.00 | 0.00 | (0.00) | 0.00 |
Destiny Media Technologies, Inc. | |||
CONSOLIDATED BALANCE SHEETS | |||
(Expressed in United States dollars) | |||
Unaudited | |||
May 31, | August 31, | ||
2014 | 2013 | ||
$ | $ | ||
ASSETS | |||
Current | |||
Cash and cash equivalents | 1,038,930 | 1,521,552 | |
Accounts receivable, net of allowance for doubtful accounts of $5,535 [August 31, 2013 - $11,392] |
486,165 | 419,697 | |
Other receivables | 67,613 | 16,636 | |
Current portion of long term receivable | 112,205 | 99,649 | |
Prepaid expenses | 33,962 | 29,653 | |
Deposits | 22,962 | 35,611 | |
Deferred tax assets - current portion | 130,000 | 130,000 | |
Total current assets | 1,891,837 | 2,252,798 | |
Long term receivable | 374,643 | 440,889 | |
Property and equipment, net | 315,126 | 234,969 | |
Deferred tax assets - long term portion | 729,000 | 729,000 | |
Total assets | 3,310,606 | 3,657,656 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current | |||
Accounts payable | 102,526 | 79,622 | |
Accrued liabilities | 202,207 | 221,720 | |
Deferred leasehold inducement | — | 2,892 | |
Deferred revenue | 31,100 | 70,415 | |
Total liabilities | 335,833 | 374,649 | |
Commitments and contingencies | |||
Stockholders' equity | |||
Common stock, par value $0.001 | |||
Authorized: 100,000,000 shares | |||
Issued and outstanding: 52,865,173 shares [August 31, 2013 - issued outstanding 51,981,964 shares] |
52,865 | 51,982 | |
Additional paid-in capital | 8,949,484 | 8,929,384 | |
Accumulated deficit | (6,037,356) | (5,787,016) | |
Accumulated other comprehensive income | 9,780 | 88,657 | |
Total stockholders' equity | 2,974,773 | 3,283,007 | |
Total liabilities and stockholders' equity | 3,310,606 | 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 May 31, 2014 |
Three Months Ended May 31, 2013 |
|||||||
Net (loss)income | $80,100 | $26,595 | ||||||
(Benefit) provision for income taxes | ($3,000) | $8,000 | ||||||
Interest (income) expense | ($14,758) | ($18,907) | ||||||
Depreciation and amortization expense | $39,968 | $30,692 | ||||||
Adjusted EBITDA | $102,310 | $46,380 |
SOURCE: Destiny Media Technologies, Inc.
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Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236
Investor Relations:
Dave Mossberg
Three Part Advisors
817-310-0051
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