Destiny Media Technologies, Inc. Announces First Quarter Fiscal Year 2015 Results
VANCOUVER, Jan. 14, 2015 /PRNewswire/ - 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.
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