Destiny Media Technologies, Inc. Announces Fourth Quarter and Fiscal Year 2013 Results

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Nov 25, 2013, 04:00 ET

VANCOUVER, Nov. 25, 2013 /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 new cross-platform playerless video streaming format, today announced its financial results for the fourth quarter and fiscal year ended August 31, 2013.

Net income for the fourth quarter was $26,171, or $0.00 per diluted share, versus net income of $185,560, or $0.00 per diluted share, in the prior year quarter. Net income for fiscal 2013 was $226,014 versus $563,003 in the prior fiscal year. The prior year’s results were aided by a $694,000 net recovery of litigation costs that did not recur this year.

Service revenue for the fourth quarter was $860,974, versus $941,426 during the prior year quarter. Service revenue for fiscal 2013 was $3.7 million, versus $4.0 million in the prior fiscal year. 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 temporarily affected revenue during the second half of the fiscal year, it is expected to facilitate an increase in usage and global expansion.

“We have completed the development and will be rolling out our first service powered by Clipstream® technology in the coming weeks,” said Steve Vestergaard, Chief Executive Officer of Destiny Media Technologies. “We are very excited about reaching this major milestone. With its compelling value proposition, Clipstream® has the potential to change the way video is delivered over the Internet.”

Fourth Quarter and Fiscal 2013 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on November 25, 2013, to further discuss its fourth quarter and fiscal 2013 results. Investors and interested parties may participate in the call by dialing (416) 764-8688 or (888) 390-0546 and referring to conference ID #54209213. 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

	2013	2012
	$	$

Service revenue	3,679,029	3,983,789

Operating expenses
General and administrative	890,415	587,731
Sales and marketing	1,221,160	697,724
Research and development	1,207,700	1,889,450
Depreciation and amortization	123,875	89,206
	3,443,150	3,264,111
Income from operations	235,879	719,678
Other income (expenses)
Interest income	78,135	48,052
Other income	—	4,458
Interest and other expense	—	(1,185)
Income before provision for income taxes	314,014	771,003
Income tax expense - deferred	(88,000)	(208,000)

Net income	226,014	563,003

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

		2013	2012
		$	$

ASSETS
Current
Cash and cash equivalents		1,521,552	1,275,423
Accounts receivable, net of allowance for doubtful accounts of $11,392 [2012 – $6,053]		419,697	440,053
Other receivables		16,636	48,508
Current portion of long term receivable		99,649	104,056
Prepaid expenses		29,653	27,059
Deferred tax assets – current portion		130,000	258,000
Total current assets		2,217,187	2,153,099
Deposits		35,611	37,847
Long term receivable		440,889	625,098
Property and equipment, net		234,969	287,958
Deferred tax assets – long term portion		729,000	689,000
Total assets		3,657,656	3,793,002

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current
Accounts payable		79,622	199,930
Accrued liabilities		221,720	250,623
Deferred leasehold inducement		2,892	5,843
Deferred revenue		70,415	55,671
Total liabilities		374,649	512,067

Commitments and contingencies

Stockholders’ equity
Common stock, par value $0.001
	Authorized: 100,000,000 shares
	Issued and outstanding: 51,981,964 shares [2012 – issued and outstanding 52,091,004 shares]	51,982	52,091
Additional paid-in capital		8,929,384	9,008,957
Accumulated Deficit		(5,787,016)	(6,013,030)
Accumulated other comprehensive income		88,657	232,917
Total stockholders’ equity		3,283,007	3,280,935
Total liabilities and stockholders’ equity		3,657,656	3,793,002