Destiny Media Technologies, Inc. Announces Fourth Quarter and Fiscal Year 2014 Results
VANCOUVER, Nov. 24, 2014 /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 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 (416) 764-8688 or (888) 390-0546 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. |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
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| (Expressed in United States dollars) |
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| audited |
||||
| Years ended August 31 |
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| 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. |
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| CONSOLIDATED BALANCE SHEETS |
|||
| (Expressed in United States dollars) |
|||
| audited |
|||
| As at August 31 |
|||
| 2014 |
2013 |
||
| $ |
$ |
||
| ASSETS |
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| Current |
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| 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 |
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| 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 |
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| Stockholders' equity |
|||
| Common stock, par value $0.001 |
|||
| Authorized: 100,000,000 shares |
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| 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
|
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| Fiscal Year Ended August 31, 2014 |
Fiscal Year Ended August 31, 2013 |
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| 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.
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