Destiny Media Technologies, Inc. Announces Third Quarter Fiscal Year 2016 Results

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Jul 15, 2016, 09:20 ET

VANCOUVER, July 15, 2016 /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 third quarter ended May 31, 2016.

Highlights

Highlights during the third quarter include:

Quarterly revenue increase 9% (YOY) / 2^nd consecutive quarterly YOY revenue increase
Quarterly expenditures drop by 14% (YOY)
Quarterly loss virtually eliminated (shrinks by 99% (YOY))
First positive quarterly EBITDA since Q3 – 2014
2nd successive quarter of positive cash flow from operations and YOY revenue growth

Third Quarter Results

Play MPE® revenue grew in Europe and the USA for an overall increase in total revenue of 9% YOY. Net loss for the third quarter is virtually eliminated as the company continues to grow revenue while eliminating unproductive costs resulting in the 5^th consecutive quarter of decreasing loss from operations.

"The company continues to grow revenue while reducing unproductive expenditures. Following the migration to 3^rd party hosting of the operations for Play MPE®, the company will now begin executing on his Play MPE® product development plan which should expand the use and marketability of the Play MPE® system." said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "The company also added recipient lists in Sweden and Denmark to its distribution network and we saw positive impacts to revenue during the quarter as a result."

Third Quarter Fiscal 2016 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 15th, 2016, to further discuss its third quarter fiscal 2016 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 31997467. 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.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(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,
		2016	2015	2016	2015
		$	$	$	$
Revenue		875,502	803,409	2,487,120	2,501,672

Operating expenses
General and administrative		202,016	267,967	595,605	808,547
Sales and marketing		257,536	360,925	910,322	1,114,431
Research and development		362,920	348,680	1,013,682	1,123,931
Amortization		60,746	53,595	163,771	128,378
		883,218	1,031,167	2,683,380	3,175,287
(Loss) from operations		(7,716)	(227,758)	(196,260)	(673,615)
Other income
Other income		-	289	-	289
Interest income		4,903	9,040	17,057	34,131
Net (loss)		(2,813)	(218,429)	(179,203)	(639,195)

Other comprehensive income (loss)
Foreign currency translation adjustments		68,915	(1,824)	31,850	(267,611)

Total comprehensive income (loss)		66,102	(220,253)	(147,353)	(906,806)

Net (loss) per common share,
	basic and diluted	0.00	0.00	0.00	-0.01
Weighted average common shares outstanding:
	Basic	55,013,874	52,993,874	54,645,261	52,993,874
	Diluted	55,013,874	52,993,874	54,645,261	52,993,874

CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
Unaudited
As at
			May 31,	August 31,
			2016	2015
			$	$

ASSETS
Current
Cash and cash equivalents			756,402	387,316
	Accounts receivable, net of allowance for
	doubtful accounts of $9,304 [Aug 31, 2015 – $6,129]		438,430	399,148
	Other receivables		7,734	15,471
	Current portion of long term receivable		106,899	98,180
Prepaid expenses			32,395	36,042
Total current assets			1,341,860	936,157
Deposits			23,055	32,222
	Long term receivable		87,597	167,350
	Property and equipment, net		399,153	401,461
Total assets			1,851,665	1,537,190

LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable			87,876	139,879
Accrued liabilities			199,360	189,672
Deferred leasehold inducement			37,777	63,217
Deferred revenue			24,887	24,712
Obligation under capital lease – current portion			5,151	5,205
Total current liabilities			355,051	422,685
Obligation under capital lease – long term portion			7,967	12,071
Total liabilities			363,018	434,756

Stockholders' equity
Common stock, par value $0.001
	Authorized: 100,000,000 shares
		Issued and outstanding: 55,013,874 shares
		[Aug 31, 2015 – issued and outstanding 52,993,874 shares]	55,014	52,994
Additional paid-in capital			9,653,678	9,122,132
Accumulated deficit			(7,887,264)	(7,708,061)
Accumulated other comprehensive (loss)			(332,781)	(364,631)
Total stockholders' equity			1,488,647	1,102,434
Total liabilities and stockholders' equity			1,851,665	1,537,190