DESTINY MEDIA TECHNOLOGIES INC. 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
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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
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Destiny Media Technologies, Inc.
REG G RECONCILIATION OF NON-GAAP MEASURES
Adjusted EBITDA Calculation Reconciliation of Net Income to Adjusted EBITDA
Three Months Three Months
Ended Ended
November 30, 2014 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.
