Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results

Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results

PR Newswire

VANCOUVER, April 10, 2014

VANCOUVER, April 10,  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 new cross-platform player-less video  streaming format, today announced  its 
financial results for the second quarter of fiscal 2014.

Highlights

Highlights during and subsequent to the end of the second quarter include:

  *Launched the Clipstream video cloud service for commercial use
  *Became the exclusive supplier of digital distribution services for Sony
    Music Australia
  *Received approval for our first watermarking technology patent in Europe
  *Signed an agreement with Shazam to license digital fingerprints and
    metadata to its servers

"This quarter marked a significant milestone  for our company with the  launch 
of the Clipstream^®  video cloud service,"  said Steve Vestergaard,  President 
and Chief Executive Officer  at Destiny Media  Technologies. "We believe  this 
product has the  capability to disrupt  the $5 billion  dollar video  encoding 
market. We continue to build  our sales and support  staff and as the  service 
gains traction,  we have  the opportunity  to rapidly  grow our  revenues  and 
profitability. We are making our Play MPE service more user friendly with  the 
introduction of applications for  multiple devices and pursuing  opportunities 
beyond music delivery."

Second Quarter Results

Service revenue for the  second quarter was  $810,682, versus $880,322  during 
the prior year quarter. 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 affected  year over  year 
revenue comparisons  during  the quarter,  it  is expected  to  facilitate  an 
increase in usage and global expansion.

Net loss for the second quarter  was ($374,833), or ($0.01) per share,  versus 
net income of $13,198, or $0.00 per diluted share, in the prior year  quarter. 
This quarter's results include an expense  of $344,352 related to stock  based 
compensation and  payouts made  for the  repurchase of  stock options  by  the 
Company.  Excluding  this  expense,  net  loss  for  the  second  quarter  was 
($30,481), or ($0.00) per share, compared  to net income of $13,198, or  $0.00 
per diluted share in the prior year quarter.

Second Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm
PT) on  April 10,  2014, to  further discuss  its second  quarter 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  # 
07868883. 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
                                                               
                         Three Months    Three     Six Months  Six Months
                             Ended         Months       Ended       Ended
                         February 28,      Ended      February    February
                              2014      February 28,     28,        28,
                               $            2013          2014        2013
                                              $            $            $
                                                               
Revenue                        810,682      880,322   1,733,223   1,944,189

Operating expenses
General and                     526,166       198,340     769,665     389,597
administrative
Sales and marketing            394,750      203,382      726,391     443,600
Research and                    268,362      457,080      532,846     857,432
development
Amortization                    33,061        28,390       64,408      56,046
                             1,222,339       887,192    2,093,310   1,746,675
Income (loss) from           (411,657)      (6,870)   (360,087)     197,514
operations
Other income
Interest income                 15,824        20,068      32,647      40,734
Income (loss) before         (395,833)        13,198   (327,440)     238,248
income taxes
Income tax recovery             21,000            —     (3,000)   (65,000)
(expense) - deferred
Net Income (loss)            (374,833)        13,198   (330,440)     173,248

Other comprehensive
income (loss), net of
tax
Foreign currency             (140,131)      (77,448)   (154,681)    (82,964)
translation adjustments
                                                               
Total comprehensive           (514,964)     (64,250)    (485,121)     90,284
income (loss)

Net income (loss) per
common share,
 basic and diluted             (0.01)         0.00       (0.01)        0.00

                                      

                       Destiny Media Technologies, Inc.
                         CONSOLIDATED BALANCE SHEETS
                     (Expressed in United States dollars)
                                  Unaudited
                                                    February 28, August 31,
                                                            2014          2013
                                                               $            $

ASSETS
Current
Cash and cash equivalents                               870,939     1,521,552
Accounts receivable, net of allowance for
doubtful accounts of $3,143 [August 31, 2013 -
$11,392]                                                616,665       419,697
Other receivables                                        73,852        16,636
Current portion of long term receivable                 105,077       99,649
Prepaid expenses                                         42,093        29,653
Deposits                                                 22,355        35,611
Deferred tax assets - current portion                   130,000       130,000
Total current assets                                  1,860,981     2,252,798
Long term receivable                                    387,900      440,889
Property and equipment, net                             262,902       234,969
Deferred tax assets - long term portion                 726,000       729,000
Total assets                                          3,237,783     3,657,656

LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable                                        159,824        79,622
Accrued liabilities                                     317,625       221,720
Deferred leasehold inducement                                 —        2,892
Deferred revenue                                          5,528        70,415
Total liabilities                                       482,977       374,649
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.001
Authorized: 100,000,000 shares
Issued and outstanding: 52,680,845 shares
[August 31, 2013 - issued outstanding
51,981,964 shares]                                       52,681        51,982
Additional paid-in capital                            8,885,605     8,929,384
Accumulated deficit                                 (6,117,456)   (5,787,016)
Accumulated other comprehensive income (loss)          (66,024)        88,657
Total stockholders' equity                            2,754,806     3,283,007
Total liabilities and stockholders' equity            3,237,783    3,657,656

                                      

                       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 February       Ended February
                                                 28, 2014             28, 2013
                                                      
Net (loss) income                         ($374,833)           $13,198
(Benefit) provision for income             ($21,000)                $0
taxes
Interest (income) expense                  ($15,824)         ($20,068)
Depreciation and amortization                $33,061           $28,390
expense
Share-based compensation                    $344,352                $0
Adjusted EBITDA                            ($34,244)           $21,520



SOURCE Destiny Media Technologies, Inc.

Contact:

Fred Vandenberg
CFO, Destiny Media Technologies, Inc.
604 609 7736 x236

Investor Relations:
Dave Mossberg
Three Part Advisors
817-310-0051
 
Press spacebar to pause and continue. Press esc to stop.