Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results VANCOUVER, April 10, 2014 /CNW/ - 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 Three Six Months Six Months Months Months Ended Ended Ended Ended February February 28, February 28, February 28, 28, 2013 2014 2013 2014 $ $ $ $ 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 394,750 203,382 726,391 443,600 marketing 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) (411,657) (6,870) (360,087) 197,514 from operations Other income Interest 15,824 20,068 32,647 40,734 income Income (loss) before income (395,833) 13,198 (327,440) 238,248 taxes Income tax recovery 21,000 — (3,000) (65,000) (expense) - deferred Net Income (374,833) 13,198 (330,440) 173,248 (loss) 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 (0.01) 0.00 (0.01) 0.00 diluted 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 (66,024) 88,657 (loss) 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 ($21,000) $0 income taxes Interest (income) expense ($15,824) ($20,068) Depreciation and $33,061 $28,390 amortization expense Share-based compensation $344,352 $0 Adjusted EBITDA ($34,244) $21,520 SOURCE Destiny Media Technologies, Inc. Fred Vandenberg CFO, Destiny Media Technologies, Inc. 604 609 7736 x236 Investor Relations: Dave Mossberg Three Part Advisors 817-310-0051 To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/April2014/10/c9417.html CO: Destiny Media Technologies, Inc. ST: British Columbia NI: SOF ERN
Destiny Media Technologies, Inc. Announces Second Quarter Fiscal 2014 Results
Press spacebar to pause and continue. Press esc to stop.