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 endedAugust 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$0.00in 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 millionfrom$3.68 millionduring 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$0.00per 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," saidSteve 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 at5:00 p.m. ET(2:00pm PT) onNovember 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 athttp://www.dsny.comin 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 atwww.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 endingAugust 31, 2014, which is available onhttp://www.sedar.comorwww.sec.gov.

Destiny Media Technologies, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(LOSS)

(Expressed in United States dollars)

audited

Years ended August 31

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.

CONSOLIDATED BALANCE SHEETS

(Expressed in United States dollars)

audited

As at August 31

2014

2013

$

$

ASSETS

Current

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

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

Stockholders' equity

Common stock, par value $0.001

Authorized: 100,000,000 shares

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

Fiscal Year

Ended

August 31,

2014

Fiscal Year

Ended

August 31,

2013

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

Keith Loh