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

VANCOUVER, July 15, 2016 /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 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) / 2nd 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 5th consecutive quarter of decreasing loss from operations.  
"The company continues to grow revenue while reducing unproductive expenditures.  Following the migration to 3rd 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
Keith Loh