Destiny Media Technologies, Inc. Announces Second Quarter Fiscal Year 2018 Results
VANCOUVER, April 16, 2018 /PRNewswire/ - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based SaaS solution for digital asset management in the music industry, today announced financial results for its second quarter ended February 28, 2018.
Highlights
Highlights for the quarter include:
- Beta release of Play MPE Version 8,
- Revenue growth of 4.2%,
- 12% reduction in expenditures,
- First positive EBITDA and net income in the Company's historically slow second quarter in five years.
Second Quarter Fiscal 2018 Results
Revenue for the quarter ended February 28, 2018 grew by 4.2% to $815,055 over the same quarter in the previous year. This growth is primarily due to favorable exchange rates and the growth in US independent record labels. Combined with a 12% decrease in overall operating expenditures, to $749,390, the Company had positive income in its seasonally weakest quarter for the first time in the last five years.
"We are developing critical product updates to Play MPE, including the beta launch of version 8 this quarter," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies, "The great feedback we're seeing from the beta gives us confidence that these product updates, along with expected investments in a stronger business development and sales team, will allow us recapture lost customers, expand to new territories, and return to stronger revenue growth."
| Destiny Media Technologies Inc. |
|||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
|||||
| (Expressed in United States dollars) |
|||||
| Unaudited |
|||||
| Three months |
Three months |
Six months |
Six months |
||
| ended |
ended |
ended |
ended |
||
| February 28, |
February 28, |
February 28, |
February 28, |
||
| 2018 |
2017 |
2018 |
2017 |
||
| $ |
$ |
$ |
$ |
||
| Revenue |
815,055 |
781,878 |
1,788,853 |
1,674,107 |
|
| Operating expenses |
|||||
| General and administrative |
160,218 |
203,922 |
304,052 |
375,424 |
|
| Sales and marketing |
259,408 |
269,144 |
531,494 |
533,205 |
|
| Research and development |
304,274 |
339,276 |
601,488 |
654,699 |
|
| Depreciation and amortization |
25,490 |
41,612 |
51,187 |
83,490 |
|
| 749,390 |
853,954 |
1,488,221 |
1,646,818 |
||
| Income from operations |
65,665 |
(72,076) |
300,632 |
27,289 |
|
| Other income |
|||||
| Interest income |
1,704 |
3,871 |
4,029 |
8,634 |
|
| Other income (expense) |
7 |
- |
(3,795) |
- |
|
| Net income |
67,376 |
(68,205) |
300,866 |
35,923 |
|
| Other comprehensive income (loss) |
|||||
| Foreign currency translation adjustments |
11,107 |
19,238 |
(41,009) |
(14,131) |
|
| Total comprehensive income (loss) |
78,483 |
(48,967) |
259,857 |
21,792 |
|
| Net income (loss) per common share, |
|||||
| basic and diluted |
0.00 |
(0.00) |
0.01 |
0.00 |
|
| Weighted average common shares outstanding: |
|||||
| Basic and diluted |
55,013,874 |
55,013,874 |
55,013,874 |
55,013,874 |
|
| Destiny Media Technologies Inc. |
||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
| (Expressed in United States dollars) |
||||
| Unaudited |
||||
| As at, |
February 28, |
August 31, |
||
| 2018 |
2017 |
|||
| $ |
$ |
|||
| ASSETS |
||||
| Current |
||||
| Cash and cash equivalents |
1,623,131 |
1,342,956 |
||
| Accounts receivable, net of allowance for |
||||
| doubtful accounts of $5,324 [August 31, 2017 – $3,383] |
525,603 |
529,666 |
||
| Other receivables |
81,671 |
21,216 |
||
| Current portion of long term receivable |
0 |
64,811 |
||
| Prepaid expenses |
52,625 |
54,507 |
||
| Deposits |
580 |
592 |
||
| Total current assets |
2,283,610 |
2,013,748 |
||
| Deposits |
27,360 |
27,923 |
||
| Property and equipment, net |
191,532 |
116,208 |
||
| Intangible assets, net |
57,149 |
86,824 |
||
| Total assets |
2,559,651 |
2,244,703 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Current |
||||
| Accounts payable |
142,648 |
127,444 |
||
| Accrued liabilities |
173,602 |
192,433 |
||
| Deferred leasehold inducement |
52,149 |
2,090 |
||
| Deferred revenue |
7,329 |
23,685 |
||
| Obligation under capital lease – current portion |
2,992 |
6,246 |
||
| Total current liabilities |
378,720 |
351,898 |
||
| Total liabilities |
378,720 |
351,898 |
||
| Stockholders' equity |
||||
| Common stock, par value $0.001 |
||||
| Authorized: 100,000,000 shares |
||||
| Issued and outstanding: 55,013,874 shares |
||||
| [August 31, 2017 – issued and outstanding 55,013,874 shares] |
55,014 |
55,014 |
||
| Additional paid-in capital |
9,740,482 |
9,712,213 |
||
| Accumulated deficit |
(7,306,665) |
(7,607,531) |
||
| Accumulated other comprehensive (loss) |
(307,900) |
(266,891) |
||
| Total stockholders' equity |
2,180,931 |
1,892,805 |
||
| Total liabilities and stockholders' equity |
2,559,651 |
2,244,703 |
||
Second Quarter Fiscal 2018 Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Monday, April 16, 2018, to further discuss its first quarter fiscal year 2018 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 75835004. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com.
About Destiny Media Technologies, Inc.
Destiny Media Technologies ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond.
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 for the fiscal year ended August 31, 2017, which is available on www.sedar.com or www.sec.gov.
SOURCE Destiny Media Technologies, Inc.
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