Destiny Media Technologies Inc. Announces Fiscal Year 2019 Results

November 18, 2019 6:00 AM EST | Source: Destiny Media Technologies, Inc.

Vancouver, British Columbia--(Newsfile Corp. - November 18, 2019) - 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 fiscal year ended August 31, 2019.

Highlights

Highlights for the year include:

  • Play MPE® currency adjusted revenue growth of 9.1%;
  • Total unadjusted revenue growth of 5.6%;
  • Renewal and expanded agreement with Universal Music Group;
  • Expanded staffing dedicated to longer term revenue growth and product development including new Director of Product Management, and Director of Engineering.

Fiscal 2019 Results

Play MPE® currency adjusted revenue for the year ended August 31, 2019 grew by 9.1% over fiscal 2018. Increases in revenue were driven by expanded Major Record label use in Europe and the USA and expanded independent label use in the USA and Australia. Foreign currency fluctuations reduced the overall positive impact to our Play MPE ® revenues by 3.0%, resulting in a net 6.1% increase in reported Play MPE ® revenue and a total unadjusted revenue increase of 5.6%.

"2019 was a year of many exciting changes for Play MPE® and for the company" said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "We have made several significant key additions to the team and expanded our ability to innovate and grow the Play MPE business leading to early positive returns."

The company commenced a stock repurchase program in September 2019, resulting in market purchases to November 14, 2019 of 186,000 shares (representing 1.7% of shares outstanding as of August 31, 2019) for a total cost of $175,800 USD.

Fiscal 2019 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Monday, November 18, 2019, to further discuss its fiscal year 2019 results. Investors and interested parties may participate in the call by dialing 1-416-764-8688 or 1-888-390-0546 and referring to conference ID # 12819862. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Expressed in United States dollars)

  Year Year
  ended ended
  August 31, August 31,
  2019 2018

$ $
Revenue 3,809,092 3,606,471
     
Cost of revenue    
Hosting costs 107,434 125,631
Internal engineering support 28,441 24,437
Customer support 126,317 111,301
Third party and transaction costs 47,840 37,039

310,032 298,408
Gross Margin 3,499,060 3,308,063
     
Operating expenses    
General and administrative 770,758 801,866
Sales and marketing 908,951 657,474
Research and development 1,141,380 1,093,448
Depreciation and amortization 96,846 105,869

2,917,935 2,658,657
Income from operations 581,125 649,406
Other income    
Interest income 27,188 10,597
Other income (expense) 2,465 (3,733)
Net income 610,778 656,270
     
Other comprehensive income (loss)    
Foreign currency translation adjustments (38,217) (86,751)
Total comprehensive income 572,561 569,519
     
Net income per common share,    
    basic and diluted 0.06 0.06
     
Weighted average common shares outstanding:  
    Basic and diluted 11,002,599 11,002,786

 

CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)

As at August 31,    
  2019 2018
  $ $
     
ASSETS    
Current    
Cash and cash equivalents 2,512,138 1,097,434
Short-term investments 380,056 1,151,952
Accounts receivable, net of allowance for    
   doubtful accounts of $10,106 [2018 - $6,031] 332,271 403,801
Other receivables 14,240 15,902
Prepaid expenses 77,067 57,252
Total current assets 3,315,772 2,726,341
Deposits 33,716 34,336
Property and equipment, net 260,907 160,273
Intangible assets, net 24,695 41,472
Total assets 3,635,090 2,962,422
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current    
Accounts payable 132,451 141,273
Accrued liabilities 303,470 226,876
Deferred leasehold inducement 46,774 51,848
Deferred revenue 23,388 23,286
Obligation under capital lease - 2,363
Total current liabilities 506,083 445,646
Total liabilities 506,083 445,646
     
Stockholders' equity    
Common stock, par value $0.001    
   Authorized: 20,000,000 shares    
   Issued and outstanding: 11,000,786 shares    
      [2018 - issued and outstanding 11,002,786 shares] 11,001 11,003
Additional paid-in capital 9,850,348 9,810,676
Accumulated deficit (6,340,483) (6,951,261)
Accumulated other comprehensive (loss) (391,859) (353,642)
Total stockholders' equity 3,129,007 2,516,776
Total liabilities and stockholders' equity 3,635,090 2,962,422

 

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. 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 for the fiscal year ended August 31, 2019, which will be available on www.sedar.com or www.sec.gov.

Contact:

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/49810

info