Destiny Media Technologies Inc. Announces Third Quarter Fiscal Year 2020 Results
Vancouver, British Columbia--(Newsfile Corp. - July 15, 2020) - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based music distribution, collaboration and content discovery platform, today announced financial results for its fiscal 2020 third quarter ended May 31, 2020.
Highlights for the quarter:
- Glenn Mattern joins Play MPE® as Director of Business Development
- Canadian Play MPE® trials expand to include Sony Music Canada and several Canadian major independent record labels
- Play MPE® launches Mexican distribution lists
- USA Latin Music and Mexican seeding distribution commences
- Launch of the Play MPE® thought leadership panel series
- Play MPE® product management launches its beta testing program
Fiscal 2020 Third Quarter Financial Results
In the quarter ending May 31, 2020, Play MPE® revenue declined by approximately 2.4%. Adjustments in pricing to a long-standing customer agreement and negative impacts of foreign exchange resulted in a small decline to revenue. This was offset by continued growth in usage by independent music labels. Adjustments to pricing in this agreement is designed to facilitate longer term growing usage of the Play MPE® platform in under used market segments.
"We saw very encouraging results from our Canadian and Latin Music initiatives in our third quarter as usage expanded to include Sony Music Canada and several major independent record labels. We also launched our Latin lists in the United States and Mexico and commenced seeding those networks with popular content," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "Play MPE® continues to raise its profile as a thought leader with the launch of our new panel and webinar series."
The Company commenced a stock repurchase program in September 2019, resulting in market purchases of 550,140 shares (representing 5% of shares outstanding as of August 31, 2019) for a total cost of $533,223 USD.
Fiscal 2020 Third Quarter Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on July 15, 2020, to further discuss its fiscal 2020 third quarter 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 # 44093102. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at https://investors.dsny.com.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars)
|Three Months||Three Months||Nine Months||Nine Months|
|May 31,||May 31,||May 31,||May 31,|
|Cost of revenue|
|Internal engineering support||5,915||7,010||19,278||21,297|
|Third Party and transactions costs||16,641||11,009||39,502||31,019|
|General and administrative||273,070||178,392||708,667||556,270|
|Sales and marketing||140,690||273,574||786,846||707,473|
|Depreciation and amortization||33,194||26,764||100,744||67,099|
|Income (loss) from operations||50,310||185,934||(8,536||)||473,887|
|Net income (loss)||54,899||195,712||11,226||496,621|
|Other comprehensive income (loss)|
|Foreign currency translation adjustments||(66,657||)||(80,709||)||(80,213||)||(100,562||)|
|Total comprehensive income (loss)||(11,758||)||115,003||(68,987||)||396,059|
|Net income (loss) per common share,|
|basic and diluted||0.01||0.02||0.00||0.05|
|Weighted average common shares outstanding:|
|Basic and diluted||10,450,646||11,002,775||10,623,432||11,002,775|
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(Expressed in United States Dollars)
|May 31,||August 31,|
|Cash and cash equivalents||913,349||2,512,138|
|Accounts receivable, net of allowance for doubtful accounts of $23,111, [August 31, 2019 – $10,106]||748,440||332,271|
|Total current assets||2,872,061||3,315,772|
|Property and equipment, net||211,529||260,907|
|Intangible assets, net||19,032||24,695|
|Right of use asset||435,234||—|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Deferred leasehold inducement||—||46,774|
|Current portion of operating lease liability||219,864||—|
|Total current liabilities||740,917||506,083|
|Operating lease liability, net of current portion||266,769||—|
|Commitments and contingencies|
|Common stock, par value $0.001|
| Authorized: 20,000,000 shares |
Issued and outstanding: 10,450,656 shares
[August 31, 2019 – issued and outstanding 11,000,796 shares]
|Additional paid-in capital||9,353,584||9,850,348|
|Accumulated other comprehensive loss||(472,072||)||(391,859||)|
|Total stockholders’ equity||2,562,706||3,129,007|
|Total liabilities and stockholders’ equity||3,570,392||3,635,090|
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.
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 is available on www.sedar.com or www.sec.gov.
CEO, Destiny Media Technologies, Inc.
604 609 7736 x236
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