Destiny Media Technologies Inc. Announces First Quarter Fiscal Year 2021 Results and Updates NCIB

January 13, 2021 9:00 AM EST | Source: Destiny Media Technologies, Inc.

Vancouver, British Columbia--(Newsfile Corp. - January 13, 2021) - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY) (the "Company") or ("Destiny"), 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 2021 first quarter ended November 30, 2020.

Highlights for Q1 2021

(all figures are USD, and comparisons are to Q1 2020):

  • Play MPE® revenue grew by 8.8% (5.4% currency adjusted);
  • Independent label revenue up 38.5% (37.7% currency adjusted);
  • Cash reserves as at November 30, 2020 of $3.077M ($0.29/share);
  • Sends activity up 25.5%;
  • Upgraded release creator for the Play MPE® platform.

Fred Vandenberg, President and CEO said, "We closed our first quarter with high activity levels, leading revenue up to $1.124 million. We continue to experience strong growth in our independent label revenue, with revenue up 38.5% representing the second straight quarter with 35%+ revenue growth. Independent record labels now represent more than 53% of Play MPE® revenue."

"Investments into the platform and business development are starting to show improvements in our revenue growth. The first quarter of fiscal 2021 is the beginning of many exciting changes for Play MPE® and for the Company," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies.

Fiscal 2021 First Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Wednesday, January 13, 2021, to further discuss its 2021 first 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 # 95457453. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com.

CONSOLIDATED BALANCE SHEETS

As at, (Expressed in United States dollars)
       
 
November 30, 2020  
August 31, 2020  
 
$  
$  
 
   
   
ASSETS
   
   
Current
   
   
Cash and cash equivalents
3,076,862  
1,841,340  
Short-term investments
-  
781,490  
Accounts receivable, net of allowance for
   
   
doubtful accounts of $23,562 [August 31, 2020 - $23,412]
329,573  
426,832  
Other receivables
31,066  
26,083  
Prepaid expenses
62,290  
78,562  
Total current assets
3,499,791  
3,154,307  
Deposits
34,538  
34,316  
Property and equipment, net
179,850  
194,277  
Intangible assets, net
19,369  
22,952  
Right of use asset
351,130  
403,961  
Total assets
4,084,678  
3,809,813  
 
   
   
LIABILITIES AND STOCKHOLDERS' EQUITY
   
   
Current
   
   
Accounts payable
186,426  
119,399  
Accrued liabilities
325,182  
353,235  
Deferred revenue
18,841  
19,638  
Obligation under capital lease
239,800  
238,261  
Total current liabilities
770,249  
730,533  
Operating lease liability, net of current portion
162,619  
219,063  
Total liabilities
932,868  
949,596  
       
Commitments and contingencies

   
   
       
Stockholders' equity
   
   
Common stock, par value $0.001
   
   
Authorized: 20,000,000 shares
   
   
Issued and outstanding: 10,450,646 shares
   
   
[2020 - issued and outstanding 10,450,646 shares]
10,451  
10,451  
Additional paid-in capital
9,379,139  
9,366,290  
Accumulated deficit
(5,920,366 )
(6,171,068 )
Accumulated other comprehensive (loss)
(317,414 )
(345,456 )
Total stockholders' equity
3,151,810  
2,860,217  
Total liabilities and stockholders' equity
4,084,678  
3,809,813  

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended November 30,
 

 
 
 

 
 
2020
2019
 
$
$
Service revenue [note 9]
1,123,977
1,045,856
 
 
 
Cost of revenue
 
 
Hosting costs
30,042
26,617
Internal engineering support
6,327
6,847
Customer support
35,852
39,371
Third party and transaction costs
18,092
12,447
 
90,313
85,282
Gross Margin
1,033,664
960,574
 
 
 
Operating expenses
 
 
General and administrative
159,549
219,503
Sales and marketing
302,474
283,756
Product development
298,088
319,974
Depreciation and amortization
24,315
32,072
 
784,426
855,305
Income from operations
249,238
105,269
Other income
 
 
Interest income
1,464
6,389
Net income
250,702
111,658
 
 
 


 
 
Foreign currency translation adjustments
28,042
1,552
Total comprehensive income
278,744
113,210
 
 
 
Net income per common share,
 
 
  basic and diluted
0.02
0.01
 
 
 
Weighted average common shares outstanding:
 
 
  Basic and diluted
10,450,656
10,954,603

 

Q1 Fiscal Year 2021 Financial Summary

(millions of U.S. dollars)
Three Months Ended November 30,


2020

2019

Change


$

$

%
REVENUE
 

 

 
Play MPE®
1.121

1.030

8.8%
Other
0.003

0.016

(81.3%)
Total Revenue
1.124

1.046

7.5%


 

 

 
PROFITABILITY
 

 

 
Gross Margin $
1.034

0.961

7.6%
Gross Margin %
92%

92%

0%
Operating Expenses
0.784

0.855

(8.3%)
Cash Operating Costs
0.749

0.813

(7.9%)
Adjusted EBITDA
0.286

0.154

85.7%
Net Income
0.251

0.112

124.1%
Earnings Per Share
0.02

0.01

100%


 

 

 
CASH
 

 

 
Cash Operating Income
0.299

0.16

86.9%
Working Capital Changes
0.142

(0.073)
(294.5%)
Cash Provided By (Used In) Operating Activities
0.441

0.087

406.9%
Cash Provided By (Used In) Investing Activities
0.759

(0.767)
(199%)
Cash (Used In) Financing Activities
-

(0.292)
(100%)


 

 

 
CASH RESERVES
November 30, 2020

August 31, 2020

Change
%
Cash and cash equivalents
3.077

1.841

67.1%
Short-term investments
-

0.781

(100%)
Total Cash Reserves
3.077

2.622

17.4%

 

NCIB Update

Further to the Company's release dated January 4, 2021, the Company wishes to clarify that the term of the Company's 2021 Normal Course Issuer Bid (NCIB) will be from January 15, 2021 to approximately January 15, 2022. All other disclosed terms of the NCIB remain unchanged.

About Destiny Media Technologies Inc.

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, 2020, 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/71903

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