Destiny Media Technologies Inc. Announces Third Quarter Fiscal Year 2021 Results

Vancouver, British Columbia--(Newsfile Corp. - July 14, 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 third quarter ended May 31, 2021.

Highlights for Q3 2021

(all figures are USD, and comparisons are to Q3 2020):

  • Play MPE® revenue grew by 15.2% (9.7% currency adjusted);
  • Independent label revenue increased 29.7% (26.8% currency adjusted);
  • Sends activity up 26.5%;

"Continued independent record label growth has been a significant driver of our overall Play MPE® revenue growth in the current quarter and over the trailing twelve months," said Fred Vandenberg, President and CEO. "In the current quarter, we have added key industry professionals to our business development group in the United States and these additions have had an immediate impact adding key US Major Label distributions in the Play MPE® platform."

The stock repurchase program that commenced in January 2021, resulted in market purchases to May 31, 2021 of 155,685 shares for a total cost of USD $218,682.

Fiscal 2021 Third Quarter Earnings Webinar

Destiny Media Technologies will host a webinar at 5:00 p.m. ET (2:00pm PT) on Wednesday, July 14, 2021, to further discuss its 2021 third quarter results. Investors and interested parties may participate in the webinar by registering at the following:

https://investors.dsny.com/investors/financials/

or directly on the REGISTRATION FORM by clicking here.

Attendees are encouraged to register prior to the scheduled time.

Attendees viewing the webinar can voluntarily submit either verbal and written questions during the live presentation. Attendee cameras will remain off throughout the presentation. Attendees' microphones will remain off unless the attendee voluntarily selects to engage in verbal questions similar to the format available on traditional conference call format.

The webinar format will provide the Company an opportunity to present visual information and provide attendees an opportunity for written questions.

For those without internet access, the webinar can be accessed via the following dial in details:

Direct dial in: +1 301 715 8592 or +1 647 374 4685

Webinar ID: 848 9340 6221

Attendees participating via dial in will not have access the webinar video stream, and will not have access to question and answer functions.

A recording of the webinar will be available after the event on https://investors.dsny.com/investors/financials/.

CONSOLIDATED BALANCE SHEETS

As at,

 
May 31,

August 31,
 
2021

2020
   
$ 
 
$ 
 
 

 
ASSETS
 

 
Current
 

 
Cash and cash equivalents
2,934,575

1,841,340
Short-term investments
-

781,490
Accounts receivable, net of allowance for
 

 
doubtful accounts of $20,618, [August 31, 2020 - $23,412]
403,196

426,832
Other receivables
46,869

26,083
Prepaid expenses  69,444   78,562 
Total current assets
3,454,084

3,154,307
Deposits
37,131

34,316
Property and equipment, net
166,913

194,277
Intangible assets, net
86,376

22,952
Right of use asset  258,286   403,961 
Total assets  4,002,790   3,809,813 
 
 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
Current
 

 
Accounts payable
140,989

119,399
Accrued liabilities
355,766

353,235
Deferred revenue
18,210

19,638
Current portion of operating lease liability  280,028   238,261 
Total current liabilities  794,993   730,533 
Operating lease liability, net of current portion  24,418   219,063 
Total liabilities  819,411   949,596 
 
 

 
Contingencies
 

 
Stockholders' equity
 

 
Common stock, par value $0.001
 

 
Authorized: 20,000,000 shares
 

 
Issued and outstanding: 10,294,961 shares
 

 
[August 31, 2020 - issued and outstanding 10,450,646 shares]
10,295

10,451
Additional paid-in capital
9,186,881

9,366,290
Accumulated deficit
(5,880,238)
(6,171,068)
Accumulated other comprehensive loss  (133,559)  (345,456)
Total stockholders' equity  3,183,379   2,860,217 
Total liabilities and stockholders' equity  4,002,790   3,809,813 

 

CONSOLIDATED STATEMENTS OF INCOME

 
Three Months

Three Months

Nine months

Nine months
 
Ended

Ended

Ended

Ended
 
May 31,

May 31,

May 31,

May 31,
 
2021

2020

2021

2020
   $   $   $   $ 
 
 

 

 

 
Service revenue
 1,083,987   939,873   3,138,663   2,792,458 
 
 

 

 

 
Cost of revenue
 

 

 

 
Hosting costs
32,582

30,905

92,291

73,361
Internal engineering support
7,375

5,915

20,998

19,278
Customer support
41,794

33,523

118,989

109,245
Third Party and transactions costs  16,053   16,641   47,738   39,502 
   97,804   86,984   280,016   241,386 
 
 

 

 

 
Gross Margin
986,183

852,889

2,858,647

2,551,072
 
 

 

 

 
Operating expenses
 

 

 

 
General and administrative
202,878

273,070

526,822

708,667
Sales and marketing
361,411

140,690

1,004,839

786,846
Product development
326,450

355,625

961,930

963,351
Depreciation and amortization  26,673   33,194   77,388   100,744 
   917,412   802,579   2,570,979   2,559,608 
 
 

 

 

 
Income (loss) from operations
68,771

50,310

287,668

(8,536)
 
 

 

 

 
Other income
 

 

 

 
Interest income
823

5,266

3,162

19,743
Other income (loss)  -   (677)  -   19 
Net income  69,594   54,899   290,830   11,226 
 
 

 

 

 
Net income (loss) per common share,
 

 

 

 
Basic
0.01

0.01

0.03

0.00
Diluted  0.01   0.01   0.03   0.00 
 
 

 

 

 
Weighted average common shares outstanding:
 

 

 

 
 
 

 

 

 
Basic
10,426,961

10,450,646

10,428,809

10,623,432
Diluted  10,531,708   10,450,646   10,543,442   10,623,432 

 

Q3 Fiscal Year 2021 Financial Summary

(millions of U.S. dollars)
Three Months Ended

Nine Months Ended


May 31,
2021


May 31,
2020


%
Change


May 31,
2021


May 31,
2020


%
Change

REVENUE

















Play MPE®
1.082

0.940

15.2%

3.131

2.772

13.0%
Other 
0.002 
 
0.000 
 
0.1% 
 
0.008 
 
0.020 
 
(60.0%) 
Total Revenue
1.084

0.940

15.3%

3.139

2.792

12.4%


 

 

 

 

 

 
PROFITABILITY
 

 

 

 

 

 
Gross Margin $ 
0.986 
 
0.853 
 
15.6%
 
2.859 
 
2.551 
 
12.1% 
Gross Margin % 
91.0% 
 
90.7% 
 
0.3%
 
91.1% 
 
91.4% 
 
(0.3%) 
Operating Expenses 
0.917 
 
0.803 
 
14.3%
 
2.571 
 
2.560 
 
0.4% 
Cash Operating Costs 
0.878 
 
0.760 
 
15.5%
 
2.458 
 
2.445 
 
0.5% 
Adjusted EBITDA 
0.109 
 
0.098 
 
11.2%
 
0.404 
 
0.126 
 
220.6% 
Net Income 
0.070 
 
0.055 
 
27.3%
 
0.291 
 
0.011 
 
2545.5% 
Earnings Per Share 
0.01 
 
0.01 
 
0.0%
 
0.03 
 
0.00 
 
- 


 

 

 

 

 

 


 

 

 

Nine Months Ended
CASH
 

 

 

May 31, 2021

May 31,
2020
 
Cash Operating Income
 

 

 

0.421

0.156

169.9%
Working Capital Changes
 

 

 
 
0.016 
 
(0.391) 
(104.1%) 
Cash Provided By (Used In) Operating Activities

 

 
 
0.437 
 
(0.235) 
(286.0%) 
Cash Provided By (Used In) Investing Activities

 

 
 
0.702 
 
(0.798) 
(188.0%) 
Cash (Used In) Financing Activities
 

 

 
 
(0.219) 
(0.533) 
(58.9%) 


 

 

 

 

 

 


 

 

 

As at

 

 
CASH RESERVES
 

 

 

May 31,
2021


August 31,
2020


 
Cash and cash equivalents
 

 

 

2.935

1.841

59.4%
Short-term investments
 

 

 
 
- 
 
0.781 
 
(100.0%) 
Total Cash Reserves
 

 

 

2.935

2.622

11.9%

 

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/90162

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