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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