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

Vancouver, British Columbia--(Newsfile Corp. - April 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 second quarter ended February 28, 2021.

Highlights for Q2 2021

(all figures are USD, and comparisons are to Q2 2020):

• Play MPE® revenue grew by 15.6% (11.2% currency adjusted);

• Independent label revenue up 29.7% (29.6% currency adjusted);

• Cash reserves as at February 28, 2021 of $3.012M ($0.29/share).

• Sends activity up 34.9%;

"Continued independent record label growth has been the driver of our overall Play MPE® revenue increase," said Fred Vandenberg, President and CEO. "This independent growth is propelled by a combination of factors including establishment of new markets, greater global market distributions, developed marketing processes, and improved business development staffing."

The stock repurchase program that commenced in January 2021, resulted in market purchases to April 12, 2021 of 65,085 shares for a total cost of USD $73,617.

Fiscal 2021 Second Quarter Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Wednesday, April 14, 2021, to further discuss its 2021 second 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 # 59112630. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at https://investors.dsny.com/investors/financials/.

Destiny Media Technologies Inc.

CONSOLIDATED BALANCE SHEETS

As at,
		February 28,			August 31,
		2021			2020
		$			$
ASSETS
Current
Cash and cash equivalents		3,011,715			1,841,340
Short-term investments		—			781,490
Accounts receivable, net of allowance for     doubtful accounts of $19,537, [August 31, 2020 – $23,412]		328,131			426,832
Other receivables		41,844			26,083
Prepaid expenses		96,764			78,562
Total current assets		3,478,454			3,154,307
Deposits		35,185			34,316
Property and equipment, net		169,809			194,277
Intangible assets, net		15,736			22,952
Right of use asset		301,228			403,961
Total assets		4,000,412			3,809,813
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current
Accounts payable		138,062			119,399
Accrued liabilities		369,697			353,235
Deferred revenue		18,269			19,638
Current portion of operating lease liability		235,659			238,261
Total current liabilities		761,687			730,533
Operating lease liability, net of current portion		114,170			219,063
Total liabilities		875,857			949,596
Stockholders’ equity
Common stock, par value $0.001
Authorized: 20,000,000 shares
Issued and outstanding: 10,409,361 shares
[August 31, 2020 – issued and outstanding 10,450,646 shares]		10,409			10,451
Additional paid-in capital		9,347,311			9,366,290
Accumulated deficit		(5,949,832	)		(6,171,068	)
Accumulated other comprehensive loss		(283,333	)		(345,456	)
Total stockholders’ equity		3,124,555			2,860,217
Total liabilities and stockholders’ equity		4,000,412			3,809,813

 

Destiny Media Technologies Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

		Three Months			Three Months			Six Months			Six Months
		Ended			Ended			Ended			Ended
		February 28,			February 29,			February 28,			February 29,
		2021			2020			2021			2020
		$			$			$			$
Service revenue		930,699			806,729			2,054,676			1,852,585
Cost of revenue
Hosting costs		29,667			15,839			59,709			42,456
Internal engineering support		7,296			6,516			13,623			13,363
Customer support		41,343			36,351			77,195			75,722
Third Party and transactions costs		13,593			10,414			31,685			22,861
		91,899			69,120			182,212			154,402
Gross Margin		838,800			737,609			1,872,464			1,698,183
Operating expenses
General and administrative		164,395			216,094			323,943			435,597
Sales and marketing		340,954			362,400			643,428			646,156
Product development		337,392			287,752			635,480			607,726
Depreciation and amortization		26,400			35,478			50,715			67,550
		869,141			901,724			1,653,566			1,757,029
Income (loss) from operations		(30,341	)		(164,115	)		218,898			(58,846	)
Other income
Interest income		875			8,110			2,338			14,477
Other income		-			674			-			696
Net income (loss)		(29,466	)		(155,331	)		221,236			(43,673	)
Other comprehensive income (loss)
Foreign currency translation adjustments		34,081			(15,108	)		62,123			(13,556	)
Total comprehensive income (loss)		4,615			(170,439	)		283,359			(57,229	)
Net income (loss) per common share,
basic and diluted		(0.00	)		(0.01	)		0.02			(0.00	)
Weighted average common shares outstanding:
Basic and diluted		10,442,752			10,629,438			10,446,726			10,665,834

 

 

Q2 Fiscal Year 2021 Financial Summary

Q2 Fiscal Year 2021 Financial Summary
(millions of U.S. dollars)		Three Months Ended									Six Months Ended
		February 28, 2021			February 29, 2020			% Change			February 28, 2021			February 29, 2020			% Change
REVENUE
Play MPE®		0.927			0.802			15.6%			2.048			1.832			11.8%
Other		0.004			0.005			(20.0%)			0.006			0.020			(70.0%)
Total Revenue		0.931			0.807			15.4%			2.054			1.852			10.9%
PROFITABILITY
Gross Margin $		0.839			0.738			13.7%			1.872			1.698			10.2%
Gross Margin %		90.1%			91.4%			(1.5%)			91.1%			91.7%			(0.6%)
Operating Expenses		0.869			0.902			(3.7%)			1.654			1.757			(5.9%)
Cash Operating Costs		0.831			0.873			(4.8%)			1.579			1.685			(6.3%)
Adjusted EBITDA		0.009			(0.126	)		107.1%			0.296			0.028			957.1%
Net Income		(0.029	)		(0.155	)		81.3%			0.221			(0.044	)		602.3%
Earnings Per Share		0.00			(0.01	)		100.0%			0.02			0.00			-
CASH											As at February 28, 2021			August 31, 2020
Cash Operating Income											0.294			0.037			694.6%
Working Capital Changes											0.098			(0.170	)		157.6%
Cash Provided By (Used In) Operating Activities											0.392			(0.133	)		(394.7%)
Cash Provided By (Used In) Investing Activities											0.787			(0.797	)		(198.7%)
Cash (Used In) Financing Activities											(0.045	)		(0.533	)		(91.6%)
CASH RESERVES
Cash and cash equivalents											3.012			1.841			63.6%
Short-term investments											-			0.781			(100.0%)
Total Cash Reserves											3.012			2.622			14.9%

 

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/80384