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

By: Newsfile

April 14, 2021 at 09:00 AM EDT

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
	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

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