Vancouver, British Columbia--(Newsfile Corp. - November 18, 2019) - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), 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 year ended August 31, 2019.
Highlights
Highlights for the year include:
- Play MPE® currency adjusted revenue growth of 9.1%;
- Total unadjusted revenue growth of 5.6%;
- Renewal and expanded agreement with Universal Music Group;
- Expanded staffing dedicated to longer term revenue growth and product development including new Director of Product Management, and Director of Engineering.
Fiscal 2019 Results
Play MPE® currency adjusted revenue for the year ended August 31, 2019 grew by 9.1% over fiscal 2018. Increases in revenue were driven by expanded Major Record label use in Europe and the USA and expanded independent label use in the USA and Australia. Foreign currency fluctuations reduced the overall positive impact to our Play MPE ® revenues by 3.0%, resulting in a net 6.1% increase in reported Play MPE ® revenue and a total unadjusted revenue increase of 5.6%.
"2019 was a year of many exciting changes for Play MPE® and for the company" said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "We have made several significant key additions to the team and expanded our ability to innovate and grow the Play MPE business leading to early positive returns."
The company commenced a stock repurchase program in September 2019, resulting in market purchases to November 14, 2019 of 186,000 shares (representing 1.7% of shares outstanding as of August 31, 2019) for a total cost of $175,800 USD.
Fiscal 2019 Earnings Conference Call
Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Monday, November 18, 2019, to further discuss its fiscal year 2019 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 # 12819862. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com.
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| (Expressed in United States dollars) | ||
| Year | Year | |
| ended | ended | |
| August 31, | August 31, | |
| 2019 | 2018 | |
| $ | $ | |
| Revenue | 3,809,092 | 3,606,471 |
| Cost of revenue | ||
| Hosting costs | 107,434 | 125,631 |
| Internal engineering support | 28,441 | 24,437 |
| Customer support | 126,317 | 111,301 |
| Third party and transaction costs | 47,840 | 37,039 |
| 310,032 | 298,408 | |
| Gross Margin | 3,499,060 | 3,308,063 |
| Operating expenses | ||
| General and administrative | 770,758 | 801,866 |
| Sales and marketing | 908,951 | 657,474 |
| Research and development | 1,141,380 | 1,093,448 |
| Depreciation and amortization | 96,846 | 105,869 |
| 2,917,935 | 2,658,657 | |
| Income from operations | 581,125 | 649,406 |
| Other income | ||
| Interest income | 27,188 | 10,597 |
| Other income (expense) | 2,465 | (3,733) |
| Net income | 610,778 | 656,270 |
| Other comprehensive income (loss) | ||
| Foreign currency translation adjustments | (38,217) | (86,751) |
| Total comprehensive income | 572,561 | 569,519 |
| Net income per common share, | ||
| basic and diluted | 0.06 | 0.06 |
| Weighted average common shares outstanding: | ||
| Basic and diluted | 11,002,599 | 11,002,786 |
| CONSOLIDATED BALANCE SHEETS | ||
| (Expressed in United States dollars) | ||
| As at August 31, | ||
| 2019 | 2018 | |
| $ | $ | |
| ASSETS | ||
| Current | ||
| Cash and cash equivalents | 2,512,138 | 1,097,434 |
| Short-term investments | 380,056 | 1,151,952 |
| Accounts receivable, net of allowance for | ||
| doubtful accounts of $10,106 [2018 - $6,031] | 332,271 | 403,801 |
| Other receivables | 14,240 | 15,902 |
| Prepaid expenses | 77,067 | 57,252 |
| Total current assets | 3,315,772 | 2,726,341 |
| Deposits | 33,716 | 34,336 |
| Property and equipment, net | 260,907 | 160,273 |
| Intangible assets, net | 24,695 | 41,472 |
| Total assets | 3,635,090 | 2,962,422 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current | ||
| Accounts payable | 132,451 | 141,273 |
| Accrued liabilities | 303,470 | 226,876 |
| Deferred leasehold inducement | 46,774 | 51,848 |
| Deferred revenue | 23,388 | 23,286 |
| Obligation under capital lease | - | 2,363 |
| Total current liabilities | 506,083 | 445,646 |
| Total liabilities | 506,083 | 445,646 |
| Stockholders' equity | ||
| Common stock, par value $0.001 | ||
| Authorized: 20,000,000 shares | ||
| Issued and outstanding: 11,000,786 shares | ||
| [2018 - issued and outstanding 11,002,786 shares] | 11,001 | 11,003 |
| Additional paid-in capital | 9,850,348 | 9,810,676 |
| Accumulated deficit | (6,340,483) | (6,951,261) |
| Accumulated other comprehensive (loss) | (391,859) | (353,642) |
| Total stockholders' equity | 3,129,007 | 2,516,776 |
| Total liabilities and stockholders' equity | 3,635,090 | 2,962,422 |
About Destiny Media Technologies Inc.
Destiny Media Technologies ("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, 2019, 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/49810