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Destiny Media Technologies, Inc. Announces Second Quarter Fiscal Year 2018 Results

[April 16, 2018]

Destiny Media Technologies, Inc. Announces Second Quarter Fiscal Year 2018 Results

VANCOUVER, April 16, 2018 /PRNewswire/ - 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 second quarter ended February 28, 2018.

Highlights

Highlights for the quarter include:

Beta release of Play MPE Version 8,
Revenue growth of 4.2%,
12% reduction in expenditures,
First positive EBITDA and net income in the Company's historically slow second quarter in five years.

Second Quarter Fiscal 2018 Results

Revenue for the quarter ended February 28, 2018 grew by 4.2% to $815,055 over the same quarter in the previous year. This growth is primarily due to favorable exchange rates and the growth in US independent record labels. Combined with a 12% decrease in overall operating expenditures, to $749,390, the Company had positive income in its seasonally weakest quarter for the first time in the last five years.

"We are developing critical product updates to Play MPE, including the beta launch of version 8 this quarter," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies, "The great feedback we're seeing from the beta gives us confidence that these product updates, along with expected investments in a stronger business development and sales team, will allow us recapture lost customers, expand to new territories, and return to stronger revenue growth."

Destiny Media Technologies Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in United States dollars)
Unaudited

		Three months	Three months	Six months	Six months
		ended	ended	ended	ended
		February 28,	February 28,	February 28,	February 28,
		2018	2017	2018	2017
		$	$	$	$
Revenue		815,055	781,878	1,788,853	1,674,107

Operating expenses
General and administrative		160,218	203,922	304,052	375,424
Sales and marketing		259,408	269,144	531,494	533,205
Research and development		304,274	339,276	601,488	654,699
Depreciation and amortization		25,490	41,612	51,187	83,490
		749,390	853,954	1,488,221	1,646,818
Income from operations		65,665	(72,076)	300,632	27,289
Other income
Interest income		1,704	3,871	4,029	8,634
Other income (expense)		7	-	(3,795)	-
Net income		67,376	(68,205)	300,866	35,923

Other comprehensive income (loss)
Foreign currency translation adjustments		11,107	19,238	(41,009)	(14,131)

Total comprehensive income (loss)		78,483	(48,967)	259,857	21,792

Net income (loss) per common share,
	basic and diluted	0.00	(0.00)	0.01	0.00

Weighted average common shares outstanding:

	Basic and diluted	55,013,874	55,013,874	55,013,874	55,013,874

Destiny Media Technologies Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
Unaudited
As at,			February 28,	August 31,
			2018	2017
			$	$

ASSETS
Current
Cash and cash equivalents			1,623,131	1,342,956
Accounts receivable, net of allowance for
		doubtful accounts of $5,324 [August 31, 2017 – $3,383]	525,603	529,666
Other receivables			81,671	21,216
Current portion of long term receivable			0	64,811
Prepaid expenses			52,625	54,507
Deposits			580	592
Total current assets			2,283,610	2,013,748
Deposits			27,360	27,923
Property and equipment, net			191,532	116,208
Intangible assets, net			57,149	86,824
Total assets			2,559,651	2,244,703

LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable			142,648	127,444
Accrued liabilities			173,602	192,433
Deferred leasehold inducement			52,149	2,090
Deferred revenue			7,329	23,685
Obligation under capital lease – current portion			2,992	6,246
Total current liabilities			378,720	351,898
Total liabilities			378,720	351,898

Stockholders' equity
Common stock, par value $0.001
	Authorized: 100,000,000 shares
	Issued and outstanding: 55,013,874 shares
		[August 31, 2017 – issued and outstanding 55,013,874 shares]	55,014	55,014
Additional paid-in capital			9,740,482	9,712,213
Accumulated deficit			(7,306,665)	(7,607,531)
Accumulated other comprehensive (loss)			(307,900)	(266,891)
Total stockholders' equity			2,180,931	1,892,805
Total liabilities and stockholders' equity			2,559,651	2,244,703

Second Quarter Fiscal 2018 Earnings Conference Call

Destiny Media Technologies will host a conference call at 5:00 p.m. ET (2:00pm PT) on Monday, April 16, 2018, to further discuss its first quarter fiscal year 2018 results. Investors and interested parties may participate in the call by dialing 416-764-8688 or 888-390-0546 and referring to conference ID # 75835004. A written transcript and archived stream will subsequently be made available on Destiny's corporate site at http://www.dsny.com.

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.

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, 2017, which is available on www.sedar.com or www.sec.gov.

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SOURCE Destiny Media Technologies, Inc.

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