Toronto, Canada, April 30, 2015 – Lingo Media Corporation (TSX-V: LM; OTCQB: LMDCF) (“Lingo Media” or the “Company”) an ESL EdTech industry acquisition company that is ‘Changing the way the world learns English’ combining education with technology, announces its financial results for the fourth quarter and year ended December 31, 2014. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
“We are pleased with our financial results for 2014 with our revenue growing in excess of 25% while significantly improving our profitability. Management expects this financial trending to continue thru 2015. The ESL EdTech market is presenting us with very favourable high growth opportunities in Latin America. We look forward to providing our shareholders with updates as we continue to grow our company and achieve key milestones”, said Michael Kraft, President & CEO of Lingo Media.
- Print-Based English Language Learning:
- signed a seven (7) year renewal agreement to co-publish and distribute State Ministry of Education approved and listed PEP Primary English and Starting Line textbook and supplemental learning programs in China
- launched PEP Primary English and Starting Line programs thru People’s Education Press and Peoples Education Electronic & Audiovisual Press, China’s State Ministry of Education’s publishing arm
- co-published our 500 millionth unit of textbooks, activity books, flash cards, audio-visual and teaching materials
- Online English Language Learning:
- advanced the development of new product features and technology applications to build innovative authoring tools for online lessons and courses
- launched the redesigned ELL Technologies’ suite of products including Scholar, Master and Kids which incorporate a new user interface, learning management system and multi-browser delivery system for desktops and tablets
- initiated development of a new ELL Technologies’ program for the primary school market entitled Academy
- resumed sales and marketing of ELL Technologies’ redesigned Master and Scholarproducts
- negotiated a one year extension of the $880,000 loan outstanding to September 8, 2015
- initiated and advanced a strategic alliance with a software research and development company specializing in EdTech
Fourth Quarter Ended December 31st
|First Quarter Ended March 31||2014||2013|
|Income before amortization, share-based payments, depreciation, finance charges and taxes||710,988||861,181|
|Amortization, share-based payments, and depreciation||188,867||125,826|
|Finance charges, taxes, foreign exchange||363,729||114,686|
- Revenue for the fourth quarter ended December 31, 2014 totalled $1,176,066 compared to $1,024,555 for the same period in 2013.
- Operating expenses for the quarter ended December 31, 2014 totalled $465,078 as compared to $163,374 in 2013, due to increased operating activities and expanded sales & marketing initiatives.
- Net profit for the quarter was $158,392 as compared to $620,669 for the same period in 2013 as a result of an increase in operating expenses and in foreign exchange loss.
- Total comprehensive income for the fourth quarter was $344,096 or $0.016 earnings per share based on 21.99 million shares compared to a total comprehensive income of $558,765 or $0.028 earnings per share based on 21.2 million shares for the same period in 2013.
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $710,988 compared to $861,181 in 2014.
Financial Highlights for the Year Ended December 31, 2014
|Year Ended December 31, 2014||2014||2013|
|Income before amortization, share-based payments, depreciation, finance charges and taxes||1,286,079||1,005,724|
|Amortization, share-based payments, and depreciation||655,906||500,599|
|Finance charges, taxes, foreign exchange||379,722||347,738|
The unaudited financial statements for the quarter ended December 31, 2014 and Management Discussion & Analysis are available at www.sedar.com.
About Lingo Media (TSX VENTURE:LM) (OTCBB:LMDCF)
Lingo Media Corporation (www.lingomedia.com) is an ESL industry acquisition company that is ‘Changing the way the world learns English’, focused on English language learning (“ELL”) on an international scale through its four distinct business units: ELL Technologies; Parlo; Speak2Me; and Lingo Learning. ELL Technologies is a globally-established ELL multi-media and online training company. Parlo is a fee-based online ELL training and assessment service. Speak2Me is a free-to-consumer advertising-based online ELL service in China. Lingo Learning is a print-based publisher of ELL programs in China. Lingo Media has formed successful relationships with key government and industry organizations, establishing a strong presence in China’s education market of more than 300 million students. The Company continues to expand its ELL offerings and is extending its reach globally.
Portions of this press release may include “forward-looking statements” within the meaning of securities laws. Forward-looking statements contained in this press release are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties. Actual results may vary materially from management’s expectations and projections and thus readers should not place undue reliance on forward-looking statements. Certain factors that can affect the Company’s ability to achieve projected results are described in the Company’s filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE