TORONTO, ONTARIO–(Aug. 29, 2014) – Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) (“Lingo Media” or the “Company“), an ESL industry acquisition company that is ‘Changing the way the world learns English’, announces its financial results for the second quarter ended June 30, 2014. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
During the quarter, the Company earned revenues of $877,879 and total comprehensive income of $200,534. The operating expenses reduced from $365,160 to $319,430 for the comparable period, an overall reduction of 13%. Lingo Media also increased the income per share to $0.01 as compared to $0.005 for the period ended June 30, 2013.
Print-Based English Language Learning
- signed a seven (7) year renewal agreement to co-publish and distribute the recently approved PEP Primary English and Starting Lineprograms with People’s Education Press and Peoples Education Electronic & Audiovisual Press, China’s State Ministry of Education’s publishing arm
Online English Language Learning
- completed the redesign of the product user interface, learning management system and the multi-browser delivery system for desktops and tablets for ELL Technologies’ suite of products including – Master and Kids
- continued testing of new product features and technology applications by gauging user input, feedback and acceptance
Financial Highlights for the Second Quarter Ended June 30, 2014
|</p> <p>[bg#219cd1;c#ffffff;18px]Second Quarter Ended June 30||2014||2013|
|Amortization, share-based payments and depreciation||148,535||124,453|
|Finance charges, taxes and foreign exchange||192,281||102,723|
|Total comprehensive income||200,534||107,080</p> <p>|
- Revenue for the second quarter totalled $877,879 as compared to $715,618 for the same period in 2013, an increase of 22%.
|</p> <p>[18px;bg#219cd1;c#ffffff]Second Quarter Ended June 30||2014||2013|
|Print-based English Language learning||772,975||620,055|
|Online English Language Learning||104,904||95,563|
|Total Revenue||877,879||715,618</p> <p>|
- The increase in online English language learning revenue is primarily due to ELL Technologies’ strategic decision in Q3 2012 to initiate complete overhaul and redevelopment of its product portfolio and to gradually phase out sales of its legacy software. The Company completed the redesign of its product user interface, learning management system, and the multi-browser delivery system for desktops and tablets for the ELL Technologies products including Master and Kids. The final phase of this redevelopment process is expected to be completed by the end of Q3 forScholar, Business and Placement Test, with sales and marketing for the full suite of products will resume in Q4.
- Operating expenses for the quarter ended June 30, 2014 totalled $319,430 as compared to $365,160 in 2013, a 13% decrease. Operating expenses decreased as a result of reduced sales and marketing costs while the ELL Technologies’ products were undergoing the redesign.
- Total comprehensive income totalled $200,534 or $0.01 per share based on 21.8 million shares outstanding compared to a total comprehensive income of $107,080 or $0.005 per share based on 20.9 million shares outstanding.
The financial statements for the period ended June 30, 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.
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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.
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