TORONTO, ON–(April 29, 2016) – Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) (“Lingo Media” or the “Company“), an EdTech company that is ‘Changing the way the world learns English’ through innovative online and print-based technologies and solutions, announces its financial results for the fourth quarter and year ended December 31, 2015. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
“We are pleased to report record financial results for 2015. Our revenue growth was in excess of 96% while profitability was significantly improved, resulting in net profit of $2,532,057 or $0.10 per share (basic) and $0.09 per share (fully diluted). The English learning EdTech market is presenting us with very favourable growth opportunities in Latin America and beyond. We look forward to providing shareholders with updates as we continue to build the business and explore market expansion opportunities,” said Michael Kraft, President & CEO of Lingo Media.
2015 Operational Highlights
- Online English Language Learning:
- completed the development of two leading-edge technology tools, Lesson Builder and Course Builder enabling educators to easily create, convert, edit, and arrange online lessons and courses
- partnered with Proloux, a subsidiary of the University of Guadalajara, to provide accredited certification of ELL
Technologies’ online courses
- entered into an agreement with ISA Corporativo for advertising services throughout Mexico’s metro stations in exchange for software licenses
- selected by Peruvian Navy to provide software licenses of ELL Technologies’ training products
- secured software licensing contract for ELL Technologies’ programs with municipal government in Caldas
- completed the development of ELL Technologies’ Winnie’s World, in HTML5 for the pre-kindergarten and kindergarten market
- awarded a large government contract in partnership with eDistribution S.A.S for SENA, an organization under the Ministry of Labour of Colombia
- developed an extensive digital library of English language learning resources for SENA
- Print-Based English Language Learning:
- expanded the market for PEP Primary English textbook program by launching into new provinces
- conducted extensive teacher training initiatives and workshops
- co-published our 550 millionth unit of PEP Primary English and Staring Line programs with People’s Education Press
- in 2015, digital revenue surpassed print-based revenue for the first time in our operating history
- subsequent to the year end, loans payable balance of $580,000 was repaid in full
Financial Highlights for the Year Ended December 31, 2015
|Year Ended December 31st||2015||2014|
|Income before amortization, share-based payments, depreciation, finance charges and taxes||3,483,161||1,286,079|
|Amortization, share–based payments, and depreciation||881,337||655,906|
|Finance charges, taxes, foreign exchange||69,767||379,722|
|Earnings per share (basic)||$||0.10||$||0.01|
|Earnings per share (fully diluted)||$||0.09||$||0.01|
- Revenue for the year ended December 31, 2015 totalled $4,925,735 as compared to $2,512,464 in 2014, a 96% increase.
- Operating expenses for the year ended December 31, 2015 totalled $1,442,574 compared to $1,332,823 in 2014.
- Net profit for the year ended December 31, 2015 increased to $2,532,057 or $0.10 per share (basic) based on 26.3 million shares as compared to $144,013 for 2014 or $0.01 per share (basic) based on 21.9 million shares. This improvement in profitability is primarily attributed to a 96% increase in revenue.
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $3,483,161 compared to $1,286,079 in 2014.
Financial Highlights for the Fourth Quarter Ended December 31, 2015
|Fourth Quarter Ended December 31st||2015||2014|
|Income before amortization, share-based payments, depreciation, finance charges and taxes||1,038,161||710,988|
|Amortization, share-based payments,and depreciation||309,031||188,867|
|Finance charges, taxes, foreign exchange||95,905||363,729|
|Earnings per share (basic)||$||0.02||$||0.01|
- Revenue for the fourth quarter ended December 31, 2015 totalled $1,276,248 compared to $1,176,066 for the same period in 2014.
- Operating expenses for the quarter ended December 31, 2015 totalled $238,087 as compared to $465,078 in 2014.
- Net profit for the quarter was $633,225 or $0.02 earnings per share (basic) based on 28.7 million shares as compared to $158,392 for the same period for 2014 or $0.01 (basic) based on 22.4 million shares.
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $1,038,161 compared to $710,988 in 2014.
The audited financial statements for the year ended December 31, 2015 and Management Discussion & Analysis are available atwww.sedar.com.
Lingo Media is a global EdTech company that is ‘Changing the way the world learns English’, developing and marketing products for learners of English through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers English language educators to easily transition from traditional teaching methods to digital learning.
Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies provides online training and assessment for English language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.
Lingo Media has formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China, and continues to both extend its global reach and expand its product offerings.
To learn more, visit us at www.lingomedia.com
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Portions of this press release may include “forward-looking statements” within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. 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. Lingo Media has tried to identify these forward-looking statements by using words such as “may,” “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate” and similar expressions. Lingo Media’s expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. 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 orwww.sec.gov/edgar.shtml.
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For further information, contact:
President & CEO
Tel: (+1) 416-927-7000 Ext. 23
Toll Free: 1-866-927-7011