Lingo Media Reports 2018 Financial Results

TORONTO, May 01, 2019 – Toronto, Canada, May 1, 2019 – Lingo Media Corporation (TSX-V: 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, 2018.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Operational Highlights – 2018

  • Online English Language Learning:
    • completed the development of a Learning Access Point (ELL LAP)
    • completed the development of an online Spanish course
    • entered into a commercial alliance agreement with iTEP International LLC, the developer of the International Test of English Proficiency, to provide bundled product and online English language learning testing solutions
    • completed the first installation of the ELL LAP under the strategic alliance with HP Inc. at the Universidad Autonoma de Chiapas in Mexico
    • closed initial sales contracts with Gale, a part of Cengage Learning, with universities in Thailand & Japan
    • closed sales contract with municipality of Floridablanca and with Unidades Technologicas de Santander, both in Colombia through a distribution partner, e-Training SAS
    • closed sales contract with Focus Your Mind, a network of training centers in Latin America with 32 centres and 120,000 students
    • entered into a distribution agreement with WARP Worldwide to market, distribute, and sell ELL Technologies’ full product suite of English language learning products and programs in China
    • initiated the development of a teacher methodology program
    • completed the development and launched a new learning management system (LMS), including migration of courses into the new platform
  • Print-Based English Language Learning:
    • expanded the existing market for PEP Primary English program into three additional provinces in China

Corporate Highlights – 2018

  • Gali Bar-Ziv was appointed as President & CEO, from COO, and to the board as a director, to lead the Company through its next phase of development and growth
  • Michael Kraft was appointed Chairman and will remain as an active director supporting current and future developments

Financial Highlights for the Year Ended December 31, 2018

Year Ended December 31st 2018 2017
Revenue $   1,940,182 $   2,776,768
Operating and development expenses 1,953,778 4,285,780
Bad debt expense (recovery) (293,379 ) 732,254
Income (loss) before amortization,
share-based payments, depreciation, finance charges and taxes
279,783 (1,509,012 )
Amortization, sharebased payments, and depreciation 180,858 3,598,603
Finance charges, taxes, foreign exchange 203,081 421,513
Total expenses 2,044,338 9,038,150
Net loss (104,156 ) (6,261,382 )
Loss per share (basic) $   (0.00 ) $   (0.18 )
Loss per share (fully diluted) $      (0.00 ) $     (0.18 )
  • Revenue for the year ended December 31, 2018 totalled $1,940,182 as compared to $2,776,768 in 2017, a 30% decrease.
  • Operating and development expenses for the year ended December 31, 2018 totalled $1,953,778 compared to $4,285,780 in 2017, due to the Company writing off accrued development costs in 2017.
  • Net loss for the year ended December 31, 2018 totalled $104,156 or $0.00 loss per share (basic) based on 35.5 million shares as compared to a net loss of $6,261,382 for 2017 or $0.18 loss per share (basic) based on 35.5 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $279,783 compared to a loss of $4,370,186 in 2017.

Financial Highlights for the Fourth Quarter Ended December 31, 2018

Fourth Quarter Ended December 31st 2018 2017
Revenue $   713,150 $   754,962
Operating and development expenses 450,930 3,250,919
Bad debt expense (recovery) 732,254
Income (loss) before amortization,
share-based payments, depreciation, finance charges and taxes
262,220 (2,495,957 )
Amortization, share-based payments, and depreciation 88,558 2,555,651
Finance charges, taxes, foreign exchange 54,383 49,774
Total expenses 593,871 6,588,598
Net profit (loss) 119,279 (5,833,636 )
Earnings (loss) per share (basic) $ 0.00 $ (0.17 )
  • Revenue for the fourth quarter ended December 31, 2018 totalled $713,150 compared to $754,962 for the same period in 2017.
  • Operating and development expenses for the quarter ended December 31, 2018 totalled $450,930 as compared to $3,250,919 in 2017, due to the Company writing off accrued development costs in 2017.
  • Net profit for the quarter was $119,279 or $0.00 earning per share (basic) based on 35.5 million shares as compared to net loss $5,833,636 for the same period for 2017 or $0.17 loss per share (basic) based on 35.5 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes were $262,220 compared to a loss of $2,495,957 in 2017.

“In 2018, we rebuilt the foundation to take significant steps forward in 2019 and beyond. We believe that our strategic assets, management team, and growing distribution channels will allow us to scale sales and growth to deliver value to shareholders,” said Gali Bar-Ziv, President & CEO of Lingo Media. “The Company is advancing strategic distribution initiatives for our suite of online training solutions and also pursuing M&A opportunities in the EdTech space.”

The audited financial statements for the year ended December 31, 2018 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX-V: LM; OTCQB: LMDCF)

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.

Follow Lingo Media On:                                                                                   

Facebook: https://www.facebook.com/LingoMedia
Twitter:      @LingoMediaCorp
YouTube:  https://www.youtube.com/lingomedialm
LinkedIn:   https://www.linkedin.com/company/lingo-media-corporation
RSS:         http://feeds.feedburner.com/LingoMedia

For further information, contact:
Lingo Media                                                               

Khurram Qureshi, CFO
Tel: (+1) 416-927-7000 x 21
Email: investors@lingomedia.com
To learn more, visit us at www.lingomedia.com

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 or www.sec.gov/edgar.shtml
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