TORONTO, ONTARIO–(Nov. 29, 2013) – 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 third quarter ended September 30, 2013. 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 $130,139 and total comprehensive loss of $ 323,227. The reduction in revenue is primarily due to Lingo Media’s revenue recognition policy related to its print-based business as it records the majority of its revenues in the second and fourth quarters. The operating expenses reduced from $508,158 to $256,643 for the comparable period, an overall reduction of 49%.
Print-Based English Language Learning
- Continued to advance negotiations for renewal of co-publishing agreements for 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 final stages of 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 – Scholar, Business, Master, Kids, and Placement Test.
- Continued to advance the re-development of Speak2Me with Advancina LLC, our strategic partner, to enhance and update Speak2Me.cn’s product offering.
Financial Highlights for the Third Quarter Ended September 30, 2013[vc_table vc_table_theme=”default” allow_html=””] [18px;bg#219cd1;c#ffffff]Third%20Quarter%20Ended%20September%2030,[18px;bg#219cd1;c#ffffff]2013,[18px;bg#219cd1;c#ffffff]2012|Revenue,130%2C139,129%2C424|Operating%20expenses,256%2C643,508%2C158|Amortization%2C%20share-based%20payments,130%2C006,231%2C516|Finance%20charges%2C%20taxes%2C%20foreign%20exchange,82%2C275,122%2C761|Income%20tax%20expense,5%2C201,10%2C930|Exchange%20differences%20on%20translating%20foreign%20operations,(20%2C759),(53%2C889)|Total%20expenses,453%2C366,819%2C476|[b]Total%20comprehensive%20income%20(loss),[b](323%2C227),[b](690%2C052) [/vc_table]
- Revenue for the third quarter totalled $130,139 compared to $129,424 for the same period in 2012.
Financial Highlights for the Year Ended December 31, 2014[vc_table vc_table_theme=”default” allow_html=””] [18px;bg#219cd1;c#ffffff]Nine%20Month%20Period%20Ended%20September%2030,[18px;bg#219cd1;c#ffffff]2013,[18px;c#ffffff;bg#219cd1]2012|Print-based%20English%20Language%20Learning,722%2C072,689%2C945|Online%20English%20Language%20Learning,261%2C439,434%2C869|[b]Total%20Revenue,[b]983%2C511,[b]1%2C124%2C814 [/vc_table]
- The decrease in Online English Language Learning revenue is due to ELL Technologies’ strategic decision to initiate a complete overhaul and redevelopment of its product portfolio and to gradually phase out sales of its legacy software. The Company has now 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 suite of products including Scholar, Business,Master, Kids, and Placement Test. The redevelopment process has now been completed, with marketing currently underway to key distributors in order to secure annual sale minimums as full sales and marketing efforts will be resuming.
- Operating expenses for the quarter ended September 30, 2013 totalled $256,643 as compared to $508,158 in 2012, a 49% decrease. Operating expenses decreased significantly as a result of reduced sales and marketing costs while the ELL Technologies’ products were undergoing a complete redesign. The Company is pre-marketing to its distributors and plans to resume its full sales and marketing efforts.
- Total comprehensive loss totalled $323,227 or $0.015 loss per share based on 21.8 million shares outstanding compared to a total comprehensive loss of $690,052 or $0.03 loss per share based on 20.9 million shares outstanding in 2012.
The financial statements for the period ended September 30, 2013 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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