Lingo Media Reports Financial Results For Q4 2019 & Fiscal 2019

TORONTOApril 29, 2020Lingo Media Corporation (TSX-V: LM; OTCQB: LMDCF; FSE: LIMA) (“Lingo Media” or the “Company“), an EdTech company that is ‘Changing the way the world learns languages’ through innovative online and print-based technologies and solutions, announces its financial results for the fourth quarter and year ended December 31, 2019.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Operational Highlights – 2019

  • Online English Language Learning:
    • advanced development of its teacher methodology course
    • completed development of chat functionality in its new Learning Management System (“LMS”)
    • completed development of resource allocation functionality for teachers in the new LMS
    • completed development of lesson assignment functionality in the new LMS
    • enabled students’ recordings of speech exercises for teachers
    • integrated mobile app data results within the web version of the new LMS
    • enabled lesson and resource assignment via iPad
    • added localization for French and Spanish
    • entered into a distribution agreement with JPH Consultoria Academica in Guatemala
    • renewed agreement with FloridaBlanca in Colombia for an additional year
    • renewed agreement with Innovalingua de Mexico SAS de CV in Mexico
    • signed new distribution agreements in Ecuador and Mexico
    • hired a sales manager to bolster sales in LATAM
  • Print-Based English Language Learning:
    • expanded the existing market for PEP Primary English program into additional provinces in China

Financial Highlights for the Year Ended December 31, 2019

Year Ended December 31st

2019

2018

Revenue

$

1,956,222

$

1,940,182

Operating and development expenses

1,406,071

1,953,778

Bad debt expense (recovery)

(85,491)

(293,379)

Income before amortization,

share-based payments, depreciation, finance charges and taxes

635,642

279,783

Sharebased payments and depreciation

195,454

180,858

Finance charges, taxes and foreign exchange

277,622

203,081

Total expenses

1,793,656

2,044,338

Net profit (loss)

162,566

(104,156)

Total comprehensive income (loss)

113,817

(71,954)

Earning (Loss) per share (basic)

$

0.00

$

(0.00)

Earning (Loss) per share (fully diluted)

$

0.00

$

(0.00)

  • Revenue for the year ended December 31, 2019 totalled $1,956,222 as compared to $1,940,182 in 2018
  • Operating and development expenses for the year ended December 31, 2019 totalled $1,406,071 compared to $1,953,778 in 2018, due to the decrease of direct costs, development costs and selling, general & administrative expenses.
  • Net profit for the year ended December 31, 2019 totalled $162,566 or $0.00 earnings per share (basic) based on 35.5 million shares and $0.00 earnings per share (fully diluted) based on 39.1 million shares as compared to a net loss of ($104,156) for 2018 or ($0.00) loss per share (basic) based on 35.5 million shares and ($0.00) loss per share (fully diluted) based on 35.5 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $635,642 compared to $279,783 in 2018.

Financial Highlights for the Fourth Quarter Ended December 31, 2019

Fourth Quarter Ended December 31st

2019

2018

Revenue

$

831,508

$

713,150

Operating and development expenses

485,186

450,930

Bad debt expense (recovery)

(85,491)

Income before amortization,

share-based payments, depreciation, finance charges and taxes

431,814

350,778

Share-based payments, depreciation, finance charges, taxes and foreign exchange depreciation

43,194

88,558

Finance charges, taxes and foreign exchange

71,025

54,383

Total expenses

442,889

593,871

Net profit

338,619

119,279

Total comprehensive income

345,093

155,060

Earnings per share (basic)

$

0.01

$

0.00

Earning per share (fully diluted)

$

0.01

$

0.00

                                               

  • Revenue for the fourth quarter ended December 31, 2019 totalled $831,508 compared to $713,150 for the same period in 2018.
  • Operating and development expenses for the quarter ended December 31, 2019 totalled $485,186 as compared to $450,930 in 2018.
  • Net profit for the quarter was $338,619 or $0.01 earnings per share (basic) based on 35.5 million shares and $0.01 earnings per share (fully diluted) based on 39.1 million shares as compared to $119,279 for the same period for 2018 or $0.00 earnings per share (basic) based on 35.5 million shares and $0.00 earnings per share (fully diluted) based on 35.5 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $431,813 compared to $262,220 in 2018.

“In 2019, we added resources by investing in our sales and marketing team to pursue opportunities and relationships in existing, as well as, new channels and new territories.” said Gali Bar-Ziv, President & CEO of Lingo Media. “We are encouraged with the recent adoption of remote and e-learning trends in the markets that we service to deal with the current stay and learn at home reality”.

The audited financial statements for the year ended December 31, 2019 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 language‘, 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 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 the U.S., 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

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.

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

SOURCE Lingo Media Corporation

For further information: Lingo Media, Khurram Qureshi, CFO, Tel: (647) 831-1462, Email: investors@lingomedia.com; To learn more, visit us at www.lingomedia.com