Lingo Media Reports Financial Results for the Second Quarter Ended June 30, 2021

TORONTOAug. 26, 2021Lingo Media Corporation (TSXV: LM) (OTCQB: LMDCF) (FSE: LIMA) (“Lingo Media” or the “Company“), an EdTech company that is ‘Building a multilingual world’ through innovative online and print-based technologies and solutions, announces its financial results for the second quarter ending June 30, 2021.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Q2 2021 Operational Highlights

  • Online English Language Learning:
    • Launched Ola App, allowing students to access hundreds of additional hours of speaking and pronunciation practice from their smartphones with Speak2Me and Studio features
    • Redesigned and refreshed product design for English, Portuguese, Spanish, French, Mandarin, and Business courses
    • Added Assessment Test security features including browser locking; full screen lock; one login per device; and student declaration and selfie pictures to verify identity
    • ELL Technologies rebranded as Everybody Loves Languages, including redesign of logo, website, and platform
    • Conducted three webinars as part of ELL Technologies’ teacher development series
  • Print-Based English Language Learning:
    • Expanded the existing market for PEP Primary English program into an additional province in China

Q2 2021 Financial Highlights

Second Quarter Ended June 30th  

2021

2020

Revenue

$       1,030,518

$       977,389

Operating and development expenses

403,958

202,275

Income before amortization,
share-based payments, depreciation, finance charges
and taxes

626,560

775,114

Amortization, share-based payments, and depreciation

1,019

34,909

Finance charges, taxes, foreign exchange

(82,020)

115,876

Net profit

707,561

624,329

Total comprehensive income

451,588

557,802

Earnings per share

$               0.02

$           0.02

  • Revenue for the second quarter ending June 30, 2021, totaled $1,030,518 as compared to $977,389 in Q2 2020.
  • Operating and development expenses for the quarter ending June 30, 2021, totaled $403,958 compared to the expenses of $202,275 in Q2 2020. Included as a reduction of selling, general and administrative expenses are government grants of $55,300 relating to the Company’s publishing and software projects, $6,145 from CEWS, and $7,500 from Career Ready Program, part of Government of Canada’s Student Work Placement Program.
  • Net profit for the quarter ending June 30, 2021 was $707,561 or $0.02 earnings per share (basic) based on 35.5 million shares or $0.02 earnings per share (diluted) based on 39.84 million shares as compared to a net profit of $624,329 for Q2 2020 or $0.02 earnings per share (basic) based on 35.5 million shares or $0.02 earnings per share (diluted) based on 41.5 million shares.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $626,560 in Q2 2021 compared to the income of $775,114 in Q2 2020.

Financial Highlights for the Six-Month Period Ended June 30, 2021

Six Month Period Ended June 30th

2021

2020

Revenue

$  1,179,598

$  1,074,513

Operating and development expenses

796,563

3,344

Income before amortization,
share-based payments, depreciation, finance charges and
taxes

383,035

1,071,169

Amortization, share-based payments and depreciation

22,092

65,694

Finance charges, taxes and foreign exchange

73,059

147,527

Net profit

287,884

857,948

Total comprehensive income

$     183,331

$ 956,882

Earnings per share

$ 0.01

$0.02

  • Revenue for the six-month period ending June 30, 2021 totaled $1,179,598 compared to $1,074,513 for the same period in 2020.
  • Operating and development expenses for the six-month period ending June 30, 2021 totaled $796,563 as compared to $3,344 for the same period in 2020. The increase of selling, general and administrative expenses is primarily due to the Company receipt government grants of $223,326 relating to the Company’s publishing and software projects, one-time refundable tax credit, Ontario Interactive Digital Media Tax Credit in the amount of $904,940, and $78,287 CEWS during the period ending June 30, 2020, as compared to $113,721 related to government grants, $6,145 from CEWS and $17,500 from Career Ready Program in 2021. In absence of government grants and subsidy, the selling general and administrative expenses for the period ending June 30, 2021, would be $933,929, for the period ended June 30, 2020, would be $1,209,896.
  • Net profit for the six-month period was $287,884 as compared to net profit of $857,948 for the same period in 2020. In absence of government grants and subsidy, the adjusted net profit for the six-month period ending June 30, 2021, would be $150,518 as compared to net loss of $348,605 in 2020,
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $383,035, as compared to $1,071,169 for the same period in 2020.

“We are pleased to see the maintenance and growth of our recurring royalty stream from our PEP business in China even in the face of COVID. In the last quarter, we rebranded ELL Technologies to Everybody Loves Languages and launched our new website and corporate identity to better position and build our brand in the education market. We have had very positive feedback to date from students, teachers and administrators and we encourage everybody to visit, www.elltechnologies.com. Our team also launched a new mobile solution, Ola App (available in Apple and Android stores) and we will continue to enhance and expand our mobile learning solutions.” said Gali Bar-Ziv, President & CEO of Lingo Media.

The unaudited condensed interim financial statements for the quarter ended June 30, 2021 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 ‘Building a multilingual world’, 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: Everybody Loves languages and Lingo Learning.  Everybody Loves languages 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 established successful relationships with key government and industry organizations internationally, with a presence in Latin AmericaChina, 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.


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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