Toronto, Canada, Aug. 27, 2018 – Lingo Media Corporation (TSX-V: LM; OTC: LMDCF; FSE: LIMA) (“Lingo Media” or the “Company”), a global provider of digital and print-based English Language Learning solutions, announces its financial results for the second quarter ended June 30, 2018. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
“During the second quarter of 2018, we maintained our print-based royalty revenue while significantly reducing our operating expenses and secured new digital learning sales contracts through our distributors. The Company entered into a commercial alliance with iTEP International to provide online testing services. Through this strategic partnership, our ELL Technologies division is now able to provide our users with an accredited certificate that is recognized by employers and international higher educational institutions,” said Khurram Qureshi, CFO of Lingo Media. “This significantly expands and extends the value of our product offering and gives us an edge over our competitors. The Company is moving opportunities along our sales pipeline and has been gaining some traction in the marketplace, especially in Asia, where more and more learners want to take an accredited course in order to work or study internationally. Lingo Media continues to pursue various corporate development initiatives and M&A opportunities.”
Q2 2018 Operational Highlights
- 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, expanding our reach further into Asia
- closed sales contract with municipality of Floridablanca and with Unidades Technologicas de Santander, both in Colombia and secured through distribution partner, e-Training SAS
- further advanced the development of ELL Technologies’ online Spanish course
|Financial Highlights for the Second Quarter Ended June 30, 2018|
|Second Quarter Ended June 30th||2018||2017|
|Income before amortization,
depreciation, finance charges and taxes
|Amortization, share-based payments, and depreciation||51,227||339,543|
|Finance charges, taxes, foreign exchange||126,016||254,094|
|Total comprehensive income||478,062||42,390|
|Earnings per share||$||0.01||$||0.00|
- Revenue for the period ended June 30, 2018 totalled $960,159, compared to $1,068,915 in 2017
- Operating expenses for the period ended June 30, 2018 totalled $225,706, compared to $432,156 in 2017
- Development cost for the period ended June 30, 2018 totalled $80,002, compared to $nil in 2017 as the company previously capitalized all development costs to intangible asset
- Net profit for the period ended June 30, 2018 was $477,208 or $0.01 per share (basic) based on 35.5 million weighted number of common shares as compared to net profit of $43,122 for 2017 or $0.00 per share (basic) on 35.5 million weighted number of common shares.
- Profit before amortization, share-based payments, depreciation, finance charges and taxes was $654,451 compared to $636,759 in 2017.
|Financial Highlights for the Six-Month Period Ended June 30, 2018|
|Six Month Period Ended June 30th||2018||2017|
|Income before amortization,
share-based payments, depreciation,
finance charges and taxes
|Amortization, share-based payments and depreciation||76,288||635,204|
|Finance charges, taxes and foreign exchange||118,884||282,847|
|Total comprehensive income||$||(66,249||)||$||46,119|
|Earnings per share||$||(0.00||)||$||0.00|
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $128,287, compared to $965,118
- Revenue for the six months ended June 30, 2018 totalled $1,040,514, compared to $1,666,892 for the same period in 2017
- Operating expenses for the six months ended June 30, 2018 totalled $574,791, compared to $701,774 for the same period in 2017
- Net loss for the six months ended June 30, 2018 was $66,885, compared to net profit $46,119 for the same period in 2017
The unaudited condensed interim financial statements for the quarter ended June 30, 2018 and Management Discussion & Analysis are available at www.sedar.com.
About Lingo Media
Lingo Media is a global provider of best-in-class digital and print-based English language learning solutions that are ‘Changing the way the world learns English’.
Developed for learners of English at every level, Lingo Media’s ELL Technologies products combine a vast content library with proprietary technology. ELL Technologies’ intuitive dashboards enable students to track and manage their progress, and allow teachers to organize and interact with students, providing ongoing support. Lingo Media’s Lingo Learning division is a print-based publisher of English language learning programs in China.
Lingo Media’s product and program are marketed through established sales channels to key education, government and business organizations in Latin America and China and continues to extend its global reach and expand its product offerings.
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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 or www.sec.gov/edgar.shtml.
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