Lingo Media Corporation
TSX VENTURE : LM
OTC Bulletin Board : LMDCF

Lingo Media Corporation

May 03, 2010 07:00 ET

Lingo Media Reports 2009 Fourth Quarter And Year End Financial Results

2009 Revenue and Gross Profit Increased 51% and 57%, Yielding an Improved Gross Profit Margin of 90%

TORONTO, ONTARIO--(Marketwire - May 3, 2010) - Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) ("Lingo Media" or the "Company"), a leader in online and print-based English language learning solutions, announces its financial results for the fourth quarter and year ended December 31, 2009. All figures are reported in Canadian dollars, and are in accordance with Canadian GAAP unless otherwise noted.

"2009 was an eventful year for Lingo Media as we successfully acquired a valuable asset, Parlo, and added top industry executives Gali Bar-Ziv as COO and Brent St. Pierre as CTO," said Michael Kraft, President & CEO of Lingo Media. "Our diversified business now consists of Lingo Learning, our legacy print–based publishing business, Speak2Me, a free-to-consumer ad-based service and Parlo, a fee-based online training and assessment service. The business models for both online services have been validated through agreements with clients such as Mercedes-Benz smart car and China Southern Airlines. We continue to grow as an English language learning company with a diversified product base and an experienced and operationally focused management team intent on maximizing the value of these assets."

2009 Business Highlights

During 2009, Lingo Media successfully completed several business and product development milestones that will materially benefit the Company and its shareholders in 2010 and beyond.

  • Speak2Me, with its Conversational Advertising™ service, successfully obtained two contracts with Mercedes-Benz (China). Mercedes-Benz's smart car division utilized Speak2Me's embedded advertising interface to launch the smart fortwo car in China
  • Speak2Me integrated Motorola China's messaging as a trial campaign into a series of fully immersive multimedia Conversational Advertising™ lessons reaching 250,000 unique users in a month – with results 10 times greater than their traditional banner ad campaigns
  • Successfully delivered English language testing and training for the volunteer applicants to the Shanghai World Expo 2010, an international trade show where an expected 70 million visitors are expected to attend beginning May 1st
  • Acquired Parlo, an established brand in the language learning field, to launch our fee-based English training and assessment service. Parlo's first client, China Southern Airlines, was signed up before the formal launch of the service to train 6,200 employees to speak English
  • Enhanced management team with top industry and operational executives. Gali Bar-Ziv, Chief Operating Officer, and Brent St. Pierre, Chief Technology Officer, have both joined the team with extensive experience in bringing new products to market, corporate sales and technology leadership.

2010 Business Highlights to Date

  • Lingo Learning co-published its 325 millionth unit with People's Education Press, China's State Ministry of Education publishing arm
  • The Speak2Me.cn online service achieved its 1 millionth registered user, a 100% growth from 2008
  • Launched Parlo, a new fee-based English training and assessment business in China, targeting corporations, governments and educational training institutions
  • Appointed Michael O'Connor to the Board of Directors. Mr. O'Connor has over 20 years experience in economics, finance and mergers and acquisitions, most recently leading all business development efforts and M&A activity on behalf of Orascom Telecom

Michael Kraft continued, "Looking at 2010 and beyond, we have all the necessary elements now in place to grow the Company. We remain encouraged by the steady growth of our legacy publishing business and have successfully launched Speak2Me and Parlo which each have their respective vertical target markets and business models. Our realigned management team will use its proven industry experience to monetize the value of these online services. We will continue to evaluate acquisition of undervalued assets that we can integrate rapidly into our current business model."

Financial Highlights for the Fourth Quarter Ended December 31, 2009

  • Revenue for the fourth quarter ended December 31, 2009 totalled $573,394 an increase of 7% compared to $534,311 for the same period in 2008. Revenue increased organically from the Company's print-based royalty revenue business unit and through online ad sales
  • Gross margin for the fourth quarter of 2009 totalled $549,503, an increase of 17% compared to $469,944 for the same period in 2008. These results yielded an improved gross margin of 96% for 2009 compared to 87% for 2008.
  • Fourth quarter 2009 net loss totalled $689,379 million or $0.04 per share based on 12.5 million shares outstanding compared to a net loss of $2.2 million or $0.21 per share based on 10.4 million shares outstanding.

Financial Highlights for the Year Ended December 31, 2009

  • Revenue for the year ended December 31, 2009 totalled $1.5 million, an increase of 51% compared to $969,000 for the same period in 2008. Revenue increased organically from the Company's print-based royalty revenue business unit and through online ad sales
  • Gross profit during 2009 totalled $1.3 million, an increase of 57% compared to $843,000 for 2008. These results yielded an improved gross margin of 90% for 2009 compared to 87% for 2008.
  • Net loss for 2009 totalled $2.6 million or $0.21 per share based on 12.5 million shares outstanding compared to a net loss of $3.9 million or $0.37 per share based on 10.4 million shares outstanding.

The audited financial statements for the year ended December 31, 2009 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 a diversified online and print-based education products and services company focused on English language learning ("ELL") on an international scale through its Lingo Learning Inc. subsidiary, a print-based publisher of ELL programs in China, Speak2Me (www.speak2me.com/advertising), a free-to-consumer advertising-based online ELL service in China, and Parlo, a fee-based online ELL training and assessment service (www.parlobusiness.com). Lingo Media has formed successful relationships with key government and industry organizations, establishing a strong presence in China's education market of 300 million students. The Company continues to broaden its presence in China as well as other major English language learning markets, to provide access to world-class English learning solutions on a global scale.

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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