SOURCE: Lingo Media Corporation

Lingo Media Corporation

May 28, 2015 12:26 ET

Lingo Media Reports First Quarter 2015 Results

TORONTO, ON--(Marketwired - May 28, 2015) - Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) ("Lingo Media" or the "Company") an ESL EdTech industry acquisition company announces its financial results for the first quarter ended March 31, 2015. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.

"We are pleased with our results for Q1 2015 with revenue growth of 176% and significant improvement in profitability. Management expects this financial trending to continue throughout the balance of 2015 with revenue increases to be reported in Q2 and Q4, as a result of seasonality in semi-annual legacy royalty revenues combined with increased revenues from our elearning division's new products and new markets. The ESL EdTech market is presenting us with favourable sales growth opportunities in Latin America along with M&A opportunities. We look forward to providing our shareholders with updates as we continue to grow our company with solid cash flow and profitability," said Michael Kraft, President & CEO of Lingo Media.

Operational Highlights

  • Print-Based English Language Learning:
    • expanded the market for PEP Primary English program into new provinces
  • Online English Language Learning:
    • completed the development of two leading-edge technology tools, Lesson Builder and Course Builder enabling educators to easily create, convert, edit, and arrange online lessons and courses
    • advanced the development of Academy, a new ELL Technologies' program for the primary school market
    • expanded sales and marketing activities of ELL Technologies' redesigned Master and Scholarprograms

Corporate Highlights

  • completed a strategic alliance with a software research and development company, Vizualize Technologies Corporation, specializing in EdTech

Financial Highlights for the First Quarter Ended March 31, 2015

First Quarter Ended March 31st  2015  2014
Revenue  $651,627  $236,051
Operating expenses   319,463   275,444
Income before amortization, share-based payments, depreciation, finance charges and taxes   332,164   (39,393)
Amortization, share-based payments, and depreciation   210,998   133,150
Finance charges, taxes, foreign exchange   (104,263)   (119,677)
Net Profit (Loss)   225,429   (52,866)
Total Comprehensive Income  $146,598  $(181,565)
  • Revenue for the first quarter ended March 31, 2015 totalled $651,627 compared to $236,051 for the same period in 2014, a 176% increase.
  • Operating expenses for the quarter ended March 31, 2015 totalled $319,463 as compared to $275,444 for the same period in 2014, due to increased operations including expanded sales & marketing initiatives.
  • Net profit for the quarter was $225,429 as compared to net loss $(52,866) for the same period in 2014 is primarily attributed to the increase in revenue of $415,576.
  • Total comprehensive income for the first quarter was $146,598 or $0.01 earnings per share based on 22.1 million shares compared to a total comprehensive loss of $(181,565) or $(0.00) loss per share based on 21.4 million shares for the same period in 2014.
  • Income before amortization, share-based payments, depreciation, finance charges and taxes was $332,164 compared to loss of $(39,393) in 2014.

The unaudited financial statements for the quarter ended March 31, 2015 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX VENTURE: LM) (OTCQB: LMDCF)

Lingo Media (www.lingomedia.com) is an ESL EdTech industry acquisition company that is 'Changing the way the world learns English' combining education with technology. The Company is focused on online and print-based technologies and solutions through its two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies is an emerging international English language learning multi-media, online training and assessment company creating new learning platforms (www.elltechnologies.com). 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, establishing a strong presence in China's education market of more than 300 million students. The Company is extending its global reach, with an initial market expansion into Latin America and continues to expand its product offerings and technology applications.

Follow Lingo Media On:
Facebook: https://www.facebook.com/LingoMedia
Twitter: https://twitter.com/LingoMediaCorp
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

Contact Information

  • For further information, contact:

    Lingo Media
    Michael Kraft
    President & CEO
    Tel: (416) 927-7000 Ext. 23
    Toll Free: (866) 927-7011
    Fax: (416) 927-1222
    Email: mkraft@lingomedia.com
    To learn more, visit: www.lingomedia.com