TORONTO, ON--(August 27, 2015) - Lingo Media Corporation (LM:CA) (LMDCF) ("Lingo Media" or the "Company"), an EdTech company that is 'Changing the way the world learns English' through innovative online and print-based technologies and solutions, today announces its financial results for the second quarter ended June 30, 2015. For the quarter, the Company reported revenue of $1.79 Million and net comprehensive income of $993,552 or $0.04 per share. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
Michael Kraft, President & CEO of Lingo Media, stated, "We are pleased to report record financial results for the second quarter of 2015. This performance is attributable to an increase in revenue from digital learning which increased approximately 776% year-over-year. In the quarter, digital revenue as a percentage of total revenue was greater than print-based revenue for the first time in our operating history. This is a direct result of our enhanced sales and marketing effort which led to securing new sales contracts in Colombia, Mexico, Peru and other Latin American markets. The EdTech market for English language learning continues to present us with favourable sales growth opportunities in Latin America and globally."
Print-Based English Language Learning:
- launched primary-level, PEP Primary English program into additional provinces in China
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
- significantly expanded our digital English language learning library by entering a licensing agreement to digitize and globally distribute the best-selling general English program in Canada, Connecting Doors
- completed digitization of Connecting Doors content, released as a Software-as-a-Service platform where it will generate licensing and maintenance fees under the brand Campus for young adults from junior middle school through to undergraduates (ages 13 and up) and can extend to adult learners
- advanced the development of English Academy, a new ELL Technologies' program for the primary school market for 8 - 12 years old, which will complete our suite of products for K-12.
- continued the re-design of ELL Technologies' Winnie's World, for the pre-kindergarten and kindergarten levels (ages 4-7)
- supported existing software sales contracts in China and Europe
- secured new software licensing contracts for ELL Technologies' programs in Colombia, Mexico and Peru
Michael Kraft continued, "During the second half of 2015, we expect our revenue growth and profitability to trend in a similar fashion as to the first half of 2015. We look forward to providing our shareholders with updates as we continue to achieve sales and earnings milestones."
Financial Highlights for the Second Quarter Ended June 30, 2015
|Second Quarter Ended June 30||2015||2014|
|Revenue||$ 1,794,659||$ 877,879|
|Amortization, share-based payments and depreciation||183,145||148,535|
|Finance charges, taxes and foreign exchange||209,842||192,281|
|Total comprehensive income||$ 993,552||$ 200,534|
|Earnings per share||$ 0.04||$ 0.01|
- Revenue for the second quarter ended June 30, 2015 totalled $1,794,659 compared to $877,879 for the same period in 2014, a 104% increase.
- Operating expenses for the quarter ended June 30, 2015 totalled $422,569 as compared to $319,430 for the same period in 2014, due to expanded sales and marketing initiatives.
- Net profit for the quarter was $979,103 as compared to $217,633 for the same period in 2014, primarily a result of an increase in revenue of $916,780.
- Total comprehensive income for the quarter was $993,552 or $0.04 earnings per share based on 25.9 million shares compared to a total comprehensive income of $200,534 or $0.01 earnings per share based on 21.8 million shares for the same period in 2014.
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $1,372,090 compared to $558,449 in 2014.
Financial Highlights for the Six Month Period Ended June 30, 2015
|Six Month Period Ended June 30||2015||2014|
|Revenue||$ 2,446,286||$ 1,113,930|
|Amortization, share-based payments and depreciation||394,143||281,685|
|Finance charges, taxes and foreign exchange||105,579||72,604|
|Total comprehensive income||$ 1,140,150||$ 18,969|
|Earnings per share||$ 0.05||$ 0.00|
- Revenue for the six months ended June 30, 2015 totalled $2,446,286 compared to $1,113,930 for the same period in 2014, a 120% increase.
- Operating expenses for the six months ended June 30, 2015 totalled $742,032 as compared to $594,874 for the same period in 2014, a result of expanded sales and marketing initiatives.
- Net profit for the six months was $1,204,532 as compared to net profit $164,767 for the same period in 2014 is primarily attributed to the revenue increase of $1,332,356.
- Total comprehensive income for the six months was $1,140,150 or $0.05 earnings per share based on 23.3 million shares compared to a total comprehensive income of $18,969 or $0.00 earnings per share based on 21.8 million shares for the same period in 2014.
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $1,704,254 compared to $519,056 in 2014.
The unaudited interim financial statements for the period ended June 30, 2015 and Management Discussion & Analysis are available at www.sedar.com.
About Lingo Media (TSX VENTURE: LM)(OTCQB: LMDCF)
Lingo Media is an EdTech company that is 'Changing the way the world learns English' through the combination of education with technology. The Company provides online and print-based solutions through its two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies is a global English language learning online training and assessment company. 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.
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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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