WEB NEWS Comments & Business Outlook
Third Quarter 2015 Financial Results
Revenue for the third quarter ended September 30, 2015 totalled $1,203,201 compared to $222,468 for the same period in 2014, a 441% increase.
Earnings per share was 0.023 vs last years same quarter of (0.012)
Michael Kraft, President & CEO of Lingo Media, stated, "Q3-15 is the fourth consecutive profitable quarter for the Company representing revenue growth of 441% and a significant increase in profitability year-over-year for the quarter. It is noteworthy that the revenue and profit in this quarter was almost entirely derived from the rapidly growing digital-learning software division. The legacy text book publishing income is generated throughout the year but is recorded seasonally in Q2 and Q4 as royalty revenues."
Michael Kraft continued, "In line with our sales strategy, we have successfully launched our ELL Technologies' suite of software products into the government, educational institution and corporate markets. While Latin America remains our initial market focus, demand is emerging from other regions. The Company is pursuing strategic partnerships for global distribution as part of its plan as the EdTech market for English language learning continues to grow worldwide."
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Contract Awards
TORONTO, ON and BOGOTA, COLOMBIA--(Marketwired - September 30, 2015) - Lingo Media Corporation (TSX VENTURE: LM) (OTCQB : LMDCF) ("Lingo Media " or the "Company ") an EdTech company providing innovative online and print-based technologies and solutions and eDistribution SAS (eDistribution ) an online education services distribution company in Colombia, are pleased to announce that Lingo Media's subsidiary ELL Technologies Ltd. ("ELL Technologies ") and eDistribution have secured a multi-million dollar language learning software development contract in Colombia.
eDistribution has selected ELL Technologies to provide a full suite of digital education resources to the National Training Service ("SENA "), a Colombian national public institution under the Ministry of Labour focused on the development of education in order to foster employment. Through this landmark agreement, eDistribution and ELL Technologies are poised to significantly increase learning and professional opportunities for as many as seven million citizens in Colombia.
Under the terms of the agreement, ELL Technologies in partnership with eDistribution, is currently developing lessons, learning objects and digital resources which SENA will implement into its learning management system. The ability to pick, choose and adapt learning programs and their components will empower educators by allowing them to supplement, complement and enhance their coursework and in-class training.
"SENA has taken a most progressive and innovative approach to learning English and other languages by structuring their program to fit the many different learning environments and requirements to further establish Colombia as a truly bilingual nation," says Gali Bar-Ziv, President & CEO of ELL Technologies. "We are very excited to deliver the digital learning content and user experience to Latin America's leading educational institute, positively impacting language education and employment opportunities in Colombia and throughout Latin America."
"Multilingualism has become a real necessity in our interconnected and globalized world," says Laura Victoria Zabala J., eDistribution�s CEO. "Through this partnership, eDistribution and ELL Technologies will provide the most technologically advanced and expansive digital content library of all the eLearning programs to be used in Colombia, and will be an example for educators and governments throughout Latin America to establish new educational standards."
"In the context of Colombia, SENA aims at the improvement of foreign language levels of the Colombian people and SENA's bilingualism project is particularly important since it has become necessary to boost both the quality and the competence of our learners. Finally, the use of digital content has become SENA's benchmark in the implementation of best practices in the teaching and learning of foreign languages," stated Mario Javier Rinc�n Triana, Special and Institutional Project Coordinator for SENA.
Comments & Business Outlook
LINGO MEDIA CORPORATION
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2014, 2013 and 2012
(Expressed in Canadian Dollars, unless otherwise stated)
Notes
2014
2013
2012
Revenue
$
2,512,464
$
2,008,066
$
2,016,261
Expenses
Selling, general and administrative
950,229
941,462
2,121,237
Amortization – intangibles
8
582,857
431,049
365,752
Direct costs
382,593
195,324
273,055
Share-based payments
11
65,663
61,926
243,195
Depreciation – property and equipment
7
7,386
7,624
9,838
Total Expenses
1,988,728
1,637,385
3,013,077
Profit / (Loss) from Operations
523,736
370,681
(996,816 )
Net Finance Charges
Interest expense
217,040
240,516
168,769
Foreign exchange gain
(106,437
)
(134,444
)
(25,046
)
Profit / (Loss) Before Income Tax
413,132
264,609
(1,140,539 )
Income Tax Expense
13
269,119
241,666
221,987
Net Profit / (Loss) for the Year
$ 144,013
$ 22,943
$ (1,362,526 )
Other Comprehensive Income
Items subsequently transferred to net profit (loss)
Exchange differences on translating foreign operations loss
(36,607
)
(79,274
)
(2,211
)
Total Comprehensive Income / (Loss), Net of Tax
$ 107,406
$ (56,331 )
$ (1,364,737 )
Earnings / (Loss) per Share
Basic and Diluted
$
0.01
$
(0.00
)
$
(0.07
)
Weighted Average Number of Common Shares Outstanding
Basic and Diluted
21,986,300
21,174,026
20,652,415
Comments & Business Outlook
First Quarter 2014 Financial Results:
Revenue for the first quarter ended March 31, 2014 totalled $236,051 , an increase of 71.4%, compared to $137,754 for the same period in 2013.
Net loss for the first quarter ended March 31, 2014 was $52,866, $0.00 loss per share , compared to a net loss of $377,023 for the first quarter ended March 31, 2013, -$0.02 loss per share .
Comments & Business Outlook
LINGO MEDIA CORPORATION
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2013, 2012 and 2011
(Expressed in Canadian Dollars, unless otherwise stated)
Notes
2013
2012
2011
Revenue
$
2,008,066
$
2,016,261
$
2,066,969
Expenses
Selling, general and administrative
941,462
2,121,237
2,340,555
Amortization – intangibles
8
431,049
365,752
2,544,818
Direct costs
195,324
273,055
141,749
Share-based payments
11
61,926
243,195
518,114
Depreciation – property and equipment
7
7,624
9,838
12,600
Amortization – publishing development costs
-
-
8,807
Impairment loss
8
-
-
703,600
Total Expenses
1,637,385
3,013,077
6,270,243
Profit / (Loss) from Operations
370,681
(996,816 )
(4,203,274 )
Net Finance Charges
Interest expense
240,516
168,769
328,112
Foreign exchange (gain) / loss
(134,444
)
(25,046
)
(19,709
)
Profit / (Loss) Before Income Tax
264,609
(1,140,539 )
(4,511,677 )
Income Tax Expense
13
241,666
221,987
205,370
Net Profit / (Loss) for the Year
$ 22,943
$ (1,362,526 )
$ (4,717,047 )
Other Comprehensive Income
Item to be reclassified to profit or loss
-
-
-
Exchange differences on translating foreign operations gain / (loss)
(79,274
)
(2,211
)
(82,579
)
Total Comprehensive Loss, Net of Tax
$ (56,331 )
$ (1,364,737 )
$ (4,799,626 )
Loss per Share
Basic and Diluted
$
(0.00
)
$
(0.07
)
$
(0.25
)
Weighted Average Number of Common Shares Outstanding
Basic and Diluted
21,174,026
20,652,415
18,797,185
Comments & Business Outlook
LINGO MEDIA CORPORATION
Condensed Consolidated Interim Statement of Comprehensive Income
For the nine-months ended September 30, 2012 and 2011
(Unaudited, expressed in Canadian Dollars, unless otherwise stated)
For the three months
ended September 30
For the nine months
ended September 30
Notes
2012
2011
2012
2011
Revenue
$ 129,424 $ 349,544 $ 1,124,514 $ 1,106,118
Expenses
Selling, general and administrative expenses
475,975 642,788 1,659,255 1,841,660
Share-based payment
145,608 55,883 187,391 587,268
Direct costs
32,183 34,322 173,092 159,811
Amortization – publishing development costs
- - - 16,501
Depreciation – property and equipment
6 2,463 3,149 7,362 9,276
Amortization – intangibles
7 83,445 601,385 277,688 1,844,894
Total Expenses
739,674 1,337,527 2,304,788 4,459,410
Loss from Operations
(610,250 ) (987,983 ) (1,180,274 ) (3,353,292 )
Net Finance Charges
Interest expense
41,633 13,866 102,244 77,502
Foreign exchange (gain) / loss
81,128 (154,668 ) 88,198 (29,370 )
Loss before Tax
(733,011 ) (847,181 ) (1,370,716 ) (3,401,424 )
Income Tax Expense
10,930 11,115 108,367 95,811
Loss for the Period – Continuing Operations
(743,941 ) (858,296 ) (1,479,083 ) (3,497,235 )
Other Comprehensive Income
Exchange differences on translating foreign operations
53,889 (141,255 ) 75,735 (166,288 )
Total Comprehensive Loss, Net of Tax
$ (690,052 ) $ (999,551 ) $ (1,403,348 ) $ (3,663,523 )
Loss per Share
Basic and Diluted
$ (0.03 ) $ (0.05 ) $ (0.07 ) $ (0.20 )
Weighted Number of Common Shares Outstanding
Basic and Diluted
20,622,288 20,543,177 20,562,684 18,582,366
Liquidity Requirements
The Company
plans on raising additional equity through private placement financings, as the capital markets permit, in an effort to finance its growth plans for the China market in addition to financing expansion into international markets.
