TORONTO, ONTARIO--(Marketwire - April 30, 2012) - 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, 2011. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
"We have improved our operations in 2011 and achieved a small increase in our revenues and an 18% reduction in our operating expenses". In the fourth quarter, this reduction in operating expenses was more than 50% over same period in the prior year, said Michael Kraft, President & CEO of Lingo Media. "2011 was an important year for us to complete product enhancements and advance new product development initiatives to address market needs and opportunities. Concurrently, we entered into several strategic distribution agreements that have enabled us to expand our sales pipeline. We are confident that we will convert our strong pipeline into firm sales contracts over the balance of 2012. We are committed to increasing our revenues and will continue looking at acquiring additional ESL assets and assessing corporate M&A opportunities."
- Print-Based English Language Learning:
- co-published our 395 millionth unit
- continued ongoing product revisions and first levels of our PEP Primary English program which were approved by China's State Ministry of Education
- secured a three-year renewal to our existing agreement with People's Education Press, China's State Ministry of Education's publishing arm
- advanced international distribution of our new Quartet blended-learning program
- Online English Language Learning:
- upgraded and enhanced key components of the ELL Technologies product portfolio
- focused business development efforts in Asia and Latin America
- entered into a distribution agreement with the iGroup, with 22 offices in Asia Pacific
- secured deals with Lenovo and Ambow Education for China market
- signed agency and distribution agreements across Latin America
- secured sales contracts with ESAP in Columbia
- subsequent to the year-end, secured sales contracts with La Presna in Panama, Madrid Local Police in Spain and Intel Corp. in Columbia
- Parlo's spoken English training solutions continue to be cross-marketed thru ELL Technologies' distribution network
- continued work on the design and scope of a new product feature set for Speak2Me and pursuing strategic partnerships
- completed second and final payment for the acquisition of ELL Technologies Limited
- successfully completed two equity financings for gross proceeds of over $3 Million
- continues to seek ESL assets for acquisition and M&A opportunities
Financial Highlights for the Fourth Quarter Ended December 31, 2011
|Fourth Quarter Ended December 31||2011||2010|
|Revenue||$ 960,851||$ 877,091|
|Amortization, share-based payments, and depreciation||626,400||571,187|
|Finance charges, taxes, foreign exchange||120,963||(123,569||)|
|Total comprehensive loss||(970,946||)||(591,879||)|
- Revenue for the fourth quarter ended December 31, 2011 totalled $960,851 compared to $877,091 for the same period in 2010, a 9.5% increase. Revenue increased from the Company's print-based royalty revenues.
- Operating expenses for the quarter ended December 31, 2011 totalled $480,833, a significant reduction as compared to $1,021,352 in 2010.
- Total comprehensive loss totalled $970,946 or $0.05 per share based on 20.5 million shares outstanding compared to a total comprehensive loss of $591,879 or $0.04 per share based on 13.3 million shares outstanding. This loss was increased by management's decision to reduce the value of its software and web development asset with a $703,600 write-down.
Financial Highlights for the Year Ended December 31, 2011
|Year Ended December 31||2011||2010|
|Revenue||$ 2,066,969||$ 1,985,153|
|Amortization, share-based payments, and depreciation||3,084,339||2,441,065|
|Finance charges, taxes, foreign exchange||431,194||(82,246||)|
|Total comprehensive loss||(4,634,468||)||(3,395,245||)|
- Revenue for the year ended December 31, 2011 totalled $2.07 million, an increase of 4% compared to $1.99 million for the same period in 2010. Revenue increased from Lingo Learning's print-based royalty revenue business.
- Total comprehensive loss for 2011 was $4.63 million or $0.25 per share based on 20.5 million shares outstanding compared to a total comprehensive loss of $3.39 million or $0.26 per share based on 13.3 million shares outstanding as at December 31, 2010. The increase in loss was significantly impacted by management's decision to write-down the value of its software and web development asset by $703,600.
- Operating expenses for the year ended December 31, 2011 totalled $2.48 million compared to $3.02 million in 2010.
The audited financial statements for the year ended December 31, 2011 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 an ESL industry acquisition company that is Changing the way the world learns English, focused on English language learning ("ELL") on an international scale through its four distinct business units: ELL Technologies; Parlo; Speak2Me; and Lingo Learning. ELL Technologies is a globally-established ELL multi-media and online training company marketed under the Q Group brand (www.elltechnologies.com). Parlo is a fee-based online ELL training and assessment service (www.parlo.com). Speak2Me is a free-to-consumer advertising-based online ELL service in China (www.speak2me.cn). Lingo Learning is a print-based publisher of ELL 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 continues to expand its ELL offerings and is extending its reach globally.
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.