Lingo Media Reports Second Quarter Results
FOR: LINGO MEDIA CORPORATION
AUG 29, 2012 - 19:54 ET
TORONTO, ONTARIO--(Marketwire - Aug. 29, 2012) - Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) ("Lingo Media" or the "Company"), an ESL industry acquisition company that is Changing the way the world learns English, announces its financial results for the second quarter ended June 30, 2012. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.
- Print-Based English Language Learning:
- completed product revisions for the 3rd and 4th levels of PEP Primary English program
- secured approval for product revisions from China's State Ministry of Education
- negotiating international distribution agreements for the Quartet blended-learning program
- Online English Language Learning:
- completed development of the beta version of our new English Proficiency Assessment Platform
- launched newly designed Q Kids Online English program
- secured first sale of new Q Kids Online of 5,000 licenses in Turkey
- advanced development of a new product feature set for Speak2Me
- negotiating strategic development partnerships for Speak2Me
- continued to seek ESL and other education assets for acquisition and M&A opportunities
|Second Quarter Ended June 30,||2012||2011|
|Amortization, share-based payments, and depreciation||109,587||801,212|
|Interest, foreign exchange and other comprehensive income||67,078||332,440|
|Total comprehensive loss||$||(84,676||)||$||(1,165,770||)|
- Revenue for the second quarter totalled $737,163 compared to $455,740 for the same period in 2011, an increase of 62%. The increase in revenues in the second quarter of the current year is mainly attributable to higher revenues from online training contracts as compared to the second quarter of the previous year.
- Total expenses for the quarter totalled $821,839, as compared to $1,621,510 in 2011, due to the benefits of cost rationalization, a reduction in share-based payment and in amortization of intangibles.
- Total comprehensive loss totalled $84,676 or $0.004 per share based on 20.5 million shares outstanding compared to a total comprehensive loss of $1,165,770 or $0.06 per share based on 20.5 million shares outstanding.
The Company also announces that its application has been approved by the TSX Venture Exchange to extend the term of the 3,658,668 warrants issued by the Corporation on March 4, 2011 and the 1,875,000 warrants issued by the Corporation on May 11, 2011 (collectively, the "Warrants"). The terms of the Warrants have each been extended for a period of 18 months. The Warrants were scheduled to expire on September 4, 2012 and November 11, 2012, respectively, but will now expire on March 4, 2014 and May 11, 2014, respectively.
The Warrants were issued as part of private placement offerings by the Company which were completed on March 4, 2011 and May 11, 2011. For further information on the original issuance of the Warrants, please refer to the press releases of the Company dated March 4, 2011 and May 11, 2011 filed on SEDAR.
Warrant holders are advised that replacement Warrant certificates will not be issued and that the original Warrant certificates must be presented to the Company in order to affect the exercise or transfer of such Warrants.
The financial statements for the six months ended June 30, 2012 and accompanying 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lingo Media Corporation
President & CEO
(416) 927-7000 Ext. 23 or Toll Free: (866) 927-7011
(416) 927-1222 (FAX)