TORONTO, ONTARIO–(April 26, 2013) - Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) (“Lingo Media” or the “Company“), an ESL industry acquistion company that is ‘Changing the way the world learns English’, announces its financial results for the fourth quarter and year ended December 31, 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:
- renewed agreements to develop, publish, distribute and sell PEP Primary English and Starting Line programs with People’s Education Press and Peoples Education Electronic & Audiovisual Press, China’s State Ministry of Education’s publishing arm
- co-published our 400 millionth unit
- completed product revisions for all eight levels of PEP Primary English program
- completed product revisions for the full set of 12 levels of Starting Line program
- secured approval for product revisions from China’s State Ministry of Education for the first four levels of PEP Primary English and for the first six levels of Starting Line program.
- initiated sales of our new Quartet blended-learning program
- Online English Language Learning:
- initiated and advanced the redesign of the user interface, learning management system and the multi-browser delivery system for desktops and tablets for the ELL Technologies suite of products including - Scholar, Business, Business Traveler, Master, Kids, and Placement Test .
- integrated a new and improved speech recognition technology
- completed the development of new English Proficiency Assessment Platform
- signed a sales contract with La Presna in Panama to provide 10,000 Scholar Online licenses to be used to expand their readership and ad revenues
- secured a pilot program with Madrid Local Police in Spain to provide Scholar and Worksheets with specialized content based on the real life needs of the police
- signed sales contracts with Intel Corp. to market and sell the Scholar CD’s through their direct-to-consumer channel in Columbia
- secured first sale of 5,000 licenses of new Kids Online in Turkey
- negotiated a one year extension to the term of the $890,000 loan outstanding for a further one year term to September 8, 2013
- awarded the silver prize as Outstanding SME at the Canada China Business Excellence Awards on November 27, 2012 at a ceremony in Montreal, Canada to officially recognize the enterprise that best exemplifies the innovative inclusion of China in its growth and overall strategies.
- launched our acquistion and M&A strategy and several ESL and other education assets are under review
Financial Highlights for the Fourth Quarter Ended December 31, 2012
|Fourth Quarter Ended December 31||2012||2011|
|Revenue||$ 891,747||$ 960,851|
|Amortization, share-based payments, and depreciation||146,344||626,400|
|Finance charges, taxes, foreign exchange||144,848||275,246|
|Total comprehensive loss||38,611||(1,125,228)|
- Revenue for the fourth quarter ended December 31, 2012 totalled $891,747 compared to $960,851 for the same period in 2011. The Company has been redesigning the user interface, learning management system and the multi-browser delivery system for desktops and tablets for its ELL Technologies suite of products including Scholar, Business, Business Traveler, Master, Kids, and Placement Test. The redesign is expected to be completed and full sales efforts will resume before the end of the second quarter.
- Operating expenses for the quarter ended December 31, 2012 totalled $561,944 as compared to $480,833 in 2011.
- Total comprehensive income totalled $38,611 or $0.002 per share based on 20.9 million shares outstanding compared to a total comprehensive loss of $1,125,228 or $0.05 loss per share based on 20.5 million shares outstanding.
Financial Highlights for the Year Ended December 31, 2012
|Year Ended December 31||2012||2011|
|Revenue||$ 2,016,261||$ 2,066,969|
|Amortization, share-based payments, and depreciation||618,785||3,084,339|
|Finance charges, taxes, foreign exchange||367,921||596,352|
|Total comprehensive loss||(1,364,737)||(4,799,626)|
- Revenue for the year ended December 31, 2012 totalled $2.02 million, a decrease of 4% compared to $2.07 million for the same period in 2011.
- Total comprehensive loss for 2012 was $1.36 million or $0.07 loss per share based on 20.6 million shares compared to a total comprehensive loss of $4.80 million or $0.25 loss per share based on 18.8 million shares as at December 31, 2011. The loss decreased as a result of decreased expenditures related to cost rationalization, reduced financial expenses and share-based compensation, along with a significant reduction in the amortization of intangibles.
- Operating expenses for the year ended December 31, 2012 totalled $2.39 million compared to $2.48 million in 2011.
The audited financial statements for the year ended December 31, 2012 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 (www.elltechnologies.com). Parlo is a fee-based online ELL training and assessment service. Speak2Me is a free-to-consumer advertising-based online ELL service in China. 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.
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