Lingo Media Reports 2017 Financial Results

TORONTO, April 30, 2018 (GLOBE NEWSWIRE) -- Lingo Media Corporation (TSX-V:LM) (OTC:LMDCF) (FSE:LIMA) ("Lingo Media" or the “Company”), a global provider of digital and print-based English Language Learning solutions, announces its financial results for the fourth quarter and year ended December 31, 2017.  All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

2017 Operational & Corporate Highlights

• Online English Language Learning:
  • completed the Spanish localization of the English for Success program, a series of lessons and activities derived from ELL Library 
  • completed the development of ELL Technologies’ new online Mandarin course
  • advanced the marketing and sales of English For Success, as a premium solution for governments and educational institutions
  • initiated and advanced development of our Learning Access Point (ELL LAP)
  • entered into a strategic alliance with HP Inc. for Latin America to market and sell ELL Technologies’ suite of learning programs including the ELL LAP to HP’s customer base, channel partners and through their education portal
     
• Print-Based English Language Learning:
  • expanded the existing market for PEP Primary English program into additional provinces within China
  • published revised editions of People’s Education Press’ Chinese as a Second Language textbook program for international markets
     
• Appointed Robert Martellacci, who is the founder and president of MindShare Learning Technology & C21 Canada to the board of Lingo Media

Subsequent Events

• completed the first installation of the ELL LAP under the strategic alliance with HP Inc. at the Universidad Autonoma de Chiapas in Mexico
• closed initial sales contracts with Gale, a part of Cengage Learning, with two large universities in Thailand

Financial Highlights for the Year Ended December 31, 2017

• Revenue for the year ended December 31, 2017 totalled $2,776,768 as compared to $3,195,221 in 2016, a 13% decrease.
• Operating expenses for the year ended December 31, 2017 totalled $4,285,780 compared to $1,750,120 in 2016 as a result of writing off product development costs of $2,692,009 during the year.
• Net loss for the year ended December 31, 2017 is $6,261,382 or $0.18 loss per share due to a write-down of intangible assets of $2,087,700 and development costs of $2,692,009 in addition to recording an allowance for bad debts of $732,254; based on 35.5 million shares as compared to net profit of $64,247 for 2016 or $0.00 earnings per share based on 34 million shares.
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $1,509,012 compared to income of $1,445,101 in 2016.

Financial Highlights for the Fourth Quarter Ended December 31, 2017

• Revenue for the fourth quarter ended December 31, 2017 totalled $754,962 compared to $736,309 for the same period in 2016. 
• Operating expenses for the quarter ended December 31, 2017 totalled $3,250,919 as compared to $531,817 in 2016 as a result of writing off product development costs of $2,692,009 during Q4.
• Net loss for the quarter was $5,833,636 or $0.172 loss per share due to a write-down of intangible assets of $2,087,700 and development costs of $2,692,009 in addition to recording an allowance for bad debts of $732,254; based on 35.5 million shares as compared to the net loss of $36,056 for the same period of 2016 or $0.00 based on 34 million shares.
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $2,495,957 compared to the income of $204,492 in 2016.

“We are committed to converting our sales pipeline into sales contracts and will continue to push forward on all fronts. In 2017, our loss was primarily due to a write-down of intangible assets of $2,087,700 and development costs of $2,692,009 in addition to recording an allowance for bad debts of $732,254. The Company is pursuing various corporate development initiatives and M&A opportunities to unlock value for shareholders,” said Khurram Qureshi, CFO of Lingo Media.

The audited financial statements for the year ended December 31, 2017 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX-V: LM; OTC: LMDCF; FSE: LIMA)

Lingo Media is a global provider of best-in-class digital and print-based English language learning solutions that are
‘Changing the way the world learns English’.

Developed for learners of English at every level, Lingo Media’s ELL Technologies products combine a vast content library with proprietary technology. ELL Technologies’ intuitive dashboards enable students to track and manage their progress, and allow teachers to organize and interact with students, providing ongoing support. Lingo Media’s Lingo Learning
division is a print-based publisher of English language learning programs in China.

Lingo Media’s product and program are marketed through established sales channels to key education, government and business organizations in Latin America and China and continues to extend its global reach and expand its product offerings.

Follow Lingo Media On:                                                                                   

Facebook: https://www.facebook.com/LingoMedia
Twitter:      @LingoMediaCorp
YouTube:  https://www.youtube.com/lingomedialm
LinkedIn:   https://www.linkedin.com/company/lingo-media-corporation
RSS:         http://feeds.feedburner.com/LingoMedia

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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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