Lingo Media Reports 2014 Fourth Quarter and Year End Results

TORONTO, ON--(Marketwired - April 30, 2015) - Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) ("Lingo Media" or the "Company") an ESL EdTech industry acquisition company that is 'Changing the way the world learns English' combining education with technology, announces its financial results for the fourth quarter and year ended December 31, 2014. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.

"We are pleased with our financial results for 2014 with our revenue growing in excess of 25% while significantly improving our profitability. Management expects this financial trending to continue thru 2015. The ESL EdTech market is presenting us with very favourable high growth opportunities in Latin America. We look forward to providing our shareholders with updates as we continue to grow our company and achieve key milestones," said Michael Kraft, President & CEO of Lingo Media.

Operational Highlights

• Print-Based English Language Learning:
  • signed a seven (7) year renewal agreement to co-publish and distribute State Ministry of Education approved and listed PEP Primary English and Starting Line textbook and supplemental learning programs in China
  • launched PEP Primary English and Starting Line programs thru People's Education Press and Peoples Education Electronic & Audiovisual Press, China's State Ministry of Education's publishing arm
  • co-published our 500 millionth unit of textbooks, activity books, flash cards, audio-visual and teaching materials

• Online English Language Learning:
  • advanced the development of new product features and technology applications to build innovative authoring tools for online lessons and courses
  • launched the redesigned ELL Technologies' suite of products including Scholar, Master and Kids which incorporate a new user interface, learning management system and multi-browser delivery system for desktops and tablets
  • initiated development of a new ELL Technologies' program for the primary school market entitled Academy
  • resumed sales and marketing of ELL Technologies' redesigned Master and Scholar products

Corporate Highlights

• negotiated a one year extension of the $880,000 loan outstanding to September 8, 2015
• initiated and advanced a strategic alliance with a software research and development company specializing in EdTech

• Revenue for the fourth quarter ended December 31, 2014 totalled $1,176,066 compared to $1,024,555 for the same period in 2013. 
• Operating expenses for the quarter ended December 31, 2014 totalled $465,078 as compared to $163,374 in 2013, due to increased operating activities and expanded sales & marketing initiatives.
• Net profit for the quarter was $158,392 as compared to $620,669 for the same period in 2013 as a result of an increase in operating expenses and in foreign exchange loss.
• Total comprehensive income for the fourth quarter was $344,096 or $0.016 earnings per share based on 21.99 million shares compared to a total comprehensive income of $558,765 or $0.028 earnings per share based on 21.2 million shares for the same period in 2013.
• Income before amortization, share-based payments, depreciation, finance charges and taxes was $710,988 compared to $861,181 in 2014.

• Revenue for the year ended December 31, 2014 totalled $2,512,464 as compared to $2,008,066 in 2013 a 25% increase.
• Operating expenses for the year ended December 31, 2014 totalled $1,332,823 compared to $ 1,136,786 in 2013 as a result of an increased in operating activities and an expansion of sales & marketing initiatives.
• In 2014, the Company invested $544,635 to redesign and upgrade its ELL Technologies' suite of products to meet market needs and resumed its sales and marketing efforts.
• Net profit for the year ended December 31, 2014 increased to $144,013 as compared to $22,943 for 2013. This improvement in profitability is primarily attributed to a 25% increase in revenue.
• Total comprehensive income for 2014 was $107,406 or $0.01 earnings per share based on 22.0 million shares compared to a total comprehensive loss of $(56,331) or $0.00 loss per share based on 21.2 million shares as at December 31, 2013.
• Income before amortization, share-based payments, depreciation, finance charges and taxes was 1,286,079 compared to 1,005,724 in 2014.

The audited financial statements for the year ended December 31, 2014 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX VENTURE: LM) (OTCQB: LMDCF)

Lingo Media (www.lingomedia.com) is an ESL EdTech industry acquisition company that is 'Changing the way the world learns English' combining education with technology. The Company is focused on online and print-based technologies and solutions through its two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies is an emerging international English language learning multi-media, online training and assessment company creating new learning platforms (www.elltechnologies.com). Lingo Learning is a print-based publisher of English language learning 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 is extending its global reach, with an initial market expansion into Latin America and continues to expand its product offerings and technology applications.

Follow Lingo Media On:

Facebook: https://www.facebook.com/LingoMedia
Twitter: https://twitter.com/LingoMediaCorp
YouTube: https://www.youtube.com/lingomedialm
RSS: http://feeds.feedburner.com/LingoMedia

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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE