QIS Update #8- 2016 - Lingo Media reports annual results 2016 - May 2nd 2016
Included in this update:
- Lingo Media announces 2015 year-end financial results
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Lingo Media Corporation (LM:TSX-V)
Current Price: $0.90 (coverage commenced March 22/16 - $0.76)
"We are pleased to report record financial results for 2015. Our revenue growth was in excess of 96% while profitability was significantly improved, resulting in net profit of $2,532,057 or $0.10 per share (basic) and $0.09 per share (fully diluted). The English learning EdTech market is presenting us with very favourable growth opportunities in Latin America and beyond. We look forward to providing shareholders with updates as we continue to build the business and explore market expansion opportunities," said Michael Kraft, President & CEO of Lingo Media.
2015 Operational Highlights
Online English Language Learning (ELL):
Print-based English language learning:
|LATEST FINANCIAL RESULTS|
|Year Ended Dec. 31||3 Mths Ended Dec. 31|
(as at Dec. 31, 2015)
|Current Assets||$ 2,858,710|
Revenue for the year ended December 31, 2015 totalled $4,925,735 as compared to $2,512,464 in 2014, a 96% increase. Operating expenses for the year ended December 31, 2015 totalled $1,442,574 compared to $1,332,823 in 2014. Net profit for the year ended December 31, 2015 increased to $2,532,057 or $0.10 per share (basic) based on 26.3 million shares as compared to $144,013 for 2014 or $0.01 per share (basic) based on 21.9 million shares. This improvement in profitability is primarily attributed to a 96% increase in revenue. Income before amortization, share-based payments, depreciation, finance charges and taxes was $3,483,161 compared to $1,286,079 in 2014.
Revenue for the fourth quarter ended December 31, 2015 totalled $1,276,248 compared to $1,176,066 for the same period in 2014. Operating expenses for the quarter ended December 31, 2015 totalled $238,087 as compared to $465,078 in 2014. Net profit for the quarter was $633,225 or $0.02 earnings per share (basic) based on 28.7 million shares as compared to $158,392 for the same period for 2014 or $0.01 (basic) based on 22.4 million shares. Income before amortization, share-based payments, depreciation, finance charges and taxes was $1,038,161 compared to $710,988 in 2014.
The audited financial statements for the year ended December 31, 2015 and Management Discussion & Analysis are available at www.sedar.com.
QIS Capital: Lingo Media met its revenue and earnings guidance for 2015. The company showed tremendous revenue growth during the year and maintained a stable balance sheet with no long-term debt. We saw a significant run up in share value prior to the Q4 financial results and some selling following the release (buy on mystery, sell on history). From some of the comments we have received, investors were expecting stronger revenue growth over third quarter results. Lingo is poised for continued revenue and earnings growth in 2016 as the SENA contract announced in September, the Peru distribution deal announced in March, and the Gale distribution deal announced in April start to roll out.
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 4,000 shares of Lingo Media Corporation. QIS Capital has a financial relationship with Lingo Media Corporation and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2016 QIS Capital Corporation.