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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

 


 

Our Vancouver Small-Cap Conference in coming up tomorrow, May 3rd. We are jam packed this year with quality, fundamental companies and it will be well worth your time to attend. Come and meet some of the management groups from these small-cap companies. If you plan to attend, please pre-register at:

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Lingo Media, which is included in this QIS Update, will be presenting at the conference.

 

Please feel free to email us anytime at info@smallcaps.ca or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.

 


 

Lingo Media Corporation (LM:TSX-V)
Website: www.lingomedia.com
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):


  • Completed the development of two leading-edge technology tools, Lesson Builder and Course Builder, enabling educators to easily create, convert, edit and arrange on-line lessons and courses;
  • Partnered with Proloux, a subsidiary of the University of Guadalajara, to provide accredited certification of ELL Technologies' on-line courses;
  • Entered into an agreement with ISA Corporativo for advertising services throughout Mexico's metro stations in exchange for software licences;
  • Selected by Peruvian Navy to provide software licences of ELL Technologies' training products;
  • Secured software licensing contract for ELL Technologies' programs with municipal government in Caldas Department, Colombia;
  • Completed the development of ELL Technologies' Winnie's World, in HTML5 for the prekindergarten and kindergarten market;
  • Awarded a large government contract in partnership with eDistribution S.A.S for SENA, an organization under the Ministry of Labour of Colombia;
  • Developed an extensive digital library of English language learning resources for SENA.

     

  • Print-based English language learning:


  • Expanded the market for PEP Primary English textbook program by launching into new provinces;
  • Conducted extensive teacher training initiatives and workshops;
  • Co-published the company's 550 millionth unit of PEP Primary English and Staring Line programs with People's Education Press.
  •  

    Corporate highlights

     

  • In 2015, digital revenue surpassed print-based revenue for the first time in the company's operating history subsequent to the year-end, loans payable balance of $580,000 was repaid in full.
  •  

     

    LATEST FINANCIAL RESULTS
      Year Ended Dec. 31 3 Mths Ended Dec. 31
      2015 2014 2015 2014
    Revenues $4,925,735 $2,512,464 $1,276,248 $1,176,066
    Operating Expenses 1,442,574 1,332,823 238,087 465,078
    EBITDAS 3,483,161 1,286,079 1,038,161 710,988
    Total Expenses 2,393,678 2,368,451 643,023 1,017,674
    Net Income 2,532,057 144,013 633,225 158,392
    per share $0.10 $0.01 $0.02 $0.01

     

     

    BALANCE SHEET
    (as at Dec. 31, 2015)
    Current Assets $ 2,858,710
    Total Assets 5,232,951
    Current Liabilities 1,186,167
    Long-Term Debt nil
    Shareholders' Equity 4,046,784

     

     

    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.

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