ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the
ENGINEERING.com online resource and business for engineers today
announced its financial results for the first quarter of 2009.
ENGINEERING.com revenue was $250,926 for the three months ended
March 31, 2009, compared to revenue of $387,754 for the first
quarter of 2008. The net loss for the three months ended March 31,
2009, totaled ($194,708) and ($0.01) per Common Share compared with
a net loss of ($105,358) and ($0.00) for the same period a year
ago. The decrease in revenue is attributed primarily to the
termination of an outsourcing agreement with a former related
party. The decline in revenue was mitigated by an increase in the
Company's Internet advertising revenue, which rose by 82% as
compared to the same period a year ago.
Operating losses measured as earnings before interest, taxes,
amortization and stock-based compensation, was ($133,975) or $0.00
per Common Share for the first quarter of 2009 compared with an
operating loss of ($40,174) or ($0.00) per Common Share for the
three months ended March 31, 2008. The operating expenses in the
latest period were $302,423, down from $305,575 in the first
quarter a year earlier. The reduction in operating expense resulted
from lower salaries and administrative expenses.
"During the first quarter of 2009 we saw growth at our primary
web site of more than 2.5 times last year's first quarter traffic,"
said John Hayes, President of ENGINEERING.com. "We plan to
introduce more online services in 2009 to build site traffic and
related advertising revenue."
As at March 31, 2009, the Company had a cash balance of $440,473
compared to a cash balance of $274,800 as at March 31, 2008.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the
developer-owner of the www.ENGINEERING.com Web site and
Internet-based software and business. ENGINEERING.com offers hosted
and deployed engineering software and services to manufacturers,
design consultants and engineering academia around the world. The
ENGINEERING.com Incorporated head office is located in Mississauga,
Ontario, Canada and can be reached toll-free at 1-877-997-9917, by
facsimile at 905-273-6691 or through the Internet at
www.ENGINEERING.com.
EBITDA
Operating Income (EBITDA) is defined by the Company as operating
income before interest expense, income taxes, amortization
stock-based compensation, asset dispositions and provision for
discontinued operations. The Company has included information
concerning EBITDA because it believes that EBITDA is used by
certain investors as one measure of the Company's financial
performance. EBITDA is not a measure of financial performance under
Canadian generally accepted accounting principles and is not
necessarily comparable to similarly titled measures used by other
companies. EBITDA should not be construed as an alternative to net
income or to cash flows from operating activities (as determined in
accordance with Canadian generally accepted accounting principles)
as a measure of liquidity.
Forward Looking Statements
This press release may contain forward-looking statements based
on management's current projections, beliefs and opinions at the
date of this press release. Actual results could differ materially
from those anticipated in these statements. ENGINEERING.com
Incorporated undertakes no responsibility to update forward-looking
statements if circumstances or management's projections, beliefs or
opinions change.
The contents of this News Release have been reviewed and
approved by the Audit Committee and the Board of Directors.
ENGINEERING.com
Balance Sheet
As at March 31, 2008
Unaudited Audited
March 31, 2009 December 31, 2008
ASSETS
Current Assets
--------------
Cash 440,473 311,988
Accounts Receivable 186,288 189,109
Prepaid Expenses and Deposits 38,867 29,707
--------------- -----------------
Total Current Assets 665,628 530,804
--------------- -----------------
Capital Assets, net 28,408 29,865
Intangible Assets, net 546,894 591,528
--------------- -----------------
TOTAL ASSETS 1,240,930 1,152,197
--------------- -----------------
--------------- -----------------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
-------------------
Accounts Payable & Accrued Liabilities 660,592 787,594
Deferred Income 137,394 84,247
Promissory notes - short-term 60,566 58,464
--------------- -----------------
Total current liabilities 858,552 930,305
--------------- -----------------
Promissory notes - long-term 14,872 28,971
--------------- -----------------
TOTAL LIABILITIES 873,424 959,276
--------------- -----------------
--------------- -----------------
SHAREHOLDERS EQUITY
Share Capital 15,116,714 14,759,008
Contributed Surplus 403,998 392,411
Deficit (15,153,206) (14,958,498)
--------------- -----------------
TOTAL SHAREHOLDERS EQUITY 367,506 192,921
--------------- -----------------
--------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,240,930 1,152,197
--------------- -----------------
--------------- -----------------
ENGINEERING.com
Statements of Income
(Unaudited) Three months Three months
ended ended
March 31, 2009 March 31, 2008
REVENUE 250,926 387,754
COST OF SALES 82,478 122,353
--------------- ---------------
GROSS PROFIT 168,448 265,401
GROSS PROFIT % 67.1% 68.4%
EXPENSES (INCOME)
Salaries & benefits 145,284 151,079
Marketing expenses 22,079 5,374
Development costs 66,697 55,235
General & Administrative 68,363 93,887
--------------- ---------------
302,423 305,575
--------------- ---------------
Operating Income (Loss) (EBITDA) before
under noted items: (133,975) (40,174)
Stock based compensation (11,587) (16,847)
Amortization Expense (49,146) (48,337)
--------------- ---------------
(60,733) (65,184)
--------------- ---------------
--------------- ---------------
NET LOSS (194,708) (105,358)
--------------- ---------------
--------------- ---------------
BASIC AND DILUTED LOSS PER SHARE (0.01) (0.00)
Weighted Average Number of Common Shares
(basic and diluted) 31,872,606 29,496,499
Consolidated Statements of Deficit
--------------- ---------------
DEFICIT, beginning of period (14,958,498) (14,438,245)
--------------- ---------------
Net Loss (194,708) (105,358)
DEFICIT, end of period (15,153,206) (14,543,603)
--------------- ---------------
--------------- ---------------
ENGINEERING.com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2009 March 31,2008
OPERATING ACTIVITIES
Net loss (194,708) (105,358)
ADD - Items not affecting cash
Stock based compensation 11,587 16,847
Amortization 49,146 48,337
Changes in operating assets and liabilities
other than cash (80,194) 38,807
--------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES (214,169) (1,367)
--------------- --------------
FINANCING ACTIVITIES
Promissory notes (11,997) (6,119)
Proceeds from share issuance 357,706 --
--------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES 345,706 (6,119)
--------------- --------------
INVESTING ACTIVITIES
Fixed assets (3,055) (6,630)
--------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES (3,055) (6,630)
--------------- --------------
Net increase (decrease) in cash 128,485 (14,116)
CASH, beginning of period 311,988 288,916
--------------- --------------
CASH, end of period 440,473 274,800
--------------- --------------
--------------- --------------
The TSX Venture Exchange Inc. has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.
Contacts: ENGINEERING.com, Inc. John Hayes President & CFO
905-273-9991, ext. 280 or Toll Free: 1-877-997-9917 905-273-6691
(FAX) Email: jhayes@engineering.com Website:
www.engineering.com
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