ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com
online resource for engineers today announced its unaudited financial results
for the first quarter ended March 31, 2011.
Beginning with the first quarter of 2011, Engineering.com reported its financial
results in accordance with International Financial Reporting Standards (IFRS),
as required for public companies in Canada. Previously, the Company reported its
financial results under Canadian Generally Accepted Accounting Standards (GAAP).
Financial results for the corresponding period in 2010 have been restated to
reflect the adoption of IFRS.
ENGINEERING.com revenue was $355,559 for the three month ended March 31, 2011,
compared to revenue of $317,771 for the first quarter in 2010. The net loss for
the three months ended March 31, 2011, totaled ($67,524) and ($0.00) per Common
Share compared with a net loss of ($120,906) and ($0.00) for the same period a
year ago. The increase in revenue is the result of increasing software and
internet advertising sales.
Operating loss (EBITDA) measured as earnings before interest, taxes,
amortization and stock-based compensation, was ($58,398) or ($0.00) per Common
Share for the first quarter of 2011 compared with a operating loss of ($67,718)
or ($0.00) per Common Share for the three month period ended December 31, 2010.
The operating expenses in the latest period were $255,662, down from $272,124 in
the first quarter a year earlier. The reduction in operating expense is the
result of lower administrative expenses.
"During the first quarter of 2011 we introduced new digital media offerings for
our advertisers and audience," said John Hayes, President of ENGINEERING.com.
"Advertisers are discovering that sponsored video series like the Product Design
Show and Some Assembly Required represent a powerful way for them to connect
with engineers."
As at March 31, 2011, the Company had a cash balance of $139,712 compared to a
cash balance of $78,244 as at December 31, 2010. This cash balance is relatively
small when compared to the Company's ongoing obligations and in light of
continued operating losses. The Company is undertaking efforts to raise capital
to fund the Company's operations, but cannot predict the outcome of these
efforts at this time. Readers are referred to page 9 of the Company's 2010
Annual Management Discussion & Analysis under the heading, "Present Status and
Risk Factors" as filed on April 28, 2011.
Effective August 25 2011 the Company listing on the TSX Venture exchange will
move from Tier 1 to Tier 2.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the developer-owner of the
www.ENGINEERING.com Web site and business. ENGINEERING.com offers marketing and
lead generation 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
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 IFRS principles and is not necessarily comparable
to similarly titled measures used by other companies. EBITDA should not be
construed as an alternative to operating income or to cash flows from operating
activities (as determined in accordance with IFRS 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. The Company's ability to continue as a going concern is dependent
upon its ability to generate future profitable operations and/or to obtain the
necessary financing to meet its obligations and repay its liabilities arising
from normal business operations when they come due. 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 INC
Condensed Interim Statements of Financial Position
(In Canadian dollars, Unaudited)
March 31, December 31, January 1,
2011 2010 2010
----------------------------------------------------------------------------
$ $ $
ASSETS
CURRENT ASSETS
Cash 139,712 78,244 106,118
Accounts receivable 201,468 316,302 291,761
Prepaid expenses and deposits 11,672 13,895 30,391
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TOTAL CURRENT ASSETS 352,852 408,441 428,270
PROPERTY AND EQUIPMENT 17,949 20,727 27,916
INTANGIBLE ASSETS 319,084 316,063 412,993
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TOTAL ASSETS 689,885 745,231 869,179
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LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
liabilities 487,592 489,015 707,147
Deferred revenue 73,438 65,640 46,614
Promissory note - short-term - - 24,999
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TOTAL LIABILITIES 561,030 554,655 778,760
SHAREHOLDERS' EQUITY
Share capital 15,113,752 15,113,752 15,113,752
Contributed surplus 478,646 472,843 445,548
Deficit (15,463,543) (15,396,019) (15,468,881)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 128,855 190,576 90,419
----------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 689,885 745,231 869,179
----------------------------------------------------------------------------
ENGINEERING.COM INC
Condensed Interim Statements of Loss Comprehensive Loss
(In Canadian dollars, Unaudited)
March 31, March 31,
2011 2010
----------------------------------------------------------------------------
$ $
REVENUE 355,559 317,771
COST OF SALES 158,295 110,365
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GROSS PROFIT 197,264 207,406
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OPERATING EXPENSES
Salaries and benefits 138,898 134,018
Marketing expenses 22,682 19,797
Development costs 47,180 50,083
General and administrative 46,902 68,226
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255,662 272,124
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INCOME (LOSS) BEFORE UNDERNOTED ITEMS: (58,398) (64,718)
Stock based compensation (5,802) (6,615)
Amortization expense (3,324) (49,573)
----------------------------------------------------------------------------
NET LOSS AND COMPREHENSIVE LOSS (67,524) (120,906)
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Loss per share
Basic 0.00 0.00
Diluted 0.00 0.00
Weighted average number of Common Shares
(basic and diluted) 36,870,623 36,870,623
----------------------------------------------------------------------------
ENGINEERING.COM INC
Condensed Statements of Changes in Shareholder's Equity
(In Canadian dollars, Unaudited)
Number of
Common Share Contributed
Shares Capital Surplus Deficit Total
----------------------------------------------------------------------------
At January 1, 2010 38,870,623 15,113,752 445,548 (15,468,881) 90,419
----------------------------------------------------------------------------
Loss for the
period - - - (120,906) (120,906)
Stock based
compensation - - 6,615 - 6,615
----------------------------------------------------------------------------
At March 31, 2010 38,870,623 15,113,752 452,163 (15,589,787) (23,872)
----------------------------------------------------------------------------
At December 31,
2010 38,870,623 15,113,752 472,843 (15,396,019) 190,576
----------------------------------------------------------------------------
Loss for the
period - - - (67,524) (67,524)
Stock based
compensation - - 5,803 - 5,803
----------------------------------------------------------------------------
----------------------------------------------------------------------------
At March 31, 2011 38,870,623 15,113,752 478,646 (15,463,543) 128,855
----------------------------------------------------------------------------
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ENGINEERING.COM INC
Condensed Interim Statements of Cash Flows
(In Canadian dollars, Unaudited)
March 31, March 31,
2011 2010
----------------------------------------------------------------------------
$ $
OPERATING ACTIVITIES
Net loss (67,524) (120,906)
Add items not affecting cash:
Stock based compensation 5,802 6,615
Amortization 3,324 49,573
Changes in operating assets and
liabilities other than cash 123,433 121,074
----------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES 65,035 56,356
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FINANCING ACTIVITIES
Promissory notes - (8,964)
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CASH FLOWS FROM FINANCING ACTIVITIES - (8,964)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Additions to property and equipment (546) (5,489)
Additions to intangible assets (3,021) -
----------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES (3,567) (5,489)
----------------------------------------------------------------------------
INCREASE IN CASH 61,468 41,903
CASH, beginning of period 78,244 106,118
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CASH, end of period 139,712 148,017
----------------------------------------------------------------------------
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