ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com
online service for engineers, today announced its financial results for the
fourth quarter and year ended December 31, 2012.
ENGINEERING.com revenue was $1,872,736 for the year ended December 31, 2012,
compared to revenue of $1,549,389 for 2011. Sales of Internet advertising rose
by 18% to $1,019,959 in 2012 compared to $867,494 for the year ended December
31, 2011. Total revenue for the three months ended December 31, 2012 was
$435,661 compared to $385,166 for the fourth quarter of 2011.
The loss for the year ended December 31, 2012 totaled ($156,369) and $0.00 per
Common Share compared with a net loss of ($206,781) and $0.00 for the same
period a year ago. The loss for the three months ended December 31, 2012 was
($65,742) compared to a loss of ($37,879) in the comparable period in 2011.
Operating loss (EBITDA) measured as earnings before interest, taxes,
amortization and stock -based compensation for fiscal 2012 was ($127,718) or
$0.00 per Common Share compared to an operating loss of ($169,182) or $0.00 per
Common Share for fiscal 2011. Operating loss was ($60,185) or $0.00 per Common
Share for the fourth quarter of 2012 compared with an operating loss of
($23,862) or $0.00 per Common Share for the three month period ended December
31, 2011.
The operating expenses in the latest quarter were $311,515 and for the year
ending December 31 2012 were $1,169,092 compared to $271,102 for the fourth
quarter a year earlier and $1,062,513 for fiscal 2011.
"During 2012 several leading engineering commentators began to use
ENGINEERING.com to build their audiences," said John Hayes, President of
ENGINEERING.com. "Engineers can access content from these authors on the
ENGINEERING.com web site and through our industry-leading social media and
mobile channels."
As at December 31, 2012, the Company had a cash balance of $231,196 compared to
a cash balance of $259,014 as at December 31, 2011.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE:EGN) inspires, informs and entertains
a worldwide audience of engineers through its web sites, mobile apps and social
distribution channels. ENGINEERING.com offers marketing services to
manufacturers, technology inventors and engineering academia. 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 International Financial Reporting Standards 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 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.
STATEMENTS OF FINANCIAL POSITION
Expressed in Canadian Dollars
As at December 31, 2012
(With comparative amounts as at December 31, 2011)
Audited Audited
2012 2011
ASSETS
CURRENT ASSETS
Cash $ 231,196 $ 259,014
Accounts receivable 248,662 351,537
Prepaids expenses and deposits 24,529 21,383
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TOTAL CURRENT ASSETS 504,387 631,934
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NON-CURRENT ASSETS
Property and equipment 10,334 11,818
Intangible assets 331,522 325,020
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TOTAL NON-CURRENT ASSETS 341,856 336,838
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TOTAL ASSETS $ 846,243 $ 968,772
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LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 429,433 $ 465,785
Deferred revenue 207,179 156,922
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TOTAL LIABILITIES 636,612 622,707
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SHAREHOLDER'S EQUITY
Share capital 15,450,966 15,450,966
Contributed surplus 517,834 497,899
Deficit (15,759,169) (15,602,800)
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TOTAL SHAREHOLDERS EQUITY 209,631 346,065
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TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 846,243 $ 968,772
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STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY
Expressed in Canadian Dollars
For the periods ended December 31, 2012
(With comparative balances for the periods ended December 31, 2011)
Number of
Common Share Contributed
Shares Capital Surplus Deficit Total
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At December 31,
2010 36,870,623 $15,113,752 $ 472,843 $ (15,396,019) $ 190,576
Share Issuance 7,000,000 $ 337,214 337,214
Net loss for
the period (206,781) (206,781)
Stock based
compensation 25,056 25,056
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At December 31,
2011 43,870,623 $15,450,966 $ 497,899 $ (15,602,800) 346,065
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At December 31,
2011 43,870,623 $15,450,966 $ 497,899 $ (15,602,800) $ 346,065
Net loss for
the period (156,369) (156,369)
Stock based
compensation 19,935 19,935
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At December 31,
2012 43,870,623 $15,450,966 $ 517,834 $ (15,759,169) $ 209,631
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Number of
Common Share Contributed
Shares Capital Surplus Deficit Total
----------------------------------------------------------------------------
At September
30, 2011 43,870,623 $15,450,966 $ 487,336 $ (15,564,921) $ 373,381
Net loss for
the period (37,879) (37,879)
Stock based
compensation 10,563 10,563
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At December 31,
2011 43,870,623 $15,450,966 $ 497,899 $ (15,602,800) 346,065
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At September
30, 2012 43,870,623 $15,450,966 $ 514,184 $ (15,693,427) $ 271,723
Net loss for
the period (65,742) (65,742)
Stock based
compensation 3,650 3,650
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At December 31,
2012 43,870,623 $15,450,966 $ 517,834 $ (15,759,169) $ 209,631
----------------------------------------------------------------------------
STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
Expressed in Canadian Dollars
For the periods ended December 31, 2012
(With comparative amounts for the periods ending December 31, 2011)
Unaudited Audited
Three months ended Twelve months ended
2012 2011 2012 2011
REVENUE 435,661 385,166 1,872,736 1,549,389
COST OF SALES 184,331 137,927 831,362 656,058
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GROSS PROFIT 251,330 247,239 1,041,374 893,331
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OPERATING EXPENSES
Salaries and benefits 156,307 156,403 614,452 575,003
Marketing expenses 35,743 24,427 107,499 91,329
Development costs 51,499 51,192 195,685 195,325
General and
administrative 67,966 39,080 251,456 200,856
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TOTAL OPERATING EXPENSES 311,515 271,102 1,169,092 1,062,513
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LOSS BEFORE UNDERNOTED
ITEMS: (60,185) (23,863) (127,718) (169,182)
Stock based
compensation (3,650) (10,563) (19,935) (25,056)
Amortization expense (1,907) (3,453) (8,716) (12,543)
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NET LOSS & COMPREHENSIVE
LOSS $ (65,742) $ (37,879) $ (156,369) $ (206,781)
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Loss Per Share
Basic $ 0.00 $ 0.00 $ 0.00 $ 0.00
Diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00
Weighted average number
of common shares (Basic
and Diluted) 43,870,623 43,870,623 43,870,623 43,870,623
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STATEMENTS OF CASH FLOWS
Expressed in Canadian Dollars
For the periods ended December 31, 2012
(With comparative amounts for the periods ended December 31, 2011)
Unaudited Audited
Three months ended Twelve months ended
2012 2011 2012 2011
OPERATING ACTIVITIES
Net Income (Loss) $ (65,742) $ (37,879) $ (156,369) $ (206,781)
Add items not affecting cash
Stock based compensation 3,650 10,563 19,935 25,056
Amortization 1,907 3,453 8,716 12,543
Changes in operating
assets and liabilities
other than cash (17,798) (105,985) 113,634 25,329
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CASH FLOWS FROM OPERATING
ACTIVITIES (77,983) (129,848) (14,084) (143,853)
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FINANCING ACTIVITIES
Proceeds of Share Issuance - - - 337,214
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CASH FLOWS FROM FINANCING
ACTIVITIES - - - 337,214
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INVESTING ACTIVITIES
Additions to property and
equipment (1,931) (1,650) (7,232) (3,634)
Additions to intangible
assets (907) (2,561) (6,502) (8,957)
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CASH FLOWS FROM INVESTING
ACTIVITIES (2,838) (4,211) (13,734) (12,591)
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INCREASE (DECREASE) IN CASH (80,821) (134,059) (27,818) 180,770
CASH, Beginning of Period 312,017 393,073 259,014 78,244
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CASH, End of period $ 231,196 $ 259,014 $ 231,196 $ 259,014
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FOR FURTHER INFORMATION PLEASE CONTACT:
ENGINEERING.com, Inc.
John Hayes
President & CFO
905-273-9991, ext. 3280 or Toll Free: 1-877-997-9917
905-273-6691 (FAX)
jhayes@engineering.com
www.engineering.com
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