ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

May 23, 2013 17:55 ET

ENGINEERING.com Incorporated Announces First Quarter 2013 Results

TORONTO, ONTARIO--(Marketwired - May 23, 2013) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online service for engineers today announced its unaudited financial results for the first quarter ended March 31, 2013.

Revenue was $414,677 for the three months ended March 31, 2013, compared to revenue of $581,965 for the first quarter of 2012. Revenue in the first quarter of 2012 included a sale of third party software to a single customer for approximately $170,000.

The net loss for the three months ended March 31, 2013, totaled ($25,469) and $0.00 per Common Share compared to a net loss of ($6,048) and $0.00 per share for the same period a year ago.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($21,280) or $0.00 per Common Share for the first quarter of 2013 compared with an operating income of $2,364 or $0.00 per Common Share for the three month period ended March 31, 2012. The operating expenses in the latest quarter were $282,897, compared to $300,924 in the first quarter a year earlier.

"ENGINEERING.com recently launched two new advertising services," said John Hayes, President of ENGINEERING.com. "Our lead generation and sponsored post services leverage our large reach to more directly connect our advertisers to the audience they crave."

As at March 31, 2013, the Company had a cash balance of $163,943 compared to a cash balance of $231,196 as at December 31, 2012.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) inspires, informs and entertains a worldwide audience of engineers through the www.ENGINEERING.com web site, mobile and social media 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 March 31, 2013
(With comparative amounts as at December 31, 2012)
March 31, 2013 December 31, 2012
ASSETS
CURRENT ASSETS
Cash 163,943 $ 231,196
Accounts Receivable 309,925 248,662
Prepaids Expenses and Deposits 22,665 24,529
TOTAL CURRENT ASSETS 496,533 504,387
NON-CURRENT ASSETS
Property and Equipment 10,781 10,334
Intangible Assets 331,826 331,522
TOTAL NON-CURRENT ASSETS 342,607 341,856
TOTAL ASSETS 839,140 $ 846,243
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable and Accrued Liabilities 438,784 $ 429,433
Deferred Revenue 213,773 207,179
TOTAL LIABILITIES 652,557 636,612
SHAREHOLDER'S EQUITY
Share Capital 15,450,966 15,450,966
Contributed Surplus 520,254 517,834
Deficit (15,784,638 ) (15,759,169 )
TOTAL SHAREHOLDERS' EQUITY 186,582 209,631
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 839,140 $ 846,243
NOTICE: The Company's auditors have not audited or reviewed these financial statements.
STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY
Expressed in Canadian Dollars
For the period ended March 31, 2013
(With comparative balances for the period ended March 31, 2012)

Number of
Common Shares

Share
Capital

Contributed
Surplus


Deficit



Total

At December 31, 2011 43,870,623 $ 15,450,966 $ 497,899 $ (15,602,800 ) $ 346,065
Net Income for the year (6,048 ) (6,048 )
Stock Based Compensation 6,048 6,048
At March 31, 2012 43,870,623 $ 15,450,966 $ 503,947 $ (15,608,848 ) $ 346,065
At December 31, 2012 43,870,623 $ 15,450,966 $ 517,834 $ (15,759,169 ) $ 209,631
Net Loss for the Year (25,469 ) $ (25,469 )
Stock Based Compensation 2,420 $ 2,420
At March 31, 2013 43,870,623 $ 15,450,966 $ 520,254 $ (15,784,638 ) $ 186,582
NOTICE: The Company's auditors have not audited or reviewed these financial statements.
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Expressed in Canadian Dollars
For the period ended March 31, 2013
(With comparative amounts for the period ended March 31, 2012)
March 31, 2013 March 31, 2012
REVENUE $ 414,677 $ 581,965
COST OF SALES 153,060 278,677
GROSS PROFIT 261,617 303,288
OPERATING EXPENSES
Sales and Marketing 112,146 125,629
Development and Operations 88,598 81,305
General and Administrative 82,153 93,990
TOTAL OPERATING EXPENSES 282,897 300,924
INCOME (LOSS) BEFORE UNDERNOTED ITEMS: (21,280 ) 2,364
Stock Based Compensation (2,420 ) (6,048 )
Amortization (1,769 ) (2,364 )
NET LOSS and COMPREHENSIVE LOSS $ (25,469 ) $ (6,048 )
Loss Per Share
Basic $ 0.00 $ 0.00
Diluted $ 0.00 $ 0.00
Weighted Average Number of Common Shares
(Basic and Diluted) 43,870,623 43,870,623
NOTICE: The Company's auditors have not audited or reviewed these financial statements.
STATEMENTS OF CASH FLOWS
Expressed in Canadian Dollars
For the period ended March 31, 2013
(With comparative amounts for the period ended March 31, 2012)
March 31, 2013 March 31, 2012
OPERATING ACTIVITIES
Net Loss $ (25,469 ) $ (6,048 )
Add items not affecting cash
Stock based compensation 2,420 6,048
Amortization 1,769 2,364
Changes in Operating Assets and Liabilities Other than Cash (43,453 ) 73,142
CASH FLOWS FROM OPERATING ACTIVITIES (64,733 ) 75,506
INVESTING ACTIVITIES
Additions to Property and Equipment (2,215 ) (4,169 )
Additions to Intangible Assets (305 ) (3,294 )
CASH FLOWS FROM INVESTING ACTIVITIES (2,520 ) (7,463 )
INCREASE (DECREASE) IN CASH (67,253 ) 68,043
CASH, Beginning of period 231,196 259,014
CASH, End of period $ 163,943 $ 327,057
NOTICE: The Company's auditors have not audited or reviewed these financial statements.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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