ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

April 24, 2013 18:09 ET

ENGINEERING.com Incorporated Announces Fourth Quarter & Annual 2012 Results

TORONTO, ONTARIO--(Marketwired - April 24, 2013) - 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
TOTAL CURRENT ASSETS 504,387 631,934
NON-CURRENT ASSETS
Property and equipment 10,334 11,818
Intangible assets 331,522 325,020
TOTAL NON-CURRENT ASSETS 341,856 336,838
TOTAL ASSETS $ 846,243 $ 968,772
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 429,433 $ 465,785
Deferred revenue 207,179 156,922
TOTAL LIABILITIES 636,612 622,707
SHAREHOLDER'S EQUITY
Share capital 15,450,966 15,450,966
Contributed surplus 517,834 497,899
Deficit (15,759,169 ) (15,602,800 )
TOTAL SHAREHOLDERS EQUITY 209,631 346,065
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 846,243 $ 968,772
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
Shares
Share
Capital
Contributed
Surplus
Deficit Total
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
At December 31, 2011 43,870,623 $ 15,450,966 $ 497,899 $ (15,602,800 ) 346,065
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
At December 31, 2012 43,870,623 $ 15,450,966 $ 517,834 $ (15,759,169 ) $ 209,631
Number of
Common
Shares
Share
Capital
Contributed
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
At December 31, 2011 43,870,623 $ 15,450,966 $ 497,899 $ (15,602,800 ) 346,065
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
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
GROSS PROFIT 251,330 247,239 1,041,374 893,331
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
TOTAL OPERATING EXPENSES 311,515 271,102 1,169,092 1,062,513
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 )
NET LOSS & COMPREHENSIVE LOSS $ (65,742 ) $ (37,879 ) $ (156,369 ) $ (206,781 )
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
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
CASH FLOWS FROM OPERATING ACTIVITIES (77,983 ) (129,848 ) (14,084 ) (143,853 )
FINANCING ACTIVITIES
Proceeds of Share Issuance - - - 337,214
CASH FLOWS FROM FINANCING ACTIVITIES - - - 337,214
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 )
CASH FLOWS FROM INVESTING ACTIVITIES (2,838 ) (4,211 ) (13,734 ) (12,591 )
INCREASE (DECREASE) IN CASH (80,821 ) (134,059 ) (27,818 ) 180,770
CASH, Beginning of Period 312,017 393,073 259,014 78,244
CASH, End of period $ 231,196 $ 259,014 $ 231,196 $ 259,014

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