ENGINEERING.com Incorporated
TSX VENTURE : EGN

ENGINEERING.com Incorporated

April 18, 2012 16:01 ET

ENGINEERING.com Incorporated Announces Fourth Quarter & Fiscal 2011 Results

TORONTO, ONTARIO--(Marketwire - April 18, 2012) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource for engineers today announced its financial results for the fourth quarter and year ended December 31, 2011.

ENGINEERING.com revenue was $1,549,389 for the fiscal year 2011, compared to revenue of $1,504,846 for the year 2010. Sales of Internet advertising rose by 15% to $842,344 in 2011 compared to $730,270 for the year ended December 31, 2010. This increase was driven by new content offerings.

Revenue across all products for the three months ended December 31, 2011 was $385,166 compared to $461,905 for the fourth quarter of 2010. The loss for the year ended December 31, 2011 totaled ($206,781) and ($0.01) per Common Share compared with a net income of $78,862 and $0.00 for the same period a year ago.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($23,862) or $0.00 per Common Share for the fourth quarter of 2011 compared with an operating loss of ($29,670) or $0.00 per Common Share for the three month period ended December 31, 2010. Operating loss for fiscal 2011 was ($169,182) or ($0.00) per Common Share compared to an operating loss of ($261,539) or ($0.01) per Common Share for fiscal 2010. The operating expenses in the latest quarter were $271,102 and for the year were $1,062,513 compared to $299,180 for the fourth quarter a year earlier and $1,146,047 for fiscal 2010.

"During 2011 we expanded on our video offering with the release of two new series, adding Some Assembly Required and Café BIM to the already successful Product Design Show," said John Hayes, President of ENGINEERING.com. "That trend continued into the first quarter of 2012 with the release of Engineering Career GPS and the renewal of the Product Design Show for another 35 episodes."

As at December 31, 2011, the Company had a cash balance of $259,014 compared to a cash balance of $78,244 as at December 31, 2010.

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 and other distribution channels. ENGINEERING.com offers marketing services to manufacturers, technology inventors 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 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 operating 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. 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.

STATEMENTS OF FINANCIAL POSITION
Expressed in Canadian Dollars
Audited Audited
Dec. 31, 2011 Dec. 31, 2010
ASSETS
CURRENT ASSETS
Cash $ 259,014 $ 78,244
Accounts Receivable 351,537 316,302
Prepaids Expenses and Deposits 21,383 13,895
TOTAL CURRENT ASSETS $ 631,934 $ 408,441
NON-CURRENT ASSETS
Property and Equipment 11,818 20,727
Intangible Assets 325,020 316,063
TOTAL NON-CURRENT ASSETS 336,838 336,790
TOTAL ASSETS $ 968,772 $ 745,231
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable & Accrued Liabilities $ 465,785 $ 489,015
Deferred Revenue 156,922 65,640
Promissory Notes - Short Term - -
TOTAL LIABILITIES $ 622,707 $ 554,655
SHAREHOLDER'S EQUITY
Share Capital 15,450,966 15,113,752
Contributed Surplus 497,899 472,843
Deficit (15,602,800) (15,396,019)
TOTAL SHAREHOLDERS EQUITY $ 346,065 $ 190,576
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 968,772 $ 745,231
STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY
Expressed in Canadian Dollars

Number of
Common Shares
Share
Capital
Contributed
Surplus

Deficit

Total
At January 1, 2010 36,870,623 $ 15,113,752 $ 445,548 $ (15,468,881 ) $ 90,419
Net Income for the Year 72,862 72,862
Stock Based Compensation 27,295 27,295
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 Year (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
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Expressed in Canadian Dollars
(Unaudited)
Three Months
Ended
Dec. 31, 2011
(Unaudited)
Three Months
Ended
Dec. 31, 2010
(Audited)
Year
Ended
Dec. 31, 2011
(Audited)
Year
Ended
Dec. 31, 2010
REVENUE $ 385,166 $ 461,905 $ 1,549,389 $ 1,504,846
COST OF SALES 137,927 192,396 656,058 620,338
GROSS PROFIT 247,239 269,509 893,331 884,508
OPERATING EXPENSES
Salaries and Benefits 156,403 131,275 575,003 536,272
Marketing Expenses 24,427 36,576 91,329 112,932
Development Costs 51,192 48,087 195,325 204,475
General and Administrative 39,080 83,242 200,856 292,368
TOTAL OPERATING EXPENSES 271,102 299,180 1,062,513 1,146,047
LOSS BEFORE UNDERNOTED ITEMS: (23,862 ) (29,671 ) (169,182 ) (261,539 )
Stock Based Compensation (10,563 ) (5,230 ) (25,056 ) (27,295 )
Amortization Expense (3,453 ) (3,364 ) (12,543 ) (119,828 )
Vendor Reconciliation Adjustment - 481,524 - 481,524
NET INCOME (LOSS) &COMPREHENSIVE INCOME
$ (37,879

)

$

443,259

$ (206,781

)

$

72,862
Earnings (Loss) Per Share
Basic and Diluted $ 0.00 $ 0.01 $ 0.00 $ 0.00
Weighted Average Number of Common Shares (Basic and Diluted)
39,495,623

36,870,623

39,495,623

36,870,623
STATEMENTS OF CASH FLOWS
Expressed in Canadian Dollars
(Unaudited)Three Months
Ended
Dec. 31, 2011
(Unaudited)
Three Months
Ended
Dec. 31, 2010
(Audited)
Year
Ended
Dec. 31, 2011
(Audited)
Year
Ended
Dec. 31, 2010
OPERATING ACTIVITIES
Net Income (Loss) $ (206,781 ) $ 443,259 $ (206,781 ) $ 72,862
Add items not affecting cash
Stock based compensation 10,563 5,230 25,056 27,295
Amortization 3,453 3,364 12,543 119,828
Changes in Operating Assets and Liabilities Other than Cash
62,917

(518,828

)

25,328

(207,151

)
CASH FLOWS FROM OPERATING ACTIVITIES (129,848 ) (66,975 ) (143,853 ) 12,834
FINANCING ACTIVITIES
Proceeds of Share Issuance - - 337,214 -
Promissory Notes - - - (24,999 )
CASH FLOWS FROM FINANCING ACTIVITIES - - 337,214 (24,999 )
INVESTING ACTIVITIES
Additions to Property and Equipment (1,650 ) (1,694 ) (3,634 ) (8,494 )
Additions to Intangible Assets (2,561 ) (1,101 ) (8,957 ) (7,215 )
CASH FLOWS FROM INVESTING ACTIVITIES (4,211 ) (2,795 ) (12,591 ) (15,709 )
INCREASE (DECREASE) IN CASH (134,059 ) (69,770 ) 180,770 (27,874 )
CASH, Beginning of Period $ 393,073 $ 148,014 $ 78,244 $ 106,118
CASH, End of Period $ 259,014 $ 78,244 $ 259,014 $ 78,244

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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