Revenue was $471,625 for the three months ended June 30, 2012 and $1,053,590 for the year to date, compared to revenue of $370,682 for the second quarter and $726,241 for the first half of 2011. These results indicate revenue growth of 27% in the second quarter and 45% in the first half of 2012 as compared to 2011.
Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($13,118) or $0.00 per Common Share for the second quarter of 2012 compared with an operating loss of ($67,213) or $0.00 per Common Share for the three month period ended June 30, 2011. The operating expenses in the latest quarter were $293,246, up from $275,400 in the second quarter a year earlier.
"During the second quarter, ENGINEERING.com launched a new micro-site dedicated to the topic of Mobile Device Design. Within this micro-site industry analysts present a technical view of the "guts behind the gadgets," said John Hayes, President of ENGINEERING.com. "Like the recently launched 3D Printing micro-site, this new area attracts a high value audience by matching leading industry analysts with the broad reach of ENGINEERING.com."
As at June 30, 2012, the Company had a cash balance of $411,444 compared to a cash balance of $259,014 as at December 31, 2011.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (
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
December 31,
June 30, 2012 2011
ASSETS
CURRENT ASSETS
Cash $ 411,444 $ 259,014
Accounts receivable 228,090 351,537
Prepaids expenses and deposits 34,695 21,383
----------------------------------------------------------------------------
TOTAL CURRENT ASSETS 674,229 631,934
----------------------------------------------------------------------------
NON-CURRENT ASSETS
Property and equipment 11,441 11,818
Intangible assets 330,088 325,020
----------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 341,529 336,838
----------------------------------------------------------------------------
TOTAL ASSETS $ 1,015,758 $ 968,772
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 562,159 $ 465,785
Deferred revenue 122,834 156,922
----------------------------------------------------------------------------
TOTAL LIABILITIES 684,993 622,707
----------------------------------------------------------------------------
SHAREHOLDER'S EQUITY
Share capital 15,450,966 15,450,966
Contributed surplus 509,593 497,899
Deficit (15,629,794) (15,602,800)
----------------------------------------------------------------------------
TOTAL SHAREHOLDERS EQUITY 330,765 346,065
----------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 1,015,758 $ 968,772
----------------------------------------------------------------------------
STATEMENTS OF CHANGE IN SHAREHOLDERS EQUITY
Expressed in Canadian Dollars
Number of
Common Share Contributed
Shares Capital Surplus Deficit Total
----------------------------------------------------------------------------
At January 1,
2011 36,870,623 $ 15,113,752 $ 472,843 $ (15,396,019) $ 190,576
Net loss for
the period (142,983) (142,983)
Stock based
compensation 11,003 11,003
----------------------------------------------------------------------------
At June 30,
2011 36,870,623 15,113,752 483,846 (15,539,002) 58,596
----------------------------------------------------------------------------
At December
31, 2011 43,870,623 $ 15,450,966 $ 497,899 $ (15,602,800) $ 346,065
Net loss for
the period (26,994) (26,994)
Stock based
compensation 11,694 11,694
----------------------------------------------------------------------------
At June 30,
2012 43,870,623 $ 15,450,966 $ 509,593 $ (15,629,794) $ 330,765
----------------------------------------------------------------------------
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Expressed in Canadian Dollars
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
REVENUE $ 471,625 $ 370,682 $ 1,053,590 $ 726,241
COST OF SALES 191,497 162,495 470,174 320,790
----------------------------------------------------------------------------
GROSS PROFIT 280,128 208,187 583,416 405,451
----------------------------------------------------------------------------
OPERATING EXPENSES
Salaries and benefits 146,724 138,085 318,218 276,983
Marketing expenses 25,904 21,489 49,664 44,171
Development costs 48,423 49,946 94,705 97,126
General and
administrative 72,195 65,880 131,583 112,782
----------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 293,246 275,400 594,170 531,062
----------------------------------------------------------------------------
INCOME (LOSS) BEFORE
UNDERNOTED ITEMS: (13,118) (67,213) (10,754) (125,611)
Stock based
compensation (5,646) (5,201) (11,694) (11,003)
Amortization expense (2,182) (3,045) (4,546) (6,369)
----------------------------------------------------------------------------
NET INCOME (LOSS) &
COMPREHENSIVE INCOME $ (20,946) $ (75,459) $ (26,994) $ (142,983)
----------------------------------------------------------------------------
Earnings (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 36,870,623 43,870,623 36,870,623
----------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS
Expressed in Canadian Dollars
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
OPERATING ACTIVITIES
Net Income (Loss) $ (20,946) $ (75,459) $ (26,994) $ (142,983)
Add items not affecting
cash
Stock based
compensation 5,646 5,201 11,694 11,003
Amortization 2,182 3,045 4,546 6,369
Changes in operating
assets and
liabilities other 99,280 (40,093) 172,422 83,340
than cash
----------------------------------------------------------------------------
CASH FLOWS FROM
OPERATING ACTIVITIES 86,162 (107,306) 161,668 (42,271)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Additions to property
and equipment - (487) (4,169) (1,033)
Additions to
intangible assets (1,775) (1,284) (5,069) (4,305)
----------------------------------------------------------------------------
CASH FLOWS FROM
INVESTING ACTIVITIES (1,775) (1,771) (9,238) (5,338)
----------------------------------------------------------------------------
INCREASE (DECREASE) IN
CASH 84,387 (109,077) 152,430 (47,609)
CASH, Beginning of
period 327,057 139,712 259,014 78,244
----------------------------------------------------------------------------
CASH, End of period $ 411,444 $ 30,635 $ 411,444 $ 30,635
----------------------------------------------------------------------------
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: ENGINEERING.com, Inc. John Hayes President & CFO 905-273-9991, ext. 3280 or Toll Free: 1-877-997-9917 905-273-6691 (FAX) Email Contact www.engineering.com