TORONTO, ONTARIO -- 11/04/09 --
ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the third quarter of 2009.
ENGINEERING.com revenue was $364,081 for the three months ended September 30, 2009, compared to revenue of $399,136 for the third quarter of 2008. This decline is the result of the termination of an agreement with a former related party that contributed approximately $56,000 of revenue in the third quarter of 2008. The net loss for the three months ended September 30, 2009, totaled ($98,545) and $0.00 per Common Share compared with a net loss of ($113,003) and $0.00 for the same period a year ago.
Operating profit (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was a loss of ($45,114) or $0.00 per Common Share for the third quarter of 2009 compared with an operating loss of ($47,751) or $0.00 per Common Share for the three months ended September 30, 2008. The operating expenses in the latest period were $292,738 compared to $310,136 for the third quarter a year earlier.
"During the third quarter the Company extended its advertising reach by establishing partnerships with other engineering publishers," said John Hayes, President of ENGINEERING.com. "The growth in this network, along with the organic growth in the Company's own web traffic, has increased the number of advertising impressions that the Company has available for sale by a factor of approximately 10 times at the end of the quarter as compared to the same period one year ago."
As at September 30, 2009, the Company had a cash balance of $199,570 compared to a cash balance of $281,875 as at September 30, 2008.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer-owner of the www.ENGINEERING.com Web site and Internet-based software and business. ENGINEERING.com offers hosted and deployed engineering software and services to manufacturers, design consultants 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 and asset dispositions. 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. 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.
Engineering.Com
Balance Sheet
Unaudited Audited
September 30, December 31,
2009 2008
ASSETS
Current Assets
---------------
Cash 199,570 311,988
Accounts Receivable 224,514 189,109
Prepaid Expenses and Deposits 35,836 29,707
--------------- ---------------
Total Current Assets 459,920 530,804
--------------- ---------------
Capital Assets, net 28,484 29,865
Intangible Assets, net 457,627 591,528
--------------- ---------------
TOTAL ASSETS 946,031 1,152,197
--------------- ---------------
--------------- ---------------
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
---------------------------------------
Accounts Payable & Accrued Liabilities 702,094 787,594
Deferred Income 72,195 84,247
Promissory notes - short-term 38,316 58,464
--------------- ---------------
Total current liabilities 812,605 930,305
--------------- ---------------
Promissory notes - long-term - 28,971
--------------- ---------------
TOTAL LIABILITIES 812,605 959,276
--------------- ---------------
--------------- ---------------
SHAREHOLDERS EQUITY
Share Capital 15,113,752 14,759,008
Contributed Surplus 416,903 392,411
Deficit (15,397,229) (14,958,498)
--------------- ---------------
TOTAL SHAREHOLDERS EQUITY 133,426 192,921
--------------- ---------------
--------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 946,031 1,152,197
--------------- ---------------
--------------- ---------------
Engineering.Com
Statements of Income
(Unaudited) Three months Three months
ended ended
September 30, September 30,
2009 2008
REVENUE 364,081 399,136
COST OF SALES 116,457 136,751
--------------- -------------
GROSS PROFIT 247,624 262,385
EXPENSES (INCOME)
Salaries & benefits 121,338 168,106
Marketing expenses 23,444 8,286
Development costs 73,676 49,806
General & Administrative 74,280 83,938
--------------- -------------
292,738 310,136
--------------- -------------
Operating Loss (EBITDA) before
under noted items: (45,114) (47,751)
Stock based compensation (3,844) (16,334)
Amortization expense (49,587) (48,918)
--------------- -------------
(53,431) (58,968)
--------------- -------------
--------------- -------------
NET LOSS (98,545) (113,003)
--------------- -------------
--------------- -------------
BASIC AND DILUTED LOSS PER SHARE (0.00) (0.00)
Weighted Average Number of Common Shares
(basic and diluted) 36,870,623 29,496,499
Consolidated Statements of Deficit
--------------- -------------
DEFICIT, beginning of period (15,298,684) (14,706,139)
Net Loss (98,545) (113,003)
--------------- -------------
DEFICIT, end of period (15,397,229) (14,819,142)
--------------- -------------
--------------- -------------
Engineering.Com Inc.
Cash Flow Statements
(Unaudited)
Three Months Three Months
Ended Ended
September 30, September 30,
2009 2008
OPERATING ACTIVITIES
Net Loss (98,545) (113,003)
ADD - Items not affecting cash
Stock based compensation 3,844 16,334
Amortization 49,587 48,918
Changes in operating assets and
liabilities other than cash (115,185) (44,789)
--------------- ---------------
CASH FLOWS FROM OPERATING ACTIVITIES (160,229) (92,540)
--------------- ---------------
FINANCING ACTIVITIES
Promissory Notes (17,259) (8,508)
--------------- ---------------
CASH FLOWS FROM FINANCING
ACTIVITIES (17,259) (8,508)
--------------- ---------------
INVESTING ACTIVITIES
Fixed Assets (6,284) (6,134)
--------------- ---------------
CASH FLOWS FROM INVESTING
ACTIVITIES (6,284) (6,134)
--------------- ---------------
Net increase (decrease) in cash (183,842) (107,182)
CASH, beginning of period 383,412 389,057
--------------- ---------------
CASH, end of period 199,570 281,875
--------------- ---------------
--------------- ---------------
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. 280 or Toll Free: 1-877-997-9917
905-273-6691 (FAX)
jhayes@engineering.com
www.engineering.com
