Revenue was $383,485 for the three months ended September 30, 2012, compared to revenue of $437,982 for the third quarter of 2011. The net loss for the three months ended September 30, 2012, totaled ($63,634) and ($0.00) per Common Share compared to a net loss of ($25,919) 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 ($56,780) or $0.00 per Common Share for the third quarter of 2012 compared with an operating loss of ($19,709) or $0.00 per Common Share for the three month period ended September 30, 2011. The operating expenses in the latest quarter were $263,408, compared to $260,350 in the third quarter a year earlier.
"During the third quarter, PLM industry expert Chad Jackson signed on as the Managing Editor of our new Engineering Software micro-site", said John Hayes, President of ENGINEERING.com. "Jackson also teamed up with leading analyst Jim Brown to create a new video series called Tech4PD. ENGINEERING.com is using this content to attract the high-value engineering audience that our advertisers crave."
As at September 30, 2012, the Company had a cash balance of $312,017 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
As at September 30, 2012
(With comparative amounts as at December 31, 2011)
September 30, 2012 December 31, 2011
ASSETS
CURRENT ASSETS
Cash $ 312,017 $ 259,014
Accounts receivable 198,589 351,537
Prepaids expenses and deposits 37,054 21,383
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TOTAL CURRENT ASSETS 547,660 631,934
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NON-CURRENT ASSETS
Property and equipment 10,311 11,818
Intangible assets 330,615 325,020
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TOTAL NON-CURRENT ASSETS 340,926 336,838
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TOTAL ASSETS $ 888,586 $ 968,772
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LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable & accrued
liabilities $ 460,765 $ 465,785
Deferred revenue 156,098 156,922
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TOTAL LIABILITIES 616,863 622,707
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SHAREHOLDER'S EQUITY
Share capital 15,450,966 15,450,966
Contributed surplus 514,184 497,899
Deficit (15,693,427) (15,602,800)
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TOTAL SHAREHOLDERS EQUITY 271,723 346,065
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TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY $ 888,586 $ 968,772
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NOTICE: The Company's auditors have not audited or reviewed these financial
statements.
The accompanying notes are an integral part of these statements.
STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY
Expressed in Canadian Dollars
For the period ended September 30, 2012
(With comparative balances for the period ended September 30, 2011)
Number of
Common Share Contributed
Shares Capital Surplus Deficit Total
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At January 1,
2011 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 (168,903) (168,903)
Stock based
compensation 14,493 14,493
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At September
30, 2011 43,870,623 15,450,966 487,336 (15,564,922) 373,380
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At December
31, 2011 43,870,623 $ 15,450,966 $ 497,899 $(15,602,800) $ 346,065
Net loss for
the period (90,627) (90,627)
Stock based
compensation 16,285 16,285
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At September
30, 2012 43,870,623 $ 15,450,966 $ 514,184 $(15,693,427) $ 271,723
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NOTICE: The Company's auditors have not audited or reviewed these financial
statements.
The accompanying notes are an integral part of these statements.
STATEMENTS OF INCOME (LOSS)
AND COMPREHENSIVE INCOME (LOSS)
Expressed in Canadian Dollars
For the period ended September 30, 2012
(With comparative amounts for the period September 30, 2011)
Three months ended Nine months ended
2012 2011 2012 2011
REVENUE $ 383,485 $ 437,982 $ 1,437,075 $ 1,164,223
COST OF SALES 176,857 197,341 647,031 518,131
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GROSS PROFIT 206,628 240,641 790,044 646,092
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OPERATING EXPENSES
Salaries and benefits 139,927 141,617 458,145 418,600
Marketing expenses 22,093 22,731 71,756 66,902
Development costs 49,481 47,007 144,186 144,133
General and administrative 51,907 48,995 183,490 161,777
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TOTAL OPERATING EXPENSES 263,408 260,350 857,577 791,412
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INCOME (LOSS) BEFORE
UNDERNOTED ITEMS: (56,780) (19,709) (67,533) (145,320)
Stock based compensation (4,591) (3,490) (16,285) (14,493)
Amortization expense (2,263) (2,720) (6,809) (9,090)
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NET INCOME (LOSS) &
COMPREHENSIVE INCOME $ (63,634)$ (25,919)$ (90,627)$ (168,903)
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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 40,446,710 43,870,623 38,075,751
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NOTICE: The Company's auditors have not audited or reviewed these financial
statements.
The accompanying notes are an integral part of these statements.
STATEMENTS OF CASH FLOWS
Expressed in Canadian Dollars
For the period ended September 30, 2012
(With comparative amounts for the period September 30, 2011)
Three months ended Nine months ended
2012 2011 2012 2011
OPERATING ACTIVITIES
Net Income (Loss) $(63,634) $ (25,919) $(90,627) $(168,903)
Add items not affecting cash
Stock based compensation 4,591 3,490 16,285 14,493
Amortization 2,263 2,721 6,809 9,090
Changes in operating assets and
liabilities other than cash (40,987) 47,974 131,432 131,315
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CASH FLOWS FROM OPERATING
ACTIVITIES (97,767) 28,266 63,899 (14,005)
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FINANCING ACTIVITIES
Proceeds of Share Issuance - 337,214 - 337,214
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CASH FLOWS FROM FINANCING
ACTIVITIES - 337,214 - 337,214
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INVESTING ACTIVITIES
Additions to property and
equipment (1,133) (951) (5,301) (1,984)
Additions to intangible assets (527) (2,091) (5,595) (6,396)
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CASH FLOWS FROM INVESTING
ACTIVITIES (1,660) (3,042) (10,896) (8,380)
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INCREASE (DECREASE) IN CASH (99,427) 362,438 53,003 314,829
CASH, Beginning of period 411,444 30,635 259,014 78,244
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CASH, End of period $312,017 $ 393,073 $312,017 $ 393,073
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NOTICE: The Company's auditors have not audited or reviewed these financial
statements.
The accompanying notes are an integral part of these statements.
