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Genesis Worldwide Inc. announces first quarter 2011 financial results(Canada Newswire Via Acquire Media NewsEdge) MISSISSAUGA, ON, July 29, 2011 /CNW/ -- MISSISSAUGA, ON, July 29, 2011 /CNW/ - Genesis Worldwide Inc. ("Genesis" or the "Company"), (NEX: GWI.H), today announces its unaudited financial results for the first quarter ended March 31, 2011. Beginning with the first quarter of 2011, Genesis is reporting its financial results in accordance with International Financial Reporting Standards ("IFRS"). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS with effect from January 1, 2010. All dollar amounts are in Canadian dollars unless otherwise stated. Financial Highlights -- Revenue for the first quarter ended March 31, 2011 was nil, compared to $191,097 for the same period in 2010. The decrease was primarily due to the Company's focus on completing the restructuring, divestiture and cost containment plan during fiscal 2010. -- Operating expenses for the first quarter ended March 31, 2011 decreased to $530,235, compared to $978,081 for the same period in 2010, due to cost saving initiatives, restructuring and the divesture of the Company's structural products division. -- Net loss from continuing operations for the first quarter ended March 31, 2011 was $659,282, or ($0.01) per common share, compared to a net loss from continuing operations of $1,798,401 or ($0.03) per common share for the same period in 2010.Business Update During the first quarter ended March 31, 2011, the Company hired a software developer to aid in its development of the first five dimensional ("5D") building information modeling system ("BIM"). This new technology will combine new software with the Company's existing software platform and provide the user with a more complete model of their project which includes the dimensions of length, width, height, time and cost. The software will integrate design, production and scheduling, and enable the transfer of a large part of the construction work from the construction site to an off-site facility. With the help of BIM, much construction is being moved off-site, making the construction process leaner, with less wasted time, less labor effort and materials, and better possibilities for controlled recycling of extra materials in the factory. The Company believes that this is the future of smart construction and the way to meet the demands of a growing green, sustainable and globally diverse market. The new software product is scheduled for beta testing in the third quarter of fiscal 2011. In addition, the Company is developing a new version of its FrameBuilder design software and a cloud based version of QuoteBuilder and GNET (the Company's technical library). The beta versions are scheduled to be released for testing by the third quarter of fiscal 2011. Management expects that the new technology products will provide a competitive edge and allow for new markets to be penetrated. Markets that will include not only clients who want to manufacture, but also the architects, designers and construction companies utilizing the Company's software as a standalone license. The Company continues to look at options to raise additional capital in order to allow the Company to pursue its growth initiatives, improve its liquidity and balance sheet, and take advantage of the increasing number of business opportunities that are now arising. "Our restructuring and the definition of our business plan was completed in 2010 heralding a period of positive change for Genesis. The work that was done in 2010 has provided us with a solid platform from which Genesis can grow and provide an attractive investment for shareholders," stated Richard Pope, Chairman and Chief Executive Officer of the Company. Further information regarding the Company, and its business and operations, may be obtained from the Company's continuous disclosure documents filed from time-to-time with the Canadian securities regulatory authorities. These continuous disclosure documents are available through the Company's web site at www.genesisworldwide.com, or through the SEDAR web site maintained by the Canadian securities regulatory authorities, which can be accessed at www.sedar.com. About Genesis Worldwide Inc. Genesis is a provider of green light steel building technology and solutions targeted at the global commercial, residential and institutional building sectors. Genesis delivers customized turnkey structural solutions, and provides software packages, industrial equipment, training programs, professional services and support ("Genesis Solution") to its customers and partners globally. Headquartered in the Greater Toronto Area in Ontario, Canada, Genesis has established a network of partners with engineering, manufacturing and distribution operations in Canada, the United States, the Middle East, Eastern Europe, Russia and South East Asia. For additional information about the Company, visit www.genesisworldwide.com. Caution Regarding Forward-Looking Information Certain statements in this press release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the Company's projected revenues, earnings, growth rates, performance, business prospects and opportunities are forward-looking statements, as are any statements relating to future events, conditions or circumstances. The use of terms such as "may", "will", "should", "plan", "believes", "predict", "potential", "anticipate", "expect", "project", "target", "estimate", "continue", and similar terms are intended to assist in identification of these forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects, and opportunities. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned not to place undue reliance upon such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Many factors could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, those factors discussed under the heading "Risk Factors" in the Company's most recent Annual Information Form ("AIF"), a copy of which is available on SEDAR at www.sedar.com. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and, except required by law, the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Genesis Worldwide Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) 2010 March 31, 2011 December 31, January 1, Assets Current assets: Cash $ 462,337 $ 7,051 $ 72,247 Cash held in 100,000 trust - - Restricted 500,000 cash - - Accounts 352,686 357,732 2,818,204 receivable, net Inventory, 346,219 net 556 556 Prepaid 16,317 57,794 255,719 expenses 831,896 423,133 4,092,389 Non-current assets: Mortgage 432,908 receivable - - Notes 910,404 1,049,704 receivable - Property, 14,833 15,888 2,136,538 plant and equipment Deposits 88,483 88,483 96,066 Intangible 1,015,101 assets - - Total assets $ 1,845,616 $ 1,577,208 $ 7,773,002 Liabilities Current liabilities: Accounts $ 2,871,139 $ 2,609,470 $ 6,505,840 payable and accrued liabilities Short term 154,628 991,587 loan payable - Deferred 347,864 349,215 847,964 revenue Minimum 682,548 royalty - - payment obligations 3,219,003 3,113,313 9,027,939 Non-current liabilities: Long term 185,234 144,092 payables - Provision 1,076,738 1,076,738 - Minimum 578,058 royalty - - payment obligations 1,261,972 1,220,830 578,058 Shareholders' equity (deficiency): Share capital 62,337,339 61,830,420 61,114,911 Contributed 2,179,089 1,905,150 1,842,492 surplus Accumulated (67,151,787) (66,492,505) (64,790,398) deficit Total equity (2,635,359) (2,756,935) (1,832,995) Total $ 1,845,616 $ 1,577,208 $ 7,773,002 liabilities and equityGenesis Worldwide Inc. CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (unaudited) Three Months Ended March 31, 2011 2010 Revenue $ $ 191,097 - Cost of 14,418 revenue - Gross profit 176,679 - Operating expenses: Marketing and 252,088 sales - Research and 32,838 62,718 development( ) General and 331,057 586,957 administrative Restructuring 452 40,042 Occupancy 165,888 36,276 Total 530,235 978,081 operating expenses Operating loss (530,235) (801,402) before other expenses Amortization 1,055 of property, 154 plant and equipment Bad debt 136,175 expense - Amortization 1,551 of intangible - asset Foreign (8,183) (24,876) exchange gain Bank interest 11,327 expense and - penalty charges Term loan and (4,904) debenture - interest expense Net loss and (659,282) (784,654) comprehensive loss from continuing operations Loss from 1,013,747 discontinued operations Net loss (659,282) (1,798,401) Other comprehensive - - income, net of tax Comprehensive (659,282) (1,798,401) loss Loss per share Basic and $ (0.01) $ (0.03) diluted Weighted 70,031,321 51,575,009 average number of shares outstandingGenesis Worldwide Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three Months Ended March 31, 2011 2010 OPERATING ACTIVITIES Net loss for the period $ (659,282) $ (784,656) Adjustments for non-cash items Depreciation and amortization of property, plant and equipment and intangible 1,055 1,705 assets Bad debt 136,175 Impairment of intangible assets Loss on disposal of property, plant and equipment Stock-based compensation (27,092) expense Unrealized foreign exchange loss Debenture accretion Minimum royalty accretion (522,052) (810,043) Changes in non-cash working capital balances related to operations Accounts receivable 5,046 (10,571) Unbilled revenue 40,912 Inventories and deposits 9,972 on equipment Prepaid expenses 41,477 (50,763) Accounts payable and 261,669 222,445 accrued liabilities Deferred revenue (1,351) (115,919) Cash in trust 100,000 Cash used in operating (215,211) (613,967) activities FINANCING ACTIVITIES Notes receivable 3,125 Restricted cash Repayment on term loan (113,486) Issuance of private 506,919 575,197 placement Contributed surplus 273,939 Cash provided by 670,497 575,197 financing activities Net increase (decrease) in cash during the year 455,286 (38,770) Cash, beginning of year 7,051 71,906 Cash, end of year $ 462,337 $ 33,136 To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/29/c8325.html Genesis Worldwide Inc.| Richard Pope| Chief Executive Officer| Tel: (707) 478-6250 (c) 2011 Canada NewsWire Ltd. 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