Best Operating Results from Continuing Operations in More Than Five Years
Company Announces 23rd Consecutive Quarterly Dividend
HAWTHORNE, N.Y., Aug. 06, 2015 (GLOBE NEWSWIRE) -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today announced its financial results for the three and six months ended June 30, 2015.
Financial results from continuing operations for the three months ended June 30, 2015, compared to 2014
- Net revenues of $3.65 million, compared to net revenues of $3.69 million,
- Operating Income $474,000 compared to an operating loss of $176,000
- Gross profit margin of 61.6% compared to gross profit margin of 53.6%
- Net income of $448,000 or $.10 per diluted share, compared to net loss of $234,000, or $.(05) per diluted share
Financial results from continuing operations for the six months ended June 30, 2015, compared to 2014
- Net revenues of $6.36 million, compared to net revenues of $6.35 million
- Operating income of $154,000 compared to an operating loss of $715,055
- Gross profit margin of 59.5% compared to gross profit margin of 53.6%
- Net income of $121,000, or $.03 per diluted share, compared to a net loss of $618,000, or $(.13) per diluted share
| SIX MONTHS ENDED | THREE MONTHS ENDED | |||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO EBITDA: | JUNE 30, | JUNE 30, | ||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Net income (loss) | $ | 120,919 | (617,555 | ) | $ | 448,464 | $ | (233,594 | ) | |||
| Income tax | 7,987 | (132,456 | ) | 4,225 | 77,388 | |||||||
| Depreciation and amortization | 531,231 | 515,695 | 264,082 | 262,425 | ||||||||
| Interest and dividend income, (net) | (8,224 | ) | (9,097 | ) | (4,110 | ) | (4,124 | ) | ||||
| EBITDA before adjustment for discontinued operations | 651,913 | (243,413 | ) | 712,661 | 102,095 | |||||||
| Adjustment to EBITDA for discontinued operations | 33,483 | 44,053 | 25,343 | (15,275 | ) | |||||||
| Adjusted EBITDA from continuing operations | $ | 685,396 | (199,360 | ) | $ | 738,004 | $ | 86,820 | ||||
As of June 30, 2015 the Company had approximately $4.1 million in cash and cash equivalents, $1.5 million in accounts receivable, $3.8 million in deferred revenue, stockholders' equity of $7.6 million, and no debt.
“Excluding discontinued operations, our results over our first six-months of this year are the best we’ve posted in more than 5 years,” said Allen Greene, Chairman and CEO of SmartPros. “Because of the seasonal aspects of our business, it has not been uncommon for us to show a loss at six-months. However, our recent six month numbers show a return to profitability, producing a $738,000 turnaround from last year’s results. In addition, our operating income for the six months ended June 30, 2015 was up $869,000 over the previous period. Although our three months revenues were relatively constant we had substantial increases in both operating income and net income as compared to the previous year.”
Greene continued: “We attribute this performance to a number of different factors, including an increase in earned revenues from the sale of our technology products as well as the ongoing effects of the "Back to Basics" program that we implemented in June 2014. Specifically, we are starting to build a good pipeline for our Audit Management System (AMS) and we have created some new products related to the AMS. In addition, we eliminated a few of our poorly performing products and unprofitable customers and sold some of the operating assets of our former Skye Multimedia, Ltd. subsidiary back in December 2014. Overall, for the six month period, our cost of revenues was down 13% and our selling, general and administrative costs were down 14% compared to last year. In addition, our gross profit margin was up 11%, from 53.6% to 59.5%, and close to our target goal of 60%. The net result of all these efforts has taken us back to a profitable bottom line.”
SmartPros’ Board of Directors declared the Company’s 23rd consecutive quarterly dividend. The $.015 per common share dividend is payable on October 7, 2015, to shareholders of record as of September 18, 2015. The Company cautions that any future dividend will be affected by ongoing results.
Shareholders and other interested parties are encouraged to contact the Company with any specific questions relating to the Company’s public filings. Investor-related questions can be addressed by calling 914-829-4974, or by visiting SmartPros’ Investor Relations site at http://ir.smartpros.com
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
| June 30, 2015 | December 31, 2014 | ||||||
| (Unaudited) | (Audited) | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 4,075,478 | $ | 4,810,982 | |||
| Accounts receivable, net of allowance for doubtful accounts of approximately $20,000 and $20,000 at June 30, 2015 and December 31, 2014, respectively | 1,538,532 | 1,668,942 | |||||
| Prepaid expenses and other current assets | 363,979 | 406,173 | |||||
| Current assets of discontinued operations | 38,086 | 414,296 | |||||
| Total Current Assets | 6,016,075 | 7,300,393 | |||||
| Property and equipment, net | 458,158 | 427,241 | |||||
| Goodwill | 2,456,474 | 2,456,474 | |||||
| Other intangibles, net | 3,102,994 | 3,295,958 | |||||
| Other assets, including restricted cash of $75,000 | 94,479 | 94,479 | |||||
| Deferred tax asset | 200,000 | 200,000 | |||||
| Non-current assets of discontinued operations | — | 4,673 | |||||
| 6,312,105 | 6,478,825 | ||||||
| Total Assets | $ | 12,328,180 | $ | 13,779,218 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 574,473 | $ | 875,019 | |||
| Accrued expenses | 201,732 | 227,021 | |||||
| Dividend payable | 68,869 | 69,157 | |||||
| Deferred revenue | 3,777,137 | 4,752,356 | |||||
| Current liabilities of discontinued operations | 153 | 120,066 | |||||
| Total Current Liabilities | 4,622,364 | 6,043,619 | |||||
| Other liabilities | 62,975 | 66,106 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ Equity: | |||||||
| Preferred stock, $.001 par value, authorized 1,000,000 shares, 0 shares issued and outstanding | — | — | |||||
| Common stock, $.0001 par value, authorized 30,000,000 shares, 5,675,433 shares issued as of June 30, 2015 and 5,665,433 issued as of December 31, 2014, respectively; and 4,591,241 and 4,598,325 shares outstanding as of June 30, 2015 and December 31, 2014, respectively | 568 | 567 | |||||
| Additional paid-in capital | 16,867,078 | 16,985,235 | |||||
| Accumulated deficit | (6,348,565 | ) | (6,469,484 | ) | |||
| Common stock in treasury, at cost – 1,084,192 and 1,067,108 shares at June 30, 2015 and December 31, 2014, respectively | (2,876,240 | ) | (2,846,825 | ) | |||
| Total Stockholders’ Equity | 7,642,841 | 7,669,493 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 12,328,180 | $ | 13,779,218 | |||
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of
Operations (Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net revenues | $ | 3,650,572 | $ | 3,685,301 | $ | 6,359,198 | $ | 6,349,314 | |||||||
| Cost of revenues | 1,402,594 | 1,708,601 | 2,573,935 | 2,947,520 | |||||||||||
| Gross profit | 2,247,978 | 1,976,700 | 3,785,263 | 3,401,794 | |||||||||||
| Operating Expenses: | |||||||||||||||
| Selling, general and administrative | 1,509,974 | 1,889,880 | 3,099,867 | 3,601,154 | |||||||||||
| Depreciation and amortization | 264,082 | 262,425 | 531,231 | 515,695 | |||||||||||
| 1,774,056 | 2,152,305 | 3,631,098 | 4,116,849 | ||||||||||||
| Operating income (loss) | 473,922 | (175,605 | ) | 154,165 | (715,055 | ) | |||||||||
| Other Income: | |||||||||||||||
| Interest and dividend income (net) | 4,110 | 4,124 | 8,224 | 9,097 | |||||||||||
| 4,110 | 4,124 | 8,224 | 9,097 | ||||||||||||
| Income (loss) from continuing operations | 478,032 | (171,481 | ) | 162,389 | (705,958 | ) | |||||||||
| (Provision for) benefit from income taxes | (4,225 | ) | (77,388 | ) | (7,987 | ) | 132,456 | ||||||||
| Income (loss) from continuing operations | 473,807 | (248,869 | ) | 154,402 | (573,502 | ) | |||||||||
| (Loss) income from discontinued operations, net of taxes | (25,343 | ) | 15,275 | (33,483 | ) | (44,053 | ) | ||||||||
| Net income (loss) | $ | 448,464 | $ | (233,594 | ) | $ | 120,919 | $ | (617,555 | ) | |||||
| Net income (loss) per common share, basic and diluted: | |||||||||||||||
| Net income (loss) from continuing operations | $ | 0.10 | $ | (0.05 | ) | $ | 0.03 | $ | (0.12 | ) | |||||
| Net income (loss) from discontinued operations, net of taxes | $ | — | $ | — | $ | — | $ | (0.01 | ) | ||||||
| Net income (loss) | $ | 0.10 | $ | (0.05 | ) | $ | 0.03 | $ | (0.13 | ) | |||||
| Weighted Average Number of Shares Outstanding: | |||||||||||||||
| Basic | 4,594,042 | 4,684,441 | 4,596,056 | 4,684,441 | |||||||||||
| Diluted | 4,608,926 | 4,684,441 | 4,606,982 | 4,684,441 | |||||||||||
About SmartPros
Founded in 1981, SmartPros Ltd. is an industry leader in the field of accredited professional education and corporate training. Its products and services are primarily focused in the accredited professional areas of corporate accounting, financial management, public accounting, governmental and not-for-profit accounting, financial services, banking, engineering, legal, ethics and compliance, and information technology. SmartPros is a leading provider of professional education products to Fortune 500 companies, as well as the major firms and associations in each of its professional markets. SmartPros provides education and content publishing and development services in a variety of media including Web, CD-ROM, video and live seminars and events. Our subscription libraries feature hundreds of course titles and 2,800+ hours of accredited education. SmartPros' proprietary Professional Education Center (PEC) Learning Management System (LMS) offers enterprise distribution and administration of education content and information. In addition, SmartPros produces a popular news and information portal for accounting and finance professionals serving more than one million ads and distributing more than 200,000 subscriber email newsletters each month. SmartPros' network of Web sites averages more than 1 million monthly visits, serving a user base of more than 1.5 million profiled members. Visit: www.smartpros.com
Safe Harbor Statement
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties, including activities, events or developments, that the Company expects, believes or anticipates will or may occur in the future. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with Securities and Exchange Commission. Specifically, results reported within this press release should not be considered an indication of future performance.