HAWTHORNE, N.Y., Nov. 8, 2011 (GLOBE NEWSWIRE) -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today announced its results for the three and nine months ended September 30, 2011. A conference call to discuss earnings is scheduled for Wednesday, November 9, at 8:30 AM Eastern Standard Time.
For the three months ended September 30, 2011, and 2010:
- Net revenues decreased to $3.6 million from $3.9 million
- Operating loss of $194,000, compared to an operating loss of $117,000
- EBITDA (earnings before interest, taxes, depreciation and amortization) was $112,000, compared to $150,000
- Net loss of $175,000, or $.04 per share, compared to a net loss of $109,000, or $0.02 per share
For the nine months ended September 30, 2011, and 2010:
- Net revenues decreased to $11.8 million from $12.6 million
- Operating loss of $367,000, compared to an operating loss of $765,000
- EBITDA was $673,000, compared to $427,000
- Net loss of $288,000, or $.06 per share, compared to net loss of $526,000, or $0.11 per share
| NINE MONTHS ENDED | THREE MONTHS ENDED | |||
| RECONCILIATION OF NET INCOME TO EBITDA | SEPTEMBER 30, | SEPTEMBER 30, | ||
| 2011 | 2010 | 2011 | 2010 | |
| Net loss | $ (287,536) | $ (525,803) | $ (174,711) | $ (108,902) |
| Income tax (benefit) provision | 84,088 | 207,915 | (19,088) | 15,585 |
| Depreciation and amortization | 882,620 | 793,917 | 307,110 | 283,353 |
| Interest and dividend income, (net) | (6,353) | (49,244) | (1,627) | (39,766) |
| EBITDA | $672,819 | $426,785 | $111,684 | $150,270 |
As of September 30, 2011, the Company had approximately $6.5 million in cash and cash equivalents, $1.6 million in accounts receivable, $5.3 million in deferred revenue, stockholders' equity of $11.8 million and no debt.
"While revenues were down in the third quarter and year-to-date, our operating loss and net loss for the nine months ended September 2011 improved considerably from last year," said Allen Greene, SmartPros Chairman and CEO. "We remain committed to controlling costs, but have recently expanded our sales teams to drive revenue. Typically the fourth quarter is our best, and we hope to finish the year strong."
Greene continued: "The economy is still impacting our business, particularly with respect to our custom development projects and live training programs. Clients are not cancelling contracts as much as they are delaying projects. On the live training side, we've seen a pickup in orders for event bookings for next year. However, as previously noted, events this past year are averaging less participants compared to similar events held in previous years. So, while we hope the growth in event bookings is a positive sign, profit margins of those events ultimately will depend on increased registration."
Greene added: "The board has also declared a $.0125 dividend per common share payable on January 5, 2012, to shareholders of record on December 14, 2011.This marks our eighth consecutive quarterly dividend as our balance sheet and cash position remains strong. While we hope to continue to make quarterly dividends, we must caution that any future dividend will be affected by our results and by our ongoing requirement for cash to make acquisitions, which continues to be our primary goal. In addition, the board has also renewed our $750,000 stock buyback plan through November 8, 2012."
SmartPros will host a teleconference tomorrow morning, Wednesday, November 9, beginning at 8:30 AM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progress and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-877-941-9205.
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
| September 30, | December 31, | |
| 2011 | 2010 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 6,471,397 | $ 7,007,541 |
| Accounts receivable, net of allowance for doubtful accounts of approximately $39,000 at September 30, 2011, and December 31, 2010, respectively | 1,641,650 | 2,149,067 |
| Prepaid expenses and other current assets | 482,565 | 391,136 |
| Current tax benefit | 100,000 | — |
| Total Current Assets | 8,695,612 | 9,547,744 |
| Property and equipment, net | 717,212 | 717,428 |
| Goodwill | 3,375,257 | 3,375,257 |
| Other intangibles, net | 3,920,443 | 3,891,858 |
| Other assets, including restricted cash of $75,000 | 92,965 | 85,626 |
| Deferred tax asset | 1,290,000 | 1,290,000 |
| Investment in joint venture, at cost | 3,117 | 3,867 |
| 9,398,994 | 9,364,036 | |
| Total Assets | $ 18,094,606 | $ 18,911,780 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 535,473 | $ 722,683 |
| Dividends payable | 61,124 | — |
| Accrued expenses | 347,728 | 391,626 |
| Deferred revenue | 5,296,437 | 5,514,388 |
| Total Current Liabilities | 6,240,762 | 6,628,697 |
| Other liabilities | 54,219 | 32,901 |
| 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, 5,616,933 and 5,561,100 shares issued as of September 30, 2011, and December 31, 2010, respectively; and 4,889,931 and 4,873,826 shares outstanding as of September 30, 2011, and December 31, 2010, respectively | 562 | 556 |
| Additional paid-in capital | 17,528,514 | 17,607,921 |
| Accumulated (deficit) | (3,523,341) | (3,235,805) |
| Common stock in treasury, at cost – 725,502 and 687,274 shares at September 30, 2011, and December 31, 2010, respectively | (2,206,110) | (2,122,490) |
| Total Stockholders' Equity | 11,799,625 | 12,250,182 |
| Total Liabilities and Stockholders' Equity | $ 18,094,606 | $ 18,911,780 |
| SMARTPROS LTD. AND SUBSIDIARIES | ||||
| Condensed Consolidated Statements of | ||||
| Operations (Unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| September 30, | September 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Net revenues | $ 3,616,116 | $ 3,888,217 | $ 11,790,735 | $ 12,543,209 |
| Cost of revenues | 1,474,094 | 1,672,108 | 4,931,799 | 5,916,283 |
| Gross profit | 2,142,022 | 2,216,109 | 6,858,936 | 6,626,926 |
| Operating Expenses: | ||||
| Selling, general and administrative | 2,028,763 | 2,049,364 | 6,343,543 | 6,597,808 |
| Depreciation and amortization | 307,110 | 283,353 | 882,620 | 793,917 |
| 2,335,873 | 2,332,717 | 7,226,163 | 7,391,725 | |
| Operating (loss) | (193,851) | (116,608) | (367,227) | (764,799) |
| Other Income (Expense): | ||||
| Interest income (net) | 1,627 | 39,766 | 6,353 | 49,244 |
| Equity loss from joint venture | (1,575) | (16,475) | (10,750) | (18,163) |
| 52 | 23,291 | (4,397) | 31,081 | |
| Loss before income tax | (193,799) | (93,317) | (371,624) | (733,718) |
| Benefit (provision) from income tax | 19,088 | (15,585) | 84,088 | 207,915 |
| Net loss | $ (174,711) | $ (108,902) | $ (287,536) | $ (525,803) |
| Net loss per common share: | ||||
| Basic net loss per common share | $ (0.04) | $ (0.02) | $ (0.06) | $ (0.11) |
| Diluted net loss per common share | $ (0.04) | $ (0.02) | $ (0.06) | $ (0.11) |
| Weighted Average Number of Shares Outstanding: | ||||
| Basic | 4,904,044 | 4,921,005 | 4,900,360 | 4,963,127 |
| Diluted | 4,904,044 | 4,921,005 | 4,900,360 | 4,963,127 |
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 online, on-demand, Webinar, CD-ROM, and live seminars and events. Our subscription libraries feature over a 1,000+ course titles and thousands-of-hours of accredited education. SmartPros' proprietary eCampus™ 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 900,000 monthly visits, serving a user base of more than one million profiled members. Visit: www.smartpros.com
The SmartPros logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2586
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.