HAWTHORNE, N.Y., Aug. 7, 2012 (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, 2012. A conference call to discuss earnings is scheduled for Wednesday, August 8, 2012, at 8:30 a.m. ET.
Financial results for the three months ended June 30, 2012, compared to 2011
- Net revenues of $4.2 million, compared to $5.1 million
- Operating loss of ($104,000) compared to an operating income of $495,000
- Net loss of ($76,000), or ($.02) per diluted share, compared to net income of $317,000, or $.06 per diluted share
Financial results for the six months ended June 30, 2012, compared to 2011
- Net revenues of $7.3 million, compared to $8.2 million
- Operating loss of $761,000 compared to an operating loss of $173,000
- Net loss of $499,000, or $.11 per diluted share, compared to a net loss of $113,000, or $.02 per diluted share
| SIX MONTHS ENDED | ||
| RECONCILIATION OF | June 30 | |
| NET INCOME TO EBITDA | 2012 | 2011 |
| Net (loss) | $ (499,395) | $ (112,825) |
| Income tax (benefit) | (253,353) | (65,000) |
| Depreciation and amortization | 544,346 | 575,510 |
| Interest and dividend income, (net) | (14,042) | (4,726) |
| EBITDA | $ (222,444) | $ 392,959 |
As of June 30, 2012, the Company had approximately $5.8 million in cash and cash equivalents, $1.8 million in accounts receivable, $4.9 million in deferred revenue, stockholders' equity of $11.3 million, and no debt. The company's cash position takes into account both the purchase of treasury shares as well as the payment of dividends, which together totaled $296,000 over the first six months of this year.
"We are clearly not happy with our Q2 performance," said Allen Greene, Chairman and CEO of SmartPros. "The economy continues to affect our business as we are seeing both a longer sales cycle, and in many cases, a postponement of work against contracts already signed. This obviously affects the timing and revenue recognition of those projects. We have been ramping up our sales staff in an effort to drive top line revenues and are continuously looking at potential acquisitions. We believe that SmartPros is better evaluated on an annual, rather than a quarterly, basis, as the seasonality of our business usually balances itself out over the course of the year."
"On a positive note, we recently announced the asset acquisition of Global Collaboration Partners (GCP) and are working to launch several new product offerings in the areas of engineering, safety and human resources," said Greene. "In addition, we also announced an agreement with Villanova University that has the potential to drive new revenues from distribution of their online PE Review Course for Electrical Engineers."
Greene continued: "The board has declared a $.0125 dividend per common share payable on October 5, 2012, to shareholders of record on September 19, 2012. This marks our eleventh consecutive quarterly dividend. Our balance sheet and cash position remain 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."
SmartPros will host a teleconference tomorrow morning, Wednesday, August 8, 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 free1-888-549-7750.
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
| June 30, | December 31, | |
| 2012 | 2011 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 5,829,002 | $ 6,281,725 |
| Accounts receivable, net of allowance for doubtful accounts of approximately $20,000 and $39,000 at June 30, 2012 and December 31, 2011, respectively | 1,810,354 | 1,868,063 |
| Prepaid expenses and other current assets | 349,898 | 334,826 |
| Current income tax benefit | 255,000 | — |
| Total Current Assets | 8,244,254 | 8,484,614 |
| Property and equipment, net | 630,257 | 645,325 |
| Goodwill | 3,375,257 | 3,375,257 |
| Other intangibles, net | 3,706,670 | 3,933,738 |
| Other assets, including restricted cash of $75,000 | 104,515 | 92,965 |
| Deferred tax asset | 1,290,000 | 1,290,000 |
| Investment in joint venture, at cost | 6,867 | 2,742 |
| 9,113,566 | 9,340,027 | |
| Total Assets | $ 17,357,820 | $ 17,824,641 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 702,283 | $ 712,978 |
| Accrued expenses | 277,535 | 338,713 |
| Dividend payable | 58,858 | 60,749 |
| Deferred revenue | 4,948,394 | 4,606,255 |
| Total Current Liabilities | 5,987,070 | 5,718,695 |
| Other liabilities | 65,796 | 66,504 |
| 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, 5,615,433 shares issued as of June 30, 2012 and December 31, 2011 respectively; and 4,708,661 shares and 4,797,231 shares outstanding as of June 30, 2012 and December 31, 2011, respectively | 562 | 562 |
| Additional paid-in capital | 17,453,969 | 17,514,275 |
| Accumulated (deficit) | (3,581,073) | (3,081,678) |
| Common stock in treasury, at cost – 906,772 and 818,202 shares at June 30, 2012 and December 31, 2011, respectively | (2,568,504) | (2,393,717) |
| Total Stockholders' Equity | 11,304,954 | 12,039,442 |
| Total Liabilities and Stockholders' Equity | $ 17,357,820 | $ 17,824,641 |
| Condensed Consolidated Statements of | ||||
| Operations (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Net revenues | $ 4,242,873 | $ 5,120,023 | $ 7,251,068 | $ 8,174,619 |
| Cost of revenues | 1,951,121 | 2,104,947 | 3,293,218 | 3,457,705 |
| Gross profit | 2,291,752 | 3,015,076 | 3,957,850 | 4,716,914 |
| Operating Expenses: | ||||
| Selling, general and administrative | 2,123,363 | 2,202,222 | 4,174,419 | 4,314,780 |
| Depreciation and amortization | 272,127 | 317,938 | 544,346 | 575,510 |
| 2,395,490 | 2,520,160 | 4,718,765 | 4,890,290 | |
| Operating loss (income) | (103,738) | 494,916 | (760,915) | (173,376) |
| Other Income (Expense): | ||||
| Interest income (net) | 8,082 | 1,947 | 14,042 | 4,726 |
| Equity loss from joint venture | (5,500) | (5,300) | (5,875) | (9,175) |
| 2,582 | (3,353) | 8,167 | (4,449) | |
| (Loss) income before income tax | (101,156) | 491,563 | (752,748) | (177,825) |
| Benefit (provision) from income taxes | 25,000 | (175,000) | 253,353 | 65,000 |
| Net (loss) income | $ (76,156) | $ 316,563 | $ (499,395) | $ (112,825) |
| Net (loss) income per common share: | ||||
| Basic net (loss) income per common share | $ (0.02) | $ 0.06 | $ (0.11) | $ (0.02) |
| Diluted net (loss) income per common share | $ (0.02) | $ 0.06 | $ (0.11) | $ (0.02) |
| Weighted Average Number of Shares Outstanding: | ||||
| Basic | 4,766,814 | 4,918,228 | 4,781,939 | 4,898,518 |
| Diluted | 4,766,814 | 4,918,228 | 4,781,939 | 4,898,518 |
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.