HAWTHORNE, N.Y., Aug. 11, 2009 (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, 2009.
Financial results for the three months ended June 30, 2009 and 2008 * Net revenues increased 17% to $4.7 million from $4.1 million * Operating income increased 47% to $245,000 from $167,000 * EBITDA (earnings before interest, taxes, depreciation and amortization) increased to $495,000 from $370,000 * Net income was $217,000, or $0.04 per diluted share, compared to $230,000, or $0.05 per diluted share Financial results for the six months ended June 30, 2009 and 2008 * Net revenues increased 15% to $9.1 million from $7.9 million * Operating income was $272,000, compared to an operating loss of $74,000 * EBITDA increased to $770,000 from $331,000 * Net income was $247,000, or $0.05 per diluted share, compared to $109,000, or $0.02 per diluted share
As of June 30, 2009, the Company had approximately $6.2 million in cash and cash equivalents, $3.4 million in accounts receivable, $5.8 million in deferred revenue, stockholders' equity of $12.7 million and no debt.
"SmartPros continues to increase sales, grow operating profits and maintain profitability while continuing to make targeted acquisitions in this tough economy," said Allen Greene, Chairman and CEO of SmartPros. "Particularly positive for the second quarter were a 17 percent growth in revenues and a 47 percent increase in operating income. While net income was down slightly, we had previously noted that our earnings comparison would be affected by the accounting for tax credits that we previously booked as income. Our six-month numbers show the progress and growth we've made this year. Specifically, revenue, operating income, EBITDA and net income all showed gains."
Greene continued: "We recently announced the acquisition of Executive Enterprise Institute (EEI). As with certain parts of our business, EEI's revenues are seasonal and can therefore impact results on a quarterly basis. For example, with EEI we have taken on additional overhead for the third quarter but don't anticipate generating revenues until the fourth quarter. We believe, however, that EEI is a great fit for us and will contribute positively to earnings in fiscal 2010. Their new Web site just launched, and we have begun taking orders for their fall and winter programs. Therefore, we will reiterate the need to look at the company's results on an annual basis, realizing that our mix of products is seasonal and that acquisitions of new product lines such as EEI can cause fluctuations in quarterly results."
SmartPros will host a teleconference tomorrow morning, Wednesday, August 12, 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 1-877-941-2928.
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 2,300+ 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 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.
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, December 31,
2009 2008
(Unaudited) (Audited)
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 6,243,895 $ 6,626,181
Accounts receivable, net of allowance for
doubtful accounts of $39,627 at June 30,
2009, and $39,677 at December 31, 2008 3,370,766 3,114,139
Prepaid expenses and other current assets 192,408 249,281
------------ ------------
Total Current Assets 9,807,069 9,989,601
------------ ------------
Property and equipment, net 599,692 607,988
Goodwill 3,375,257 3,394,329
Other intangibles, net 4,292,790 4,500,639
Other assets, including restricted cash of
$150,000 160,626 155,613
Deferred tax asset 1,144,645 1,103,923
Investment in joint venture, at cost 21,566 23,890
------------ ------------
9,594,576 9,786,382
------------ ------------
Total Assets $ 19,401,645 $ 19,775,983
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 653,630 $ 779,870
Accrued expenses 218,015 1,294,042
Deferred revenue 5,833,742 5,576,607
------------ ------------
Total Current Liabilities 6,705,387 7,650,519
------------ ------------
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity:
Convertible 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, 5,562,100 issued and
5,079,351 outstanding at June 30, 2009;
and 5,324,316 issued and 4,841,567
outstanding at December 31, 2008 556 532
Additional paid-in capital 17,479,765 17,155,851
Accumulated (deficit) (3,258,340) (3,505,196)
Common stock in treasury, at cost -
482,749 shares (1,525,723) (1,525,723)
------------ ------------
Total Stockholders' Equity 12,696,258 12,125,464
------------ ------------
Total Liabilities and Stockholders'
Equity $ 19,401,645 $ 19,775,983
============ ============
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
----------------------------------------------
2009 2008 2009 2008
----------------------------------------------
Net revenues $9,085,287 $7,937,534 $4,731,684 $4,061,871
Cost of revenues 4,182,384 3,555,961 2,181,624 1,673,385
---------- ---------------------- ----------
Gross profit 4,902,903 4,381,573 2,550,060 2,388,486
---------- ---------------------- ----------
Operating Expenses:
Selling, general and
administrative 4,132,913 4,050,167 2,054,693 2,018,911
Depreciation and
amortization 497,551 405,842 250,608 202,954
---------- ---------------------- ----------
4,630,464 4,456,009 2,305,301 2,221,865
---------- ---------------------- ----------
Operating income (loss) 272,439 (74,436) 244,759 166,621
---------- ---------------------- ----------
Other Income (Expense):
Interest income (net) 27,227 148,593 10,559 28,568
Loss from joint
venture (2,324) -- (1,491) --
---------- ---------------------- ----------
24,903 148,593 9,068 28,568
---------- ---------------------- ----------
Income before
(provision) benefit
for income tax 297,342 74,157 253,827 195,189
(Provision) benefit for
income tax (50,486) 35,000 (36,486) 35,000
---------- ---------------------- ----------
Net income $ 246,856 $ 109,157 $ 217,341 $ 230,189
========== ====================== ==========
Net income per common
share:
Basic net income per
common share $ .05 $ .02 $ .04 $ .05
========== ====================== ==========
Diluted net income
per common share $ .05 $ .02 $ .04 $ .05
========== ====================== ==========
Weighted Average Number
of Shares Outstanding:
Basic 5,007,912 4,974,721 5,072,913 4,955,678
========== ====================== ==========
Diluted 5,168,384 5,027,312 5,239,710 4,990,698
========== ====================== ==========