HAWTHORNE, N.Y., May 11, 2010 (GLOBE NEWSWIRE) -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today reported results for the three month period ending March 31, 2010. A conference call to discuss earnings is scheduled for Wednesday, May 12, 2010, at 8:30 a.m. ET.
For the three months ending March 31, 2010, compared to 2009:
- Net revenues of $3.62 million, compared to $4.35 million
- Operating loss of $807,000, compared to operating income of $28,000
- Loss before taxes, depreciation and amortization and other income (EBITDA) of $553,000, as compared to an EBITDA of $274,000
- Net loss of $503,000, or $0.10 per diluted share, compared to net income of $30,000, or $0.01 per diluted share
| RECONCILIATION OF NET INCOME TO EBITDA | MARCH 31, | |
| 2010 | 2009 | |
| Net (loss) income | $ (503,050) | $ 29,515 |
| Income tax (benefit) provision | (300,000) | 14,000 |
| Depreciation and amortization | 254,237 | 246,943 |
| Interest and dividend income, (net) | (4,334) | (16,668) |
| EBITDA | $ (553,147) | $ 273,790 |
As of March 31, 2010, the Company had approximately $6.4 million in cash and cash equivalents, $5.3 million in deferred revenue, stockholders' equity of $12 million, and no debt.
"As indicated in our fourth quarter earnings press release and conference call, we expected the seasonality of our business to be exacerbated by our EEI acquisition last year and show itself in our first quarter results," said Allen Greene, SmartPros Chairman and CEO. "We further reiterated in the annual report and my letter to shareholders that the economy, seasonality and product mix are all variables that are going to effect our earnings quarter over quarter. Specifically, our EEI and Loscalzo divisions contribute little to no revenue in the first quarter to offset their overhead."
"The single largest contributor to our decrease in net revenues and our operating loss in the first quarter of 2010 was the performance of our Skye Multimedia subsidiary," said Greene. "Last year it had a strong first quarter, and this year its first quarter revenues were down 51 percent. The reduction in revenues can be attributed to the general economic environment, which has had its greatest impact on our custom projects, as opposed to subscription business. In contrast to the reduction in revenue, our operating expenses have remained flat even with the addition of EEI. Further, we are beginning to see a recovery in the marketplace by way of clients coming back to us with available budgets and new Requests for Proposals."
Greene continued: "Despite the quarterly loss, our Board has declared its second consecutive quarterly dividend of $.01 per share payable on July 12, 2010, to shareholders of record July 1, 2010. The Board took into consideration the seasonality of our business, and continues to feel that our strong cash position and our EBITDA performance make a dividend appropriate. While we hope to make quarterly dividends ongoing, we must caution that any future dividend will be affected by our results and by our ongoing requirement for cash to make acquisitions, which is still our primary goal."
"It should also be noted from my most recent letter to shareholders, that SmartPros purchased 149,000 shares of common stock in the first quarter as part of its Board-approved stock buyback program," said Greene. "Despite the quarterly loss, and the stock buyback in the first quarter, our cash position remains strong at $6.4 million as of March 31, 2010, as compared to $6.7 million on December 31, 2009."
SmartPros will host a teleconference tomorrow morning, Wednesday, May 12, beginning at 8:30 a.m. ET, and invites all interested parties to join management in a discussion regarding the company's financial results, corporate progression and other meaningful developments. The conference call can be accessed by dialing 1-866-225-8754. A replay of the call will be available on the company's Web site at http://ir.smartpros.com.
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
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
|
March 31, 2010 |
December 31, 2009 |
|
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 6,388,967 | $ 6,720,649 |
|
Accounts receivable, net of allowance for doubtful accounts of $39,447 and $39,627 at March 31, 2010, and December 31, 2009 |
1,527,929 | 2,700,111 |
| Prepaid expenses and other current assets | 440,352 | 260,357 |
| Current tax benefit | 300,000 | -- |
| Total Current Assets | 8,657,248 | 9,681,117 |
| Property and equipment, net | 624,693 | 608,850 |
| Goodwill | 3,375,257 | 3,375,257 |
| Other intangibles, net | 4,243,385 | 4,421,749 |
| Other assets, including restricted cash of $75,000 and $150,000, respectively | 85,626 | 160,626 |
| Deferred tax asset | 1,250,924 | 1,250,924 |
| Investment in joint venture, at cost | 14,205 | 14,755 |
| 9,594,090 | 9,832,161 | |
| Total Assets | $ 18,251,338 | $ 19,513,278 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 584,183 | $ 776,059 |
| Accrued expenses | 250,466 | 446,929 |
| Dividends payable | 49,263 | -- |
| Deferred revenue | 5,335,493 | 5,299,450 |
| Total Current Liabilities | 6,219,405 | 6,522,438 |
| Other liabilities | 30,549 | 23,187 |
| 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, 5,561,100 issued as of March 31, 2010, and December 31, 2009: 4,926,305 and 5,076,305 outstanding as of March 31, 2010, and December 31, 2009, respectively |
556 | 556 |
| Additional paid-in capital | 17,658,351 | 17,610,392 |
| Accumulated (deficit) | (3,658,826) | (3,106,513) |
|
Common stock in treasury, at cost – 634,795 and 485,795 shares at March 31, 2010, and December 31, 2009, respectively |
(1,998,697) | (1,536,782) |
| Total Stockholders' Equity | 12,001,384 | 12,967,653 |
| Total Liabilities and Stockholders' Equity | $ 18,251,338 | $ 19,513,278 |
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Statements of Operations (Unaudited) | ||
|
Three Months Ended March 31, |
||
| 2010 | 2009 | |
| Net revenues | $ 3,615,496 | $ 4,353,603 |
| Cost of revenues | 1,960,109 | 2,000,760 |
| Gross profit | 1,655,387 | 2,352,843 |
| Operating Expenses: | ||
| Selling, general and administrative | 2,207,984 | 2,078,220 |
| Depreciation and amortization | 254,237 | 246,943 |
| 2,462,221 | 2,325,163 | |
| Operating (loss) income | (806,834) | 27,680 |
| Other Income (Expense): | ||
| Interest income (net) | 4,334 | 16,668 |
| Equity loss from joint venture | (550) | (833) |
| 3,784 | 15,835 | |
| (Loss) income before income tax | (803,050) | 43,515 |
| Benefit (provision) for income tax | 300,000 | (14,000) |
| Net (loss) income | $ (503,050) | $ 29,515 |
| Net (loss) income per common share: | ||
| Basic net (loss) income per common share | $ (.10) | $ .01 |
| Diluted net (loss) income per common share | $ (.10) | $ .01 |
| Weighted Average Number of Shares Outstanding: | ||
| Basic | 5,043,194 | 4,942,198 |
| Diluted | 5,043,194 | 4,951,389 |
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.