HAWTHORNE, N.Y., May 7, 2013 (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, 2013.
For the three months ending March 31, 2013, compared to March 31, 2012:
- Net revenues of $3.22 million, compared to $3.01 million
- Operating loss of $578,000, compared to operating loss of $657,000
- Gross profit margin of 55.7 percent, compared to 55.4 percent
- Net loss of $356,000, or $.08 per diluted share, compared to net loss of $423,000, or $0.09 per diluted share
| RECONCILIATION OF NET INCOME TO EBITDA | MARCH 31, | ||||
| 2013 | 2012 | ||||
| Net loss | $ (356,482) | $ (423,239) | |||
| Income tax (benefit) | (218,597) | (228,353) | |||
| Depreciation and amortization | 268,513 | 272,219 | |||
| Interest and dividend income, (net) | (6,495) | (5,960) | |||
| EBITDA | $ (313,061) | $ (385,333) | |||
As of March 31, 2013, the Company had approximately $5.5 million in cash and cash equivalents, $4.9 million in deferred revenue, stockholders' equity of $9.3 million, and no debt.
"Revenues were up seven percent over the first quarter last year and our operating loss was reduced by 12 percent compared to last year," said Allen Greene, SmartPros' Chairman and CEO. "Both our net loss and operating loss for the first quarter of 2013 are the narrowest since Q1 2009, and our revenue in the first quarter was the highest since 2010. As we have always stated, the first quarter is adversely affected by little to no revenue in our live training business which usually causes a first quarter loss. We will continue to manage expenses in this trying economic climate."
Greene continued: "I am pleased to announce that, based on our cash position and EBITDA results, the Board of Directors has declared a $.015 per share dividend payable on July 5, 2013, to shareholders of record on June 14, 2013. This is our 14th consecutive dividend. 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 still remains our primary goal."
As per our year-end earnings announcement, SmartPros is no longer scheduling quarterly earnings conference calls but does encourage shareholders and other interested parties 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 | ||
|
March 31, 2013 (Unaudited) |
December 31, 2012 (Audited) |
|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 5,501,848 | $ 4,918,543 |
| Certificates of deposit | — | 500,000 |
| Accounts receivable, net of allowance for doubtful accounts of approximately $20,000 at March 31, 2013, and December 31, 2012, respectively | 1,189,517 | 2,612,709 |
| Prepaid expenses and other current assets | 548,660 | 331,493 |
| Current income tax benefit | 220,000 | — |
| Total Current Assets | 7,460,025 | 8,362,745 |
| Property and equipment, net | 562,433 | 547,448 |
| Goodwill | 2,807,257 | 2,807,257 |
| Other intangibles, net | 3,453,124 | 3,530,744 |
| Other assets, including restricted cash of $75,000 | 104,515 | 104,515 |
| Deferred tax asset | 600,000 | 600,000 |
| Investment in joint venture | 2,998 | 3,245 |
| 7,530,327 | 7,593,209 | |
| Total Assets | $ 14,990,352 | $ 15,955,954 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 468,003 | $ 706,948 |
| Accrued expenses | 141,357 | 272,921 |
| Dividend payable | 70,244 | 58,936 |
| Deferred revenue | 4,917,804 | 5,006,496 |
| Total Current Liabilities | 5,597,408 | 6,045,301 |
| Other liabilities | 62,164 | 63,598 |
| 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, 5,661,933 shares and 5,622,433 shares issued as of March 31, 2013, and December 31, 2012, respectively; and 4,680,941 shares and 4,714,914 shares outstanding as of March 31, 2013, and December 31, 2012, respectively | 567 | 563 |
| Additional paid-in capital | 17,349,570 | 17,393,260 |
| Accumulated deficit | (5,333,625) | (4,977,143) |
| Common stock in treasury, at cost – 980,992 and 907,519 shares at March 31, 2013, and December 31, 2012, respectively | (2,685,732) | (2,569,625) |
| Total Stockholders' Equity | 9,330,780 | 9,847,055 |
| Total Liabilities and Stockholders' Equity | $ 14,990,352 | $ 15,955,954 |
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Statements of | ||
| Operations (Unaudited) | ||
|
Three Months Ended March 31, |
||
| 2013 | 2012 | |
| Net revenues | $ 3,218,667 | $ 3,008,195 |
| Cost of revenues | 1,427,454 | 1,342,097 |
| Gross profit | 1,791,213 | 1,666,098 |
| Operating Expenses: | ||
| Selling, general and administrative | 2,101,027 | 2,051,056 |
| Depreciation and amortization | 268,513 | 272,219 |
| 2,369,540 | 2,323,275 | |
| Operating loss | (578,327) | (657,177) |
| Other Income (Expense): | ||
| Interest income (net) | 6,495 | 5,960 |
| Equity loss from joint venture | (3,247) | (375) |
| 3,248 | 5,585 | |
| Loss before income tax | (575,079) | (651,592) |
| Benefit from income taxes | 218,597 | 228,353 |
| Net loss | $(356,482) | $(423,239) |
| Net loss per common share: | ||
| Basic net loss per common share | $(0.08) | $(0.09) |
| Diluted net loss per common share | $(0.08) | $(0.09) |
| Weighted Average Number of Shares Outstanding: | ||
| Basic | 4,721,914 | 4,797,231 |
| Diluted | 4,721,914 | 4,797,231 |
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 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.