HAWTHORNE, N.Y., March 10, 2005 (PRIMEZONE) -- SmartPros Ltd. (AMEX:PED), a leader in the field of accredited professional education and corporate training, today reported record financial results for the fiscal year ended December 31, 2004.
Fiscal Year 2004 Financial Highlights:
-- Revenues increased approximately 18.3% to $10.2 million from
$8.6 million.
-- Gross profit margins improved to 60.6% from 59.4%.
-- Operating expenses remained relatively stable at $5.4 million
compared to $5.3 million.
-- Net income rose to $711,000, or $0.23 per basic and diluted share,
compared to a $315,000 loss, or $0.12 loss per basic and diluted
share, reported in the prior year.
-- Earnings before interest, taxes, depreciation and amortization
(EBITDA) for 2004 was $1.5 million compared to $434,000 in 2003.
As of December 31, 2004, the Company had approximately $6.8 million in cash and investments, working capital of $3.4 million and stockholders' equity of approximately $6.4 million.
Operational Highlights for 2004:
-- In October, SmartPros successfully completed an Initial Public
Offering, realizing net proceeds of approximately $6.0 million,
and began trading on the American Stock Exchange.
-- Net revenue from sales of SmartPros' accounting/finance products
grew in both absolute terms and as a percentage of total revenues.
In 2004, net revenues from SmartPros' accounting/finance and
related products grew 8% to $6.7 million in 2004, compared to
$6.2 million in 2003. 2004 subscription-based net revenues from
accounting/finance products were $6.1 million compared to
$5.5 million in 2003.
-- ADP, a leading provider of integrated outsourced payroll and
human resources services, expanded its relationship with SmartPros
to provide Continuing Professional Education programs to
accountants.
-- Working Values, Ltd, a wholly owned subsidiary of the Company,
formed a strategic relationship with FIRSTGlobal Investigations, a
division of BDO Seidman LLP, to provide ethics and integrity
training to corporate clients.
Allen Greene, Vice Chairman and Chief Executive Officer of SmartPros, noted, "2004 can be characterized as a year of exciting growth and market emergence for SmartPros. After spending over two decades operating as a private company, we are delighted to now have the opportunity to share our ongoing success with the public and with those who have demonstrated their confidence in us by becoming valued shareholders. Without exception, every member of the SmartPros' team is committed to the profitable growth of our Company and increasing shareholder value. As such, 2005 holds great promise for us and we hope that it will be another defining year for SmartPros."
SmartPros has set April 19, 2004 as the record date for shareholders permitted to vote at the Company's Annual Meeting of Stockholders, which will be held at the Comfort Inn in Hawthorne, New York on June 9, 2005 at 10:00 A.M. Eastern.
The Company will host a teleconference this afternoon beginning at 4:30 PM Eastern Standard Time, and invites all interested parties to join management in a discussion regarding the Company's year end financial results. The conference call can be accessed via telephone by dialing toll free 1-800-257-7063. For those unable to participate in the live event, a replay of the call will be available on http://ir.smartpros.com for a period of 90 days.
A copy of this news announcement is immediately accessible via http://ir.smartpros.com. The corresponding Form 10-KSB will be filed with the U.S. Securities & Exchange Commission later this month and be accessible at that time via the Company's web site at http://ir.smartpros.com.
SmartPros Ltd. Consolidated Balance Sheet
(Audited)
As of December 31, 2004
ASSETS
Current Assets:
Cash and cash equivalents $ 1,756,991
Investment securities available-for-sale 5,000,000
Accounts receivable, net of allowance for
doubtful accounts of $71,000 985,259
Prepaid expenses and other current assets 175,270
------------
Total Current Assets 7,917,520
------------
Property and Equipment, net 544,176
Goodwill 53,434
Other Intangibles, net 2,482,653
Other Assets, including restricted cash of $150,000 167,196
------------
2,703,283
------------
Total Assets $ 11,164,979
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 358,867
Accrued expenses 373,993
Current portion of capital lease and
equipment financing obligations 56,119
Deferred revenue 3,741,466
------------
Total Current Liabilities 4,530,445
------------
Long-Term Liabilities:
Capital lease and equipment financing obligations 64,020
Other liabilities 164,907
------------
Total Long-Term Liabilities 228,927
------------
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,
5,140,545 issued and 5,082,539 outstanding 514
Common stock in treasury,
at cost - 58,006 shares (220,000)
Additional paid-in-capital 16,407,495
Accumulated deficit (9,454,902)
------------
6,733,107
Deferred Compensation (127,500)
Note receivable from stockholder (200,000)
------------
Total Stockholders' Equity 6,405,607
------------
Total Liabilities and Stockholders' Equity $ 11,164,979
============
SmartPros Ltd.
Consolidated Statements of Operations (Audited)
For the Twelve Months Ended December 31
2004 2003
------------ ------------
Net Revenues $ 10,150,738 $ 8,579,989
Cost of Revenues 4,002,738 3,483,868
------------ ------------
Gross Profit 6,148,000 5,096,121
------------ ------------
Operating Expenses:
Selling, general and administrative 4,692,748 4,662,432
Depreciation and amortization 716,378 676,382
------------ ------------
5,409,126 5,338,814
------------ ------------
Operating Income (Loss) 738,874 (242,693)
------------ ------------
Other Income (Expense):
Interest income 37,802 16,841
Interest Expense (65,307) (88,890)
------------ ------------
(27,505) (72,049)
------------ ------------
Provision for Income Taxes -- --
------------ ------------
Net Income (Loss) $ 711,369 $ (314,742)
============ ============
Net Income (Loss) Per Common Share:
Basic net income (loss) per
common share $ 0.23 $ (0.12)
============ ============
Diluted net income (loss)
per common share $ 0.23 $ (0.12)
============ ============
Weighted Average Number of Shares
Outstanding
Basic 3,086,359 2,589,384
============ ============
Diluted 3,119,322 2,589,384
============ ============
About SmartPros Ltd.
Founded 1981, SmartPros Ltd. is an industry leader in the field of accredited professional education. 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, engineering, and ethics and compliance. SmartPros' customers include over half of 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 and video. Our subscription libraries feature hundreds of course titles and 1,000+ 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 that services 300,000+ visitors and 100,000+ subscribers per month. Visit: http://corporate.smartpros.com
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause our actual operating results to be materially different from any historical results or from any future results expresses or implied by such forward-looking statements. 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 our filings with Securities and Exchange Commission.