Earnings Conference Call Scheduled for Wednesday, August 8,
at 4:15 PM ET
HAWTHORNE, N.Y., Aug. 8, 2007 (PRIME NEWSWIRE) -- SmartPros Ltd. (AMEX:PED), a leader in the field of accredited professional education and corporate training, today announced its second quarter financial results for the three and six months ended June 30, 2007.
Financial highlights for the three months ended June 30, 2007, compared to the three months ended June 30, 2006:
-- Net revenues increased 19% to $3.5 million, up from $2.9 million.
-- Gross profit margin improved, rising to 65% from 58%.
-- Net income rose 172% to $511,000, or $0.10 per diluted share,
from $188,000, or $0.04 per diluted share.
-- SmartPros' core subscription-based business grew 10% in the
second quarter of 2007.
Financial highlights for the six months ended June 30, 2007, compared to the six months ended June 30, 2006:
-- Net revenues increased 32% to $7.2 million from $5.5 million.
-- Gross profit margin improved, rising to 63% from 60%.
-- Net income increased 225% to $1.1 million, or $0.22 per diluted
share, from $338,000, or $0.07 per diluted share.
-- Generated net cash of $1.65 million from operating activities.
SmartPros has achieved 13 consecutive profitable quarters including 11 profitable quarters since going public in 2004. As of June 30, 2007, the Company has $8.76 million in cash and cash equivalents; $1.88 million in accounts receivable; working capital of $5.6 million; and $9.55 million in total stockholders' equity.
"SmartPros remains focused on its strategy to facilitate organic growth and to pursue intelligent, accretive acquisitions," stated Allen Greene, Chairman and CEO of SmartPros. "Our management team is intent on developing quality products while increasing our efficiencies at the same time."
SmartPros will host a teleconference on Wednesday, August 8, 2007, beginning at 4:15 p.m. Eastern, 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 via telephone by dialing toll free 1-800-257-3401. A replay of the call will be available on the Company's Web site approximately one hour after the live broadcast at http://ir.smartpros.com.
Consolidated Balance Sheet & Statement of Operations:
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, December 31,
2007 2006
(Unaudited) (Audited)
---------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 8,761,056 $ 7,393,789
Accounts receivable, net of
allowance for doubtful accounts
of $39,842 1,879,385 1,960,939
Prepaid expenses and other
current assets 267,986 277,393
----------- -----------
Total Current Assets 10,908,427 9,632,121
----------- -----------
Property and equipment, net 438,418 438,260
Goodwill 145,684 130,684
Other intangibles, net 2,679,420 2,651,132
Other assets, including restricted
cash of $150,000 154,673 154,673
Deferred tax asset 628,000 378,000
----------- -----------
4,046,195 3,752,749
----------- -----------
Total Assets $14,954,622 $13,384,870
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 288,972 $ 552,630
Accrued expenses 349,000 380,464
Current portion of capital lease
and equipment financing
obligations 14,119 25,991
Deferred revenue 4,650,904 4,007,074
----------- -----------
Total Current Liabilities 5,302,995 4,966,159
----------- -----------
Long-Term Liabilities:
Other liabilities 100,109 120,137
----------- -----------
Total Long-Term Liabilities 100,109 120,137
----------- -----------
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,
5,208,594 issued and 4,897,863
outstanding at June 30, 2007; and
5,186,505 issued and 4,875,774
outstanding at December 31, 2006 520 519
Additional paid-in capital 16,690,514 16,572,944
Accumulated (deficit) (6,177,118) (7,274,824)
----------- -----------
10,513,916 9,298,639
Common stock in treasury, at cost
- 310,731 shares (922,625) (922,625)
Deferred compensation (39,773) (77,440)
----------- -----------
Total Stockholders' Equity 9,551,518 8,298,574
----------- -----------
Total Liabilities and Stockholders'
Equity $14,954,622 $13,384,870
=========== ===========
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
------------------------ ------------------------
2007 2006 2007 2006
---------------------------------------------------------------------
Net Revenues $ 7,210,161 $ 5,455,472 $ 3,486,530 $ 2,921,893
Cost of Revenues 2,684,317 2,205,096 1,215,404 1,218,409
------------------------ ------------------------
Gross Profit 4,525,844 3,250,376 2,271,126 1,703,484
------------------------ ------------------------
Operating
Expenses:
Selling,
general and
administrative 3,540,640 2,834,392 1,814,459 1,466,713
Depreciation
and
amortization 327,264 316,580 161,795 168,509
------------------------ ------------------------
3,867,904 3,150,972 1,976,254 1,635,222
------------------------ ------------------------
Operating
Income 657,940 99,404 294,872 68,262
------------------------ ------------------------
Other Income
(Expense):
Interest
income 190,586 154,667 101,273 81,207
Interest
expense (819) (2,992) (218) (1,405)
------------------------ ------------------------
189,767 151,675 101,055 79,802
------------------------ ------------------------
Income before
benefit for
income taxes 847,707 251,079 395,927 148,064
Add: income tax
benefit 250,000 87,085 115,000 40,085
------------------------ ------------------------
Net Income $ 1,097,707 $ 338,164 $ 510,927 $ 188,149
=========== =========== =========== ===========
Net Income Per
Common Share:
Basic net
income per
common share $ .23 $ .07 $ .10 $ .04
=========== =========== =========== ===========
Diluted net
income per
common share $ .22 $ .07 $ .10 $ .04
=========== =========== =========== ===========
Weighted Average
Number of
Shares
Outstanding
Basic 4,876,384 5,050,641 4,876,988 5,060,274
=========== =========== =========== ===========
Diluted 4,934,757 5,067,775 4,949,568 5,077,526
=========== =========== =========== ===========
About SmartPros Ltd.
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 training, banking, engineering, legal, ethics and compliance, and information technology training services. 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 and video. 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 sites averages more than 450,000 monthly visits, serving a user base of 350,000+ profiled members. Visit: www.smartpros.com
The SmartPros logo is available at http://www.primenewswire.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.