HAWTHORNE, N.Y., Nov. 10, 2009 (GLOBE NEWSWIRE) -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today announced its third quarter financial results for the three and nine months ended September 30, 2009. A conference call to discuss earnings is scheduled for Wednesday, November 11, at 8:30 a.m. Eastern.
For the three months ended September 30, 2009, and 2008:
* Net revenues decreased to $4.4 million from $4.6 million
* Operating loss of $261,000 compared to a profit of $549,000
* EBITDA (earnings before interest, taxes, depreciation and
amortization) was $19,000 compared to $761,000
* Net loss of $181,000, or a loss of $.04 per share, compared to a
profit of $727,000, or $0.15 per basic and diluted share
For the nine months ended September 30, 2009, and 2008:
* Net revenues increased to $13.4 million from $12.6 million
* Operating income decreased to $12,000 from $474,000
* EBITDA was $789,000 compared to $1.1 million
* Net income was $66,000, or $.01 per share, compared to $836,000,
or $0.17 per basic and diluted share
As of September 30, 2009, the Company had approximately $6.5 million in cash and cash equivalents, $2.5 million in accounts receivable, $5.6 million in deferred revenue, stockholders' equity of $12.5 million and no debt.
"Over the third quarter, the company experienced what I refer to as 'the perfect storm,' in that many different aspects of our seasonal business trends unexpectedly collided with the downturn in the economy," said Allen Greene, SmartPros Chairman and CEO. "While we previously gave guidance that our third quarter may be affected by the timing of expenses and revenues associated with the EEI acquisition, we also experienced our first relevant effects of the economic downturn. While our core subscription business remained stable, we were hardest hit in certain consultative areas of the company where clients either postponed or canceled projects that would have resulted in more immediately earned revenue. Other areas of our company, like our engineering division, also saw a slow down of sales due to cutbacks and budgetary restraints in both the private and governmental sectors. Lastly, we saw a slowdown in live-event enrollments and in-firm training opportunities."
Greene continued: "We believe that as the economy improves and stimulus funds trickle down to our clients, business will improve in these areas. At the same time we are committed to ensuring that overhead appropriately keeps pace with revenue goals. We continue to look at acquisition candidates, and look forward to launching several new initiatives in upcoming quarters. Further, we believe that EEI is a great fit for us and will contribute positively to earnings in fiscal 2010. 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 even greater fluctuations in quarterly results."
The Company's Board of Directors today also authorized the extension of the expiring $750,000 share buy-back program for an additional year.
"Our Directors continue to believe it is in the best interest of our Company and shareholders to extend the $750,000 buy-back of SmartPros common stock in the open market or through private purchases," said Greene.
The timing and exact number of shares purchased will be determined at the Company's discretion and will depend on market conditions. All repurchases will be in the open market or in private transactions and will be funded from existing cash. The share buy-back program will begin immediately and will be completed or cancelled within 12 months.
SmartPros will host a teleconference tomorrow morning, Wednesday, November 11, beginning at 8:30 a.m. 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 1-877-941-2332.
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30, December 31,
2009 2008
(Unaudited) (Audited)
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 6,480,537 $ 6,626,181
Accounts receivable, net of
allowance for doubtful accounts
of $39,627 at September 30, 2009
and $39,677 at December 31, 2008 2,481,718 3,114,139
Prepaid expenses and other current
assets 491,851 249,281
------------- -------------
Total Current Assets 9,454,106 9,989,601
------------- -------------
Property and equipment, net 584,275 607,988
Goodwill 3,375,257 3,394,329
Other intangibles, net 4,492,718 4,500,639
Other assets, including restricted
cash of $75,000 160,626 155,613
Deferred tax asset 1,250,924 1,103,923
Investment in joint venture, at cost 15,331 23,890
------------- -------------
9,879,131 9,786,382
------------- -------------
Total Assets $ 19,333,237 $ 19,775,983
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 832,456 $ 779,870
Accrued expenses 276,189 1,294,042
Deferred revenue 5,615,952 5,576,607
------------- -------------
Total Current Liabilities 6,724,597 7,650,519
------------- -------------
Other liabilities 22,139 --
------------- -------------
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 September 30, 2009;
and 5,324,316 issued and 4,841,567
outstanding at December 31, 2008 556 532
Additional paid-in capital 17,551,140 17,155,851
Accumulated (deficit) (3,439,472) (3,505,196)
Common stock in treasury, at cost -
482,749 shares (1,525,723) (1,525,723)
------------- -------------
Total Stockholders' Equity 12,586,501 12,125,464
------------- -------------
Total Liabilities and Stockholders'
Equity $ 19,333,237 $ 19,775,983
============= =============
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------------------------------------
2009 2008 2009 2008
--------------------------------------------------
Net revenues $13,439,072 $12,579,448 $ 4,353,785 $ 4,641,915
Cost of revenues 6,314,008 5,557,525 2,131,624 2,001,564
----------- ------------------------ -----------
Gross profit 7,125,064 7,021,923 2,222,161 2,640,351
----------- ------------------------ -----------
Operating Expenses
Selling, general
and adminis-
trative 6,336,450 5,929,489 2,203,537 1,879,322
Depreciation and
amortization 776,693 618,049 279,142 212,199
----------- ------------------------ -----------
7,113,143 6,547,538 2,482,679 2,091,521
----------- ------------------------ -----------
Operating income
(loss) 11,921 474,385 (260,518) 548,830
----------- ------------------------ -----------
Other Income
(Expense):
Interest income
(net) 31,695 194,817 4,468 46,224
Loss from joint
venture (8,559) -- (6,235) --
----------- ------------------------ -----------
23,136 194,817 (1,767) 46,224
----------- ------------------------ -----------
Income (loss)
before benefit
for income tax 35,057 669,202 (262,285) 595,054
Benefit for income 30,667 166,515 81,153 131,515
----------- ------------------------ -----------
Net income (loss) $ 65,724 $ 835,717 $ (181,132) $ 726,569
=========== ======================== ===========
Net income (loss)
per common share:
Basic net income
(loss) per
common share $ .01 $ .17 $ (.04) $ .15
=========== ======================== ===========
Diluted net
income (loss)
per common share$ .01 $ .17 $ (.04) $ .15
=========== ======================== ===========
Weighted Average
Number of Shares
Outstanding:
Basic 5,031,484 4,956,732 5,079,351 4,920,755
=========== ======================== ===========
Diluted 5,054,075 4,995,932 5,079,351 4,949,992
=========== ======================== ===========
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.