HAWTHORNE, N.Y., Aug. 9, 2011 (GLOBE NEWSWIRE) -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today announced its financial results for the three and six months ended June 30, 2011. A conference call to discuss earnings is scheduled for Wednesday, August 10, 2011, at 8:30 a.m. ET.
Financial results for the three months ended June 30, 2011, compared to 2010
- Net revenues of $5.1 million, compared to $5 million
- Operating income of $495,000, compared to $159,000
- Net income of $317,000, or $.06 per diluted share, compared to $86,000, or $.02 per diluted share
Financial results for the six months ended June 30, 2011, compared to 2010
- Net revenues of $8.2 million, compared to $8.7 million
- Operating loss of $173,000, compared to an operating loss of $648,000
- Earnings before taxes, depreciation and amortization and other income (EBITDA) of $393,000, as compared to a negative EBITDA of $139,000
- Net loss of $113,000, or $.02 per diluted share, compared to a net loss of $417,000, or $.08 per diluted share
| SIX MONTHS ENDED | ||
| RECONCILIATION OF | June 30 | |
| NET INCOME TO EBITDA | 2011 | 2010 |
| Net (loss) | $ (112,825) | $ (416,901) |
| Income tax (benefit) | (65,000) | (223,500) |
| Depreciation and amortization | 575,510 | 510,564 |
| Interest and dividend income, (net) | (4,726) | (9,478) |
| EBITDA | $ 392,959 | $ (139,315) |
As of June 30, 2011, the Company had approximately $6.7 million in cash and cash equivalents, $2.1 million in accounts receivable, $5.3 million in deferred revenue, stockholders' equity of $12 million, and no debt.
"Although revenues remain flat, we had a much stronger quarter, and have greatly narrowed our six-month losses," said Allen Greene, Chairman and CEO of SmartPros. "Profits were up considerably for the quarter as a direct result of our focus on managing expenses. At some point we will most likely need to invest more money in our sales infrastructure and outbound marketing budgets to drive top-line revenue. We also continue to seek synergistic acquisition opportunities that can further drive revenues and profits. We again recommend that investors evaluate SmartPros on an annual, rather than a quarterly, basis, as timing differences in the placement of orders from customers, our product mix and the seasonality of our business balances itself out over the course of the year."
Greene continued: "The board has declared a $.0125 dividend per common share payable on October 5, 2011, to shareholders of record on September 16, 2011. This marks our seventh consecutive quarterly dividend. Our balance sheet and cash position remain strong. 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 continues to be our primary goal."
SmartPros will host a teleconference tomorrow morning, Wednesday, August 10, beginning at 8:30 AM 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 free1-888-549-7750.
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
| June 30, | December 31, | |
| 2011 | 2010 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 6,687,943 | $ 7,007,541 |
|
Accounts receivable, net of allowance for doubtful accounts of approximately $39,000 at June 30, 2011, and December 31, 2010, respectively |
2,053,189 | 2,149,067 |
| Prepaid expenses and other current assets | 287,145 | 391,136 |
| Current tax benefit | 80,000 | — |
| Total Current Assets | 9,108,277 | 9,547,744 |
| Property and equipment, net | 685,765 | 717,428 |
| Goodwill | 3,375,257 | 3,375,257 |
| Other intangibles, net | 3,915,015 | 3,891,858 |
| Other assets, including restricted cash of $75,000 | 93,905 | 85,626 |
| Deferred tax asset | 1,290,000 | 1,290,000 |
| Investment in joint venture, at cost | 4,692 | 3,867 |
| 9,364,634 | 9,364,036 | |
| Total Assets | $ 18,472,911 | $ 18,911,780 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 713,273 | $ 722,683 |
| Dividends payable | 61,496 | -- |
| Accrued expenses | 278,940 | 391,626 |
| Deferred revenue | 5,336,385 | 5,514,388 |
| Total Current Liabilities | 6,390,094 | 6,628,697 |
| Other liabilities | 39,777 | 32,901 |
| 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, 5,616,933 and 5,561,100 shares issued as of June 30, 2011 and December 31, 2010 respectively; and 4,915,759 and 4,873,826 shares outstanding as of June 30, 2011, and December 31, 2010, respectively |
562 | 556 |
| Additional paid-in capital | 17,546,079 | 17,607,921 |
| Accumulated (deficit) | (3,348,629) | (3,235,805) |
|
Common stock in treasury, at cost – 701,174 and 687,274 shares at June 30, 2011, and December 31, 2010, respectively |
(2,154,972) | (2,122,490) |
| Total Stockholders' Equity | 12,043,040 | 12,250,182 |
| Total Liabilities and Stockholders' Equity | $ 18,472,911 | $ 18,911,780 |
| SMARTPROS LTD. AND SUBSIDIARIES | ||||
| Condensed Consolidated Statements of | ||||
| Operations (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Net revenues | $ 5,120,023 | $ 5,039,496 | $ 8,174,619 | $ 8,654,992 |
| Cost of revenues | 2,104,947 | 2,284,066 | 3,457,705 | 4,244,175 |
| Gross profit | 3,015,076 | 2,755,430 | 4,716,914 | 4,410,817 |
| Operating Expenses: | ||||
| Selling, general and administrative | 2,202,222 | 2,340,460 | 4,314,780 | 4,548,444 |
| Depreciation and amortization | 317,938 | 256,327 | 575,510 | 510,564 |
| 2,520,160 | 2,596,787 | 4,890,290 | 5,059,008 | |
| Operating income (loss) | 494,916 | 158,643 | (173,376) | (648,191) |
| Other Income (Expense): | ||||
| Interest income (net) | 1,947 | 5,144 | 4,726 | 9,478 |
| Equity loss from joint venture | (5,300) | (1,138) | (9,175) | (1,688) |
| (3,353) | 4,006 | (4,449) | 7,790 | |
| Income (loss) before income tax | 491,563 | 162,649 | (177,825) | (640,401) |
| (Provision) benefit from income tax | (175,000) | (76,500) | 65,000 | 223,500 |
| Net Income (loss) | $ 316,563 | $ 86,149 | $ (112,825) | $ (416,901) |
| Net Income (loss) per common share: | ||||
| Basic net income (loss) per common share | $ 0.06 | $ 0.02 | $ (0.02) | $ (0.08) |
| Diluted net income (loss) per common share | $ 0.06 | $ 0.02 | $ (0.02) | $ (0.08) |
| Weighted Average Number of Shares Outstanding: | ||||
| Basic | 4,918,228 | 4,924,026 | 4,898,518 | 4,984,188 |
| Diluted | 4,918,228 | 4,932,941 | 4,898,518 | 4,984,188 |
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 online, on-demand, Webinar, CD-ROM, and live seminars and events. Our subscription libraries feature over a 1,000+ course titles and thousands-of-hours of accredited education. SmartPros' proprietary eCampus™ 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.