HAWTHORNE, N.Y., May 9, 2007 (PRIME NEWSWIRE) -- SmartPros Ltd. (AMEX:PED), a leader in the field of accredited professional education and corporate training, today reported its first quarter financial results for the three months ended March 31, 2007.
Financial highlights for the three months ended March 31, 2007, compared to the three months ended March 31, 2006:
* Revenues were $3.72 million, representing a 47% increase over revenues of $2.53 million. * Net income was $586,780, representing a 291% increase over net income of $150,015. This marked our twelfth consecutive quarter of profitability for SmartPros, and our tenth quarter since going public in 2004. * Gross profit margin remained fairly stable at 60.6%, down slightly from 61.1%. * Operating income increased to $363,086, up from $31,142. * Earnings per share for the quarter were $.12 per share, basic and diluted, compared to $.03. * Sales of our core subscription-based products grew approximately 16% to $2.03 million, up from $1.75 million. * Online sales rose 29% to $883,000 from $687,000.
As of March 31, 2007, we had approximately $7.8 million in cash and cash equivalents, working capital of $5.1 million and stockholders' equity of approximately $8.9 million.
During the first quarter of 2007, SmartPros worked on several improvements that we hope will further our progress:
* Completed the acquisition of The Selbst Group Inc., a specialized consulting firm providing sales, sales management training, product training and marketing support programs for the financial services industry. Selbst Group programs are now available through SmartPros new Financial Services Training division, which also features our recently integrated banking training course catalogs. * Successfully launched the new SmartPros Legal division through the integration of 160+ continuing legal education courses from the Cognistar online CLE library into the Professional Education Center, SmartPros' proprietary Learning Management System. * Began the formal development process on the next generation SmartPros(r) Professional Education Center(tm), which will include a variety of upgrades and enhancements offering SmartPros' clients and partners even more flexibility and control of their learning environment. * Launched a new homepage to highlight and cross-market product lines from recent acquisitions.
Allen Greene, Chairman and Chief Executive Officer of SmartPros, stated, "We are pleased that we were able to carry momentum built in the fourth quarter of last year into the first quarter of this year. While we hope to continue this trend, we are always cautious when looking at growth in any one particular quarter. It is important to remember that certain aspects of our business are consultative in nature, and the revenue recognition principles for those projects will cause variations in our earnings from quarter to quarter. As I've stated before, our company is best viewed on an annual basis. That said, we are very proud of this past quarter and believe it shows that our growth strategies appear to be working-something we hope we can continue."
SmartPros will host a teleconference on Wednesday, May 9, 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 1-800-218-9073. 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.
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, and ethics and compliance. 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 2,000+ 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 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.primezone.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.
SMARTPROS LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET
March 31, December 31,
2007 2006
(Unaudited) (Audited)
--------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 7,830,357 $ 7,393,789
Accounts receivable, net
of allowance for doubtful
accounts of $39,842 2,149,002 1,960,939
Prepaid expenses and other
current assets 353,560 277,393
------------ ------------
Total Current Assets 10,332,919 9,632,121
------------ ------------
Property and equipment, net 445,439 438,260
Goodwill 145,684 130,684
Other intangibles, net 2,678,311 2,651,132
Other assets, including
restricted cash of $150,000 154,673 154,673
Deferred tax asset 513,000 378,000
------------ ------------
3,937,107 3,752,749
------------ ------------
Total Assets $ 14,270,026 $ 13,384,870
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable $ 403,380 $ 552,630
Accrued expenses 226,916 380,464
Current portion of capital
lease and equipment
financing obligations 19,085 25,991
Deferred revenue 4,600,113 4,007,074
------------ ------------
Total Current Liabilities 5,249,494 4,966,159
------------ ------------
Long-Term Liabilities:
Other liabilities 110,123 120,137
------------ ------------
Total Long-Term Liabilities 110,123 120,137
------------ ------------
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,
5,186,505 issued and
4,875,774 outstanding
at March 31, 2007
and December 31, 2006 519 519
Additional paid-in capital 16,581,944 16,572,944
Accumulated (deficit) (6,688,045) (7,274,824)
------------ ------------
9,894,418 9,298,639
Common stock in treasury,
at cost - 310,731 shares (922,625) (922,625)
Deferred compensation (61,384) (77,440)
------------ ------------
Total Stockholders' Equity 8,910,409 8,298,574
------------ ------------
Total Liabilities and
Stockholders' Equity $ 14,270,026 $ 13,384,870
============ ============
SMARTPROS LTD. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATION
Three Months Ended
March 31,
--------------------------
2007 2006
(Unaudited) (Audited)
--------------------------------- --------------------------
Net Revenues $ 3,723,631 $ 2,533,579
Cost of Revenues 1,468,913 986,687
----------- -----------
Gross Profit 2,254,718 1,546,892
----------- -----------
Operating Expenses:
Selling, general
and administrative 1,726,181 1,367,679
Depreciation and
amortization 165,469 148,071
----------- -----------
1,891,650 1,515,750
----------- -----------
Operating Income 363,068 31,142
----------- -----------
Other Income (Expense):
Interest income 89,313 73,460
Interest expense (601) (1,587)
----------- -----------
88,712 71,873
----------- -----------
Income before benefit
for income taxes 451,780 103,015
Add: income tax benefit 135,000 47,000
----------- -----------
Net Income $ 586,780 $ 150,015
=========== ===========
Net Income Per Common Share:
Basic net income
per common share $ .12 $ .03
=========== ===========
Diluted net income
per common share $ .12 $ .03
=========== ===========
Weighted Average Number
of Shares Outstanding
Basic 4,875,774 5,040,900
=========== ===========
Diluted 4,919,940 5,057,916
=========== ===========