Company Extends $750,000 Share Buy-back Program
HAWTHORNE, N.Y., Nov. 7, 2007 (PRIME NEWSWIRE) -- SmartPros Ltd. (AMEX:PED), 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, 2007. A conference call to discuss earnings is scheduled for Wednesday November 7, at 4:15 PM ET.
Highlights for the three months ended September 30, 2007, compared to the three months ended September 30, 2006:
* Net revenues increased 17% to $3.7 million, up from $3.2 million * Gross profit margin improved, rising to 64% from 57% * Operating income increased 122% to $447,000 from $201,000 * Net income rose 135% to $776,000, or $0.15 per diluted share, from $330,000, or $0.07 per diluted share * Online sales grew 12%
Highlights for the nine months ended September 30, 2007, compared to the nine months ended September 30, 2006:
* Net revenues increased 26% to $10.9 million from $8.6 million * Gross profit margin improved, rising to 63% from 59% * Operating income increased 268% to $1.1 million from $301,000 * Net income increased 180% to $1.9 million, or $0.37 per diluted share, from $669,000, or $0.13 per diluted share * Operations generated $1.9 million of cash
SmartPros has achieved 14 consecutive profitable quarters, including all quarters since going public in 2004. As of September 30, 2007, the Company has $9.3 million in cash and cash equivalents; $5 million in deferred revenue; $2 million in accounts receivable; $5.7 million in working capital; $0 debt; and $10.5 million in total stockholders' equity.
"SmartPros remains focused on continued growth in our core areas and in maximizing opportunities presented to us through several recent acquisitions," stated Allen Greene, Chairman and CEO of SmartPros. "Today's results are reflective of our employees' efforts to assimilate recent acquisitions, and are a continued statement that our strategies are on target."
The Company's Board of Directors today also authorized the extension of the expiring $750,000 share buy-back program for an additional year.
"I'm very pleased to announce that our directors have determined that it is in the best interest of our Company and our stockholders to extend the $750,000 buy back of SmartPros common stock in the open market or through private purchases," concluded 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 on Wednesday, November 7, 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 1-800-218-0204. 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
September 30, December 31,
2007 2006
(Unaudited) (Audited)
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 9,283,346 $ 7,393,789
Accounts receivable, net of allowance
for doubtful accounts of $39,800 2,006,399 1,960,939
Prepaid expenses and other current
assets 232,976 277,393
------------ ------------
Total Current Assets 11,522,721 9,632,121
------------ ------------
Property and equipment, net 529,597 438,260
Goodwill 145,684 130,684
Other intangibles, net 3,214,632 2,651,132
Other assets, including restricted cash of
$ 150,000 154,673 154,673
Deferred tax asset 853,000 378,000
------------ ------------
4,897,586 3,752,749
------------ ------------
Total Assets $ 16,420,307 $ 13,384,870
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 356,215 $ 552,630
Accrued expenses 487,013 380,464
Current portion of capital lease and
equipment financing obligations -- 25,991
Deferred revenue 4,996,611 4,007,074
------------ ------------
Total Current Liabilities 5,839,839 4,966,159
------------ ------------
Long-Term Liabilities:
Other liabilities 90,095 120,137
------------ ------------
Total Long-Term Liabilities 90,095 120,137
------------ ------------
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, 5,322,759
issued and 5,012,018 outstanding at
September 30, 2007; and 5,186,505 issued
and 4,875,774 outstanding at December
31, 2006 532 519
Additional paid-in capital 17,031,151 16,572,944
Accumulated (deficit) (5,401,563) (7,274,824)
------------ ------------
11,630,120 9,298,639
Common stock in treasury, at cost -
310,731 shares (922,625) (922,625)
Deferred compensation (217,122) (77,440)
------------ ------------
Total Stockholders' Equity 10,490,373 8,298,574
------------ ------------
Total Liabilities and Stockholders'
Equity $ 16,420,307 $ 13,384,870
============ ============
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------ ------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Net Revenues $10,907,885 $ 8,630,243 $ 3,697,724 $ 3,174,771
Cost of Revenues 4,009,938 3,584,891 1,325,621 1,379,795
----------- ----------- ----------- -----------
Gross Profit 6,897,947 5,045,352 2,372,103 1,794,976
----------- ----------- ----------- -----------
Operating
Expenses:
Selling, general
and
administrative 5,287,878 4,263,962 1,747,238 1,429,570
Depreciation and
amortization 505,021 480,792 177,757 164,212
----------- ----------- ----------- -----------
5,792,899 4,744,754 1,924,995 1,593,782
----------- ----------- ----------- -----------
Operating Income 1,105,048 300,598 447,108 201,194
----------- ----------- ----------- -----------
Other Income
(Expense):
Interest income 303,414 239,290 112,828 84,623
Interest expense (992) (3,604) (173) (612)
----------- ----------- ----------- -----------
302,422 235,686 112,655 84,011
----------- ----------- ----------- -----------
Income before
benefit for
income taxes 1,407,470 536,284 559,763 285,205
Add: income tax
benefit 465,792 132,250 215,792 45,165
----------- ----------- ----------- -----------
Net Income $ 1,873,262 $ 668,534 $ 775,555 $ 330,370
=========== =========== =========== ===========
Net Income Per
Common Share:
Basic net income
per common share $ 0.38 $ 0.13 $ 0.16 $ 0.07
=========== =========== =========== ===========
Diluted net
income per
common share $ 0.37 $ 0.13 $ 0.15 $ 0.07
=========== =========== =========== ===========
Weighted Average
Number of Shares
Outstanding
Basic 4,916,823 5,039,462 4,954,854 5,017,470
=========== =========== =========== ===========
Diluted 5,009,132 5,054,587 5,114,285 5,028,578
=========== =========== =========== ===========
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, 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 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.