HAWTHORNE, N.Y., May 5, 2009 (GLOBE NEWSWIRE) -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today reported results for the three month period ending March 31, 2009. A conference call to discuss earnings is scheduled for Wednesday, May 6, 2009, at 8:30 a.m. ET.
For the three months ending March 31, 2009, compared to 2008:
* Net revenues increased to $4.35 million, compared to $3.88 million
* Gross profit margins increased to 54% compared to 50%
* Operating income showed a profit of $28,000 compared to a loss of
$241,000
* Earnings before interest, taxes, depreciation and amortization
(EBITDA) increased to $275,000 compared to a loss of $38,000
* Net income showed a profit of $30,000, or $0.01 per diluted share,
compared to a net loss of $121,000, or a net loss of $0.02 per
diluted share
As of March 31, 2009, the Company had approximately $6.9 million in cash and cash equivalents, $5.25 million in deferred revenue, stockholders' equity of $12.18 million and no debt.
"While SmartPros posted only a small profit, there are several factors indicative of a good performance this quarter," said Allen Greene, SmartPros Chairman and CEO. "Revenues were up, operating income was up and gross profit margins increased. Further, EBITDA numbers were very good compared to last year. Most importantly, we went from a $121,000 net loss in the first quarter of 2008 to $30,000 net income in the first quarter of 2009."
"I have many times before stressed the importance of evaluating our performance on an annual, as opposed to a quarterly, basis, particularly in light of our acquisition of Loscalzo Associates in July 2008," said Greene. "I previously noted that, historically, Loscalzo's revenues are lowest in the first quarter of the year and grow throughout the year. Operating expenses, on the other hand, are relatively consistent from quarter to quarter, and cost of revenues fluctuates directly in relation to revenues. As a result, Loscalzo historically shows a significant operating loss in the first quarter of each year and usually shows increasing profitability each quarter thereafter as the year progresses. On a standalone basis, in the first quarter of 2009, Loscalzo generated only $104,000 of net revenues and had significant expenses."
Green continued, "In spite of Loscalzo's loss, we showed both an operating profit and a net profit. We remain cautiously optimistic that we can continue to effectively manage our business and maintain growth and profitability, especially in the face of the current economic climate."
SmartPros will host a teleconference tomorrow morning, Wednesday, March 6, beginning at 8:30 a.m. ET, 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 by dialing 1-877-941-6009. A replay of the call will be available on the company's Web site 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, 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 Web sites averages more than 450,000 monthly visits, serving a user base of more than 350,000 profiled members. Visit: www.smartpros.com
The SmartPros logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2586
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, December 31,
2009 2008
(Unaudited) (Audited)
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 6,942,433 $ 6,626,181
Accounts receivable, net of allowance for
doubtful accounts of $39,627 at
March 31, 2009 and $39,677 at
December 31, 2008 2,269,897 3,114,139
Prepaid expenses and other current assets 226,378 249,281
----------- -----------
Total Current Assets 9,438,708 9,989,601
----------- -----------
Property and equipment, net: 604,746 607,988
Goodwill 3,375,257 3,394,329
Other intangibles, net 4,434,468 4,500,639
Other assets, including restricted cash
of $150,000 160,626 155,613
Deferred tax asset 1,091,923 1,103,923
Investment in joint venture, at cost 23,057 23,890
----------- -----------
9,690,077 9,786,382
----------- -----------
Total Assets $19,128,785 $19,775,983
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 490,588 $ 779,870
Accrued expenses 1,195,963 1,294,042
Deferred revenue 5,250,189 5,576,607
----------- -----------
Total Current Liabilities 6,936,740 7,650,519
----------- -----------
Long-Term Liabilities:
Other liabilities 7,415 --
----------- -----------
Total Long-Term Liabilities 7,415 --
----------- -----------
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, 5,478,275 issued and
4,995,526 outstanding at March 31, 2009;
and 5,324,316 issued and 4,841,567
outstanding at December 31, 2008 548 532
Additional paid-in capital 17,185,486 17,155,851
Accumulated (deficit) (3,475,681) (3,505,196)
Common stock in treasury, at cost -
482,749 shares (1,525,723) (1,525,723)
----------- -----------
Total Stockholders' Equity 12,184,630 12,125,464
----------- -----------
Total Liabilities and Stockholders' Equity $19,128,785 $19,775,983
=========== ===========
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
March 31,
------------------------
2009 2008
------------------------------------------- ----------- -----------
Net revenues $ 4,353,603 $ 3,875,663
Cost of revenues 2,000,760 1,924,773
----------- -----------
Gross profit 2,352,843 1,950,890
----------- -----------
Operating Expenses:
Selling, general and administrative 2,078,220 1,989,060
Depreciation and amortization 246,943 202,888
----------- -----------
2,325,163 2,191,948
----------- -----------
Operating income (loss) 27,680 (241,058)
----------- -----------
Other Income (Expense):
Interest income (net) 16,668 120,025
Loss from joint venture (833) --
----------- -----------
15,835 120,025
----------- -----------
Income (loss) before provision for income
taxes 43,515 (121,033)
Less: provision for income tax 14,000 --
----------- -----------
Net income (loss) $ 29,515 $ (121,033)
=========== ===========
Net (loss) income per common share:
Basic net income (loss) per common share $ .01 $ (.02)
=========== ===========
Diluted net income (loss) per common share $ .01 $ (.02)
=========== ===========
Weighted Average Number of Shares
Outstanding:
Basic 4,942,198 4,993,896
=========== ===========
Diluted 4,951,389 4,993,896
=========== ===========
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," "anticipates," "anticipate," "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.