HAWTHORNE, N.Y., Nov. 7, 2013 (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 nine months ended September 30, 2013.
Financial results for the three months ended September 30, 2013, compared to 2012
- Net revenues of $3.8 million, compared to $3.6 million,
- Positive operating income, compared to an operating loss of $309,000
- Net income of $9,000, compared to a net loss of $362,000, or $.08 per share
Financial results for the nine months ended September 30, 2013, compared to 2012
- Net revenues of $11.5 million, compared to $10.8 million
- Operating loss of $471,000, compared to an operating loss of $1.1 million
- Net loss of $279,000, or $.06 per share, compared to a net loss of $861,000, or $.18 per share
| NINE MONTHS ENDED | THREE MONTHS ENDED | |||
| RECONCILIATION OF NET INCOME TO EBITDA | SEPTEMBER 30, | SEPTEMBER 30, | ||
| 2013 | 2012 | 2013 | 2012 | |
| Net (loss) income | $(279,102) | $(861,123) | $9,072 | $(361,728) |
| Income tax (benefit) provision | (178,007) | (193,761) | (1,035) | 59,592 |
| Depreciation and amortization | 855,133 | 821,844 | 310,845 | 277,498 |
| Interest and dividend income, (net) | (19,486) | (20,792) | (8,008) | (6,750) |
| EBITDA | $378,538 | $(253,832) | $310,874 | $(31,388) |
As of September 30, 2013, the Company had approximately $5.1 million in cash and cash equivalents, $2 million in accounts receivable, $4.8 million in deferred revenue, stockholders' equity of $9.3 million, and no debt.
"For the three-month period, SmartPros is pleased to report a five percent increase in net revenue, a return to positive operating income, and recorded a small, but positive income for the third quarter, compared to an $.08 per share loss in the comparable 2012 period," said Allen Greene, Chairman and CEO of SmartPros. "In addition, net revenues for the nine months increased six percent, and we reduced our operating loss for our year-to-date by 56 percent. We have some momentum as we enter what is historically our strongest quarter with only a $.06 per share loss, as compared to the $.18 per share loss we faced this time last year. We accomplished this by keeping diligent about our expenses, while at the same time being able to increase revenues. Our management team will continue to explore new strategies, products and services, and develop new technologies with an eye towards managing our costs."
Greene continued: "The Board has declared a $.015 dividend per common share payable on January 6, 2014, to shareholders of record on December 19, 2013. This marks our 16th consecutive quarterly dividend. Our balance sheet and cash position remain strong. While we hope to continue to make quarterly dividends, we must continue to caution that any future dividend will be affected by our results and by our ongoing requirement for cash to make acquisitions. In addition, the Board has also renewed our $750,000 stock buyback plan for another year."
As per our year-end earnings announcement, SmartPros is no longer scheduling quarterly earnings conference calls, but does encourage shareholders and other interested parties to contact the Company with any specific questions relating to the Company's public filings. Investor-related questions can be addressed by calling 914-829-4974, or by visiting SmartPros' Investor Relations site at http://ir.smartpros.com.
| SMARTPROS LTD. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
| September 30, | December 31, | |
| 2013 | 2012 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 5,134,976 | $ 4,918,543 |
| Certificates of deposit | -- | 500,000 |
| Accounts receivable, net of allowance for doubtful accounts of approximately $20,000 at September 30, 2013, and December 31, 2012, respectively | 1,972,836 | 2,612,709 |
| Prepaid expenses and other current assets | 517,112 | 331,493 |
| Current income tax benefit | 190,000 | -- |
| Total Current Assets | 7,814,924 | 8,362,745 |
| Property and equipment, net | 551,204 | 547,448 |
| Goodwill | 2,807,257 | 2,807,257 |
| Other intangibles, net | 3,460,114 | 3,530,744 |
| Other assets, including restricted cash of $75,000 | 104,515 | 104,515 |
| Deferred tax asset | 600,000 | 600,000 |
| Investment in joint venture | 641 | 3,245 |
| 7,523,731 | 7,593,209 | |
| Total Assets | $ 15,338,655 | $ 15,955,954 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 808,559 | $ 706,948 |
| Accrued expenses | 237,717 | 272,921 |
| Dividend payable | 70,289 | 58,936 |
| Deferred revenue | 4,843,286 | 5,006,496 |
| Total Current Liabilities | 5,959,851 | 6,045,301 |
| Other liabilities | 59,296 | 63,598 |
| 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, 5,666,933 shares and 5,622,433 shares issued as of September 30, 2013, and December 31, 2012, respectively; and 4,685,941 shares and 4,714,914 shares outstanding as of September 30, 2013, and December 31, 2012, respectively | 567 | 563 |
| Additional paid-in capital | 17,260,918 | 17,393,260 |
| Accumulated deficit | (5,256,245) | (4,977,143) |
| Common stock in treasury, at cost – 980,992 and 907,519 shares at September 30, 2013, and December 31, 2012, respectively | (2,685,732) | (2,569,625) |
| Total Stockholders' Equity | 9,319,508 | 9,847,055 |
| Total Liabilities and Stockholders' Equity | $ 15,338,655 | $ 15,955,954 |
| SMARTPROS LTD. AND SUBSIDIARIES | ||||
| Condensed Consolidated Statements of | ||||
| Operations (Unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| September 30, | September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Net revenues | $ 3,756,349 | $ 3,578,399 | $ 11,506,704 | $ 10,829,467 |
| Cost of revenues | 1,608,687 | 1,595,813 | 5,095,594 | 4,889,031 |
| Gross profit | 2,147,662 | 1,982,586 | 6,411,110 | 5,940,436 |
| Operating Expenses: | ||||
| Selling, general and administrative | 1,836,413 | 2,013,599 | 6,026,968 | 6,188,018 |
| Depreciation and amortization | 310,845 | 277,498 | 855,133 | 821,844 |
| 2,147,258 | 2,291,097 | 6,882,101 | 7,009,862 | |
| Operating income (loss) | 404 | (308,511) | (470,991) | (1,069,426) |
| Other Income (Expense): | ||||
| Interest income (net) | 8,008 | 6,750 | 19,486 | 20,792 |
| Equity loss from joint venture | (375) | (375) | (5,604) | (6,250) |
| 7,633 | 6,375 | 13,882 | 14,542 | |
| Income (loss) before income tax | 8,037 | (302,136) | (457,109) | (1,054,884) |
| Benefit (provision) for income taxes | 1,035 | (59,592) | 178,007 | 193,761 |
| Net income (loss) | $ 9,072 | $(361,728) | $(279,102) | $(861,123) |
| Net income (loss) per common share: | ||||
| Basic net income (loss) per common share | $-- | $(0.08) | $(0.06) | $(0.18) |
| Diluted net income (loss) per common share | $-- | $(0.08) | $(0.06) | $(0.18) |
| Weighted Average Number of Shares Outstanding: | ||||
| Basic | 4,683,821 | 4,715,585 | 4,695,557 | 4,759,877 |
| Diluted | 4,689,589 | 4,715,585 | 4,695,557 | 4,759,877 |
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 1 million monthly visits, serving a user base of more than 1.5 million profiled members. Visit: www.smartpros.com
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.