HAWTHORNE, N.Y., Aug. 10, 2010 (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, 2010.

Financial results for the three months ended June 30, 2010, compared to 2009
  • Net revenues of $5 million, compared to $4.7 million
  • Operating income of $159,000, compared to $245,000
  • EBITDA (earnings before interest, taxes, depreciation and amortization) of $414,000, compared to $494,000
  • Net income was $86,000, or $.02 per diluted share, compared to $217,000, or $.04 per diluted share  

Financial results for the six months ended June 30, 2010, compared to 2009
  • Net revenues of $8.7 million, compared to $9.1 million
  • Operating loss of $648,000, compared to an operating income of $272,000
  • Loss before taxes, depreciation and amortization and other income (EBITDA) of $139,000, as compared to a gain of $768,000
  • Net loss of $417,000, or $.08 per diluted share, compared to net earnings of $247,000, or $.05 per diluted share
  SIX MONTHS ENDED THREE MONTHS ENDED
RECONCILIATION OF June 30 June 30
NET INCOME TO EBITDA 2010  2009  2010  2009
         
Net (loss) income  $ (416,901)  $ 246,856  $ 86,149  $ 217,341
         
Income tax (benefit) provision  (223,500)  50,486  76,500  36,486
Depreciation and amortization  510,564  497,551  256,327  250,608
Interest and dividend income, (net)  (9,478)  (27,227)  (5,144)  (10,559)
         
EBITDA  $ (139,315)  $ 767,666  $ 413,832  $ 493,876

As of June 30, 2010, the Company had approximately $4.9 million in cash and cash equivalents, $3.1 million in accounts receivable, $5.4 million in deferred revenue, stockholders' equity of $12.1 million, and no debt.

"While net revenues from our core subscription products remain stable, net revenues from our custom work continue to reflect the effects of the economy," said Allen Greene, Chairman and CEO of SmartPros. "In addition, we are seeing an industry-wide slow down in live-training attendance that effects our live training business. To address these market conditions, we continue to cut expenses and staff when appropriate. We have started to see more requests for proposals, which lead us to be cautiously optimistic about the future."

Greene continued: "SmartPros' cash position remains strong. Therefore, we continue to look for acquisitions and other growth and investment opportunities. As we previously reported, in June we made a 120-day $900,000 loan to an unrelated company at prime plus eight percent, secured by all the assets of the borrower."

"In addition, the Board has approved our third consecutive quarterly dividend of $.01 per share payable on October 11, 2010, to shareholders of record October 1, 2010," Greene said. "The Board took into consideration the seasonality of our business, and continues to feel that our strong cash position and our EBITDA performance make a dividend appropriate. While we hope to be able to continue to pay quarterly dividends, we must caution that any future dividend will be affected by our results and by any acquisitions that we might make, which is still our primary goal."

SmartPros will host a teleconference tomorrow morning, Wednesday, August 11, 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 free1-800-762-8779.
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
     
  June 30, 2010 December 31, 2009
  (Unaudited) (Audited)
ASSETS    
Current Assets:    
Cash and cash equivalents $ 4,867,436 $ 6,720,649
Accounts receivable, net of allowance for doubtful accounts of $39,051 and $39,627 at June 30, 2010, and December 31, 2009  3,053,140  2,700,111
Prepaid expenses and other current assets  301,459  260,357
Note receivable   900,000  --
Current tax benefit  230,000  --
Total Current Assets $ 9,352,035  9,681,117
     
Property and equipment, net  587,752  608,850
Goodwill  3,375,257   3,375,257
Other intangibles, net  4,106,624  4,421,749
Other assets, including restricted cash of $75,000 and $150,000, respectively   85,626  160,626
Deferred tax asset  1,250,924  1,250,924
Investment in joint venture, at cost  13,067  14,755
   9,419,250  9,832,161
Total Assets $ 18,771,285 $ 19,513,278
     
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Liabilities:    
Accounts payable $ 864,791 $ 776,059
Accrued expenses  372,193  446,929
Dividends payable  49,210  --
Deferred revenue  5,373,568  5,299,450
Total Current Liabilities  6,659,762  6,522,438
     
Other liabilities  37,911  23,187
     
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, 556 556
5,561,100 issued as of June 30, 2010 and December 31, 2009: 4,921,005 and 5,076,305 outstanding as of June 30, 2010, and December 31, 2009, respectively    
Additional paid-in capital  17,707,014  17,610,392
Accumulated (deficit)  (3,621,886)  (3,106,513)
Common stock in treasury, at cost – 640,095 and 485,795 shares at June 30, 2010 and December 31, 2009, respectively  (2,012,072)  (1,536,782)
Total Stockholders' Equity  12,073,612  12,967,653
Total Liabilities and Stockholders' Equity $ 18,771,285 $ 19,513,278
     
See Notes to Condensed Consolidated Financial Statements (Unaudited)
 
SMARTPROS LTD. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
         
  Six Months Ended June 30, Three Months Ended June 30,
         
  2010 2009 2010 2009
         
Net revenues $ 8,654,992 $ 9,085,287 $ 5,039,496 $ 4,731, 684
Cost of revenues  4,244,175  4,182,384  2,284,066  2,181,624
Gross profit  4,410,817  4,902,903  2,755,430  2,550,060
         
Operating Expenses:        
Selling, general and administrative  4,548,444  4,132,913  2,340,460  2,054,693
Depreciation and amortization  510,564  497,551  256,327  250,608
   5,059,008  4,630,464  2,596,787  2,305,301
Operating (loss) income  (648,191)  272,439  158,643  244,759
         
Other Income (Expense):        
Interest income (net)  9,478  27,227  5,144  10,559
Equity loss from joint venture  (1,688)  (2,324)  (1,138)  (1,491)
   7,790  24,903  4,006  9,068
         
(Loss) income before income tax  (640,401)  297,342  162,649  253,827
         
Benefit (provision) for income tax  223,500  (50,486) (76,500)  (36,486)
Net (loss) income $ (416,901) $ 246,856 $ 86,149 $ 217,341
         
Net (loss) income per common share:        
Basic net (loss) income per common share $ (.08) $ .05 $ .02 $ .04
         
Diluted net (loss) income per common share $ (.08) $ .05 $ .02 $ .04
         
Weighted Average Number of Shares Outstanding:        
Basic  4,984,188  5,007,912  4,924,026  5,072,913
         
Diluted  4,984,188  5,168,384 4,932,941  5,239,710
         
See Notes to Condensed Consolidated Financial Statements (Unaudited)

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 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.
CONTACT:  SmartPros Ltd.          Shane Gillispie, VP Marketing Services & eCommerce          914-829-4974          shanegillispie@smartpros.com

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