Attached files
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| 8-K - SmartPros Ltd. | c64688_8k.htm |
Exhibit 99.1
SmartPros Releases Year-end 2010 Financial Results
Dividend Increased 25%
Annual Meeting Set for June 23, 2011
FOR IMMEDIATE RELEASE — HAWTHORNE, N.Y. — March 10, 2011 — SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today reported results for the fiscal year ending December 31, 2010. A conference call to discuss earnings is scheduled for Friday, March 11, at 8:30 a.m. ET.
For the year ending December 31, 2010, compared to 2009:
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Net revenue of $17.62 million, compared to $19.27 million |
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Operating loss of $146,000, compared to operating income of $381,000 |
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Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $961,000, compared to $1.42 million |
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Net loss of $129,000 or $0.03 per share, compared net income of $399,000, or $0.08 per diluted share |
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RECONCILIATION OF NET INCOME TO EBITDA |
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DECEMBER 31, |
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2010 |
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2009 |
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Net (loss) income |
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$ |
(129,292 |
) |
$ |
398,683 |
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Income tax provision |
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19,509 |
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7,408 |
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Depreciation and amortization |
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1,127,439 |
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1,052,151 |
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Interest and dividend income, (net) |
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(57,037 |
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(33,768 |
) |
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EBITDA |
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$ |
960,619 |
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$ |
1,424,474 |
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As of December 31, 2010, the Company had approximately $7.0 million in cash and cash equivalents, $5.5 million in deferred revenue, stockholders’ equity of $12.3 million, and no debt.
“Although we are not happy with our full-year results, we feel we closed the year strong and made good progress from where we stood at the end of the third quarter,” said Allen Greene, Chairman and CEO of SmartPros. “Although revenue was down considerably for the year, we still generated close to $1 million in EBITDA through expense management. When you take a closer look at our revenue breakdown you’ll see overall revenues are off from last year primarily due to the consultative areas of our business. Our Skye Multimedia division, which had an outstanding year in 2009, generated only $1.08 million in revenue in 2010 year as compared to $2.87 million in 2009.”
Greene continued: “However, we feel our continuing positive EBITDA performance and cash growth show that we are in a strong position when the economy turns. Our business lags the economy’s performance as we didn’t feel the effects of the economic downturn until about a year after it was affecting other companies. As a result we believe our business may similarly lag the recovery. As is typical, we will continue to have quarterly seasonality due to the nature of our business.”
“In addition, based on our strong cash position and EBITDA results for 2010, the Board has declared another quarterly dividend, increasing it by 25% to $.0125 per share payable on April 4, 2011, to shareholders of record on March 24, 2011. While we hope to continue to make quarterly dividends, we must caution that any future dividend will be affected by our results and by our ongoing requirement for cash to make acquisitions, which continues to be our primary goal.”
Further, the Board has set April 25, 2011, as the record date for its next Annual Meeting of Stockholders, which will be held at the Comfort Inn in Hawthorne, N.Y., on June 23, 2011, at 11:00 a.m. ET.
SmartPros will host a teleconference tomorrow morning, Friday, March 11, 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 via telephone by dialing 1-877-941-2332. A replay of the call will be available on the company’s Web site at http://ir.smartpros.com.
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
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.
For More Information, Please Contact:
SmartPros Ltd.
Shane Gillispie
VP Marketing Services & eCommerce
914-829-4974
shanegillispie@smartpros.com
SEE ATTACHED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS
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Consolidated Balance Sheets |
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December 31, |
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2010 |
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2009 |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
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$ |
7,007,541 |
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$ |
6,720,649 |
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Accounts receivable, net of allowance for doubtful accounts of $39,051 and $39,627 at December 31, 2010 and 2009, respectively |
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2,149,067 |
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2,700,111 |
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Prepaid expenses and other current assets |
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391,136 |
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260,357 |
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Total Current Assets |
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9,547,744 |
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9,681,117 |
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Property and Equipment, net |
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717,428 |
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608,850 |
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Goodwill |
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3,375,257 |
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3,375,257 |
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Other Intangibles, net |
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3,891,858 |
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4,421,749 |
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Other Assets, including restricted cash of $75,000 and $150,000, respectively |
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85,626 |
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160,626 |
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Deferred Tax Asset |
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1,290,000 |
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1,250,924 |
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Investment in Joint Venture, at cost |
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3,867 |
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14,755 |
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Total Assets |
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$ |
18,911,780 |
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$ |
19,513,278 |
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Liabilities and Stockholders’ Equity |
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Current Liabilities: |
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Accounts payable |
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$ |
722,683 |
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$ |
776,059 |
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Accrued expenses |
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391,624 |
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446,929 |
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Deferred revenue |
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5,514,388 |
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5,299,450 |
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Total Current Liabilities |
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6,628,695 |
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6,522,438 |
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Long-Term Liabilities: |
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Other liabilities |
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32,901 |
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23,187 |
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Total Long-Term Liabilities |
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32,901 |
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23,187 |
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Total Liabilities |
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6,661,596 |
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6,545,625 |
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Commitments and Contingencies |
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Stockholders’ Equity: |
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Preferred stock, $.001 par value; 1,000,000 shares authorized, no shares issued and outstanding |
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Common stock, $.0001 par value; 30,000,000 shares authorized, 5,561,100 and 5,562,100 shares issued as of December 31, 2010 and 2009, respectively, and 4,873,826 and 5,076,305 shares outstanding as of December 31, 2010 and 2009, respectively |
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556 |
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556 |
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Common stock in treasury, at cost - 687,274 and 485,795 shares as of December 31, 2010 and 2009, respectively |
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(2,122,488 |
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(1,536,782 |
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Additional paid-in capital |
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17,607,921 |
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17,610,392 |
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Accumulated deficit |
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(3,235,805 |
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(3,106,513 |
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Total Stockholders’ Equity |
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12,250,184 |
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12,967,653 |
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Total Liabilities and Stockholders’ Equity |
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$ |
18,911,780 |
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$ |
19,513,278 |
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Consolidated Statements of Income |
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Years Ended December 31, |
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2010 |
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2009 |
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Net Revenues |
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$ |
17,623,417 |
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$ |
19,274,533 |
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Cost of Revenues |
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8,047,614 |
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9,146,145 |
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Gross Profit |
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9,575,803 |
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10,128,388 |
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Operating Expenses: |
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Selling, general and administrative |
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8,594,296 |
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8,694,779 |
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Depreciation and amortization |
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1,127,439 |
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1,052,151 |
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Total Operating Expenses |
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9,721,735 |
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9,746,930 |
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Operating (loss) Income |
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(145,932 |
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381,458 |
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Other Income (Expense): |
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Interest and dividend income, net |
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57,037 |
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33,768 |
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Loss from joint venture |
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(20,888 |
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(9,135 |
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Total Other Income |
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36,149 |
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24,633 |
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(Loss) income before Income Taxes |
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(109,783 |
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406,091 |
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Provision for Income Taxes |
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(19,509 |
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(7,408 |
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Net (Loss) income |
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$ |
(129,292 |
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$ |
398,683 |
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Net (loss) income per Common Share: |
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Basic net (loss) income per common share |
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$ |
(0.03 |
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$ |
0.08 |
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Diluted net (loss) income per common share |
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$ |
(0.03 |
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$ |
0.08 |
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Weighted Average Number of Common Shares Outstanding: |
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Basic |
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4,946,058 |
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5,043,045 |
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Diluted |
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4,946,058 |
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5,101,668 |
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