Attached files
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| 8-K - 8-K - SmartPros Ltd. | a8kpressrelease03072013.htm |
Exhibit 99.1
SmartPros Releases Year-End 2012 Financial Results
Company Increases Dividend by 20%
Annual Meeting to be Held on June 20, 2013
FOR IMMEDIATE RELEASE -- HAWTHORNE, N.Y. -- March 7, 2013 -- SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today reported results for the fiscal year ended December 31, 2012.
For the year ended December 31, 2012, compared to 2011:
• | Net revenue of $15.89 million, compared to $16.99 million |
• | Operating loss of $1.18 million, compared to operating income of $198,000 |
• | Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $500,000, compared to $1.37 million |
• | Net loss of $1.90 million, or $0.40 per share, compared to a net income of $154,000, or $0.03 per share |
RECONCILIATION OF NET (LOSS) INCOME | DECEMBER 31, | |||||
TO ADJUSTED EBITDA | 2012 | 2011 | ||||
Net (loss) income | $ | (1,895,465 | ) | $ | 154,127 | |
Provision for income taxes | 735,379 | 44,614 | ||||
Depreciation and amortization | 1,118,157 | 1,178,538 | ||||
Interest and dividend income | (27,023 | ) | (12,022 | ) | ||
Impairment of goodwill | 568,000 | - | ||||
ADJUSTED EBITDA | $ | 499,048 | $ | 1,365,257 | ||
As of December 31, 2012, the Company had approximately $5.4 million in cash, cash equivalents and certificates of deposit, $5.0 million in deferred revenue, stockholders' equity of $9.8 million, and no debt.
“Our operating results for the year were adversely affected by a charge of $568,000 due to the impairment of goodwill related to our Skye Multimedia subsidiary,” said Allen Greene, Chairman and CEO of SmartPros. “Despite our decline in revenues over last year, SmartPros was able to maintain a positive EBITDA of $500,000 after adjusting for the impairment loss. In addition, our net earnings were negatively affected by a non-cash charge that reduced our deferred tax asset by $690,000. Exclusive of the non-cash impairment loss and the deferred tax charge the adjusted loss would have been $0.13 per share.”
Greene continued: “We had a positive fourth quarter and remain focused on both building revenues and keeping costs in line through this continuing stagnant economy. For the upcoming year we see upside potential in a new application we are launching in the financial services area that adds breadth and depth to our compliance and securities offerings. We have also begun to see positive results through newly developed reseller programs. We will continue to pursue accretive acquisitions, drive top-line revenue opportunities and balance expenses with a focused eye on profitability and growth.”
“In addition, I am pleased to announce that, based on our cash position and EBITDA results for 2012, the Board of Directors has increased the quarterly dividend 20 percent to $.015 per share payable on April 5, 2013, to shareholders of record on March 22, 2013. 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 remains our primary goal.”
Further, the Board has set April 24, 2013, as the record date for its next Annual Meeting of Stockholders, which will be held at Company headquarters at 12 Skyline Drive, Hawthorne, NY, 10532, on June 20, 2013, at 10:00 a.m, Eastern Daylight Time.
SmartPros also announces that it will no longer host regular 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
Consolidated Balance Sheets | ||||||||
December 31, | 2012 | 2011 | ||||||
Assets | Unaudited | |||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 4,918,543 | $ | 6,281,725 | ||||
Certificates of deposit | 500,000 | — | ||||||
Accounts receivable, net of allowance for doubtful accounts of approximately $20,000 and $39,000 at December 31, 2012 and 2011, respectively | 2,612,709 | 1,868,063 | ||||||
Prepaid expenses and other current assets | 331,493 | 334,826 | ||||||
Total Current Assets | 8,362,745 | 8,484,614 | ||||||
Property and Equipment, net | 547,448 | 645,325 | ||||||
Goodwill | 2,807,257 | 3,375,257 | ||||||
Other Intangibles, net | 3,530,744 | 3,933,738 | ||||||
Other Assets, including restricted cash of $75,000 at December 31, 2012 and 2011, respectively | 104,515 | 92,965 | ||||||
Deferred Tax Asset | 600,000 | 1,290,000 | ||||||
Investment in Joint Venture | 3,245 | 2,742 | ||||||
Total Assets | $ | 15,955,954 | $ | 17,824,641 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 706,948 | $ | 712,978 | ||||
Accrued expenses | 272,921 | 338,713 | ||||||
Deferred revenue | 5,006,496 | 4,606,255 | ||||||
Dividend payable | 58,936 | 60,749 | ||||||
Total Current Liabilities | 6,045,301 | 5,718,695 | ||||||
Long-Term Liabilities: | ||||||||
Other liabilities | 63,598 | 66,504 | ||||||
Total Long-Term Liabilities | 63,598 | 66,504 | ||||||
Total Liabilities | 6,108,899 | 5,785,199 | ||||||
Commitments and Contingencies | ||||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $.001 par value; 1,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||
Common stock, $.0001 par value; 30,000,000 shares authorized, 5,622,433 and 5,615,433 shares issued as of December 31, 2012 and 2011, respectively, and 4,714,914 and 4,797,231 shares outstanding as of December 31, 2012 and 2011, respectively | 563 | 562 | ||||||
Common stock in treasury, at cost - 907,519 and 818,202 shares as of December 31, 2012 and 2011, respectively | (2,569,625 | ) | (2,393,717 | ) | ||||
Additional paid-in capital | 17,393,260 | 17,514,275 | ||||||
Accumulated deficit | (4,977,143 | ) | (3,081,678 | ) | ||||
Total Stockholders’ Equity | 9,847,055 | 12,039,442 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 15,955,954 | $ | 17,824,641 | ||||
Consolidated Statements of Operations | ||||||||
Years Ended December 31, | 2012 | 2011 | ||||||
Unaudited | ||||||||
Net Revenues | $ | 15,883,212 | $ | 16,988,691 | ||||
Cost of Revenues | 7,028,032 | 7,048,316 | ||||||
Gross Profit | 8,855,180 | 9,940,375 | ||||||
Operating Expenses: | ||||||||
Selling, general and administrative | 8,346,635 | 8,563,993 | ||||||
Depreciation and amortization | 1,118,157 | 1,178,538 | ||||||
Impairment of goodwill | 568,000 | — | ||||||
Total Operating Expenses | 10,032,792 | 9,742,531 | ||||||
Operating (Loss) Income | (1,177,612 | ) | 197,844 | |||||
Other Income (Expense): | ||||||||
Interest and dividend income, net | 27,023 | 12,022 | ||||||
Loss from joint venture | (9,497 | ) | (11,125 | ) | ||||
Total Other Income | 17,526 | 897 | ||||||
(Loss) Income before Provision for Income Taxes | (1,160,086 | ) | 198,741 | |||||
Provision for Income Taxes | (735,379 | ) | (44,614 | ) | ||||
Net (Loss) Income | $ | (1,895,465 | ) | $ | 154,127 | |||
Net (loss) income per Common Share: | ||||||||
Basic net (loss) income per common share | $ | (0.40 | ) | $ | 0.03 | |||
Diluted net (loss) income per common share | $ | (0.40 | ) | $ | 0.03 | |||
Weighted Average Number of Common Shares Outstanding: | ||||||||
Basic | 4,748,764 | 4,888,977 | ||||||
Diluted | 4,748,764 | 4,888,977 | ||||||
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.
For More Information, Please Contact:
SmartPros Ltd.
Shane Gillispie
VP Marketing Services & eCommerce
914-829-4974
shanegillispie@smartpros.com