SmartPros Reports First Quarter 2013 Financial Results

SmartPros Reports First Quarter 2013 Financial Results

Company Announces 14th Consecutive Quarterly Dividend

HAWTHORNE, N.Y., May 7, 2013 (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,
2013.

For the three months ending March 31, 2013, compared to March 31, 2012:

  *Net revenues of $3.22 million, compared to $3.01 million
  *Operating loss of $578,000, compared to operating loss of $657,000
  *Gross profit margin of 55.7 percent, compared to 55.4 percent
  *Net loss of $356,000, or $.08 per diluted share, compared to net loss of
    $423,000, or $0.09 per diluted share

RECONCILIATION OF NET INCOME TO EBITDA  MARCH 31,
                                     2013         2012
                                                 
Net loss                               $(356,482) $(423,239)
                                                 
Income tax (benefit)                    (218,597)    (228,353)
Depreciation and amortization           268,513      272,219
Interest and dividend income, (net)    (6,495)      (5,960)
                                                 
EBITDA                                $(313,061)  $(385,333)

As of March 31, 2013, the Company had approximately $5.5 million in cash and
cash equivalents, $4.9 million in deferred revenue, stockholders' equity of
$9.3 million, and no debt.

"Revenues were up seven percent over the first quarter last year and our
operating loss was reduced by 12 percent compared to last year," said Allen
Greene, SmartPros' Chairman and CEO. "Both our net loss and operating loss for
the first quarter of 2013 are the narrowest since Q1 2009, and our revenue in
the first quarter was the highest since 2010. As we have always stated, the
first quarter is adversely affected by little to no revenue in our live
training business which usually causes a first quarter loss. We will continue
to manage expenses in this trying economic climate."

Greene continued: "I am pleased to announce that, based on our cash position
and EBITDA results, the Board of Directors has declared a $.015 per share
dividend payable on July 5, 2013, to shareholders of record on June 14, 2013.
This is our 14^th consecutive dividend. 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 still remains our primary goal."

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                          
                                                              
                                              March31,        December31,
                                               2013 (Unaudited) 2012 (Audited)
ASSETS                                                         
Current Assets:                                                
Cash and cash equivalents                      $5,501,848     $4,918,543
Certificates of deposit                        —                500,000
Accounts receivable, net of allowance for
doubtful accounts of approximately $20,000 at  1,189,517        2,612,709
March 31, 2013, and December 31, 2012,
respectively
Prepaid expenses and other current assets      548,660          331,493
Current income tax benefit                     220,000          —
Total Current Assets                           7,460,025        8,362,745
Property and equipment, net                    562,433          547,448
Goodwill                                       2,807,257        2,807,257
Other intangibles, net                         3,453,124        3,530,744
Other assets, including restricted cash of     104,515          104,515
$75,000
Deferred tax asset                             600,000          600,000
Investment in joint venture                    2,998            3,245
                                              7,530,327        7,593,209
Total Assets                                   $14,990,352    $15,955,954
LIABILITIES AND STOCKHOLDERS' EQUITY                           
Current Liabilities:                                           
Accounts payable                               $468,003       $706,948
Accrued expenses                               141,357          272,921
Dividend payable                               70,244           58,936
Deferred revenue                               4,917,804        5,006,496
Total Current Liabilities                      5,597,408        6,045,301
Other liabilities                              62,164           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, 5,661,933 shares and
5,622,433 shares issued as of March 31, 2013,
and December 31, 2012, respectively; and       567              563
4,680,941 shares and 4,714,914 shares
outstanding as of March 31, 2013, and December
31, 2012, respectively
Additional paid-in capital                     17,349,570       17,393,260
Accumulated deficit                            (5,333,625)      (4,977,143)
Common stock in treasury, at cost – 980,992
and 907,519 shares at March 31, 2013, and      (2,685,732)      (2,569,625)
December 31, 2012, respectively
Total Stockholders' Equity                     9,330,780        9,847,055
Total Liabilities and Stockholders' Equity     $14,990,352    $15,955,954

                                                          
SMARTPROS LTD. AND SUBSIDIARIES                            
Condensed Consolidated Statements of                       
Operations (Unaudited)                                     
                                                          
                                              Three Months Ended
                                               March 31,
                                              2013         2012
Net revenues                                   $3,218,667 $3,008,195
Cost of revenues                               1,427,454    1,342,097
Gross profit                                   1,791,213    1,666,098
Operating Expenses:                                        
Selling, general and administrative            2,101,027    2,051,056
Depreciation and amortization                  268,513      272,219
                                              2,369,540    2,323,275
Operating loss                                (578,327)    (657,177)
Other Income (Expense):                                    
Interest income (net)                          6,495        5,960
Equity loss from joint venture                 (3,247)      (375)
                                              3,248        5,585
Loss before income tax                         (575,079)    (651,592)
Benefit from income taxes                      218,597      228,353
Net loss                                       $(356,482)   $(423,239)
Net loss per common share:                                 
Basic net loss per common share                $(0.08)      $(0.09)
Diluted net loss per common share              $(0.08)      $(0.09)
Weighted Average Number of Shares Outstanding:             
Basic                                          4,721,914    4,797,231
Diluted                                        4,721,914    4,797,231

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.

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

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