SmartPros Reports Second Quarter 2013 Financial Results

SmartPros Reports Second Quarter 2013 Financial Results

Company Announces 15th Consecutive Quarterly Dividend

HAWTHORNE, N.Y., Aug. 6, 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
six months ended June 30, 2013.

Financial results for the three months ended June 30, 2013, compared to 2012

  oNet revenues of $4.5 million, compared to $4.2 million,
  oOperating income of $107,000 compared to an operating loss of $104,000
  oNet income of $68,000, or $.01 per diluted share, compared to net loss of
    $76,000, or $.02 per diluted share

Financial results for the six months ended June 30, 2013, compared to 2012

  oNet revenues of $7.8 million, compared to $7.3 million
  oOperating loss of $471,000 compared to an operating loss of $761,000
  oNet loss of $288,000, or $.06 per diluted share, compared to a net loss of
    $499,000, or $.11 per diluted share

                                     SIX MONTHS ENDED      THREE MONTHS ENDED
RECONCILIATION OF NET (LOSS) INCOME   June 30,              June 30,
TO EBITDA
                                     2013       2012       2013     2012
                                                                 
Net (loss) income                     $(288,174) $(499,395) $68,308  $(76,156)
                                                                 
Income tax (benefit) provision        (176,972)  (253,353)  41,625   (25,000)
Depreciation and amortization         544,288    544,346    275,775  272,127
Interest and dividend income, (net)   (11,478)   (14,042)   (4,983)  (8,082)
                                                                 
EBITDA                                $67,664    $(222,444) $380,725 $162,889

As of June 30, 2013, the Company had approximately $5.5 million in cash and
cash equivalents, $2.2 million in accounts receivable, $5.1 million in
deferred revenue, stockholders' equity of $9.4 million, and no debt.

"SmartPros is pleased to announce a return to profitability and a 7 percent
increase in net revenues year to year," said Allen Greene, Chairman and CEO of
SmartPros. "In addition, we reduced our six-month loss by 42 percent, compared
to 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 markets, products, services and developing new
technologies while managing our costs."

Greene continued: "The Board has declared a $.015 dividend per common share
payable on October 7, 2013, to shareholders of record on September 19, 2013.
This marks our 15th 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."

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                           
                                                               
                                                  June30,      December31,
                                                  2013          2012
                                                  (Unaudited)   (Audited)
ASSETS                                                          
Current Assets:                                                 
Cash and cash equivalents                          $5,538,439  $4,918,543
Certificates of deposit                            —             500,000
Accounts receivable, net of allowance for doubtful
accounts of approximately $20,000 at June 30,      2,212,773     2,612,709
2013, and December 31, 2012, respectively
Prepaid expenses and other current assets          355,797       331,493
Current income tax benefit                         190,000       —
Total Current Assets                               8,297,009     8,362,745
Property and equipment, net                        568,568       547,448
Goodwill                                           2,807,257     2,807,257
Other intangibles, net                             3,431,797     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                        1,016         3,245
                                                  7,513,153     7,593,209
Total Assets                                       $ 15,810,162 $15,955,954
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                   $961,545    $706,948
Accrued expenses                                   228,082       272,921
Dividend payable                                   70,214        58,936
Deferred revenue                                   5,135,018     5,006,496
Total Current Liabilities                          6,394,859     6,045,301
Other liabilities                                  60,730        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 June 30, 2013 and December 31, 567           563
2012, respectively; and 4,680,941 shares and
4,714,914 shares outstanding as of June 30, 2013
and December 31, 2012, respectively
Additional paid-in capital                         17,305,055    17,393,260
Accumulated deficit                                (5,265,317)   (4,977,143)
Common stock in treasury, at cost – 980,992 and
907,519 shares at June 30, 2013, and December 31,  (2,685,732)   (2,569,625)
2012, respectively
Total Stockholders' Equity                         9,354,573     9,847,055
Total Liabilities and Stockholders' Equity         $ 15,810,162 $15,955,954

                                                              
SMARTPROS LTD. AND                                             
SUBSIDIARIES
Condensed Consolidated                                         
Statements of
Operations (Unaudited)                                         
                                                              
                          Three Months Ended        Six Months Ended
                          June 30,                  June 30,
                          2013         2012         2013         2012
Net revenues               $4,531,688 $ 4,242,873 $7,750,355 $ 7,251,068
Cost of revenues           2,059,453    1,951,121    3,486,907    3,293,218
Gross profit               2,472,235    2,291,752    4,263,448    3,957,850
Operating Expenses:                                            
Selling, general and       2,089,528    2,123,363    4,190,555    4,174,419
administrative
Depreciation and           275,775      272,127      544,288      544,346
amortization
                          2,365,303    2,395,490    4,734,843    4,718,765
Operating income (loss)   106,932      (103,738)    (471,395)    (760,915)
Other Income (Expense):                                        
Interest income (net)      4,983        8,082        11,478       14,042
Equity loss from joint     (1,982)      (5,500)      (5,229)      (5,875)
venture
                          3,001        2,582        6,249        8,167
Income (loss) before       109,933      (101,156)    (465,146)    (752,748)
income tax
(Provision) benefit from   (41,625)     25,000       176,972      253,353
income taxes
Net income (loss)          $68,308    $ (76,156)   $ (288,174)  $ (499,395)
Net income (loss) per                                          
common share:
Basic net income (loss)    $0.01      $ (0.02)     $ (0.06)     $ (0.11)
per common share
Diluted net income (loss)  $0.01      $ (0.02)     $ (0.06)     $ (0.11)
per common share
Weighted Average Number of                                     
Shares Outstanding:
Basic                      4,680,941    4,766,814    4,701,245    4,781,939
Diluted                    4,683,785    4,766,814    4,701,245    4,781,939

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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