SmartPros Reports Third Quarter 2013 Financial Results

SmartPros Reports Third Quarter 2013 Financial Results

Company Announces 16th Consecutive Quarterly Dividend and Renews Stock Buyback

HAWTHORNE, N.Y., Nov. 7, 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
nine months ended September 30, 2013.

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

  oNet revenues of $3.8 million, compared to $3.6 million,
  oPositive operating income, compared to an operating loss of $309,000
  oNet income of $9,000, compared to a net loss of $362,000, or $.08 per

Financial results for the nine months ended September 30, 2013, compared to

  oNet revenues of $11.5 million, compared to $10.8 million
  oOperating loss of $471,000, compared to an operating loss of $1.1 million
  oNet loss of $279,000, or $.06 per share, compared to a net loss of
    $861,000, or $.18 per share

                                    NINE MONTHS ENDED     THREE MONTHS ENDED
                                    2013       2012       2013     2012
Net (loss) income                    $(279,102) $(861,123) $9,072   $(361,728)
Income tax (benefit) provision       (178,007)  (193,761)  (1,035)  59,592
Depreciation and amortization        855,133    821,844    310,845  277,498
Interest and dividend income, (net)  (19,486)   (20,792)   (8,008)  (6,750)
EBITDA                               $378,538   $(253,832) $310,874 $(31,388)

As of September 30, 2013, the Company had approximately $5.1 million in cash
and cash equivalents, $2 million in accounts receivable, $4.8 million in
deferred revenue, stockholders' equity of $9.3 million, and no debt.

"For the three-month period, SmartPros is pleased to report a five percent
increase in net revenue, a return to positive operating income, and recorded a
small, but positive income for the third quarter, compared to an $.08 per
share loss in the comparable 2012 period," said Allen Greene, Chairman and CEO
of SmartPros. "In addition, net revenues for the nine months increased six
percent, and we reduced our operating loss for our year-to-date by 56 percent.
We have some momentum as we enter what is historically our strongest quarter
with only a $.06 per share loss, as compared to the $.18 per share loss we
faced this time 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 strategies, products and
services, and develop new technologies with an eye towards managing our

Greene continued: "The Board has declared a $.015 dividend per common share
payable on January 6, 2014, to shareholders of record on December 19, 2013.
This marks our 16th 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. In
addition, the Board has also renewed our $750,000 stock buyback plan for
another year."

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

Condensed Consolidated Balance Sheets
                                                  September30, December31,
                                                  2013          2012
                                                  (Unaudited)   (Audited)
Current Assets:                                                 
Cash and cash equivalents                          $5,134,976  $4,918,543
Certificates of deposit                            --            500,000
Accounts receivable, net of allowance for doubtful
accounts of approximately $20,000 at September 30, 1,972,836     2,612,709
2013, and December 31, 2012, respectively
Prepaid expenses and other current assets          517,112       331,493
Current income tax benefit                         190,000       --
Total Current Assets                               7,814,924     8,362,745
Property and equipment, net                        551,204       547,448
Goodwill                                           2,807,257     2,807,257
Other intangibles, net                             3,460,114     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                        641           3,245
                                                  7,523,731     7,593,209
Total Assets                                       $15,338,655 $15,955,954
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable                                   $808,559    $706,948
Accrued expenses                                   237,717       272,921
Dividend payable                                   70,289        58,936
Deferred revenue                                   4,843,286     5,006,496
Total Current Liabilities                          5,959,851     6,045,301
Other liabilities                                  59,296        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, 5,666,933 shares and 5,622,433
shares issued as of September 30, 2013, and
December 31, 2012, respectively; and 4,685,941     567           563
shares and 4,714,914 shares outstanding as of
September 30, 2013, and December 31, 2012,
Additional paid-in capital                         17,260,918    17,393,260
Accumulated deficit                                (5,256,245)   (4,977,143)
Common stock in treasury, at cost – 980,992 and
907,519 shares at September 30, 2013, and December (2,685,732)   (2,569,625)
31, 2012, respectively
Total Stockholders' Equity                         9,319,508     9,847,055
Total Liabilities and Stockholders' Equity         $15,338,655 $15,955,954

Condensed Consolidated Statements of
Operations (Unaudited)
                        Three Months Ended        Nine Months Ended
                        September 30,             September 30,
                        2013         2012         2013          2012
Net revenues             $3,756,349 $3,578,399 $11,506,704 $10,829,467
Cost of revenues         1,608,687    1,595,813    5,095,594     4,889,031
Gross profit             2,147,662    1,982,586    6,411,110     5,940,436
Operating Expenses:                                           
Selling, general and     1,836,413    2,013,599    6,026,968     6,188,018
Depreciation and         310,845      277,498      855,133       821,844
                        2,147,258    2,291,097    6,882,101     7,009,862
Operating income (loss)  404          (308,511)    (470,991)     (1,069,426)
Other Income (Expense):                                       
Interest income (net)    8,008        6,750        19,486        20,792
Equity loss from joint   (375)        (375)        (5,604)       (6,250)
                        7,633        6,375        13,882        14,542
Income (loss) before     8,037        (302,136)    (457,109)     (1,054,884)
income tax
Benefit (provision) for  1,035        (59,592)     178,007       193,761
income taxes
Net income (loss)        $9,072     $(361,728)  $(279,102)   $(861,123)
Net income (loss) per                                         
common share:
Basic net income (loss)  $--          $(0.08)      $(0.06)       $(0.18)
per common share
Diluted net income       $--          $(0.08)      $(0.06)       $(0.18)
(loss) per common share
Weighted Average Number                                       
of Shares Outstanding:
Basic                    4,683,821    4,715,585    4,695,557     4,759,877
Diluted                  4,689,589    4,715,585    4,695,557     4,759,877

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:

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

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