HAWTHORNE, N.Y., Aug. 10, 2005 (PRIMEZONE) -- SmartPros Ltd. (AMEX:PED), a leader in the field of accredited professional education and corporate training, today reported second quarter results for the period ended June 30, 2005.
For the six months ended June 30, 2005 compared to the six months ended June 30, 2004:
-- Revenues increased 21% to $5.56 million from $4.59 million.
-- As a percentage of revenue, operating expenses decreased to 53.9%
from 58.8%.
-- Net income increased 124% to $390,211, or $.08 per fully diluted
share, compared to net income of $174,216, or $.05 per fully
diluted share.
For the three months ended June 30, 2005 compared to the three months ended June 30, 2004:
-- Revenues were $2.71 million, representing a 14% increase over
revenues of $2.37 million.
-- As a percentage of revenue, operating expenses decreased to 52.4%
from 56.7%.
-- Net income decreased 4.1% to $174,119 compared to $181,576.
As of June 30, 2005, the Company had approximately $6.98 million in cash and investments, working capital of $3.95 million and stockholders' equity of approximately $6.83 million.
"Our company has made steady progress through the first half of 2005, both in financial and strategic terms," said Allen Greene, Vice Chairman and Chief Executive Officer of SmartPros. "In addition, we remain committed to identifying and qualifying acquisition candidates that meet our specific acquisition criteria."
SmartPros will host a teleconference this afternoon beginning at 4:15 p.m. Eastern, 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 toll free 1-800-240-4186. A replay of the call will be available on the Company's Web site approximately one hour after the live broadcast at http://ir.smartpros.com. A copy of this news announcement is immediately accessible via http://ir.smartpros.com.
SMARTPROS LTD. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
June 30, December 31,
2005 2004
(Unaudited)
ASSETS
Current Assets:
Cash and cash
equivalents $ 3,228,463 $ 1,756,991
Investment securities
available-for-sale 3,750,000 5,000,000
Accounts receivable, net
of allowance for
doubtful accounts
of $71,000 1,095,864 985,259
Prepaid expenses and
other current assets 176,116 175,270
------------ ------------
Total Current Assets 8,250,443 7,917,520
------------ ------------
Property and equipment, net 567,381 544,176
Goodwill
53,434 53,434
Other intangible, net 2,314,565 2,482,653
Other assets, including
restricted cash of $150,000 150,000 167,196
------------ ------------
3,085,380 3,247,459
Total Assets $ 11,335,823 $ 11,164,979
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 265,232 $ 358,867
Accrued expenses 355,488 373,993
Current portion of
capital lease and
equipment financing
obligations 44,491 56,119
Deferred revenue 3,631,449 3,741,466
------------ ------------
Total Current Liabilities 4,296,660 4,530,445
------------ ------------
Long-Term Liabilities:
Capital lease and
equipment financing
obligations 43,094 64,020
Other liabilities 162,729 164,907
------------ ------------
Total Long-Term Liabilities 205,823 228,927
------------ ------------
Commitments and Contingencies
Stockholders' Equity:
Convertible preferred stock,
$.001 par value, authorized
1,000,000 shares, no shares
issued and outstanding -- --
Common stock, $.0001 par
value, authorized 30,000,000
shares, 5,143,346 issued and
5,085,340 outstanding at
June 30, 2005; 5,140,545
issued and 5,082,539
outstanding at December 31,
2004 514 514
Common stock in treasury,
at cost - 58,006 shares (220,000) (220,000)
Additional paid-in capital 16,413,517 16,407,495
Accumulated (deficit) (9,064,691) (9,454,902)
------------ ------------
7,129,340 6,733,107
Deferred compensation (127,500) (96,000)
Note receivable from stockholder (200,000) (200,000)
------------ ------------
Total Stockholders' Equity 6,833,340 6,405,607
------------ ------------
Total Liabilities and
Stockholders' Equity $ 11,335,823 $ 11,164,979
============ ============
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SMARTPROS LTD. AND SUBSIDIARY
Condensed Consolidated Statements of Operations (Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
---------------------- ----------------------
2005 2004 2005 2004
---------------------------------------------------------------------
Net Revenues $5,555,992 $4,592,296 $2,707,041 $2,373,945
Cost of Revenues 2,240,944 1,686,988 1,158,235 833,514
---------- ---------- ---------- ----------
Gross Profit 3,315,048 2,905,308 1,548,806 1,540,431
---------- ---------- ---------- ----------
Operating Expenses:
Selling, general
and administrative 2,710,830 2,355,409 1,275,670 1,170,219
Depreciation and
amortization 285,899 346,226 144,656 175,255
---------- ---------- ---------- ----------
2,996,729 2,701,635 1,420,326 1,345,474
---------- ---------- ---------- ----------
Operating Income 318,319 203,673 128,480 194,957
---------- ---------- ---------- ----------
Other Income
(Expense):
Interest income 77,022 7,318 47,468 3,600
Interest expense (5,130) (36,775) (1,829) (16,981)
---------- ---------- ---------- ----------
71,892 (29,457) 45,639 (13,381)
---------- ---------- ---------- ----------
Income before
provision for
income taxes 390,211 174,216 174,119 181,576
Provision for
Income Taxes -- -- -- --
---------- ---------- ---------- ----------
Net Income $ 390,211 $ 174,216 $ 174,119 $ 181,576
========== ========== ========== ==========
Net Income Per Common
Share:
Basic net income per
common share $ .08 $ .07 $ .03 $ .07
========== ========== ========== ==========
Diluted net income
per common share $ .08 $ .05 $ .03 $ .06
========== ========== ========== ==========
Weighted Average
Number of Shares
Outstanding
Basic 5,083,576 2,580,478 5,084,601 2,580,478
========== ========== ========== ==========
Diluted 5,118,075 3,244,262 5,118,843 3,244,262
========== ========== ========== ==========
About SmartPros Ltd.
Founded 1981, SmartPros Ltd. is an industry leader in the field of accredited professional education. 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, engineering, and ethics and compliance. SmartPros' customers include over half of 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 and video. Our subscription libraries feature hundreds of course titles and 1,000+ 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 that services 300,000+ visitors and 100,000+ subscribers per month. 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." Results reported within this press release should not be considered an indication of future performance. Except for any historical information, the matters discussed in this press release contain 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 our filings with Securities and Exchange Commission.