SPRO Spero Therapeutics Inc

SmartPros Ltd. (Nasdaq:SPRO), a leader in the field of accredited professional education and corporate training, today reported results for the three month period ended March 31, 2015.

For the three months ended March 31, 2015, compared to March 31, 2014:

• Net revenues of $2.72 million, compared to $2.66 million
• Operating loss of $320,000, compared to operating loss of $539,000
• Net loss of $328,000, or $.07 per diluted share, compared to a net loss of $384,000, or $.08 per diluted share
• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ($53,000) compared to ($286,000)

	THREE MONTHS ENDED
RECONCILIATION OF NET (LOSS) TO EBITDA:	MARCH 31,
		2015			2014
Net (loss)	$	(327,545	)	$	(383,961	)
Income tax		3,762			(209,844	)
Depreciation and amortization		267,149			253,270
Interest and dividend income, (net)		(4,114	)		(4,973	)
EBITDA before adjustment for discontinued operations		(60,748	)		(345,508	)
Adjustment to EBITDA for discontinued operations		8,140			59,328
Adjusted EBITDA from continuing operations	$	(52,608	)	$	(286,180	)

As of March 31, 2015, the Company had approximately $4.7 million in cash and cash equivalents, $4.3 million in deferred revenue, stockholders' equity of $7.3 million, and no debt. “As we have reiterated many times, our first quarter produces losses due to the cyclical nature of our business,” said Allen Greene, SmartPros’ Chairman and CEO.  “However, we are starting to see the tangible results of our “Back-to-Basics” program.  This is the smallest first quarter operating loss we’ve shown in the past five years.  While revenue was up slightly from continuing operations, our challenge is to maintain or grow revenue while we continue to examine projects and customer accounts for profitability.”

Greene continued: “We see several other positive trends from our Back-to-Basics plan.  For example, cash provided by operations was $127,000 this quarter compared to cash used in operations of $607,000 in the comparative 2014 period, resulting in an overall increase of $733,000. In addition, our net decrease in cash was $103,000 this quarter compared to a net decrease of $1.04 million in the 2014 period.   In all, our cash and cash equivalents at the end of our first quarter were up approximately $448,000 over the 2014 period.  Further, our gross profit margin went from 53.5% to 56.8%.“

In addition, SmartPros’ Board of Directors declared the Company’s 22nd consecutive quarterly dividend. The $.015 per share dividend is payable on July 7, 2015, to shareholders of record as of June 19, 2015. The Company cautions that any future dividend will be affected by our results and by our ongoing requirement for cash to make acquisitions. Further, the Board authorized and approved an extension of the stock buy-back program with an allocation of up to $350,000 for the repurchase of shares of Common Stock until the November 2015 Board meeting. Shareholders and other interested parties are encouraged 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

	March 31,  2015				December 31,  2014
	(Unaudited)				(Audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	4,708,067			$	4,810,982
Accounts receivable, net of allowance for doubtful accounts of approximately $20,000  and $20,000 at March 31, 2015 and December 31, 2014, respectively	725,026				1,668,942
Prepaid expenses and other current assets	354,291				406,173
Current assets of discontinued operations	146,676				414,296
Total Current Assets	5,934,060				7,300,393
Property and equipment, net	434,762				427,241
Goodwill	2,456,474				2,456,474
Other intangibles, net	3,171,124				3,295,958
Other assets, including restricted cash of $75,000	94,479				94,479
Deferred tax asset	200,000				200,000
Non-current assets of discontinued operations	4,673				4,673
	6,361,512				6,478,825
Total Assets	$	12,295,572			$	13,779,218
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	290,956			$	875,019
Accrued expenses	253,821				227,021
Dividend payable	69,307				69,157
Deferred revenue	4,346,673				4,752,356
Current liabilities of discontinued operations	153				120,066
Total Current Liabilities	4,960,910				6,043,619
Other liabilities	64,541				66,106
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, 5,675,433 shares issued as of March 31, 2015 and 5,665,433 issued as of December 31, 2014, respectively; and 4,601,513 and 4,598,325 shares outstanding as of March 31, 2015 and December 31, 2014, respectively	568				567
Additional paid-in capital	16,923,983				16,985,235
Accumulated deficit	(6,797,030		)		(6,469,484		)
Common stock in treasury, at cost – 1,073,920 and 1,067,108 shares at March 31, 2015 and December 31, 2014, respectively	(2,857,400		)		(2,846,825		)
Total Stockholders’ Equity	7,270,121				7,669,493
Total Liabilities and Stockholders’ Equity	$	12,295,572			$	13,779,218

SMARTPROS LTD. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended
	March 31,
	2015				2014
Net revenues	$	2,708,626			$	2,664,013
Cost of revenues	1,171,341				1,238,919
Gross profit	1,537,285				1,425,094
Operating Expenses:
Selling, general and administrative	1,589,893				1,711,274
Depreciation and amortization	267,149				253,270
	1,857,042				1,964,544
Operating (loss)	(319,757		)		(539,450		)
Other Income:
Interest and dividend income (net)	4,114				4,973
	4,114				4,973
(Loss) from continuing operations	(315,643		)		(534,477		)
(Provision for) benefit from income taxes	(3,762		)		209,844
(Loss) from continuing operations	(319,405		)		$	(324,633	)
(Loss) from discontinued operations	(8,140		)		(59,328		)
Net (loss)	$	(327,545	)		$	(383,961	)
Net (loss) per common share basic and diluted:
Net (loss) from continuing operations	$	(0.07	)		$	(0.07	)
Net (loss) from discontinued operations, net of taxes	$	—			$	(0.01	)
Net (loss)	$	(0.07	)		$	(0.08	)
Weighted Average Number of Shares Outstanding:
Basic	4,598,071				4,684,441
Diluted	4,598,071				4,684,441

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 2,800+ 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