SPRO Spero Therapeutics Inc

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, 2015. 

Financial results for the three months ended September 30, 2015, compared to 2014

• Net revenues of approximately $2.8 million for both periods
• Loss from continuing operations of $261,000 compared to a loss from continuing operations of  $560,000
• Net loss of $261,000 or $.06 per share, compared to a net loss of $632,000 or $.14 per share

Financial results for the nine months ended September 30, 2015, compared to 2014

• Net revenues of approximately $9.1 million for both periods
• Loss from continuing operations of $107,000 compared to a loss from continuing operations of of $1.1 million
• Net loss of $140,000, or $.03 per share, compared to a  net loss of $1.2 million or $.27 per share

	NINE MONTHS ENDED						THREE MONTHS ENDED
RECONCILIATION OF NET (LOSS) TO EBITDA:	SEPTEMBER 30,						SEPTEMBER 30,
		2015			2014			2015			2014
Net (loss)	$	(140,293	)	$	(1,249,610	)	$	(261,212	)	$	(632,055	)
Income taxes		13,057			62,760			5,070			195,216
Depreciation and amortization		807,204			784,019			275,973			268,324
Interest and dividend income, (net)		(13,017	)		(12,901	)		(4,793	)		(3,804	)
EBITDA before adjustment for discontinued operations		666,951			(415,732	)		15,038			(172,319	)
Adjustment to EBITDA for discontinued operations		33,696			116,424			213			72,371
Adjusted EBITDA from continuing operations	$	700,647		$	(299,308	)	$	15,251		$	(99,948	)

As of September 30, 2015, the Company had approximately $4.3 million in cash and cash equivalents, $1.0 million in accounts receivable, $3.8 million in deferred revenue, stockholders' equity of $7.3 million, and no debt.

“SmartPros did a good job maintaining the momentum gained in our second quarter,” said Allen Greene, Chairman and CEO of SmartPros. “Our third quarter revenues remained similar to last year despite the fact that we cut out revenue opportunities from underperforming aspects of our business as part of our Back-to-Basics program. At nine months, our operating loss was narrowed by $1 million and our net loss year-to-date has narrowed by $1.1 million.  Our nine month adjusted EBITDA from continuing operations was also up $1.1 million over the comparable period last year.  We look forward to carrying this momentum into our traditionally strong fourth quarter, and expect to finish the year in a good position.”

Greene added: “As per our announcement on October 22, 2015, Kaplan Inc., will acquire SmartPros Ltd. for approximately $16.9 million, or $3.57 per share. The transaction is expected to close by year-end, subject to SmartPros’ shareholder approval. We believe that combining SmartPros with Kaplan will strengthen our product offerings and allow the combined entity to better meet the needs of the changing professional development marketplace.  We think this transaction is good for SmartPros’ customers, employees and shareholders. It is a marriage of two well-regarded leaders in continuing education for accountants and financial service professionals.”

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 SUBSIDIARIESCondensed Consolidated Balance Sheets

	September 30,  2015				December 31,  2014
	(Unaudited)				(Audited)
ASSETS
Current Assets:
Cash and cash equivalents	$	4,273,583			$	4,810,982
Accounts receivable, net of allowance for doubtful accounts of approximately $20,000  and $20,000 at September 30, 2015 and December 31, 2014, respectively	1,044,154				1,668,942
Prepaid expenses and other current assets	357,987				406,173
Current assets of discontinued operations	29,200				414,296
Total Current Assets	5,704,924				7,300,393
Property and equipment, net	423,316				427,241
Goodwill	2,456,474				2,456,474
Other intangibles, net	2,921,622				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
	6,095,891				6,478,825
Total Assets	$	11,800,815			$	13,779,218
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	325,783			$	875,019
Accrued expenses	222,259				227,021
Dividend payable	69,019				69,157
Deferred revenue	3,799,194				4,752,356
Current liabilities of discontinued operations	—				120,066
Total Current Liabilities	4,416,255				6,043,619
Other liabilities	61,410				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, 5,685,433 shares issued as of September 30, 2015 and 5,665,433 issued as of December 31, 2014, respectively; and 4,601,241 and 4,598,325 shares outstanding as of September 30, 2015 and December 31, 2014, respectively	568				567
Additional paid-in capital	16,808,600				16,985,235
Accumulated deficit	(6,609,778		)		(6,469,484		)
Common stock in treasury, at cost – 1,084,192 and 1,067,108 shares at September 30, 2015 and December 31, 2014, respectively	(2,876,240		)		(2,846,825		)
Total Stockholders’ Equity	7,323,150				7,669,493
Total Liabilities and Stockholders’ Equity	$	11,800,815			$	13,779,218

SMARTPROS LTD. AND SUBSIDIARIESCondensed Consolidated Statements ofOperations (Unaudited)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2015				2014				2015				2014
Net revenues	$	2,789,328			$	2,773,580			$	9,148,526			$	9,122,894
Cost of revenues	1,279,862				1,309,255				3,853,797				4,256,775
Gross profit	1,509,466				1,464,325				5,294,729				4,866,119
Operating Expenses:
Selling, general and administrative	1,494,215				1,564,273				4,594,082				5,165,427
Depreciation and amortization	275,973				268,324				807,204				784,019
	1,770,188				1,832,597				5,401,286				5,949,446
Operating (loss)	(260,722		)		(368,272		)		(106,557		)		(1,083,327		)
Other Income:
Interest and dividend income (net)	4,793				3,804				13,017				12,901
	4,793				3,804				13,017				12,901
(Loss) from continuing operations before income taxes	(255,929		)		(364,468		)		(93,540		)		(1,070,426		)
(Provision for) income taxes	(5,070		)		(195,216		)		(13,057		)		(62,760		)
(Loss) from continuing operations	(260,999		)		(559,684		)		(106,597		)		(1,133,186		)
(Loss) from discontinued operations, net of taxes	(213		)		(72,371		)		(33,696		)		(116,424		)
Net (loss)	$	(261,212	)		$	(632,055	)		$	(140,293	)		$	(1,249,610	)
Net (loss) per common share, basic and diluted:
Net (loss) from continuing operations	$	(0.06	)		$	(0.12	)		$	(0.02	)		$	(0.24	)
Net (loss) from discontinued operations, net of taxes	$	—			$	(0.02	)		$	(0.01	)		$	(0.03	)
Net (loss)	$	(0.06	)		$	(0.14	)		$	(0.03	)		$	(0.27	)
Weighted Average Number of Shares Outstanding:
Basic	4,597,328				4,684,441				4,596,480				4,681,325
Diluted	4,597,328				4,684,441				4,596,480				4,681,325

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