TSRI TSR INC

TSR, Inc. (Nasdaq: TSRI) (“TSR” or the “Company”), a provider of information technology consulting and recruiting services, today announced financial results for the second quarter ended November 30, 2020.

For the quarter ended November 30, 2020, revenue increased 5.5% from the same quarter last year to $16.0 million. The loss from operations for the current quarter was $224,000 as compared to an operating income of $64,000 in the prior year quarter. Net loss attributable to TSR for the current quarter was $247,000 as compared to net income attributable to TSR of $62,000 in the prior year quarter. Additionally, net loss per share for the current quarter was $0.13 compared to net income per share of $0.03 in the prior year quarter.

Thomas Salerno, CEO, stated, “Revenue increased 5.5% for the second quarter due to the previously announced acquisition of Geneva Consulting Group on September 1, 2020. Without the acquisition, revenue would have decreased 7.4%. Selling, general and administrative expenses increased by $673,000 for the quarter. The increase in SG&A was primarily due to $491,000 in expenses from the operations of Geneva Consulting Group. The Company also incurred nonrecurring expenses of $156,000 related to the acquisition. Additionally, the Company recorded an asset impairment charge of $137,000 in the quarter related to subletting one of its branch offices.

While the Company has only owned Geneva for one quarter, the integration of the teams has gone smoothly and we believe the acquisition will help us accelerate growth and improve returns for shareholders. We have recently begun to upgrade and modernize several of our back office systems that we believe will help improve efficiencies and allow the business to continue to scale.

Like many businesses in the country, our business has been impacted by COVID, but I am proud to report that the team finished the calendar year on a high note, with strong momentum for placements into the new year.”

The Company will file its Form 10-Q for the fiscal quarter ended November 30, 2020 today with further details at www.sec.gov.

Certain statements contained herein, including statements as to the Company’s plans, future prospects and future cash flow requirements are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties, including but not limited to, the following: the statements concerning the success of the Company’s plan for growth; both internal and through the previously announced pursuit of suitable acquisition candidates; the successful integration of announced acquisitions and any anticipated benefits therefrom; the impact of adverse economic conditions on client spending which have a negative impact on the Company’s business, which includes, but is not limited to, the current adverse economic conditions associated with the COVID-19 global health pandemic and the associated financial crisis, stay-at-home and other orders; risks relating to the competitive nature of the markets for contract computer programming services; the extent to which market conditions for the Company’s contract computer programming services will continue to adversely affect the Company’s business; the concentration of the Company’s business with certain customers; uncertainty as to the Company’s ability to maintain its relations with existing customers and expand its business; the impact of changes in the industry such as the use of vendor management companies in connection with the consultant procurement process; the increase in customers moving IT operations offshore; the Company’s ability to adapt to changing market conditions; the risks, uncertainties and expense of the legal proceedings to which the Company is a party; and other risks and uncertainties described in the Company’s filings under the Securities Exchange Act of 1934. The Company is under no obligation to publicly update or revise forward-looking statements.

Three Months Ended

November 30,

Six Months Ended

November 30,

 

2020

 

2019

 

2020

 

2019

 

Revenue, net

 

$

 

16,069,000

 

 

 

$

 

15,234,000

 

$

 

30,583,000

 

 

 

$

 

30,180,000

 

 

 

 

 

 

 

Cost of sales

 

13,234,000

 

 

12,784,000

 

25,417,000

 

 

25,455,000

 

 

 

 

 

 

Selling, general and administrative expenses

 

3,059,000

 

 

2,386,000

 

5,330,000

 

 

5,575,000

 

 

 

16,293,000

 

 

15,170,000

 

30,747,000

 

 

31,030,000

 

 

Income (loss) from operations

 

(224,000

)

 

64,000

 

(164,000

)

 

(850,000

)

 

 

 

 

 

Other income, net

 

(54,000

)

 

12,000

 

(116,000

)

 

19,000

 

 

 

 

 

 

Pre-tax income (loss)

 

(278,000

)

 

76,000

 

(280,000

)

 

(831,000

)

 

 

 

 

 

Income tax provision (benefit)

 

(30,000

)

 

8,000

 

(35,000

)

 

(239,000

)

 

 

 

 

 

Consolidated net income (loss)

 

(248,000

)

 

68,000

 

(245,000

)

 

(592,000

)

 

Less: Net income (loss) attributable to noncontrolling interest

 

(1,000

)

 

6,000

 

5,000

 

 

 

 

10,000

 

 

 

 

 

 

 

Net income (loss) attributable to TSR, Inc.

 

$

 

(247,000

 

)

 

$

 

62,000

 

$

 

(250,000

 

)

 

$

 

(602,000

 

)

 

 

 

 

 

Basic and diluted net income loss per TSR, Inc. common share

$

(0.13

 

)

 

$

0.03

 

$

 

(0.13

 

)

 

$

 

(0.31

 

)

 

 

 

 

 

Basic and diluted weighted average common shares outstanding

 

1,962,062

 

 

1,962,062

 

1,962,062

 

 

1,962,062

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210119005963/en/

Thomas Salerno 631-231-0333