TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended May 31, 2020
August 17 2020 - 5:00PM
Business Wire
TSR, Inc. (Nasdaq: TSRI), a provider of information technology
consulting and recruiting services, today announced financial
results for the fourth quarter and fiscal year ended May 31,
2020.
For the quarter ended May 31, 2020, revenue decreased 5.0% from
the same quarter last year to $14.8 million. Operating income for
the current quarter was $350,000 as compared to an operating loss
of $855,000 in the prior year quarter. Net income attributable to
TSR for the current quarter was $421,000 as compared to net loss
attributable to TSR of $601,000 in the prior year quarter.
Additionally, net income per share for the current quarter was
$0.21 compared to net loss per share of $0.31 in the prior year
quarter.
For the year ended May 31, 2020, revenue decreased 6.7% from
last year to $59.1 million. Net loss attributable to TSR for the
current year was $1,126,000 as compared to net loss attributable to
TSR of $1,336,000 in the prior year. Additionally, net loss per
share for the current year was $0.57 compared to a net loss per
share of $0.68 in the prior year.
Thomas Salerno, CEO, stated, “Revenue decreased 5.0% for the
fourth quarter due to a decrease in the average number of
consultants on billing with customers. However, cost of sales
decreased at a greater rate than revenue, yielding an increase in
gross profit. Selling, general and administrative expenses
decreased by $1,141,000 for the quarter. The decrease in SG&A
was due to a significant decrease in legal expenses which had been
incurred in connection with litigation and the contested proxy
solicitation related to our 2018 annual meeting. Operating income
for the current quarter was $350,000 as compared to an operating
loss of $855,000 in the prior year quarter.
The Company benefited from a tax provision of the CARES Act
which allows for the carryback of net operating losses. The Company
had calculated the income tax benefit from the net operating loss
for fiscal 2019 at the federal income tax rate of 21%, however, in
prior years, taxes were paid at 34%. The new tax legislation
created an additional income tax benefit in excess of $200,000. The
combination of these changes resulted in net income of $421,000 in
the fourth quarter of the current fiscal year compared with a loss
of $601,000 in the prior year quarter.”
“Revenue decreased 6.7% for the year due to a decrease in the
average number of consultants on billing with customers. Selling,
general and administrative expenses decreased by $744,000 for the
year. The decrease in SG&A was offset by the decrease in gross
profit of $647,000 from the reduced revenue and by the interest
expense incurred from the line of credit established in November
2019 and the Paycheck Protection Program Loan received in April
2020. The Company also had an additional tax benefit in excess of
$200,000 as described above. This resulted in a reduced loss of
$1,126,000 in the current fiscal year compared with a loss of
$1,336,000 in the prior year.”
“Like the whole US economy, the landscape for our services
remains uneven and unpredictable. Even with the backdrop, one
highlight I want to share is how proud I am of all the TSR
employees who stepped up and created our Feed the Heroes program at
the onset of the Corona Virus Pandemic. Through monetary donations
from our employees and Board of Directors, we were able to raise
thousands of dollars and feed approximately 2,000 front line
workers that were battling COVID-19 at ten local hospitals, local
police departments, and local transit and sanitation departments.
As hard as this time has been for everyone, I am pleased the TSR
team scored a small win for local restaurants while supporting our
hometown heroes.”
The Company will file its Form 10-K for the fiscal year ended
May 31, 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 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
Year Ended
May 31,
2020
May 31,
2019
May 31,
2020
May 31,
2019
Revenue, net
$14,796,000
$15,574,000
$59,121,000
$63,340,000
Cost of sales
12,363,000
13,235,000
49,943,000
53,515,000
Selling, general and
administrative expenses
2,083,000
3,224,000
10,929,000
11,673,000
14,446,000
16,459,000
60,872,000
65,188,000
Income (loss) from operations
350,000
(885,000)
(1,751,000)
(1,848,000)
Other income, net
(35,000)
1,000
(59,000)
11,000
Pre-tax income (loss)
315,000
(884,000)
(1,810,000)
(1,837,000)
Income tax provision (benefit)
(121,000)
(291,000)
(712,000)
(538,000)
Consolidated net income (loss)
436,000
(593,000)
(1,098,000)
(1,299,000)
Less: Net income attributable to
noncontrolling interest
15,000
8,000
28,000
37,000
Net income (loss) attributable to TSR,
Inc.
$ 421,000
$ (601,000)
$ (1,126,000)
$ (1,336,000)
Basic and diluted net income (loss) per
TSR, Inc. common share
$ 0.21
$ (0.31)
$ (0.57)
$ (0.68)
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/20200817005589/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
Historical Stock Chart
From Aug 2024 to Sep 2024
TSR (NASDAQ:TSRI)
Historical Stock Chart
From Sep 2023 to Sep 2024