TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2019
October 15 2019 - 5:00PM
Business Wire
TSR, Inc. (Nasdaq:TSRI), a provider of computer programming
consulting services, today announced financial results for the
first quarter ended August 31, 2019.
For the quarter ended August 31, 2019, revenue decreased 9.9%
from the same quarter last year to $14.9 million. Net loss
attributable to TSR for the current quarter was $663,000 as
compared to net income attributable to TSR of $38,000 in the prior
year quarter. Additionally, net loss per share for the current
quarter was $0.34 compared to net income per share of $0.02 in the
prior year quarter.
Christopher Hughes, CEO, stated, “Revenue decreased 9.9% for the
first quarter reflecting a decrease in average billing rates for IT
consultants on billing with customers resulting from a shift in
business mix with fewer placements for high end skills across the
customer base and reduced opportunities for administrative and
clerical placements with a large customer. Cost of sales decreased
at a lower percentage rate than revenue, yielding a decrease in
gross margin. Customer demands for discounts and aggressive pricing
combined with a competitive market environment have continued to
apply downward pressures on gross margins. Selling, general and
administrative expenses increased by $670,000 for the quarter. The
increase in SG&A was due to an increase in professional and
advisory fees of $766,000 in connection with various stockholder
lawsuits and the contested proxy solicitation relating to our 2018
annual meeting, which was postponed as a result of these lawsuits
and to allow additional time for the Board of Directors to consider
the stockholder proposals to be brought before the annual
meeting.”
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 ultimate consummation of the Company’s and
Christopher Hughes’ purchase of Common Stock from certain investor
parties and the slate of nominees that will stand for election to
the Board; 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 has a negative impact on the Company’s
business; 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.
TSR, Inc. Reports Financial Results for
the First Quarter Ended August 31, 2019 (Continued)
Three Months Ended
August 31, 2019
August 31, 2018
Revenue, net
$
14,947,000
$
16,581,000
Cost of Sales
12,671,000
13,985,000
Selling, general and
administrative expenses
3,190,000
2,520,000
15,861,000
16,505,000
Income (loss) from operations
(914,000
)
76,000
Other income (loss), net
8,000
(1,000
)
Pre-tax income (loss)
(906,000
)
75,000
Provision for (benefit from) income
taxes
(247,000
)
19,000
Consolidated net income (loss)
(659,000
)
56,000
Less: Net income attributable to
noncontrolling interest
4,000
18,000
Net income (loss) attributable to TSR,
Inc.
$
(663,000
)
$
38,000
Basic and dilutes net income (loss) per
TSR, Inc. common share
$
(0.34
)
$
0.02
Basic and diluted weighted average common
shares outstanding
1,962,000
1,962,000
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version on businesswire.com: https://www.businesswire.com/news/home/20191015005988/en/
Christopher Hughes 631-231-0333
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