TSR, Inc. Reports Financial Results for the Third Quarter Ended February 28, 2021
April 14 2021 - 5:00PM
Business Wire
TSR, Inc. (Nasdaq:TSRI) (“TSR” or the “Company”), a provider of
information technology consulting and recruiting services, today
announced financial results for the third quarter ended February
28, 2021.
For the quarter ended February 28, 2021, revenue increased 21.3%
from the same quarter last year to $17.1 million. The loss from
operations for the current quarter was $339,000 as compared to an
operating loss of $1,251,000 in the prior year quarter. Net loss
attributable to TSR for the current quarter was $305,000 as
compared to a net loss attributable to TSR of $945,000 in the prior
year quarter. Additionally, basic and diluted net loss per share
for the current quarter was $0.16 compared to basic and diluted net
loss per share of $0.48 in the prior year quarter.
Thomas Salerno, CEO, stated, “Revenue increased 21.3% for the
third quarter primarily due to new business development within the
existing Geneva Consulting Group client base. Without the added
business activity from the acquisition of Geneva, revenue would
have increased by 1.5%. Selling, general and administrative
expenses decreased by $187,000 for the quarter. The decrease in
SG&A was primarily due to the prior year accrual of $818,000
for a legal settlement with an investor. This decrease was
partially offset by $506,000 in additional expenses incurred for
the operations of Geneva and the accrual of $210,000 related to the
final performance bonus payments to the sellers of Geneva.
“The integration of the Geneva and TSR teams has continued to go
smoothly and we believe the acquisition has helped us accelerate
growth and will improve returns for shareholders. We have 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. As we expect a gradual return to normalcy from
the COVID pandemic after mass vaccine rollout this year we are
guardedly optimistic of generating revenue growth in the improving
business climate.”
The Company has filed its Form 10-Q for the fiscal quarter ended
February 28, 2021 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 and
completed 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 which may
significantly reduce client spending and which may have 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.
Three Months Ended
Nine Months Ended
February 28,
February 29,
February 28,
February 29,
2021
2020
2021
2020
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenue, net
$
17,160,000
$
14,145,000
$
47,743,000
$
44,325,000
Cost of sales
14,415,000
12,124,000
39,831,000
37,580,000
Selling, general and administrative
expenses
3,084,000
3,271,000
8,414,000
8,846,000
17,499,000
15,395,000
48,245,000
46,426,000
Loss from operations
(339,000
)
(1,251,000
)
(502,000
)
(2,101,000
)
Other expense, net
(41,000
)
(43,000
)
(157,000
)
(24,000
)
Pre-tax loss
(380,000
)
(1,294,000
)
(659,000
)
(2,125,000
)
Income tax benefit
(79,000
)
(352,000
)
(114,000
)
(591,000
)
Consolidated net loss
(301,000
)
(942,000
)
(545,000
)
(1,534,000
)
Less: Net income attributable to
noncontrolling interest
4,000
3,000
10,000
13,000
Net income (loss) attributable to TSR,
Inc.
$
(305,000
)
$
(945,000
)
$
(555,000
)
$
(1,547,000
)
Basic net loss per TSR, Inc. common
share
$
(0.16
)
$
(0.48
)
$
(0.28
)
$
(0.79
)
Diluted net loss per TSR, Inc. common
share
$
(0.15
)
$
(0.48
)
$
(0.28
)
$
(0.79
)
Basic weighted average common shares
outstanding
1,962,062
1,962,062
1,962,062
1,962,062
Diluted weighted average common shares
outstanding
1,962,062
1,962,062
1,962,062
1,962,062
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version on businesswire.com: https://www.businesswire.com/news/home/20210414005826/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
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