TSR, Inc. Reports Record Revenue for the First Quarter Ended August 31, 2021
October 13 2021 - 5:00PM
Business Wire
Revenue increase 57.5% from 1Q21 and 8.5%
from 4Q21
TSR, Inc. (Nasdaq: TSRI) (“TSR or “The Company”), a provider of
information technology consulting and recruiting services, today
announced financial results for the first quarter ended August 31,
2021.
For the quarter ended August 31, 2021, revenue increased 57.5%
from the same quarter last year to $22.9 million. Net income
attributable to TSR for the current quarter was $6,402,000, or
$3.18 per diluted share, as compared to net loss of ($3,000), or
less than $0.01 per share, in the prior year quarter.
Thomas Salerno, our CEO, stated “Revenue increased 57.5% for the
first quarter due to new business development, our acquisition, and
organic growth. Operating loss for the current quarter was $355,000
as compared to operating income of $60,000 in the prior year
quarter. The current quarter included a charge of $580,000 related
to the settlement of litigation with our former CEO. Without this
one-time charge, TSR would have generated operation profit of
approximately $225,000 for the quarter. We expect operating income
to grow as we normalize selling, general and administrative
expenses. The increase in SG&A compared with the prior year
quarter was due in large part to the ramping up of our recruiting
staff and the additional expenses from the acquisition of Geneva
Consulting Group, Inc. (“Geneva”). Net income was $6,402,000 in the
current quarter. This was primarily attributable to the forgiveness
of principal and interest on our SBA PPP Loan of $6,735,000.
“The entire TSR team has tenaciously delivered strong results in
a very challenging environment. We are beginning to see the
tangible results of these efforts and the skills and resiliency
that we developed in these unprecedented times have positioned our
team members for greater opportunity for success in a normalized
market.
“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 are in the
process of upgrading and modernizing 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-19 pandemic, we are guardedly optimistic of
continued revenue growth in the improving business climate.”
The Company will file its Form 10-Q for the quarter year ended
August 31, 2021 today with further details at www.sec.gov.
About TSR, Inc.
Founded in 1969, TSR, Inc. is a leading staffing company focused
on recruiting Information Technology professionals for short- and
long-term assignments, permanent placements, and project work. For
over 50 years, TSR has successfully served clients in banking,
asset management, pharmaceuticals, insurance, health care, public
utility, publishing and other industries. We provide candidate
screening, timely placement and a real understanding of the right
skill sets required by our clients. To learn more, please visit our
website at www.tsrconsulting.com.
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
internally and through the previously announced pursuit of suitable
acquisition candidates; the successful integration of announced and
completed acquisitions and any related benefits therefrom; the
impact of adverse economic conditions on client spending which have
a negative impact on the Company’s business, which include, but are
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 Ending August
31,
2021
Unaudited
2020
Unaudited
Revenue, net
$
22,866,000
$
14,514,000
Cost of sales
19,056,000
12,183,000
Selling, general and administrative
expenses
4,165,000
2,271,000
23,221,000
14,454,000
Income (loss) from operations
(355,000
)
60,000
Other income (expense), net
6,699,000
(62,000
)
Pre-tax income (loss)
6,344,000
(2,000
)
Income tax benefit
(115,000
)
(5,000
)
Consolidated net income
6,459,000
3,000
Less: Net income attributable to
noncontrolling interest
57,000
6,000
Net income (loss) attributable to TSR,
Inc.
$
6,402,000
$
(3,000
)
Basic net income (loss) per TSR, Inc.
common share
$
3.26
$
(0.00
)
Diluted net income (loss) per TSR, Inc.
common share
$
3.18
$
(0.00
)
Basic weighted average common shares
outstanding
1,962,062
1,962,062
Diluted weighted average common shares
outstanding
2,014,699
1,962,062
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version on businesswire.com: https://www.businesswire.com/news/home/20211013006036/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
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