TSRI TSR INC

Revenue increase 48.5% Over Prior Year’s Second Quarter

Balance Sheet Remains Strong with over $6.2 million in Net Cash

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, 2021.

For the quarter ended November 30, 2021, revenue increased 48.5% to $23.9 million as compared to revenue of $16.1 million in the prior year second quarter. Net income attributable to TSR for the current quarter was $243,000, or $0.12 per diluted share, as compared to net loss of ($247,000), or $0.13 per diluted share in the prior year quarter. The Company ended the quarter with a strong balance sheet with $6.3 million in cash and less than $50,000 in debt, resulting in net cash in excess of $6.2 million, or $3 per share.

Thomas Salerno, our CEO, stated “The demand for staffing services remained robust in the quarter. Our revenue increased 48.5% for the second quarter due to organic growth from new and existing customers. Operating income for the current quarter was $415,000 as compared to an operating loss of $223,000 in the prior year quarter. If our current trends continue, we expect operating income to continue to grow as we leverage selling, general and administrative expenses.”

Both the second quarter of fiscal 2022 and the second quarter of fiscal 2021 contained results from the acquisition of Geneva Consulting Group, Inc. (“Geneva”) which closed on September 1, 2020.

“TSR’s operational team as well as the hundreds of high-quality consultants working with our clients are all doing a fantastic job. We spent the first part of the 2021 calendar year building the team and modernizing several of our back office systems and we are now seeing some of the benefits of those investments with both sequential growth in revenues and solid operating income. We believe our strong balance sheet and largely untapped credit facility provide us the ability to further accelerate revenue and earnings growth through acquisitions.”

The Company will file its Form 10-Q for the quarter year ended November 30, 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.

TSR, Inc. Reports Record Revenue for the Second Quarter Ended November 30, 2021 (Continued)

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 Ended November 30,

 

 

Six Months Ended November 30,

 

2021 Unaudited

 

 

2020 Unaudited

 

 

2021 Unaudited

 

 

2020 Unaudited

Revenue, net

$

23,864,000

 

$

16,069,000

 

$

46,730,000

$

30,583,000

 

 

 

 

 

 

Cost of sales

 

19,816,000

 

 

13,233,000

 

 

38,871,000

 

25,417,000

 

Selling, general and administrative expenses

 

3,633,000

 

 

3,059,000

 

 

7,799,000

 

5,330,000

 

 

 

23,449,000

 

 

16,292,000

 

 

46,670,000

 

30,747,000

 

 

 

 

 

 

Income (loss) from operations

 

415,000

 

 

(223,000

)

 

60,000

 

(164,000

)

Other income (expense), net

 

(32,000

)

 

(54,000

)

 

6,667,000

 

(116,000

)

 

 

 

 

 

Pre-tax income (loss)

 

383,000

 

 

(277,000

)

 

6,727,000

 

(280,000

)

Income tax provision (benefit)

 

128,000

 

 

(30,000

)

 

13,000

 

(35,000

)

 

 

 

 

 

Consolidated net income (loss)

 

255,000

 

 

(247,000

)

 

6,714,000

 

(245,000

)

Less: Net income attributable to noncontrolling interest

 

12,000

 

 

-

 

 

69,000

 

5,000

 

 

 

 

 

 

Net income (loss) attributable to TSR, Inc.

$

243,000

 

$

(247,000

)

$

6,645,000

$

(250,000

)

 

 

 

 

 

Basic net income (loss) per TSR, Inc. common share

$

0.12

 

$

(0.13

)

$

3.39

$

(0.13

)

 

 

 

 

 

Diluted net income (loss) per TSR, Inc. common share

$

0.12

 

$

(0.13

)

$

3.27

$

(0.13

)

 

 

 

 

 

Basic weighted average common shares outstanding

1,962,062

1,962,062

1,962,062

1,962,062

 

 

 

 

 

Diluted weighted average common shares outstanding

 

2,032,878

 

 

1,962,062

 

 

2,031,690

 

1,962,062

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220110005956/en/

Thomas Salerno 631-231-0333