TSR, Inc. Reports Record Revenue for the Third Quarter Ended February 28, 2022
April 11 2022 - 5:00PM
Business Wire
Revenue increase 42.1% Over Prior Year’s
Third Quarter
Balance Sheet Remains Strong with over $6.4
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 third quarter ended February
28, 2022.
For the quarter ended February 28, 2022, revenue increased 42.1%
to $24.4 million as compared to revenue of $17.2 million in the
prior year third quarter. Net loss attributable to TSR for the
current quarter was $47,000, or $0.02 per diluted share, as
compared to net loss of $305,000, or $0.16 per diluted share in the
prior year quarter. The Company ended the quarter with a strong
balance sheet with $6.5 million in cash and less than $60,000 in
debt, resulting in net cash in excess of $6.4 million, or
approximately $3 per share.
Thomas Salerno, our CEO, stated “The demand for staffing
services remained robust in the quarter. Our revenue increased
42.1% for the third quarter due to organic growth from new and
existing customers. Operating loss for the current quarter was
$37,000 as compared to an operating loss of $339,000 in the prior
year quarter. Traditionally, our third quarter is the lowest in
terms of profitability, as the combination of reduced billable
workdays for our consultants due to the holiday season and the
restarting of payroll taxes based on the calendar year reduces
revenue and increases costs. If our current trends continue, we
expect annual operating income to continue to grow as we leverage
selling, general and administrative expenses.”
Both the third quarter of fiscal 2022 and the third quarter of
fiscal 2021 contained results from the acquisition of Geneva
Consulting Group, Inc. (“Geneva”) which closed on September 1,
2020.
During the current quarter the Company issued 142,500 shares via
its ATM offering at an average price of $13.79 per share, netting
the Company $1,821,090 after deducting commissions and other
transaction costs. Book value per share increased from $6.32 at the
beginning of the third quarter to $6.62 per share at February 28,
2022.
“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 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 performance. We believe our strong
balance sheet and largely untapped credit facility provide us the
ability to further accelerate revenue and earnings growth through
organic initiatives and business development activities.”
The Company will file its Form 10-Q for the quarter year ended
February 28, 2022, 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 Ended
February 28,
Nine Months Ended
February 28,
2022
Unaudited
2021
Unaudited
2022
Unaudited
2021
Unaudited
Revenue, net
$
24,383,000
$
17,160,000
$
71,113,000
$
47,743,000
Cost of sales
20,590,000
14,415,000
59,462,000
39,831,000
Selling, general and administrative
expenses
3,830,000
3,084,000
11,628,000
8,414,000
24,420,000
17,499,000
71,090,000
48,245,000
Income (loss) from operations
(37,000
)
(339,000
)
23,000
(502,000
)
Other income (expense), net
(21,000
)
(41,000
)
6,646,000
(157,000
)
Pre-tax income (loss)
(58,000
)
(380,000
)
6,669,000
(659,000
)
Income tax provision (benefit)
(14,000
)
(79,000
)
(1,000
)
(114,000
)
Consolidated net income (loss)
(44,000
)
(301,000
)
6,670,000
(545,000
)
Less: Net income attributable to
noncontrolling interest
3,000
4,000
72,000
10,000
Net income (loss) attributable to TSR,
Inc.
$
(47,000
)
$
(305,000
)
$
6,598,000
$
(535,000
)
Basic net income (loss) per TSR, Inc.
common share
$
(0.02
)
$
(0.16
)
$
3.33
$
(0.28
)
Diluted net income (loss) per TSR, Inc.
common share
$
(0.02
)
$
(0.16
)
$
3.19
$
(0.28
)
Basic weighted average common shares
outstanding
2,027,494
1,962,062
1,983,146
1,962,062
Diluted weighted average common shares
outstanding
2,027,494
1,962,062
2,066,976
1,962,062
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220411005755/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
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