TSR, Inc. Reports Results for the Fiscal Year and Fourth Quarter Ended May 31, 2023
August 11 2023 - 5:00PM
Business Wire
Annual Revenues Exceeded $100mm for the
first time in Company’s History
Company Recorded Highest Operating Income in
over 15 years
TSR, Inc. (Nasdaq: TSRI) (“TSR” or “The Company”), a provider of
information technology consulting and recruiting services, today
announced financial results for the fiscal year and fourth quarter
ended May 31, 2023.
For the quarter ended May 31, 2023, revenue decreased 4.8% from
the same quarter last year to $24.9 million. Net income
attributable to TSR for the current quarter was $494,000, or $0.22
per diluted share, as compared to $321,000, or $0.15 per share, in
the prior year’s fourth quarter. The Company ended the quarter with
a strong balance sheet with $13.5 million in net working capital or
approximately $6.32 per share.
For the year ended May 31, 2023, revenue increased 4.2% to
$101.4 million as compared to revenue of $97.3 million in the prior
year. Net income attributable to TSR for the current year was
$1,742,000, or $0.78 per diluted share, as compared to $6,929,000,
or $3.30 per diluted share in the prior year. The prior year
benefitted from a gain of $6,735,000 from forgiveness of the
principal on the PPP loan and related accrued interest expense.
Thomas Salerno, our CEO, stated: “Improvements this quarter
resulted in income from operations of $716,000 as compared to
$356,000 in the prior year’s fourth quarter. We continued to focus
on our more specialized and higher margin IT business and are
seeing solid results from our fledgling permanent placement
business. As always, we continue to focus on controlling costs,
which has helped us increase profitability in the fiscal fourth
quarter.
We continue to navigate an uncertain macro-economic environment,
but we are optimistic that revenue and income will grow. The team
continues to make progress with new customers and I am proud of
their effort to offer our legacy customers some of the best service
in the business. We believe that TSR is well-positioned in the
industry and has a strong balance sheet.”
The Company will file its Form 10-K for the fiscal year ended
May 31, 2023 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; 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 May 31,
Fiscal Year Ending May 31,
2023
Unaudited
2022
Unaudited
2023
Unaudited
2022
Unaudited
Revenue, net
$
24,946,000
$
26,200,000
$
101,433,000
$
97,312,000
Cost of sales
20,513,000
21,853,000
83,947,000
81,314,000
Selling, general and administrative
expenses
3,717,000
3,991,000
14,789,000
15,620,000
24,230,000
25,844,000
98,736,000
96,934,000
Income from operations
716,000
356,000
2,697,000
378,000
Other income (expense), net
(3,000
)
(24,000
)
(63,000
)
6,623,000
Pre-tax income
713,000
332,000
2,634,000
7,001,000
Income tax provision (benefit)
202,000
-
831,000
(1,000
)
Consolidated net income
511,000
332,000
1,803,000
7,002,000
Less: Net income attributable to
noncontrolling interest
17,000
1,000
61,000
73,000
Net income attributable to TSR, Inc.
$
494,000
$
331,000
$
1,742,000
$
6,929,000
Basic net income per TSR, Inc. common
share
$
0.23
$
0.15
$
0.81
$
3.42
Diluted net income per TSR, Inc. common
share
$
0.22
$
0.15
$
0.78
$
3.30
Basic weighted average common shares
outstanding
2,144,322
2,146,448
2,141,363
2,024,325
Diluted weighted average common shares
outstanding
2,246,308
2,233,496
2,237,935
2,097,898
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version on businesswire.com: https://www.businesswire.com/news/home/20230811854237/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
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