TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2020
October 13 2020 - 5:00PM
Business Wire
TSR, Inc. (Nasdaq: TSRI), a provider of information technology
consulting and recruiting services, today announced financial
results for the first quarter ended August 31, 2020.
For the quarter ended August 31, 2020, revenue decreased 2.9%
from the same quarter last year to $14.5 million. Operating income
for the current quarter was $60,000 as compared to an operating
loss of $914,000 in the prior year quarter. Net loss attributable
to TSR for the current quarter was $3,000 as compared to net loss
attributable to TSR of $663,000 in the prior year quarter.
Additionally, net loss per share for the current quarter was less
than $0.01 compared to net loss per share of $0.34 in the prior
year quarter.
Thomas Salerno, CEO, stated, “Revenue decreased 2.9% for the
first quarter due to a decrease in the average number of
consultants on billing with customers. However, cost of sales
decreased at a greater rate than revenue, yielding an increase in
gross profit. Selling, general and administrative expenses
decreased by $919,000 for the quarter. The decrease in SG&A was
due to a significant decrease in legal expenses which had been
incurred in connection with litigation and the contested proxy
solicitation related to our 2018 annual meeting. Operating income
for the current quarter was $60,000 as compared to an operating
loss of $914,000 in the prior year quarter.
After the end of the first quarter, on September 1, 2020, TSR
announced the acquisition of Geneva Consulting Group, a provider of
temporary and permanent information technology personnel based in
Port Washington, New York. Geneva has been a well-respected, top
tier firm in the staffing industry since 1997 and we look forward
to welcoming their highly skilled team to our family. We will
seamlessly continue to provide exceptional service to their clients
and offer them additional services to further support their
staffing needs. We believe this acquisition fits very well with
TSR’s new Board of Directors’ overall strategic vision of
accelerating growth and improving returns for shareholders.”
The Company will file its Form 10-Q for the fiscal quarter ended
August 31, 2020 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
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; 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.
August 31,
2020
August 31,
2019
Revenue, net
$
14,514,000
$
14,947,000
Cost of sales
12,183,000
12,671,000
Selling, general and administrative
expenses
2,271,000
3,190,000
14,454,000
15,861,000
Income (loss) from operations
60,000
(914,000
)
Other income, net
(62,000
)
8,000
Pre-tax loss
(2,000
)
(906,000
)
Income tax benefit
(5,000
)
(247,000
)
Consolidated net income (loss)
3,000
(659,000
)
Less: Net income attributable to
noncontrolling interest
6,000
4,000
Net loss attributable to TSR, Inc.
$
(3,000
)
$
(663,000
)
Basic and diluted net loss per TSR, Inc.
common share
$
(0.00
)
$
(0.34
)
Basic and diluted weighted average common
shares outstanding
1,962,062
1,962,062
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version on businesswire.com: https://www.businesswire.com/news/home/20201013006020/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
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