Revenues increase 42.5% from 4Q20 and 22.8%
from 3Q21
Revenues increase 16.4% for the Fiscal Year
Ended May 31, 2021
TSR, Inc. (Nasdaq: TSRI) (“TSR or “The Company”), a provider of
information technology consulting and recruiting services, today
announced financial results for the fourth quarter and fiscal year
ended May 31, 2021.
For the quarter ended May 31, 2021, revenue increased 42.5% from
the same quarter last year to $21.1 million. Operating income for
the current quarter was $15,000 as compared to $350,000 in the
prior year quarter. Net loss attributable to TSR for the current
quarter was $46,000, or ($0.02) per share, as compared to net
income of $421,000, or $0.21 per share, in the prior year
quarter.
For the year ended May 31, 2021, revenue increased 16.4% from
last year to $68.8 million. Net loss attributable to TSR for the
current year was $601,000, or ($0.31) per share, as compared to net
loss attributable to TSR of $1,126,000, or ($0.57) per share, in
the prior year.
Thomas Salerno, our CEO, stated “Revenue increased 42.5% for the
fourth quarter due to new business development, our recent
acquisition, and organic growth. While operating income for the
current quarter was only $15,000 as compared to $350,000 in the
prior year quarter, this was largely due to an increase in selling,
general and administrative expenses of $1,311,000 for the quarter.
The increase in SG&A compared with the prior year quarter was
due in large part to a systems upgrade and implementation of a new
applicant tracking and CRM system, a relaunch in our corporate web
site, and the additional expenses from the acquisition of Geneva
Consulting Group, Inc. (“Geneva”).
“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. Revenue increased 16.4% for the year due to the Geneva
acquisition as well as organic growth and new business development
within the existing Geneva client base. This helped reduce the net
loss attributable to TSR to $601,000 from $1,126,000 in the prior
year. The gains in revenue and gross profit were offset to an
extent by an increase in selling, general and administrative
expenses of $880,000 for the year, which included $210,000 for
additional earnout payments to the Geneva sellers, a right-of-use
impairment charge of $137,000, and non-cash interest expense of
$68,000 related to our PPP loan. The Company expects the
investments made in fiscal 2021 to lay the groundwork for
consistent profitability in fiscal 2022.”
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.”
Subsequent to the fiscal year end, on July 7, 2021, the Company
received notice from our PPP lender that the SBA had fully forgiven
our PPP Loan in the amount of $6,659,220, plus accrued interest.
This will be reflected in the Company’s results for the quarter
ending August 31, 2021.
The Company will file its Form 10-K for the fiscal year ended
May 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 May 31,
Year Ending May 31,
2021
2020
2021
2020
Revenue, net
$
21,078,000
$
14,796,000
$
68,821,000
$
59,121,000
Cost of sales
17,669,000
12,363,000
57,500,000
49,943,000
Selling, general and administrative
expenses
3,394,000
2,083,000
11,809,000
10,929,000
21,063,000
14,446,000
69,309,000
60,872,000
Income (loss) from operations
15,000
350,000
(488,000
)
(1,751,000
)
Other expense, net
(41,000
)
(35,000
)
(198,000
)
(59,000
)
Pre-tax income (loss)
(26,000
)
315,000
(686,000
)
(1,810,000
)
Income tax provision (benefit)
5,000
(121,000
)
(109,000
)
(712,000
)
Consolidated net income (loss)
(31,000
)
436,000
(577,000
)
(1,098,000
)
Less: Net income attributable to
noncontrolling interest
15,000
15,000
24,000
28,000
Net income (loss) attributable to TSR,
Inc.
$
(46,000
)
$
421,000
$
(601,000
)
$
(1,126,000
)
Basic and diluted net income (loss) per
TSR, Inc. common share
$
(0.02
)
$
0.21
$
(0.31
)
$
(0.57
)
Basic and diluted weighted average common
shares outstanding
1,962,062
1,962,062
1,962,062
1,962,062
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210823005547/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
Historical Stock Chart
From Aug 2024 to Sep 2024
TSR (NASDAQ:TSRI)
Historical Stock Chart
From Sep 2023 to Sep 2024