TSR, Inc. Reports Record Revenue for the Second Quarter Ended November 30, 2021
January 10 2022 - 5:00PM
Business Wire
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
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version on businesswire.com: https://www.businesswire.com/news/home/20220110005956/en/
Thomas Salerno 631-231-0333
TSR (NASDAQ:TSRI)
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