Revenue increased 24.3% Over Prior Year’s Fourth Quarter
Revenue increased 41.4% Over 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, 2022.
For the quarter ended May 31, 2022, revenue increased 24.3% to $26.2 million as compared to revenue of $21.1 million in the prior year’s fourth quarter. Net income attributable to TSR for the current quarter was $331,000, or $0.15 per diluted share, as compared to a net loss of $46,000, or $0.02 per diluted share in the prior year’s fourth quarter. The Company ended the quarter with a strong balance sheet with $6.5 million in cash and less than $62,000 in debt, resulting in net cash in excess of $6.4 million, or approximately $3 per share.
For the year ended May 31, 2022, revenue increased 41.4% to $97.3 million as compared to revenue of $68.8 million in the prior year. Net income attributable to TSR for the current year was $6,929,000, or $3.30 per diluted share, as compared to a net loss of $601,000, or $0.31 per diluted share in the prior year. The current year benefitted from a gain of $6,735,000 from forgiveness of the PPP loan and accrued interest.
Thomas Salerno, our CEO, stated “The demand for staffing services remained robust during the quarter. Our revenue increased 24.3% over the prior year’s fourth quarter due to organic growth from new and existing customers. Operating income for the current quarter was $356,000 as compared to $14,000 in the prior year’s fourth quarter. If our current trends continue, we expect operating income to continue to grow as we leverage selling, general and administrative expenses.”
“TSR’s operational team along with 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-K for the fiscal year ended May 31, 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 May 31, |
Fiscal Year Ended May 31, |
|||||||||||||||
2022 Unaudited |
2021 Unaudited |
2022 |
2021 |
|||||||||||||
Revenue, net |
$ |
26,200,000 |
|
$ |
21,078,000 |
|
$ |
97,312,000 |
|
$ |
68,821,000 |
|
||||
|
|
|
|
|
||||||||||||
Cost of sales |
|
21,853,000 |
|
|
17,669,000 |
|
|
81,314,000 |
|
|
57,500,000 |
|
||||
Selling, general and administrative expenses |
|
3,991,000 |
|
|
3,395,000 |
|
|
15,620,000 |
|
|
11,809,000 |
|
||||
|
|
25,844,000 |
|
|
21,064,000 |
|
|
96,934,000 |
|
|
69,309,000 |
|
||||
|
|
|
|
|
||||||||||||
Income (loss) from operations |
|
356,000 |
|
|
14,000 |
|
|
378,000 |
|
|
(488,000 |
) |
||||
Other income (expense), net |
|
(24,000 |
) |
|
(41,000 |
) |
|
6,623,000 |
|
|
(198,000 |
) |
||||
|
|
|
|
|
||||||||||||
Pre-tax income (loss) |
|
332,000 |
|
|
(27,000 |
) |
|
7,001,000 |
|
|
(686,000 |
) |
||||
Income tax provision (benefit) |
|
- |
|
|
5,000 |
|
|
(1,000 |
) |
|
(109,000 |
) |
||||
|
|
|
|
|
||||||||||||
Consolidated net income (loss) |
|
332,000 |
|
|
(32,000 |
) |
|
7,002,000 |
|
|
(577,000 |
) |
||||
Less: Net income attributable to noncontrolling interest |
|
1,000 |
|
|
14,000 |
|
|
73,000 |
|
|
24,000 |
|
||||
|
|
|
|
|
||||||||||||
Net income (loss) attributable to TSR, Inc. |
$ |
331,000 |
|
$ |
(46,000 |
) |
$ |
6,929,000 |
|
$ |
(601,000 |
) |
||||
|
|
|
|
|
||||||||||||
Basic net income (loss) per TSR, Inc. common share |
$ |
0.15 |
|
$ |
(0.02 |
) |
$ |
3.42 |
|
$ |
(0.31 |
) |
||||
|
|
|
|
|
||||||||||||
Diluted net income (loss) per TSR, Inc. common share |
$ |
0.15 |
|
$ |
(0.02 |
) |
$ |
3.30 |
|
$ |
(0.31 |
) |
||||
|
|
|
|
|
||||||||||||
Basic weighted average common shares outstanding |
|
2,146,448 |
|
|
1,962,062 |
|
|
2,024,325 |
|
|
1,962,062 |
|
||||
|
|
|
|
|
||||||||||||
Diluted weighted average common shares outstanding |
|
2,233,496 |
|
|
1,962,062 |
|
|
2,097,898 |
|
|
1,962,062 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220815005630/en/
Contacts
Thomas Salerno
631-231-0333
