Business Wire | Oct 13, 2021 05:00PM EDT

TSR, Inc. Reports Record Revenue for the First Quarter Ended August 31, 2021

Oct. 13, 2021

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Oct. 13, 2021--TSR, Inc. (Nasdaq: TSRI) ("TSR or "The Company"), a provider of information technology consulting and recruiting services, today announced financial results for the first quarter ended August 31, 2021.

For the quarter ended August 31, 2021, revenue increased 57.5% from the same quarter last year to $22.9 million. Net income attributable to TSR for the current quarter was $6,402,000, or $3.18 per diluted share, as compared to net loss of ($3,000), or less than $0.01 per share, in the prior year quarter.

Thomas Salerno, our CEO, stated "Revenue increased 57.5% for the first quarter due to new business development, our acquisition, and organic growth. Operating loss for the current quarter was $355,000 as compared to operating income of $60,000 in the prior year quarter. The current quarter included a charge of $580,000 related to the settlement of litigation with our former CEO. Without this one-time charge, TSR would have generated operation profit of approximately $225,000 for the quarter. We expect operating income to grow as we normalize selling, general and administrative expenses. The increase in SG&A compared with the prior year quarter was due in large part to the ramping up of our recruiting staff and the additional expenses from the acquisition of Geneva Consulting Group, Inc. ("Geneva"). Net income was $6,402,000 in the current quarter. This was primarily attributable to the forgiveness of principal and interest on our SBA PPP Loan of $6,735,000.

"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.

"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."

The Company will file its Form 10-Q for the quarter year ended August 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 August 31,

2021 2020 Unaudited Unaudited

Revenue, net $ 22,866,000 $ 14,514,000



Cost of sales 19,056,000 12,183,000

Selling, general and administrative expenses 4,165,000 2,271,000

23,221,000 14,454,000



Income (loss) from operations (355,000 ) 60,000

Other income (expense), net 6,699,000 (62,000 )



Pre-tax income (loss) 6,344,000 (2,000 )

Income tax benefit (115,000 ) (5,000 )



Consolidated net income 6,459,000 3,000

Less: Net income attributable to noncontrolling 57,000 6,000interest



Net income (loss) attributable to TSR, Inc. $ 6,402,000 $ (3,000 )



Basic net income (loss) per TSR, Inc. common $ 3.26 $ (0.00 )share



Diluted net income (loss) per TSR, Inc. common $ 3.18 $ (0.00 )share



Basic weighted average common shares outstanding 1,962,062 1,962,062



Diluted weighted average common shares 2,014,699 1,962,062 outstanding

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CONTACT: Thomas Salerno 631-231-0333