TSR, Inc. Announces Record Revenue for the Third Quarter Ended February 28, 2022

Revenue increase of 42.1% compared to the third quarter of the previous year

Balance sheet remains strong with over $6.4 million in net cash

April 11, 2022 5:00 PM Eastern Daylight Time

HAUPPAUGE, NY—(BUSINESS WIRE)—TSR, Inc. (Nasdaq: TSRI) (“TSR or “The Company”), a provider of information technology consulting and staffing services, today announced its financial results for the third quarter ended February 28, 2022.

For the three months ended February 28, 2022, revenue increased 42.1% to $24.4 million from revenue of $17.2 million in the third quarter of the year previous. Net loss attributable to TSR for the current quarter was $47,000, or $0.02 per diluted share, compared to a net loss of $305,000, or $0.16 per diluted share in the year-ago quarter. last year. The company ended the quarter with a strong balance sheet with $6.5 million in cash and less than $60,000 in debt, resulting in net cash of over $6.4 million, or about $3 per share. .

Thomas Salerno, our CEO, said, “Demand for staffing services remained robust during the quarter. Our revenue increased 42.1% in the third quarter due to organic growth from new and existing customers. The operating loss for the current quarter was $37,000 compared to an operating loss of $339,000 in the prior year quarter. Traditionally, our third quarter is the weakest in terms of profitability, as the combination of reduced billable working days for our consultants due to the holiday season and the restart of calendar year-based payroll taxes reduces revenue and increases costs. If our current trends continue, we expect annual operating income to continue to grow as we leverage selling, general and administrative expenses.

The third quarter of fiscal 2022 and the third quarter of fiscal 2021 contained the results of the acquisition of Geneva Consulting Group, Inc. (“Geneva”), which closed on September 1, 2020.

During the current quarter, the Company issued 142,500 shares through its ATM offering at an average price of $13.79 per share, earning the Company $1,821,090 after deducting commissions and other transaction costs. Book value per share increased from $6.32 at the start of the third quarter to $6.62 per share as of February 28, 2022.

“TSR’s operations team and the hundreds of top quality consultants who work with our clients are all doing a fantastic job. We have spent calendar year 2021 building the team and modernizing many of our back office systems and are now seeing some of the benefits of these investments with both sequential revenue growth and strong operational performance. We believe our strong balance sheet and largely untapped credit facility allow us to further accelerate revenue and earnings growth through organic initiatives and business development activities.

The company will file its Form 10-Q today for the quarter ended February 28, 2022 with more details at www.sec.gov.

About TSR, Inc.

Founded in 1969, TSR, Inc. is a leading staffing firm specializing in the recruitment of information technology professionals for short and long term assignments, permanent placements and projects. For more than 50 years, TSR has successfully served clients in the banking, asset management, pharmaceutical, insurance, healthcare, utility, publishing and publishing industries. other sectors. We provide timely candidate screening, placement and a true understanding of the skills our clients require. To learn more, please visit our website at www.tsrconsulting.com.

Certain statements contained herein, including statements regarding the Company’s plans, future prospects and future cash 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 statement. – forward-looking statements due to known and unknown risks and uncertainties, including, but not limited to, the following: statements regarding the success of the Company’s growth plan, both internally and through announced research previously suitable acquisition candidates; the successful integration of announced and completed acquisitions and any related benefits therefrom; the impact of adverse economic conditions on customer spending that negatively impact 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 to the associated financial crisis, stay-at-home and other orders which may significantly reduce customer spending and which may adversely impact the Company’s business; risks related to the competitive nature of the markets for contractual computer programming services; the extent to which market conditions for the Company’s contracted computer programming services will continue to adversely affect the Company’s business; the concentration of the Company’s activities with certain customers; uncertainty about the Company’s ability to maintain relationships with existing customers and expand its business; the impact of industry changes such as the use of vendor management companies as part of the consultant procurement process; the increase in the number of customers offshoring their IT operations; the Company’s ability to adapt to changing market conditions; the risks, uncertainties and costs of 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 undertakes no obligation to publicly update or revise any forward-looking statements.

Three months completed

February 28,

Nine month period ended

February 28,

2022Unaudited

2021Unaudited

2022Unaudited

2021Unaudited

Net sales

$

24,383,000

$

17,160,000

$

71,113,000

$

47,743,000

Cost of sales

20,590,000

14,415,000

59,462,000

39,831,000

Selling, general and administrative expenses

3,830,000

3,084,000

11,628,000

8,414,000

24,420,000

17,499,000

71,090,000

48,245,000

Operating income (loss)

(37,000

)

(339,000

)

23,000

(502,000

)

Other income (expenses), net

(21,000

)

(41,000

)

6,646,000

(157,000

)

Profit (loss) before tax

(58,000

)

(380,000

)

6,669,000

(659,000

)

Provision for income tax (benefit)

(14,000

)

(79,000

)

(1,000

)

(114,000

)

Consolidated net income (net loss)

(44,000

)

(301,000

)

6,670,000

(545,000

)

Less: Net income attributable to non-controlling interests

3,000

4,000

72,000

10,000

Net income (loss) attributable to TSR, Inc.

$

(47,000

)

$

(305,000

)

$

6,598,000

$

(535,000

)

Basic net earnings (loss) per common share of TSR, Inc.

$

(0.02

)

$

(0.16

)

$

3.33

$

(0.28

)

Diluted net earnings (loss) per common share of TSR, Inc.

$

(0.02

)

$

(0.16

)

$

3.19

$

(0.28

)

Basic weighted average common shares outstanding

2,027,494

1,962,062

1,983,146

1,962,062

Diluted weighted average common shares outstanding

2,027,494

1,962,062

2,066,976

1,962,062

contacts
Thomas Salerno
631-231-0333