HAUPPAUGE, N.Y.--(BUSINESS WIRE)--TSR, Inc. (Nasdaq: TSRI) ("TSR" or "the Company"), a provider of information technology consulting and recruiting services, today announced financial results for the third quarter ended February 29, 2024.
For the quarter ended February 29, 2024, revenue decreased 18.8% from the same quarter last year to $19.7 million. Net income attributable to TSR for the current quarter was $411,000, or $0.19 per diluted share, as compared to net income of $80,000, or $0.04 per share, in the prior year quarter. The Company ended the quarter with a strong balance sheet with $15.2 million in net working capital or approximately $7.03 per share.
Thomas Salerno, our CEO, stated: "Primarily as the result of decreases in the number of clerical and administrative contractors on billing with customers, revenue decreased 18.8% from the prior year quarter. Our fiscal third quarter is traditionally the most challenging of the year. Workdays are reduced due to the holiday season and payroll tax expenses are at their highest at the beginning of the calendar year. This year was particularly hard hit with mandatory furloughs of contractors during the holiday season. As always, we continue to focus on controlling costs, which has helped our profitability while customers are reducing their spending. In the current quarter, selling, general and administrative expenses were reduced by $401,000 from last year's comparable quarter, despite an additional $136,000 spent in the current quarter on professional fees associated with the review of strategic alternatives. The current quarter benefited from "Other Income" of $547,000 resulting from the reversal of advances from customers.
We continue to navigate an uncertain macro-economic environment, but we are optimistic that revenue and income will be stronger in the second half of calendar 2024. The team continues to make progress with new customers and I am proud of their effort to offer our legacy customers some of the best service in the business. We believe that TSR is well-positioned in the industry and has a strong balance sheet."
The Company will file its Form 10-Q for the quarter ended February 29, 2024 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; 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, as amended. The Company is under no obligation to publicly update or revise forward-looking statements.
Three Months Ending | Nine Months Ending | ||||||||||||||
February 29, | February 28, | February 29, | February 28, | ||||||||||||
2024
| 2023
| 2024
| 2023
| ||||||||||||
Revenue, net | $ | 19,703,000 | $ | 24,257,000 | $ | 63,874,000 | $ | 76,487,000 | |||||||
Cost of sales | 16,372,000 | 20,267,000 | 52,699,000 | 63,434,000 | |||||||||||
Selling, general and administrative expenses | 3,368,000 | 3,768,000 | 9,805,000 | 11,072,000 | |||||||||||
19,740,000 | 24,036,000 | 62,504,000 | 74,506,000 | ||||||||||||
Income (loss) from operations | (37,000 | ) | 221,000 | 1,370,000 | 1,981,000 | ||||||||||
Other income (expense), net | 574,000 | (13,000 | ) | 609,000 | (60,000 | ) | |||||||||
Pre-tax income | 537,000 | 208,000 | 1,979,000 | 1,921,000 | |||||||||||
Income tax provision | 110,000 | 110,000 | 494,000 | 629,000 | |||||||||||
Consolidated net income | 427,000 | 98,000 | 1,485,000 | 1,292,000 | |||||||||||
Less: Net income attributable to noncontrolling interest | 16,000 | 18,000 | 67,000 | 44,000 | |||||||||||
Net income attributable to TSR, Inc. | $ | 411,000 | $ | 80,000 | $ | 1,418,000 | $ | 1,248,000 | |||||||
Basic net income per TSR, Inc. common share | $ | 0.19 | $ | 0.04 | $ | 0.66 | $ | 0.58 | |||||||
Diluted net income per TSR, Inc. common share | $ | 0.19 | $ | 0.04 | $ | 0.66 | $ | 0.56 | |||||||
Basic weighted average common shares outstanding | 2,152,323 | 2,134,660 | 2,146,551 | 2,140,344 | |||||||||||
Diluted weighted average common shares outstanding | 2,152,323 | 2,234,600 | 2,146,551 | 2,235,173 | |||||||||||
Contacts
Thomas Salerno
631-231-0333
