TSR, Inc. Reports Results for the First Quarter Ended August 31, 2022

Revenue increased 14.6% from Q1 FY22

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, 2022.

For the quarter ended August 31, 2022, revenue increased 14.6% from the same quarter last year to $26.2 million. Net income attributable to TSR for the current quarter was $495,000, or $0.22 per diluted share, as compared to net income of $6,402,000, or $3.18 per share, in the prior year quarter. The prior year quarter 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 strong during the quarter. Our revenue increased 14.6% over the prior year’s first quarter due to organic growth from new and existing customers. Operating income for the current quarter was $755,000 as compared to a loss of $355,000 in the prior year’s first quarter. The prior year’s first quarter was impacted by a charge of $580,000 for the legal settlement with the former Chief Executive Officer. If our current trends continue, we expect operating income to continue to grow on an annual basis as we leverage selling, general and administrative expenses.

“TSR is firmly committed to exceeding the expectations of our customers. Double digit organic growth is a good validation that we are providing a high level of customer satisfaction. As we have been saying, we have made significant commitments to streamlining our processes to provide top quality candidates to our valuable customers on a cost competitive basis. It is very exciting to see these efforts starting to positively affect our bottom line. We believe that we are well positioned in the industry and have adopted a share buy-back program as a demonstration of our long-term confidence.”

The Company will file its Form 10-Q for the quarter ended August 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.

TSR, Inc. Reports Results for the First Quarter Ended August 31, 2022

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.

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