Income from Operations increased 142% from Q2 FY22
Revenue increased 9.1% from Q2 FY22
Share Repurchase Program Commenced Q2 FY23
TSR, Inc. (Nasdaq: TSRI) (“TSR” or “The Company”), a provider of information technology consulting and recruiting services, today announced financial results for the second quarter ended November 30, 2022.
For the quarter ended November 30, 2022, revenue increased 9.1% from the same quarter last year to $26.0 million. Net income attributable to TSR for the current quarter was $674,000, or $0.30 per diluted share, as compared to net income of $243,000, or $0.12 per share, in the prior year quarter.
Thomas Salerno, our CEO, stated: “Our operating income increased a robust 142% ($1,066,000 as compared to $415,000 in the prior year’s second quarter), due to strategic business development efforts combined with the completion of a firmwide technology overhaul that included the implementation of leading-edge applicant search tools, which saved the Company money and provided our recruiters with improved tools to find top talent faster than our competitors.
Revenue grew by 9.1% over the prior year quarter due to a combination of more high end IT consulting engagements and our successful emphasis on the higher profit margin permanent placement space. This drove net income, which was also enhanced by our executive team’s focus on controlling selling, general and administrative expenses.
In early 2020, we created a multiyear road map that started with increasing top line growth, investing in our technology infrastructure, improving brand recognition, and revitalizing our corporate culture. We anticipated that this plan would increase profitability and shareholder equity and we are happy to report these positive results..
As we navigate a challenging economic environment, we are optimistic that revenue and income will continue to grow. We firmly believe that TSR is well positioned in the industry and has a strong balance sheet. We recently adopted a share buy-back program as a demonstration of our long-term confidence in the Company’s future.”
The Company will file its Form 10-Q for the quarter ended November 30, 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 Ending November 30, |
Six Months Ending November 30, |
|||||||||
|
2022 Unaudited |
2021 Unaudited |
2022 Unaudited |
2021 Unaudited |
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|
|
|
|||||||||
Revenue, net |
$ |
26,031,000 |
|
$ |
23,864,000 |
|
$ |
52,230,000 |
|
$ |
46,730,000 |
|
|
|
|
||||||||
Cost of sales |
|
21,400,000 |
|
|
19,816,000 |
|
|
43,166,000 |
|
|
38,871,000 |
|
|
|
|
|
|||||||
Selling, general and administrative expenses |
|
3,625,000 |
|
|
3,633,000 |
|
|
7,303,000 |
|
|
7,799,000 |
|
|
25,025,000 |
|
|
23,449,000 |
|
|
50,469,000 |
|
|
46,670,000 |
|
|
|
|
||||||||
Income from operations |
|
1,006,000 |
|
|
415,000 |
|
|
1,761,000 |
|
|
60,000 |
Other income (expense), net |
|
(18,000 |
) |
|
(32,000 |
) |
|
(47,000 |
) |
|
6,667,000 |
|
|
|
|
|
|||||||
Pre-tax income |
|
988,000 |
|
|
383,000 |
|
|
1,714,000 |
|
|
6,727,000 |
Income tax provision |
|
301,000 |
|
|
128,000 |
|
|
519,000 |
|
|
13,000 |
|
|||||||||||
Consolidated net income |
|
687,000 |
|
|
255,000 |
|
|
1,195,000 |
|
|
6,714,000 |
Less: Net income attributable to noncontrolling interest |
|
13,000 |
|
|
12,000 |
|
|
26,000 |
|
|
69,000 |
Net income attributable to TSR, Inc. |
$ |
674,000 |
|
$ |
243,000 |
|
$ |
1,169,000 |
|
$ |
6,645,000 |
|
|||||||||||
Basic net income per TSR, Inc. common share |
$ |
0.31 |
|
$ |
0.12 |
|
$ |
0.55 |
|
$ |
3.39 |
|
|
|
|||||||||
Diluted net income per TSR, Inc. common share |
$ |
0.30 |
|
$ |
0.12 |
|
$ |
0.52 |
|
$ |
3.27 |
|
|
|
|
||||||||
Basic weighted average common shares outstanding |
|
2,139,861 |
|
|
1,962,062 |
|
|
2,143,155 |
|
|
1,962,062 |
|
|||||||||||
Diluted weighted average common shares outstanding |
|
2,232,332 |
|
|
2,032,878 |
|
|
2,234,473 |
|
|
2,031,690 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230110005305/en/
Contacts
Thomas Salerno
631-231-0333