TSR, Inc. Reports Financial Results for the Second Quarter Ended November 30, 2020
TSR, Inc. (TSRI) reported Q2 financial results for the period ending November 30, 2020, revealing a revenue increase of 5.5% year-over-year, amounting to $16.0 million. However, the company faced operational loss of $224,000 compared to an income of $64,000 in Q2 2019, with a net loss of $247,000 versus a net income of $62,000 the previous year. The CEO attributed revenue growth largely to the acquisition of Geneva Consulting Group, though the underlying revenue would have declined by 7.4% without it. Selling and administrative expenses rose considerably, heavily influenced by the new acquisition.
- 5.5% revenue growth driven by Geneva Consulting Group acquisition
- Successful integration of Geneva Consulting Group
- Operating loss of $224,000 compared to $64,000 profit last year
- Net loss attributable to TSR was $247,000 versus $62,000 profit last year
- Increase in selling, general and administrative expenses by $673,000
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, 2020.
For the quarter ended November 30, 2020, revenue increased
Thomas Salerno, CEO, stated, “Revenue increased
While the Company has only owned Geneva for one quarter, the integration of the teams has gone smoothly and we believe the acquisition will help us accelerate growth and improve returns for shareholders. We have recently begun to upgrade and modernize several of our back office systems that we believe will help improve efficiencies and allow the business to continue to scale.
Like many businesses in the country, our business has been impacted by COVID, but I am proud to report that the team finished the calendar year on a high note, with strong momentum for placements into the new year.”
The Company will file its Form 10-Q for the fiscal quarter ended November 30, 2020 today with further details at www.sec.gov.
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 internal and through the previously announced pursuit of suitable acquisition candidates; the successful integration of announced acquisitions and any anticipated benefits therefrom; the impact of adverse economic conditions on client spending which have a negative impact on the Company’s business, which includes, but is 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; 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 Ended November 30, |
Six Months Ended November 30, |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenue, net |
$ |
16,069,000 |
|
$ |
15,234,000 |
$ |
30,583,000 |
|
$ |
30,180,000 |
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|
|
|
|
|
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Cost of sales |
|
13,234,000 |
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