TSR, Inc. Reports Results for the First Quarter Ended August 31, 2022
TSR, Inc. (NASDAQ: TSRI) reported a 14.6% increase in revenue for Q1 FY22, reaching $26.2 million. However, net income fell to $495,000 or $0.22 per diluted share, down from $6.4 million or $3.18 per share in the prior year, which had benefited from a $6.7 million PPP loan forgiveness. Operating income improved to $755,000 compared to a loss of $355,000 last year. The company highlights strong demand and ongoing efforts to streamline processes while announcing a share buy-back program as a sign of confidence.
- Revenue increased by 14.6% year-over-year to $26.2 million.
- Operating income improved to $755,000 from a loss of $355,000 in the prior year.
- Strong demand for staffing services led to organic growth.
- Share buy-back program initiated, indicating long-term confidence.
- Net income dropped significantly from $6.4 million to $495,000.
- Prior year's income was inflated due to a one-time PPP loan forgiveness.
- Basic and diluted earnings per share decreased to $0.23 and $0.22, respectively.
Revenue increased
For the quarter ended
“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
About
Founded in 1969,
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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Three Months Ending |
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2022 |
2021 |
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Unaudited |
Unaudited |
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Revenue, net |
$ |
26,199,000 |
|
$ |
22,866,000 |
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Cost of sales |
|
21,767,000 |
|
|
19,056,000 |
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Selling, general and administrative expenses |
|
3,678,000 |
|
|
4,165,000 |
|
|
|
|
25,445,000 |
|
|
23,221,000 |
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Income (loss) from operations |
|
755,000 |
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(355,000 |
) |
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Other income (expense), net |
|
(29,000 |
) |
|
6,699,000 |
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Pre-tax income |
|
726,000 |
|
|
6,344,000 |
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Income tax provision (benefit) |
|
218,000 |
|
|
(115,000 |
) |
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Consolidated net income |
|
508,000 |
|
|
6,459,000 |
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Less: Net income attributable to noncontrolling interest |
13,000 |
|
57,000 |
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Net income attributable to |
$ |
495,000 |
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$ |
6,402,000 |
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Basic net income per |
$ |
0.23 |
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$ |
3.26 |
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Diluted net income per |
$ |
0.22 |
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$ |
3.18 |
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Basic weighted average common shares outstanding |
2,146,448 |
1,962,062 |
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Diluted weighted average common shares outstanding |
|
2,236,674 |
|
|
2,014,699 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20221011005343/en/
631-231-0333
Source:
FAQ
What were TSR's revenue results for Q1 FY22?
How did TSR's net income change in Q1 FY22 compared to the previous year?
What is the earnings per share for TSR in Q1 FY22?
What steps is TSR taking to enhance investor confidence?
