TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2019

TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2019

HAUPPAUGE, N.Y.–(BUSINESS WIRE)–TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting services, today announced financial results for the first quarter ended August 31, 2019.

For the quarter ended August 31, 2019, revenue decreased 9.9% from the same quarter last year to $14.9 million. Net loss attributable to TSR for the current quarter was $663,000 as compared to net income attributable to TSR of $38,000 in the prior year quarter. Additionally, net loss per share for the current quarter was $0.34 compared to net income per share of $0.02 in the prior year quarter.

Christopher Hughes, CEO, stated, “Revenue decreased 9.9% for the first quarter reflecting a decrease in average billing rates for IT consultants on billing with customers resulting from a shift in business mix with fewer placements for high end skills across the customer base and reduced opportunities for administrative and clerical placements with a large customer. Cost of sales decreased at a lower percentage rate than revenue, yielding a decrease in gross margin. Customer demands for discounts and aggressive pricing combined with a competitive market environment have continued to apply downward pressures on gross margins. Selling, general and administrative expenses increased by $670,000 for the quarter. The increase in SG&A was due to an increase in professional and advisory fees of $766,000 in connection with various stockholder lawsuits and the contested proxy solicitation relating to our 2018 annual meeting, which was postponed as a result of these lawsuits and to allow additional time for the Board of Directors to consider the stockholder proposals to be brought before the annual meeting.”

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 ultimate consummation of the Company’s and Christopher Hughes’ purchase of Common Stock from certain investor parties and the slate of nominees that will stand for election to the Board; the success of the Company’s plan for growth, both internal and through the previously announced pursuit of suitable acquisition candidates; the impact of adverse economic conditions on client spending which has 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.

TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2019
(Continued)

 

 

Three Months Ended

 

 

August 31,
2019

 

August 31,
2018

 

Revenue, net

$

14,947,000

 

 

$

16,581,000

 

 

 

 

 

Cost of Sales

 

12,671,000

 

 

 

13,985,000

 

Selling, general and

 

 

 

administrative expenses

 

3,190,000

 

 

 

2,520,000

 

 

 

15,861,000

 

 

 

16,505,000

 

 

 

 

 

Income (loss) from operations

 

(914,000

)

 

 

76,000

 

 

 

 

 

Other income (loss), net

 

8,000

 

 

 

(1,000

)

 

 

 

 

Pre-tax income (loss)

 

(906,000

)

 

 

75,000

 

 

 

 

 

Provision for (benefit from) income
taxes

 

 

 

(247,000

 

)

 

 

 

 

19,000

 

 

 

 

 

 

Consolidated net income (loss)

 

(659,000

)

 

 

56,000

 

 

 

 

 

Less: Net income attributable to
noncontrolling interest

 

 

 

4,000

 

 

 

 

 

 

18,000

 

 

 

 

 

 

Net income (loss) attributable to
TSR, Inc.

 

$

 

(663,000

 

)

 

 

$

 

38,000

 

 

 

 

 

 

Basic and dilutes net income (loss)
per TSR, Inc. common share

 

$

 

(0.34

 

)

 

 

$

 

0.02

 

 

 

 

 

Basic and diluted weighted average
common shares outstanding

 

 

 

1,962,000

 

 

 

 

 

 

1,962,000

 

 

 
Contacts
Christopher Hughes631-231-0333

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