TSR, Inc. Reports Results for the Third Quarter Ended February 29, 2024

TSR, Inc. (Nasdaq: TSRI) (“TSR” or “the Company”), a provider of information technology consulting and recruiting services, today announced financial results for the third quarter ended February 29, 2024.

For the quarter ended February 29, 2024, revenue decreased 18.8% from the same quarter last year to $19.7 million. Net income attributable to TSR for the current quarter was $411,000, or $0.19 per diluted share, as compared to net income of $80,000, or $0.04 per share, in the prior year quarter. The Company ended the quarter with a strong balance sheet with $15.2 million in net working capital or approximately $7.03 per share.

Thomas Salerno, our CEO, stated: “Primarily as the result of decreases in the number of clerical and administrative contractors on billing with customers, revenue decreased 18.8% from the prior year quarter. Our fiscal third quarter is traditionally the most challenging of the year. Workdays are reduced due to the holiday season and payroll tax expenses are at their highest at the beginning of the calendar year. This year was particularly hard hit with mandatory furloughs of contractors during the holiday season. As always, we continue to focus on controlling costs, which has helped our profitability while customers are reducing their spending. In the current quarter, selling, general and administrative expenses were reduced by $401,000 from last year’s comparable quarter, despite an additional $136,000 spent in the current quarter on professional fees associated with the review of strategic alternatives. The current quarter benefited from “Other Income” of $547,000 resulting from the reversal of advances from customers.

We continue to navigate an uncertain macro-economic environment, but we are optimistic that revenue and income will be stronger in the second half of calendar 2024. The team continues to make progress with new customers and I am proud of their effort to offer our legacy customers some of the best service in the business. We believe that TSR is well-positioned in the industry and has a strong balance sheet.”

The Company will file its Form 10-Q for the quarter ended February 29, 2024 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; 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, as amended. The Company is under no obligation to publicly update or revise forward-looking statements.

	Three Months Ending								Nine Months Ending
	February 29,				February 28,				February 29,			February 28,
	2024 Unaudited				2023 Unaudited				2024 Unaudited			2023 Unaudited
Revenue, net	$	19,703,000			$	24,257,000			$	63,874,000		$	76,487,000
Cost of sales		16,372,000				20,267,000				52,699,000			63,434,000
Selling, general and administrative expenses		3,368,000				3,768,000				9,805,000			11,072,000
		19,740,000				24,036,000				62,504,000			74,506,000
Income (loss) from operations		(37,000	)			221,000				1,370,000			1,981,000
Other income (expense), net		574,000				(13,000	)			609,000			(60,000	)
Pre-tax income		537,000				208,000				1,979,000			1,921,000
Income tax provision		110,000				110,000				494,000			629,000
Consolidated net income		427,000				98,000				1,485,000			1,292,000
Less: Net income attributable to noncontrolling interest		16,000				18,000				67,000			44,000
Net income attributable to TSR, Inc.	$	411,000			$	80,000			$	1,418,000		$	1,248,000
Basic net income per TSR, Inc. common share	$	0.19			$	0.04			$	0.66		$	0.58
Diluted net income per TSR, Inc. common share	$	0.19			$	0.04			$	0.66		$	0.56
Basic weighted average common shares outstanding		2,152,323				2,134,660				2,146,551			2,140,344
Diluted weighted average common shares outstanding		2,152,323				2,234,600				2,146,551			2,235,173

 

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The TSR Stock at the time of publication of the news with a fall of -1,03 % to 7,70USD on Nasdaq stock exchange (15. April 2024, 22:30 Uhr).