TSR, Inc. Reports Financial Results for the Second Quarter Ended November 30, 2018.
TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting services, today announced financial results for the second quarter ended November 30, 2018.
TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting
services, today announced financial results for the second quarter ended
November 30, 2018.
For the quarter ended November 30, 2018, revenue decreased 0.7% from the
same quarter last year to $16.4 million. Net loss attributable to TSR
for the current quarter was $97,000 as compared to net income
attributable to TSR of $227,000 in the prior year quarter. Additionally,
net loss per share for the current quarter was $0.05 compared to net
income per share of $0.12 per share in the prior year quarter.
Christopher Hughes, CEO, stated, “Although our revenue decreased 0.7%
for the second quarter reflecting a decrease in average billing rates
for consultants on billing with customers and a higher discount plan put
in place for a major customer, cost of sales decreased at a greater rate
yielding a slightly improved gross margin. However, an increase in
selling, general and administrative expenses of $594,000 created the
swing from profit to loss for the quarter. The increase in SG&A was due
to a significant increase in professional and advisory fees in
connection with various stockholder lawsuits and our on-going contested
proxy solicitation relating to our annual meeting, which we postponed to
a date to be determined as a result of these lawsuits and the
shareholder 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 success of the Company’s plan for growth, both internal
and through the previously announced pursuit of suitable acquisition
candidates; 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 and the Company’s
ability to adapt to changing market conditions 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 |
|
Six Months Ended |
||||||||||||
|
November 30, 2018 |
November 30, 2017 |
|
November 30, 2018 |
|
November 30, 2017 |
|||||||||
| Revenue, net | $ | 16,402,000 | $ | 16,516,000 | $ | 32,983,000 | $ | 33,553,000 | ||||||
| Cost of Sales | 13,644,000 | 13,796,000 | 27,628,000 | 27,989,000 | ||||||||||
| Selling, general and | ||||||||||||||
| administrative expenses | 2,882,000 | 2,288,000 | 5,403,000 | 4,856,000 | ||||||||||
| Total operating expenses | 16,526,000 | 16,084,000 | 33,031,000 | 32,845,000 | ||||||||||
| Income (loss) from operations | (124,000 | ) | 432,000 | (48,000 | ) | 708,000 | ||||||||
| Other income, net | 6,000 | 10,000 | 5,000 | 12,000 | ||||||||||
| Pre-tax income (loss) | (118,000 | ) | 442,000 | (43,000 | ) | 720,000 | ||||||||
| Income tax provision (benefit) | (31,000 | ) | 188,000 | (12,000 | ) | 306,000 | ||||||||
| Consolidated net income (loss) | (87,000 | ) | 254,000 | (31,000 | ) | 414,000 | ||||||||
|
Less: Net income attributable to noncontrolling interest |
10,000 |
27,000 |
28,000 |
46,000 |
||||||||||
|
Net income (loss) attributable to TSR, Inc. |
$ |
(97,000 |
) |
$ |
227,000 |
$ |
(59,000 |
) |
$ |
368,000 |
||||
|
Net income (loss) per TSR, Inc. common share |
$ |
(0.05 |
) |
$ |
0.12 |
$ |
(0.03 |
) |
$ |
0.19 |
||||
|
Weighted average common shares |
1,962,000 |
1,962,000 |
1,962,000 |
1,962,000 |
||||||||||
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