TSRI - TSR Inc. Reports Financial Results for the Third Quarter Ended February 28 2019
TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting services, today announced financial results for the third quarter ended February 28, 2019.
For the quarter ended February 28, 2019, revenue decreased 1.8% from the same quarter last year to $14.8 million. Net loss attributable to TSR for the current quarter was $676,000 as compared to net loss attributable to TSR of $19,000 in the prior year quarter. Additionally, net loss per share for the current quarter was $0.34 compared to net loss per share of $0.01 in the prior year quarter.
Christopher Hughes, CEO, stated, “Revenue decreased 1.8% for the third 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 lower rate yielding a decrease in gross margin. Selling, general and administrative expenses increased by $723,000. 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 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 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; the risks, uncertainties and expense of the legal proceedings to which the Company is a party and the proxy contest involving the Company; 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 |
| Nine Months Ended |
| February 28, |
| February 28, |
| February 28, |
| February 28, |
| Revenue, net |
| $ |
| 14,783,000 |
| $ |
| 15,058,000 |
| $ |
| 47,766,000 |
| $ |
| 48,610,000 |
| Cost of Sales |
| 12,652,000 |
| 12,772,000 |
| 40,280,000 |
| 40,760,000 |
| Selling, general and |
| administrative expenses |
| 3,047,000 |
| 2,324,000 |
| 8,449,000 |
| 7,180,000 |
| Total operating expenses |
| 15,699,000 |
| 15,096,000 |
| 48,729,000 |
| 47,940,000 |
| Income (loss) from operations |
| (916,000 |
| ) |
| (38,000 |
| ) |
| (963,000 |
| ) |
| 670,000 |
| Other income, net |
| 6,000 |
| 7,000 |
| 10,000 |
| 19,000 |
| Pre-tax income (loss) |
| (910,000 |
| ) |
| (31,000 |
| ) |
| (953,000 |
| ) |
| 689,000 |
| Income tax provision (benefit) |
| (235,000 |
| ) |
| (23,000 |
| ) |
| (247,000 |
| ) |
| 283,000 |
| Consolidated net income (loss) |
| (675,000 |
| ) |
| (8,000 |
| ) |
| (706,000 |
| ) |
| 406,000 |
| Less: Net income attributable to noncontrolling interest |
| 1,000 |
| 11,000 |
| 29,000 |
| 57,000 |
| Net income (loss) attributable to TSR, Inc. |
| $ |
| (676,000 |
| ) |
| $ |
| (19,000 |
| ) |
| $ |
| (735,000 |
| ) |
| $ |
| 349,000 |
| Net income (loss) per TSR, Inc. common share |
| $ |
| (0.34 |
| ) |
| $ |
| (0.01 |
| ) |
| $ |
| (0.37 |
| ) |
| $ |
| 0.18 |
| Weighted average common shares outstanding |
| 1,962,000 |
| 1,962,000 |
| 1,962,000 |
| 1,962,000 |
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Chris Hughes
631-231-0333