TSR, Inc.Announces Record Revenue for the Second Quarter Ended November 30, 2021

48.5% increase in revenues compared to the second quarter of the previous year

Balance sheet remains strong with over $ 6.2 million in net cash

HAUPPAUGE, NY, January 10, 2022– (COMMERCIAL THREAD) – TSR, Inc. (Nasdaq: TSRI) (“TSR or” The Company “), a provider of information technology consulting and recruiting services, today announced its second quarter financial results closed on November 30, 2021.

For the quarter ended November 30, 2021, revenue increased 48.5% to $ 23.9 million from $ 16.1 million in the second quarter last year. Net income attributable to TSR for the current quarter was $ 243,000, or $ 0.12 per diluted share, compared to a net loss of ($ 247,000) or $ 0.13 per diluted share in the quarter of l ‘last year. The Company ended the quarter with a strong balance sheet with $ 6.3 million in cash and less than $ 50,000 in debt, resulting in net cash of over $ 6.2 million, or $ 3 per share.

Thomas Salerno, our CEO, said: “Demand for recruiting services remained strong during the quarter. Our revenue increased 48.5% for the second quarter due to organic growth from new and existing customers. operating loss of $ 223,000 for the quarter of the previous year. If our current trends continue, we expect operating profit to continue to grow as we take advantage of selling, general and administrative expenses.

The second quarter of fiscal 2022 and the second quarter of fiscal 2021 contained the results of the acquisition of Geneva Consulting Group, Inc. (“Geneva”) which closed on September 1, 2020.

“TSR’s operational team as well as the hundreds of high quality consultants working with our clients all do a fantastic job. We spent the first part of calendar year 2021 strengthening the team and modernizing several of our systems. back office and we are now seeing some of the benefits of these investments with both sequential revenue growth and solid operating profit. We believe our strong balance sheet and largely untapped credit facility is enabling us to accelerate further revenue and profit growth through acquisitions. “

The Company will file its Form 10-Q for the quarter ended November 30, 2021 today with more details at www.sec.gov.

About TSR, Inc.

Founded in 1969, TSR, Inc. is a leading recruiting company specializing in recruiting IT professionals for short and long term assignments, permanent placements and projects. For over 50 years, TSR has successfully served clients in banking, asset management, pharmaceuticals, insurance, healthcare, utilities, publishing and other industries. . We ensure candidate screening, timely placement and a real understanding of the right skills required by our clients. For more information, please visit our website at www.tsrconsulting.com.

TSR, Inc. Reports Record Revenue for the Second Quarter Ended November 30, 2021 (continued)

Certain statements contained in this document, including statements regarding the Company’s plans, future prospects and future cash 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 forward-looking statements due to known and unknown risks and uncertainties, including, but not limited to, the following: statements regarding the success of the Company’s growth plan , both internally and through the search for suitable acquisition candidates previously announced; the successful integration of announced and completed acquisitions and all the resulting benefits; the impact of adverse economic conditions on customer spending that negatively impact the Company’s business, which includes, but is not limited to, the current adverse economic conditions associated with the COVID-19 global health pandemic and with the associated financial crisis, stay home and other orders which can significantly reduce customer expenses and which can have a negative impact on the business of the Company; risks associated with the competitive nature of contracts for contractual computer programming services; the extent to which market conditions for the Company’s contracted computer programming services will continue to negatively affect the Company’s business; the concentration of the Company’s business with certain clients; uncertainty as to the Company’s ability to maintain relationships with existing customers and grow its business; the impact of changes in the industry such as the use of supplier management companies as part of the consultant procurement process; the increase in the number of clients relocating their IT operations; the Company’s ability to adapt to changing market conditions; the risks, uncertainties and expenses of legal proceedings to which the Company is a party; and other risks and uncertainties described in documents filed by the Company under the Securities Exchange Act of 1934. The Company has no obligation to update or revise any forward-looking statements publicly.

Three months ended
November 30

Six months ended
November 30

2021
Unaudited

2020
Unaudited

2021
Unaudited

2020
Unaudited

Net revenue

$

23,864,000

$

16,069,000

$

46,730,000

$

30,583,000

Cost of sales

19,816,000

13 233 000

38,871,000

25,417,000

Selling, general and administrative expenses

3,633,000

3,059,000

7,799,000

5,330,000

23,449,000

16,292,000

46,670,000

30,747,000

Operating income (loss)

415,000

(223,000

)

60,000

(164,000

)

Other income (expense), net

(32,000

)

(54,000

)

6,667,000

(116,000

)

Income (loss) before tax

383,000

(277,000

)

6,727,000

(280,000

)

Income tax provision (benefit)

128,000

(30,000

)

13,000

(35,000

)

Consolidated net income

255,000

(247,000

)

6,714,000

(245,000

)

Less: Net income attributable to non-controlling interests

12,000

69,000

5,000

Net income (loss) attributable to TSR, Inc.

$

243,000

$

(247,000

)

$

6,645,000

$

(250,000

)

Basic net earnings (loss) per common share of TSR, Inc.

$

0.12

$

(0.13

)

$

3.39

$

(0.13

)

Diluted net earnings (loss) per common share of TSR, Inc.

$

0.12

$

(0.13

)

$

3.27

$

(0.13

)

Basic Weighted Average Common Shares Outstanding

1 962 062

1 962 062

1 962 062

1 962 062

Diluted weighted average common shares outstanding

2,032,878

1 962 062

2,031,690

1 962 062

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220110005956/en/

Contacts

Thomas Salerno
631-231-0333

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