TSR, Inc. Reports Financial Results for the Third Quarter Ended February 28, 2018
TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting services, today announced financial results for the third
quarter ended February 28, 2018.
For the quarter ended February 28th, revenue decreased to $15,058,000 from $15,390,000 in the same quarter last year. Net loss
attributable to TSR was $19,000 in the current quarter, as compared with a loss attributable to TSR of $68,000 in the prior year
quarter. Additionally, net loss per share was $0.01 in the current quarter compared with a loss of $0.03 in the prior year
quarter.
Christopher Hughes, CEO, stated, “Our revenue for the quarter ended February 28, 2018 decreased $332,000 from
the prior year comparable quarter. This decrease resulted primarily from heavier than usual furloughing of consultants on billing
with customers around the holidays and other customer budget reduction measures. The overall average number of consultants on
billing with customers decreased from 394 for the quarter ended February 28, 2017 to 370 for the quarter ended February 28, 2018,
while the average number of computer programming consultants decreased from 328 in the quarter ended February 28, 2017 to 324 in
the current quarter. The 370 consultants on billing for the current quarter include 46 administrative workers, compared with 66 in
the prior year quarter, which we placed at billing rates substantially lower than those charged for computer programming
consultants. The net loss decreased from the prior year quarter due to a decrease in selling, general and administrative expenses
of $197,000 compared with the prior year quarter resulting primarily from the retirement of the former Chairman and other cost
savings.”
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 internal growth, 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 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.
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Three Months Ended
February 28,
(unaudited)
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Nine Months Ended
February 28,
(unaudited)
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2018
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2017
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2018
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2017
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Revenue, net
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$
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15,058,000
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$
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15,390,000
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$
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48,610,000
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$
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45,675,000
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| Cost of sales |
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12,772,000 |
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12,988,000 |
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40,760,000 |
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38,082,000 |
| Selling, general and administrative expenses |
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2,324,000
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2,521,000
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7,180,000 |
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7,181,000 |
| Total operating expenses |
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15,096,000 |
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15,509,000 |
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47,940,000 |
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45,263,000 |
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| Income (loss) from operations |
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(38,000 |
) |
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(119,000 |
) |
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670,000 |
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412,000 |
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| Other income (expense), net |
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7,000 |
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4,000 |
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19,000 |
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12,000 |
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| Pre-tax income (loss) |
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(31,000 |
) |
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(115,000 |
) |
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689,000 |
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424,000 |
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| Income tax provision (benefit) |
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(23,000 |
)
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(58,000 |
) |
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283,000 |
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188,000 |
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| Consolidated net income (loss) |
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(8,000
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)
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(57,000
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)
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406,000
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236,000
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Less: Net income attributable to noncontrolling interest
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11,000
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11,000
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57,000
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30,000
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Net income (loss) attributable to TSR, Inc.
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$ |
(19,000 |
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$ |
(68,000 |
) |
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$ |
349,000 |
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$ |
206,000 |
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Net income (loss) per TSR, Inc. common share
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$
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(0.01
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$
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(0.03
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)
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$
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0.18
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$
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0.10
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| Weighted average common shares outstanding |
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1,962,000
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1,962,000
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1,962,000
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1,962,000
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TSR, Inc.
John Sharkey, 631-231-0333
View source version on businesswire.com: https://www.businesswire.com/news/home/20180412006060/en/