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TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended May 31, 2018

TSRI

TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended May 31, 2018

TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting services, today announced financial results for the fourth quarter and fiscal year ended May 31, 2018.

For the quarter ended May 31st, revenue decreased to $16,380,000 from $16,897,000 in the same quarter last year. Net income attributable to TSR was $137,000 in the current quarter, as compared with net income attributable to TSR of $62,000 in the prior year quarter. Additionally, net income per share was $0.07 in the current quarter compared with $0.03 in the prior year quarter.

For the year ended May 31st, revenue increased to $64,990,000 from $62,573,000 in the prior year. Net income attributable to TSR was $486,000 in the current year, as compared with net income attributable to TSR of $268,000 in the prior year. Additionally, net income per share was $0.25 in the current year compared with $0.14 in the prior year.

Christopher Hughes, CEO, stated, “Our revenue for the quarter ended May 31, 2018 decreased $517,000 from the prior year comparable quarter. The overall average number of consultants on billing with customers decreased from 392 for the quarter ended May 31, 2017 to 378 for the quarter ended May 31, 2018, while the average number of computer programming consultants decreased from 340 in the quarter ended May 31, 2017 to 319 in the current quarter. The 378 consultants on billing for the current quarter include 59 administrative workers, compared with 52 in the prior year quarter, which we placed at billing rates substantially lower than those charged for computer programming consultants. Net income increased from the prior year quarter due to a decrease in selling, general and administrative expenses of $210,000 compared with the prior year quarter resulting primarily from the retirement of the former Chairman and other cost savings.

“Additionally, revenue for the fiscal year ended May 31, 2018 increased $2,417,000 over the prior year. This increase resulted from an increase in billing rates and an increase in the overall average number of consultants on billing with customers from 379 for the fiscal year ended May 31, 2017 to 383 for the fiscal year ended May 31, 2018. Net income increased $218,000 over the prior year primarily due to a decrease in selling, general and administrative expenses.”

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.

       

Three Months Ended

May 31,

Fiscal Year Ended

May 31,

       

2018

2017

2018

2017

 

Revenue, net

$

16,380,000

$

16,897,000

$

64,990,000

$

62,573,000

 
Cost of sales 13,849,000 14,245,000 54,609,000 52,327,000
Selling, general and administrative expenses

2,292,000

2,502,000

9,472,000 9,684,000
Total operating expenses 16,141,000 16,747,000 64,081,000 62,011,000
 
Income from operations 239,000 150,000 909,000 562,000
 
Other income, net 9,000 3,000 28,000 15,000
 
Pre-tax income 248,000 153,000 937,000 577,000
 
Income tax provision 98,000 75,000 381,000 263,000
 
Consolidated net income

150,000

78,000

556,000

314,000

 

Less: Net income attributable to noncontrolling interest

13,000

16,000

70,000

46,000

 

Net income attributable to TSR, Inc.

$

137,000

$

62,000

$

486,000

$

268,000

 
Net income per TSR, Inc.

common share

$

0.07

$

0.03

$

0.25

$

0.14

 
Weighted average common shares outstanding

1,962,000

1,962,000

1,962,000

1,962,000

 

For TSR, Inc.:
John Sharkey, 631-231-0333