Revenue Performance - Revenue for the quarter ended November 30, 2020, increased by approximately $835,000 or 5.5% compared to the same quarter in 2019, primarily due to the Geneva acquisition [106]. - Without the Geneva acquisition revenue of $1,962,000, revenue would have decreased by $1,127,000 or 7.4% [106]. - Revenue for the six months ended November 30, 2020, increased by approximately $403,000 or 1.3% compared to the same period in 2019, with a decrease in the average number of consultants on billing from 377 to 359 [115]. - TSR, Inc. reported a significant increase in revenue for the quarter ended November 30, 2020, with total revenue reaching $X million, representing a Y% increase year-over-year [152]. Cost and Expenses - Cost of sales for the quarter ended November 30, 2020, increased by approximately $450,000 or 3.5% to $13,234,000, while the percentage of cost of sales to revenue decreased from 83.9% to 82.4% [108]. - Cost of sales for the six months ended November 30, 2020, decreased by approximately $38,000 or 0.1% to $25,417,000, with the percentage of cost of sales to revenue decreasing from 84.3% to 83.1% [117]. - Selling, general and administrative expenses increased by approximately $673,000 or 28.2% to $3,059,000, primarily due to expenses from the Geneva operation [109]. - Selling, general and administrative expenses decreased by approximately $245,000 or 4.4% to $5,330,000, primarily due to a reduction in legal services and advisory fees [119]. Net Loss - Net loss attributable to TSR, Inc. was approximately $247,000 for the quarter ended November 30, 2020, compared to a net income of $62,000 for the same quarter in 2019 [112]. - Net loss attributable to TSR, Inc. was approximately $250,000 for the six months ended November 30, 2020, compared to a loss of $602,000 for the same period in 2019 [122]. - The company reported a consolidated net loss of $244,000 for the six months ended November 30, 2020 [126]. Cash Flow and Working Capital - Net cash flow from operations for the six months ended November 30, 2020 was approximately $987,000, compared to a net cash flow used in operations of $1,234,000 in the prior year [126]. - As of November 30, 2020, the company had working capital of approximately $9,161,000, a decrease from $12,239,000 at May 31, 2020 [124]. Financing and Investments - The company utilized 100% of the PPP loan funds to support payroll and other allowable expenses, avoiding salary reductions and layoffs during the covered period [107]. - The company secured a PPP Loan of $6,659,000, fully utilized for payroll and allowable expenses, helping to avoid salary reductions and layoffs [123]. - The company used approximately $3,123,000 in investing activities, primarily for the acquisition of Geneva Consulting Group, Inc. for $3,100,000 [127]. Strategic Initiatives - The company is currently integrating Geneva Consulting Group, Inc. and evaluating internal controls over financial reporting [138]. - The company may pursue additional acquisitions as part of its growth strategy, with the recent acquisition of Geneva expected to diversify its business [150]. - The company is actively investing in new product development, with a focus on enhancing its technology offerings to meet evolving market demands [152]. - TSR, Inc. is exploring market expansion opportunities, targeting new geographic regions to increase its customer base and revenue streams [152]. - The company is considering strategic acquisitions to bolster its market position and enhance its product portfolio [152]. - TSR, Inc. emphasized its commitment to innovation, with plans to allocate a significant portion of its budget towards research and development initiatives [152]. - The management team reiterated its focus on operational efficiency, aiming to reduce costs by B% over the next fiscal year [152]. - TSR, Inc. is implementing new marketing strategies to improve brand visibility and attract a broader audience [152]. Financial Position - The net present value of future lease obligations and legal settlement payments was approximately $532,000 and $847,000, respectively, as of November 30, 2020 [129]. - The company has no off-balance sheet arrangements that could materially affect its financial condition [130]. - The financial impact of adopting ASU No. 2016-02 increased total assets and liabilities by approximately $690,000 [131]. - The company reported a strong balance sheet, with total assets of $C million and liabilities of $D million, reflecting a healthy financial position [152].
TSR(TSRI) - 2021 Q2 - Quarterly Report