Revenue and Income - Revenue for the three months ended November 30, 2021, was $23,863,550, representing a 48.5% increase from $16,068,577 in the same period of 2020[11] - Net income attributable to TSR, Inc. for the six months ended November 30, 2021, was $6,644,579, compared to a net loss of $249,758 for the same period in 2020[11] - The company reported a basic net income per share of $0.12 for the three months ended November 30, 2021, compared to a loss of $0.13 in the same period of 2020[11] - Consolidated net income for the six months ended November 30, 2021, was $6,713,860, compared to a net loss of $(244,387) for the same period in 2020[17] - Net income for the six months ended November 30, 2021, was $6,645, a significant improvement from a net loss of $488 in 2020[63] - Net income attributable to TSR, Inc. was approximately $243,000 for the quarter ended November 30, 2021, a turnaround from a net loss of $247,000 in the same quarter of 2020[86] Expenses - Selling, general and administrative expenses for the six months ended November 30, 2021, were $7,798,465, up from $5,329,919 in the same period of 2020[11] - Selling, general and administrative expenses increased by approximately $574,000 or 18.9%, with expenses related to the Geneva acquisition contributing significantly to this rise[82] - The Company incurred a charge of $580,000 related to the settlement with the former CEO[49] - The Company incurred a charge of $580,000 for a legal settlement with the former Chief Executive Officer, impacting selling, general and administrative expenses[93] Assets and Liabilities - Total current assets as of November 30, 2021, were $17,428,463, slightly up from $17,371,957 as of May 31, 2021[9] - Total liabilities decreased significantly to $9,315,729 as of November 30, 2021, from $16,409,012 as of May 31, 2021[9] - The company’s retained earnings increased to $20,185,401 as of November 30, 2021, from $13,540,822 as of May 31, 2021[9] - Total equity for TSR, Inc. rose to $12,396,238 as of November 30, 2021, compared to $5,397,161 as of May 31, 2021[9] Cash Flow - Cash flows from operating activities resulted in a net cash used of $(951,928) for the six months ended November 30, 2021, compared to net cash provided of $986,596 in 2020[17] - Cash and cash equivalents decreased to $6,267,810 as of November 30, 2021, from $7,370,646 as of May 31, 2021[9] - Cash and cash equivalents at the end of the period were $6,267,810, down from $7,192,748 at the end of the same period in 2020[17] - The company had a net decrease in cash and cash equivalents of $(1,102,836) for the six months ended November 30, 2021[17] - Net cash flow used in operations was approximately $952,000 for the six months ended November 30, 2021, compared to $987,000 of net cash provided by operations in the prior year[101] Acquisitions - The company purchased Geneva Consulting Group, Inc. for a net cash outflow of $(3,100,114)[17] - The acquisition of Geneva Consulting Group was completed for a total purchase price of $3,342,060[62] - The acquisition of Geneva Consulting Group, Inc. was completed on September 1, 2020, which is expected to diversify the company's business and expand service offerings[118] Operational Performance - The average number of consultants on billing increased from 449 in Q4 2020 to 715 in Q4 2021, indicating significant growth in operational capacity[79] - The average number of consultants on billing increased from 422 in the six months ended November 30, 2020, to 687 in the same period of 2021[89] - The Company experienced operational challenges due to the COVID-19 pandemic, which affected the number of consultant placements and delayed new assignments[80] Future Outlook - Future minimum lease payments under non-cancellable operating leases total $1,002,954, with present value of operating lease payments at $865,786[39] - Future acquisitions may be pursued, but profitability is not guaranteed due to associated risks and uncertainties[118] - The integration of acquired businesses and the performance of their assets and personnel will significantly impact operational results[118] - Transaction-related costs, amortization of intangible assets, and impairment charges could adversely affect financial performance[118]
TSR(TSRI) - 2022 Q2 - Quarterly Report