Revenue Growth - Revenue for the quarter ended February 28, 2022 increased by approximately $7,223,000 or 42.1% compared to the same quarter in 2021, driven by new business development and organic growth [86]. - For the nine months ended February 28, 2022, revenue increased by approximately $23,370,000 or 48.9% compared to the same period in 2021 [96]. Operational Capacity - The average number of consultants on billing increased from 486 in Q1 2021 to 721 in Q1 2022, indicating a significant rise in operational capacity [86]. Cost of Sales - Cost of sales for the quarter ended February 28, 2022 rose by approximately $6,175,000 or 42.8%, leading to a slight increase in cost of sales as a percentage of revenue from 84.0% to 84.4% [88]. - Cost of sales for the nine months ended February 28, 2022 increased by approximately $19,631,000 or 49.3%, with cost of sales as a percentage of revenue slightly increasing from 83.4% to 83.6% [99]. Expenses - Selling, general and administrative expenses increased by approximately $746,000 or 24.2%, with a decrease in these expenses as a percentage of revenue from 18.0% to 15.7% [89]. - Selling, general and administrative expenses for the nine months ended February 28, 2022 rose by approximately $3,214,000 or 38.2%, with a decrease in these expenses as a percentage of revenue from 17.6% to 16.3% [100]. Net Income/Loss - Net loss attributable to TSR was approximately $47,000 in Q1 2022, a significant improvement from a net loss of $305,000 in Q1 2021 [93]. - Net income attributable to TSR was approximately $6,598,000 for the nine months ended February 28, 2022, compared to a net loss of $555,000 for the same period in 2021 [103]. Tax Rate - The effective tax rate for the nine months ended February 28, 2022 was less than 1%, while it was 17.3% for the same period in 2021 [102]. Working Capital - The Company had working capital of approximately $10,642,000 as of February 28, 2022, compared to $8,898,000 at May 31, 2021 [108]. Cash Flow - Net cash flow used in operations was approximately $2,472,000 for the nine months ended February 28, 2022, compared to $510,000 of net cash provided by operations in the prior year [109]. - Net cash provided by financing activities was approximately $1,669,000 during the nine months ended February 28, 2022, primarily from the sales of common stock [111]. Loans and Borrowings - The Company secured a PPP Loan of $6,659,000, which was fully forgiven in July 2021 [106]. - As of February 28, 2022, the net borrowings against the Credit Facility were approximately $60,000, with a maximum available amount of $2,000,000 [105]. Acquisitions - The Company completed the acquisition of Geneva Consulting Group, Inc. on September 1, 2020, to diversify its business and expand services [131]. Off-Balance Sheet Arrangements - The Company had no off-balance sheet arrangements that could materially affect its financial condition [113]. Lease Payments - The net present value of future lease and settlement payments was approximately $1,377,000 as of February 28, 2022 [112]. Operational Challenges - The company experienced operational challenges and a decrease in demand for new assignments during fiscal 2021 due to the COVID-19 pandemic, impacting revenues and consultant placements [97].
TSR(TSRI) - 2022 Q3 - Quarterly Report