TSR, Inc. (NASDAQ: TSRI), a company that provides recruiting services and technology consulting, shot up 20% after it announced its record-breaking second-quarter financials for 2021
In this particular quarter, the company increased its total revenue by 48.5% to about $23.9 million, which was significantly more than the $16.1 million revenue it recorded in the same quarter of the previous fiscal year. The company also reported an attributable net income of around $243,000 in this same quarter.
Top management comments
TSR Inc ended Q2 of 2021 with an incredibly robust balance sheet, recording debt of less than $50,00 and $6.3 million in cash. This resulted in a $6.2 million net excess, representing $3 per share.
The Company’s Chief Executive Officer, Thomas Salerno, claimed that staffing services demand stayed strong all throughout the quarter. The CEO said:
Our revenue increased 48.5% for the second quarter due to organic growth from new and existing customers. Operating income for the current quarter was $415,000 as compared to an operating loss of $223,000 in the prior year quarter.
Mr. Salerno believes that if the company’s current trends continue, they expect a continuation of operating income growth and leverage administrative, selling, and general expenses. The CEO continued:
We spent the first part of the 2021 calendar year building the team and modernizing several of our back office systems and we are now seeing some of the benefits of those investments with both sequential growth in revenues and solid operating income.
He says that he believes their largely untapped credit facility and strong balance sheet will further grow their earnings and revenues via acquisitions.
For more than half a century, the company has successfully served its clients in the publishing, public utility, healthcare, insurance, pharmaceuticals, asset management, and banking sectors. They provide timely placements and candidate screenings.
Financial highlights
Reported total net revenue of about $23,864,000 million in the second quarter of 2021, significantly more than the $19,069,000 million it recorded in the same quarter of the previous fiscal year. The company also had an increase in cost of sales, which came to about $19,816,000 million.
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