TSR Inc. (TSRI, Financial) filed Quarterly Report for the period ended 2009-02-28.
TSR INC. is primarily engaged in the business of providing contract computer programming services to its clients. They provide technical computer personnel to companies to supplement their in-house information technology capabilities. TSR Inc. has a market cap of $6.7 million; its shares were traded at around $1.65 with a P/E ratio of 8.3 and P/S ratio of 0.1. The dividend yield of TSR Inc. stocks is 12.1%.
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Cost of sales for the nine months ended February 28, 2009, decreased $4,544,000
or 14.2% to $27,453,000 from $31,997,000 in the prior year period. The decrease
in cost of sales resulted primarily from the decrease in the number of
consultants on billing with clients. Cost of sales as a percentage of revenue
increased from 81.7% in the nine months ended February 29, 2008 to 82.1% in the
nine months ended February 28, 2009. The increase in cost of sales as a
percentage of revenue was primarily attributable to discount programs instituted
or expanded by customers and other customer required rate reductions. These
discount programs and other billing rate reduction initiatives decrease revenue
without allowing the Company to reduce costs sufficiently to completely offset
the decrease in revenue. These required rate reductions have accelerated as a
result of the current economic conditions.
Income from Operations
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Income from operations decreased $743,000 or 46.6% from $1,595,000 in the nine
months ended February 29, 2008 to $852,000 in the nine months ended February 28,
2009. The combination of reduced revenue and reduced gross margins had a
significant negative impact on income from operations.
At February 28, 2009, the Company had working capital of $12,201,000 including
cash and cash equivalents of $4,561,000 as compared to working capital of
$12,693,000 including cash and cash equivalents of $1,588,000 at May 31, 2008.
The Company's working capital also included $3,748,000 and $6,460,000 of
marketable securities with maturities of less than one year at February 28, 2009
and May 31, 2008, respectively.
For the nine months ended February 28, 2009, net cash provided by operating
activities was $1,344,000 compared to cash used of $763,000 for the nine months
ended February 29, 2008, or an increase of $2,107,000. The cash provided by
operating activities primarily resulted from net income and a decrease in
accounts receivable of $1,525,000 offset by a decrease in accounts payable and
accrued expenses of $667,000. The cash used by operating activities in the nine
months ended February 29, 2008, resulted primarily from an increase in accounts
receivable.
Net cash used in financing activities resulted from the purchases of treasury
stock amounting to $1,220,000, cash dividends paid of $768,000 and distributions
to the minority interest of $77,000. The purchases of treasury stock consisted
of $1,050,000 in a private transaction and $170,000 in open market transactions.
The Board of Directors of the Company approved a plan in December 2007
authorizing the repurchase of shares of Common Stock and approximately 239,000
shares remain available for purchase under this previously announced plan. The
Company has not made any purchases under this plan since September 2008. The
Company does not intend to make further purchases under this plan unless there
is a change in the market for the Company's common stock. The Board of Directors
determined to suspend the payment of further dividends effective after the
dividend paid on February 9, 2009 for the second quarter of fiscal 2009. The
Board of Directors may reevaluate the Company's dividend policy once the
economic conditions stabilize.
Payments Due By Period
Contractual Obligations Less than More than
- Total 1 Year 1-3 Years 3-5 Years 5 Years
- - - - -
Operating Leases $1,303,000 $ 363,000 $ 646,000 $ 294,000 $ -
Employment Agreements 943,000 499,000 444,000 - -
- - - - -
Total. $2,246,000 $ 862,000 $1,090,000 $ 294,000 $ -
= = = = =
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TSR INC. is primarily engaged in the business of providing contract computer programming services to its clients. They provide technical computer personnel to companies to supplement their in-house information technology capabilities. TSR Inc. has a market cap of $6.7 million; its shares were traded at around $1.65 with a P/E ratio of 8.3 and P/S ratio of 0.1. The dividend yield of TSR Inc. stocks is 12.1%.
Highlight of Business Operations:
Cost of Sales-
Cost of sales for the nine months ended February 28, 2009, decreased $4,544,000
or 14.2% to $27,453,000 from $31,997,000 in the prior year period. The decrease
in cost of sales resulted primarily from the decrease in the number of
consultants on billing with clients. Cost of sales as a percentage of revenue
increased from 81.7% in the nine months ended February 29, 2008 to 82.1% in the
nine months ended February 28, 2009. The increase in cost of sales as a
percentage of revenue was primarily attributable to discount programs instituted
or expanded by customers and other customer required rate reductions. These
discount programs and other billing rate reduction initiatives decrease revenue
without allowing the Company to reduce costs sufficiently to completely offset
the decrease in revenue. These required rate reductions have accelerated as a
result of the current economic conditions.
Income from Operations
-
Income from operations decreased $743,000 or 46.6% from $1,595,000 in the nine
months ended February 29, 2008 to $852,000 in the nine months ended February 28,
2009. The combination of reduced revenue and reduced gross margins had a
significant negative impact on income from operations.
At February 28, 2009, the Company had working capital of $12,201,000 including
cash and cash equivalents of $4,561,000 as compared to working capital of
$12,693,000 including cash and cash equivalents of $1,588,000 at May 31, 2008.
The Company's working capital also included $3,748,000 and $6,460,000 of
marketable securities with maturities of less than one year at February 28, 2009
and May 31, 2008, respectively.
For the nine months ended February 28, 2009, net cash provided by operating
activities was $1,344,000 compared to cash used of $763,000 for the nine months
ended February 29, 2008, or an increase of $2,107,000. The cash provided by
operating activities primarily resulted from net income and a decrease in
accounts receivable of $1,525,000 offset by a decrease in accounts payable and
accrued expenses of $667,000. The cash used by operating activities in the nine
months ended February 29, 2008, resulted primarily from an increase in accounts
receivable.
Net cash used in financing activities resulted from the purchases of treasury
stock amounting to $1,220,000, cash dividends paid of $768,000 and distributions
to the minority interest of $77,000. The purchases of treasury stock consisted
of $1,050,000 in a private transaction and $170,000 in open market transactions.
The Board of Directors of the Company approved a plan in December 2007
authorizing the repurchase of shares of Common Stock and approximately 239,000
shares remain available for purchase under this previously announced plan. The
Company has not made any purchases under this plan since September 2008. The
Company does not intend to make further purchases under this plan unless there
is a change in the market for the Company's common stock. The Board of Directors
determined to suspend the payment of further dividends effective after the
dividend paid on February 9, 2009 for the second quarter of fiscal 2009. The
Board of Directors may reevaluate the Company's dividend policy once the
economic conditions stabilize.
Payments Due By Period
Contractual Obligations Less than More than
- Total 1 Year 1-3 Years 3-5 Years 5 Years
- - - - -
Operating Leases $1,303,000 $ 363,000 $ 646,000 $ 294,000 $ -
Employment Agreements 943,000 499,000 444,000 - -
- - - - -
Total. $2,246,000 $ 862,000 $1,090,000 $ 294,000 $ -
= = = = =
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