TSR Inc. (TSRI, Financial) filed Quarterly Report for the period ended 2008-11-30.
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 $8.43 million; its shares were traded at around $1.95 with a P/E ratio of 8.1 and P/S ratio of 0.16. The dividend yield of TSR Inc. stocks is 10.7%.
12.0% to $9,467,000 from $10,752,000 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
81.2% in the quarter ended November 30, 2007 to 82.1% in the quarter ended
November 30, 2008. The increase in cost of sales 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.
Cost of sales for the six months ended November 30, 2008, decreased $2,274,000
or 10.4% to $19,495,000 from $21,769,000 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 81.3% in the six months ended November 30, 2007 to 82.3% in the
six months ended November 30, 2008. The increase in cost of sales 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.
At November 30, 2008, the Company had working capital of $11,855,000 including
cash and cash equivalents of $1,837,000 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 $4,972,000 and $6,460,000 of
marketable securities with maturities of less than one year at November 30, 2008
and May 31, 2008, respectively.
For the six months ended November 30, 2008, net cash provided by operating
activities was $78,000 compared to cash used of $212,000 for the six months
ended November 30, 2007, or an increase of $290,000. The cash provided by
operating activities primarily resulted from net income and a decrease in
accounts receivable of $223,000 offset by a decrease in accounts payable and
accrued expenses of $543,000. The cash used by operating activities in the six
months ended November 30, 2007, 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 $565,000 and distributions
to the minority interest of $14,000. 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. Additionally, the
Board of Directors of the Company has declared a cash dividend of $0.05 per
share for the quarter ended November 30, 2008. As part of its prior
determination to decrease the Company's dividend to $0.05 per share, the Board
had determined to reevaluate the dividend if there were a continued decline in
the Company's earnings due to the current economic environment. In view of the
continued impact of the current economic environment, the Board of Directors has
determined to suspend the payment of further dividends. The Board of Directors
may reevaluate the Company's dividend policy once the economic conditions
stabilize.
Contractual Obligations Less than More than
- Total 1 Year 1-3 Years 3-5 Years 5 Years
- - - - -
Operating Leases......... $1,393,000 $ 361,000 $ 663,000 $ 369,000 $ -
Employment Agreements.... 1,162,000 624,000 488,000 50,000 -
- - - - -
Total.................... $2,555,000 $ 985,000 $1,151,000 $ 419,000 $ -
= = = = =
Page 13
TSR, INC. AND SUBSIDIARIES
Read the The complete ReportMore on TSRI:
Gurus buys and sells of TSRI
10-year financial history of TSRI.
Insider buys/sells of TSRI.
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 $8.43 million; its shares were traded at around $1.95 with a P/E ratio of 8.1 and P/S ratio of 0.16. The dividend yield of TSR Inc. stocks is 10.7%.
Highlight of Business Operations:
Cost of sales for the quarter ended November 30, 2008, decreased $1,285,000 or12.0% to $9,467,000 from $10,752,000 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
81.2% in the quarter ended November 30, 2007 to 82.1% in the quarter ended
November 30, 2008. The increase in cost of sales 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.
Cost of sales for the six months ended November 30, 2008, decreased $2,274,000
or 10.4% to $19,495,000 from $21,769,000 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 81.3% in the six months ended November 30, 2007 to 82.3% in the
six months ended November 30, 2008. The increase in cost of sales 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.
At November 30, 2008, the Company had working capital of $11,855,000 including
cash and cash equivalents of $1,837,000 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 $4,972,000 and $6,460,000 of
marketable securities with maturities of less than one year at November 30, 2008
and May 31, 2008, respectively.
For the six months ended November 30, 2008, net cash provided by operating
activities was $78,000 compared to cash used of $212,000 for the six months
ended November 30, 2007, or an increase of $290,000. The cash provided by
operating activities primarily resulted from net income and a decrease in
accounts receivable of $223,000 offset by a decrease in accounts payable and
accrued expenses of $543,000. The cash used by operating activities in the six
months ended November 30, 2007, 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 $565,000 and distributions
to the minority interest of $14,000. 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. Additionally, the
Board of Directors of the Company has declared a cash dividend of $0.05 per
share for the quarter ended November 30, 2008. As part of its prior
determination to decrease the Company's dividend to $0.05 per share, the Board
had determined to reevaluate the dividend if there were a continued decline in
the Company's earnings due to the current economic environment. In view of the
continued impact of the current economic environment, the Board of Directors has
determined to suspend the payment of further dividends. The Board of Directors
may reevaluate the Company's dividend policy once the economic conditions
stabilize.
Contractual Obligations Less than More than
- Total 1 Year 1-3 Years 3-5 Years 5 Years
- - - - -
Operating Leases......... $1,393,000 $ 361,000 $ 663,000 $ 369,000 $ -
Employment Agreements.... 1,162,000 624,000 488,000 50,000 -
- - - - -
Total.................... $2,555,000 $ 985,000 $1,151,000 $ 419,000 $ -
= = = = =
Page 13
TSR, INC. AND SUBSIDIARIES
Read the The complete ReportMore on TSRI:
Gurus buys and sells of TSRI
10-year financial history of TSRI.
Insider buys/sells of TSRI.
