Revenue and Income - Revenue for the three months ended August 31, 2022, was $26,199,428, representing a 14.5% increase from $22,866,017 in the same period of 2021[11] - Consolidated net income for the three months ended August 31, 2022, was $507,743, a decrease of 92.1% compared to $6,459,035 in the prior year[16] - Basic net income per share for TSR, Inc. was $0.23, down from $3.26 in the same quarter of the previous year[11] - For the three months ended August 31, 2022, the Company reported net revenue of $26,199,000, an increase from $22,866,000 for the same period in 2021, representing a growth of approximately 10.3%[70] - Net income attributable to TSR, Inc. was approximately $495,000 for the quarter ended August 31, 2022, a significant decrease from $6,402,000 in the same quarter of the previous year[77] Costs and Expenses - Cost of sales increased to $21,766,912, up from $19,055,629, resulting in a gross profit of $4,432,516[11] - The company reported a decrease in selling, general, and administrative expenses to $3,677,605 from $4,165,305[11] - Selling, general and administrative expenses decreased to $3,677,000 in the three months ended August 31, 2022, from $4,165,000 in the same period in 2021, a reduction of approximately 11.7%[70] - Cost of sales for the quarter ended August 31, 2022 rose by approximately $2,711,000 or 14.2%, while the cost of sales as a percentage of revenue decreased from 83.3% to 83.1%[73] Assets and Liabilities - Total current assets increased to $20,732,522 from $20,241,580, primarily driven by an increase in cash and cash equivalents[8] - Total liabilities decreased to $9,428,467 from $9,821,732, reflecting a reduction in current liabilities[8] - Cash and cash equivalents at the end of the period were $7,749,286, up from $6,490,158 at the beginning of the period[16] - The company had working capital of approximately $11,750,000 as of August 31, 2022, an increase from $10,912,000 at May 31, 2022[81] Cash Flow - Operating cash flow for the three months ended August 31, 2022, was $1,322,793, compared to $322,782 in the same period of 2021[16] - Net cash flow from operations was approximately $1,323,000 for the quarter ended August 31, 2022, compared to $323,000 in the prior year[82] Equity and Stock - Total equity increased to $15,109,524 from $14,532,565, driven by retained earnings growth[8] - The Company has authorized a stock repurchase program of up to $500,000 of its outstanding common stock, which commenced on September 12, 2022[63] - The Company sold an aggregate of 142,500 shares of common stock during the fiscal year ended May 31, 2022, generating total gross proceeds of $1,965,623 at an average selling price of $13.79 per share[55] Lease and Obligations - The Company’s operating lease expense for the three months ended August 31, 2022, was $84,977, up from $72,935 for the same period in 2021, reflecting an increase of 16.5%[30] - Future minimum lease payments under non-cancellable operating leases as of August 31, 2022, totaled $722,205, with a present value of $624,950 after accounting for imputed interest[31] - The weighted average remaining lease term for the Company's operating leases is 2.2 years as of August 31, 2022[32] - The company intends to finance its capital resource commitments, with future lease payments valued at approximately $625,000 as of August 31, 2022[85] Financial Compliance and Covenants - The Company was in compliance with all financial covenants under the credit facility as of August 31, 2022[36] - The company had no net borrowings outstanding against its Credit Facility as of August 31, 2022, with a maximum borrowing capacity of $2,000,000[80] Other Financial Information - The effective income tax provision for the quarter ended August 31, 2022 was 30.0%, compared to a benefit of 1.8% in the prior year due to the non-taxable gain from the PPP Loan forgiveness[76] - The company incurred a net interest expense of $19,000 and a mark to market loss of approximately $10,000 on marketable equity securities for the quarter ended August 31, 2022[75] - The Company accrued a charge of $580,000 to selling, general and administrative expenses related to a legal settlement with the former CEO in the quarter ended August 31, 2021[41] - The Company received a Paycheck Protection Program loan of $6,659,220 on April 15, 2020, under the CARES Act[46] - The Company has no further obligations regarding the PPP Loan after receiving full forgiveness from the SBA[47] - No instances of triggering events or impairment indicators for intangible assets were identified as of August 31, 2022[49] - The fair value of equity securities as of August 31, 2022, was $25,536, compared to $35,536 as of May 31, 2022, indicating a decrease of approximately 28.2%[25]
TSR(TSRI) - 2023 Q1 - Quarterly Report