Revenue and Income - Revenue for the quarter ended August 31, 2023, decreased by approximately $3,686,000 or 14.1% compared to the same quarter in 2022, primarily due to a reduction in clerical and administrative contractors placed with customers [67]. - Consolidated net income for Q3 2023 was approximately $572,000, an increase from $508,000 in Q3 2022, primarily due to reduced selling, general and administrative expenses and increased gross margin [72]. Expenses and Margins - Cost of sales decreased by approximately $3,281,000 or 15.1% to $18,486,000, resulting in a gross margin increase from 16.9% in Q3 2022 to 17.9% in Q3 2023 [68]. - Selling, general and administrative expenses decreased by approximately $425,000 or 11.6% to $3,252,000, with these expenses as a percentage of revenue increasing from 14.0% to 14.5% [69]. Operational Metrics - The average number of consultants on billing decreased from 680 in Q3 2022 to 519 in Q3 2023, with IT contractors decreasing from 464 to 438 and clerical contractors from 216 to 81 [67]. - Net cash flow from operations was approximately $567,000 for Q3 2023, down from $1,323,000 in the prior year period [77]. Tax and Working Capital - The income tax provision for Q3 2023 was 26.2%, down from 30.0% in Q3 2022 [71]. - The company had working capital of approximately $14,250,000 as of August 31, 2023, compared to $13,551,000 at May 31, 2023 [76]. Financial Position - The company had no net borrowings against its Credit Facility as of August 31, 2023, which has a maximum availability of $2,000,000 [75]. - There were no off-balance sheet arrangements that could materially affect the company's financial condition [83]. Compliance and Reporting - TSR, Inc. has filed its report in compliance with the Securities Exchange Act of 1934 [100]. - The report was signed by Thomas Salerno, CEO, and John G. Sharkey, CFO, on October 11, 2023 [101].
TSR(TSRI) - 2024 Q1 - Quarterly Report