Revenue Performance - Revenue for the quarter ended November 30, 2023, decreased by approximately $4,374,000 or 16.8% compared to the same quarter in 2022, primarily due to a reduction in clerical and administrative contractors placed with customers [69]. - For the six months ended November 30, 2023, revenue decreased by approximately $8,059,000 or 15.4% compared to the same period in 2022 [78]. Consultant Metrics - The average number of consultants on billing decreased from 693 in Q4 2022 to 519 in Q4 2023, with a notable drop in clerical and administrative contractors from 222 to 84 [69]. Cost of Sales - Cost of sales for the quarter ended November 30, 2023, decreased by approximately $3,561,000 or 16.6% to $17,839,000, with cost of sales as a percentage of revenue increasing slightly from 82.2% to 82.4% [70]. - Cost of sales for the six months ended November 30, 2023, decreased by approximately $6,840,000 or 15.8% to $36,326,000, with cost of sales as a percentage of revenue decreasing from 82.6% to 82.2% [79]. Expenses - Selling, general and administrative expenses decreased by approximately $440,000 or 12.1% from $3,625,000 in Q4 2022 to $3,185,000 in Q4 2023, with expenses as a percentage of revenue increasing from 13.9% to 14.7% [71]. - Selling, general and administrative expenses for the six months ended November 30, 2023, decreased by approximately $866,000 or 11.9% to $6,437,000, with expenses as a percentage of revenue increasing from 14.0% to 14.6% [80]. Net Income - Net income attributable to TSR, Inc. was approximately $460,000 in Q4 2023, down from $674,000 in Q4 2022, primarily due to the decrease in clerical and administrative contractors [74]. - Net income attributable to TSR, Inc. for the six months ended November 30, 2023, was approximately $1,007,000 compared to $1,169,000 in the same period in 2022 [84]. - Consolidated net income for the six months ended November 30, 2023, was $1,058,000, compared to $1,195,000 for the same period in 2022 [88]. Cash Flow - Net cash flow from operations for the six months ended November 30, 2023, was approximately $1,707,000, a decrease from $1,884,000 in the prior year period [88]. - Net cash used in investing activities was approximately $10,000 for the six months ended November 30, 2023, significantly lower than $504,000 in the prior year [89]. - There were no cash flows from financing activities during the six months ended November 30, 2023, compared to a net cash outflow of $178,000 in the prior year [90]. Working Capital - As of November 30, 2023, the Company had working capital of approximately $14,815,000, an increase from $13,551,000 at May 31, 2023 [87]. Lease and Financial Condition - The net present value of future lease payments as of November 30, 2023, was approximately $398,000 [91]. - The company reported no off-balance sheet arrangements that could materially affect its financial condition [94]. Accounting and Compliance - There were no changes in significant accounting policies or critical accounting estimates as of November 30, 2023 [97]. - The company conducted an evaluation of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period [99]. - The company is not aware of any material updates to the risk factors described in its previously filed Annual Report [104]. - There were no legal proceedings reported during this period [103].
TSR(TSRI) - 2024 Q2 - Quarterly Report