TSR (TSRI) 10-Q 10 Jan 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Nov. 30, 2013	Dec. 30, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'TSR INC	'
Entity Central Index Key	'0000098338	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--05-31	'
Document Type	'10-Q	'
Document Period End Date	30-Nov-13	'
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	1,962,062

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Nov. 30, 2013	31-May-13
Current Assets:	'	'
Cash and cash equivalents	$1,802,761	$1,881,161
Certificates of deposit and marketable securities	1,760,072	2,008,424
Accounts receivable, net of allowance for doubtful accounts of $193,000	9,070,966	9,146,283
Other receivables	3,048	5,016
Prepaid expenses	99,039	70,926
Prepaid and recoverable income taxes	200,699	208,579
Deferred income taxes	86,000	86,000
Total Current Assets	13,022,585	13,406,389
Equipment and leasehold improvements, net of accumulated depreciation and amortization of $251,622 and $244,868	13,883	16,784
Other assets	49,653	49,653
Deferred income taxes	106,000	146,000
Total Assets	13,192,121	13,618,826
Current Liabilities:	'	'
Accounts and other payables	865,644	852,228
Accrued expenses and other current liabilities	1,810,862	2,389,006
Advances from customers	1,501,564	1,448,255
Total Current Liabilities	4,178,070	4,689,489
Commitments and contingencies	'	'
Equity: TSR Inc.:	'	'
Preferred stock, $1 par value, authorized 500,000 shares; none issued	'	'
Common stock, $0.01 par value, authorized 12,500,000 shares; issued 3,114,163 shares; 1,962,062 outstanding	31,142	31,142
Additional paid-in capital	5,102,868	5,102,868
Retained earnings	17,349,004	17,305,883
Shareholder's equity before treasury stock	22,483,014	22,439,893
Less: Treasury stock, 1,152,101 shares, at cost	13,514,003	13,514,003
Total TSR, Inc. Equity	8,969,011	8,925,890
Noncontrolling Interest	45,040	3,447
Total Equity	9,014,051	8,929,337
Total Liabilities and Equity	$13,192,121	$13,618,826

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Nov. 30, 2013	31-May-13
Balance Sheets [Abstract]	'	'
Allowance for doubtful accounts related to accounts receivable	$193,000	$193,000
Accumulated depreciation and amortization related to equipment and leasehold improvements	$251,622	$244,868
Preferred stock, par value	$1	$1
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	'	'
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	12,500,000	12,500,000
Common stock, shares issued	3,114,163	3,114,163
Common stock, shares outstanding	1,962,062	1,962,062
Treasury stock, shares	1,152,101	1,152,101

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Statements Of Operations [Abstract]	'	'	'	'
Revenue, net	$12,166,435	$10,560,273	$24,253,132	$21,848,718
Cost of sales	10,100,751	8,805,261	20,089,600	18,244,007
Selling, general and administrative expenses	1,979,938	2,013,724	4,019,367	3,976,550
Cost and expenses, total	12,080,689	10,818,985	24,108,967	22,220,557
Income (loss) from operations	85,746	-258,712	144,165	-371,839
Other income (expense):	'	'	'	'
Interest and dividend income	1,429	2,644	3,133	5,707
Unrealized gain (loss) on marketable securities, net	1,488	-4,212	-352	-5,020
Income (loss) before income taxes	88,663	-260,280	146,946	-371,152
Provision (benefit) for income taxes	36,000	-79,000	56,000	-116,000
Consolidated net income (loss)	52,663	-181,280	90,946	-255,152
Less: Net income attributable to noncontrolling interest	-20,460	-1,189	-47,825	-20,751
Net income (loss) attributable to TSR, Inc.	$32,203	($182,469)	$43,121	($275,903)
Basic and diluted net income (loss) per TSR, Inc. common share	$0.02	($0.09)	$0.02	($0.14)
Weighted average number of basic and diluted common shares outstanding	1,962,062	1,980,062	1,962,062	1,981,350

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Equity (Unaudited) (USD $)	Total	Common Stock	Additional paid-in capital	Retained earnings	Treasury stock	TSR, Inc. equity	Non-controlling interest
Beginning Balance at May. 31, 2012	$12,519,292	$31,142	$5,102,868	$20,796,104	($13,432,092)	$12,498,022	$21,270
Beginning Balance, shares at May. 31, 2012	'	3,114,163	'	'	'	'	'
Purchases of treasury stock	-16,571	'	'	'	-16,571	-16,571	'
Cash dividend paid	-2,970,093	'	'	-2,970,093	'	-2,970,093	'
Net income attributable to noncontrolling interest	20,751	'	'	'	'	'	20,751
Distribution to noncontrolling interest	-7,000	'	'	'	'	'	-7,000
Net income attributable to TSR, Inc.	-275,903	'	'	-275,903	'	-275,903	'
Balance at Nov. 30, 2012	9,270,476	31,142	5,102,868	17,550,108	-13,448,663	9,235,455	35,021
Balance, shares at Nov. 30, 2012	'	3,114,163	'	'	'	'	'
Beginning Balance at May. 31, 2013	8,929,337	31,142	5,102,868	17,305,883	-13,514,003	8,925,890	3,447
Beginning Balance, shares at May. 31, 2013	'	3,114,163	'	'	'	'	'
Net income attributable to noncontrolling interest	47,825	'	'	'	'	'	47,825
Distribution to noncontrolling interest	-6,232	'	'	'	'	'	-6,232
Net income attributable to TSR, Inc.	43,121	'	'	43,121	'	43,121	'
Balance at Nov. 30, 2013	$9,014,051	$31,142	$5,102,868	$17,349,004	($13,514,003)	$8,969,011	$45,040
Balance, shares at Nov. 30, 2013	'	3,114,163	'	'	'	'	'

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Nov. 30, 2013	Nov. 30, 2012
Cash flows from operating activities:	'	'
Consolidated net income (loss)	$90,946	($255,152)
Adjustments to reconcile consolidated net income (loss) to net cash used in operating activities:	'	'
Depreciation and amortization	6,754	5,393
Unrealized loss on marketable securities, net	352	5,020
Deferred income taxes	40,000	3,000
Changes in operating assets and liabilities:	'	'
Accounts receivable	75,317	3,152
Other receivables	1,968	-3,789
Prepaid expenses	-28,113	-2,603
Prepaid and recoverable income taxes	7,880	-128,580
Accounts and other payables and accrued expenses and other current liabilities	-564,728	-140,332
Advances from customers	53,309	25,200
Net cash used in operating activities	-316,315	-488,691
Cash flows from investing activities:	'	'
Proceeds from maturities of marketable securities	1,740,000	500,000
Purchases of marketable securities	-1,492,000	-3,237,267
Purchases of equipment and leasehold improvements	-3,853	'
Net cash provided by (used in) investing activities	244,147	-2,737,267
Cash flows from financing activities:	'	'
Cash dividend paid	'	-2,970,093
Purchases of treasury stock	'	-16,571
Distribution to noncontrolling interest	-6,232	-7,000
Net cash used in financing activities	-6,232	-2,993,664
Net decrease in cash and cash equivalents	-78,400	-6,219,622
Cash and cash equivalents at beginning of period	1,881,161	7,514,749
Cash and cash equivalents at end of period	1,802,761	1,295,127
Supplemental disclosures of cash flow data:	'	'
Income taxes paid	$8,000	$10,000

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Nov. 30, 2013
Basis Of Presentation [Abstract]	'
Basis of Presentation	'
		1	Basis of Presentation
	The accompanying condensed consolidated interim financial statements include the accounts of TSR, Inc. and its subsidiaries (the “Company”).  All significant inter-company balances and transactions have been eliminated in consolidation.  These interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applying to interim financial information and with the instructions to Form 10-Q of Regulation S-X of the Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures required by accounting principles generally accepted in the United States of America and normally included in the Company’s annual financial statements have been condensed or omitted.  These condensed consolidated interim financial statements as of and for the three and six months ended November 30, 2013 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring accruals) necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company for the periods presented.  The results of operations for the interim periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year ending May 31, 2014.  The balance sheet at May 31, 2013 has been derived from the audited financial statements at that date.  These condensed consolidated interim financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended May 31, 2013.

Net_Income_Loss_Per_Common_Sha

Net Income (Loss) Per Common Share	6 Months Ended
	Nov. 30, 2013
Net Income (Loss) Per Common Share [Abstract]	'
Net Income (Loss) Per Common Share	'
		2	Net Income (Loss) Per Common Share
	Basic net income (loss) per common share is computed by dividing income (loss) available to common stockholders of TSR, Inc. by the weighted average number of common shares outstanding.  The Company had no stock options or other common stock equivalents outstanding during any of the periods presented.

Cash_and_Cash_Equivalents

Cash and Cash Equivalents	6 Months Ended
	Nov. 30, 2013
Cash and Cash Equivalents [Abstract]	'
Cash and Cash Equivalents	'
		3	Cash and Cash Equivalents
	The Company considers short-term highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents were comprised of the following as of November 30, 2013 and May 31, 2013:
			November 30,		May 31,
			2013		2013
	Cash in banks		$	1,241,069	$	1,562,939
	Money market funds			561,692		318,222
			$	1,802,761	$	1,881,161

Revenue_Recognition

Revenue Recognition	6 Months Ended
	Nov. 30, 2013
Revenue Recognition [Abstract]	'
Revenue Recognition	'
		4	Revenue Recognition
	The Company’s contract computer programming services are generally provided under time and materials arrangements with its customers.  Revenue is recognized in accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition,” when persuasive evidence of an arrangement exists, the services have been rendered, the price is fixed or determinable, and collectability is reasonably assured.  These conditions occur when a customer agreement is effected and the consultant performs the authorized services.  Revenue is recorded net of all discounts and processing fees. Advances from customers represent amounts received from customers prior to the Company’s provision of the related services and credit balances from overpayments.
	Reimbursements received by the Company for out-of-pocket expenses are characterized as revenue.

Marketable_Securities

Marketable Securities	6 Months Ended
	Nov. 30, 2013
Marketable Securities [Abstract]	'
Marketable Securities	'
		5	Marketable Securities
	The Company has characterized its investments in marketable securities, based on the priority of the inputs used to value the investments, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and lowest priority to unobservable inputs (Level 3). If the inputs used to measure the investments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
	Investments recorded in the accompanying condensed consolidated balance sheets are categorized based on the inputs to valuation techniques as follows:
	Level 1- These are investments where values are based on unadjusted quoted prices for identical assets in an active market the Company has the ability to access.
	Level 2- These are investments where values are based on quoted market prices that are not active or model derived valuations in which all significant inputs are observable in active markets.
	Level 3- These are investments where values are derived from techniques in which one or more significant inputs are unobservable.
	The following are the major categories of assets measured at fair value on a recurring basis as of November 30, 2013 and May 31, 2013 using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2) and significant unobservable inputs (Level 3):
	30-Nov-13		Level 1			Level 2			Level 3		Total
	Certificates of Deposit		$	-		$	1,741,000		$	-	$	1,741,000
	Equity Securities			19,072			-			-		19,072
			$	19,072		$	1,741,000		$	-	$	1,760,072
	31-May-13		Level 1		Level 2			Level 3			Total
	Certificates of Deposit		$	-		$	1,989,000		$	-	$	1,989,000
	Equity Securities			19,424			-			-		19,424
			$	19,424		$	1,989,000		$	-	$	2,008,424
	Based upon the Company’s intent and ability to hold its certificates of deposit to maturity (which maturities range up to twenty four months at purchase), such securities have been classified as held-to-maturity and are carried at amortized cost, which approximates market value. The Company’s equity securities are classified as trading securities, which are carried at fair value, as determined by quoted market prices, which is a Level 1 input, as established by the fair value hierarchy. The related unrealized gains and losses are included in earnings.  The Company’s marketable securities at November 30, 2013 and May 31, 2013 are summarized as follows:
			Amortized			Gross			Gross		Recorded
	30-Nov-13		Cost			Unrealized			Unrealized		Value
	Current					Holding			Holding
						Gains			Losses
	Certificates of Deposit		$	1,741,000		$	-		$	-	$	1,741,000
	Equity Securities			16,866			2,206			-		19,072
			$	1,757,866		$	2,206		$	-	$	1,760,072
			Amortized			Gross			Gross		Recorded
	31-May-13		Cost			Unrealized			Unrealized		Value
	Current					Holding			Holding
						Gains			Losses
	Certificates of Deposit		$	1,989,000		$	-		$	-	$	1,989,000
	Equity Securities			16,866			2,558			-		19,424
			$	2,005,866		$	2,558		$	-	$	2,008,424
	The Company’s investments in marketable securities consist primarily of investments in certificates of deposit. Market values were determined for each individual security in the investment portfolio.  When evaluating the investments for other-than temporary impairment, the Company reviews factors such as length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, and the Company’s ability and intent to hold the investment for a period of time, which may be sufficient for anticipated recovery in market values.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	6 Months Ended
	Nov. 30, 2013
Fair Value Of Financial Instruments [Abstract]	'
Fair Value of Financial Instruments	'
		6	Fair Value of Financial Instruments
	ASC Topic 825, “Financial Instruments”, requires disclosure of the fair value of certain financial instruments. For cash and cash equivalents, accounts receivable, accounts and other payables, accrued liabilities and advances from customers, the amounts presented in the condensed consolidated financial statements approximate fair value because of the short-term maturities of these instruments.

Stockholders_Equity

Stockholders' Equity	6 Months Ended
	Nov. 30, 2013
Stockholders' Equity [Abstract]	'
Stockholders' Equity	'
		7	Stockholders’ Equity
	During the six months ended November 30, 2013, the Company did not purchase any shares of its common stock. During the six months ended November 30, 2012, the Company purchased a total of 3,600 shares of its common stock for $16,571. These shares were purchased in various transactions on the open market under a previously announced repurchase plan of 150,000 shares.  As of November 30, 2013, 56,318 shares remain available for purchase under the plan.
	On November 30, 2012, the Company paid a special one-time cash dividend of $1.50 per common share to stockholders of record as of October 30, 2012. This dividend amounted to $2,970,093. The Company has no current plans to implement a quarterly dividend program or pay any other special cash dividend.

Other_Matters

Other Matters	6 Months Ended
	Nov. 30, 2013
Other Matters Abstract [Abstract]	'
Other matters	'
	8	Other Matters
	From time to time, the Company is party to various lawsuits, some involving material amounts. Management is not aware of any lawsuits that would have a material adverse impact on the consolidated financial position of the Company.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	6 Months Ended
	Nov. 30, 2013
Recent Accounting Pronouncements [Abstract]	'
Recent Accounting Pronouncements	'
		9	Recent Accounting Pronouncements
	The Company is not aware of any new accounting pronouncements that would have a material impact on its condensed consolidated financial statements.

Revenue_Recognition_Policies

Revenue Recognition (Policies)	6 Months Ended
	Nov. 30, 2013
Revenue Recognition [Abstract]	'
Revenue Recognition	'
	The Company’s contract computer programming services are generally provided under time and materials arrangements with its customers.  Revenue is recognized in accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition,” when persuasive evidence of an arrangement exists, the services have been rendered, the price is fixed or determinable, and collectability is reasonably assured.  These conditions occur when a customer agreement is effected and the consultant performs the authorized services.  Revenue is recorded net of all discounts and processing fees. Advances from customers represent amounts received from customers prior to the Company’s provision of the related services and credit balances from overpayments.
	Reimbursements received by the Company for out-of-pocket expenses are characterized as revenue.
Fair Value of Financial Instruments	'
	ASC Topic 825, “Financial Instruments”, requires disclosure of the fair value of certain financial instruments. For cash and cash equivalents, accounts receivable, accounts and other payables, accrued liabilities and advances from customers, the amounts presented in the condensed consolidated financial statements approximate fair value because of the short-term maturities of these instruments.

Cash_and_Cash_Equivalents_Tabl

Cash and Cash Equivalents (Tables)	6 Months Ended
	Nov. 30, 2013
Cash and Cash Equivalents [Abstract]	'
Summary of cash and cash equivalents	'
		November 30,		May 31,
		2013		2013
	Cash in banks	$	1,241,069	$	1,562,939
	Money market funds		561,692		318,222
		$	1,802,761	$	1,881,161

Marketable_Securities_Tables

Marketable Securities (Tables)	6 Months Ended
	Nov. 30, 2013
Marketable Securities [Abstract]	'
Summary of assets measured at fair value on recurring basis	'
	$
	30-Nov-13	Level 1			Level 2			Level 3			Total
	Certificates of Deposit	$	-		$	1,741,000		$	-		$	1,741,000
	Equity Securities		19,072			-			-			19,072
		$	19,072		$	1,741,000		-		$	1,760,072
	31-May-13	Level 1		Level 2			Level 3				Total
	Certificates of Deposit	$	-		$	1,989,000		$	-		$	1,989,000
	Equity Securities		19,424			-			-			19,424
		$	19,424		$	1,989,000		$	-		$	2,008,424
Summary of marketable securities	'
	30-Nov-13	Amortized			Gross			Gross			Recorded
	Current	Cost			Unrealized			Unrealized			Value
					Holding			Holding
					Gains			Losses
	Certificates of Deposit	$	1,741,000		$	-		$	-		$	1,741,000
	Equity Securities		16,866			2,206			-			19,072
		$	1,757,866		$	2,206		$	-		$	1,760,072
	Certificates of Deposit
	$1,989,000  $-  $-  $1,989,000
		Amortized			Gross			Gross			Recorded
	31-May-13	Cost			Unrealized			Unrealized			Value
	Current				Holding			Holding
					Gains			Losses
	Equity Securities		16,866			2,558			-			19,424
		$	2,005,866		$	2,558		$	-		$	2,008,424

Cash_and_Cash_Equivalents_Deta

Cash and Cash Equivalents (Details) (USD $)	Nov. 30, 2013	31-May-13	Nov. 30, 2012	31-May-12
Summary of cash and cash equivalents	'	'	'	'
Cash in banks	$1,241,069	$1,562,939	'	'
Money market funds	561,692	318,222	'	'
Total	$1,802,761	$1,881,161	$1,295,127	$7,514,749

Marketable_Securities_Details

Marketable Securities (Details) (USD $)	Nov. 30, 2013	31-May-13
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	$1,760,072	$2,008,424
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	1,741,000	1,989,000
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	19,072	19,424
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	19,072	19,424
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Certificates of Deposit [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	'	'
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Equity Securities [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	19,072	19,424
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	1,741,000	1,989,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Certificates of Deposit [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	1,741,000	1,989,000
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity Securities [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	'	'
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	'	'
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Certificates of Deposit [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	'	'
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Equity Securities [Member]	'	'
Summary of assets measured at fair value on recurring basis	'	'
Assets measured at fair value, Total	'	'

Marketable_Securities_Details_

Marketable Securities (Details 1) (Current, USD $)	0 Months Ended
	Nov. 30, 2013	31-May-13
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	$1,757,866	$2,005,866
Gross Unrealized Holding Gains	2,206	2,558
Gross Unrealized Holding Losses	'	'
Recorded Value, Current	1,760,072	2,008,424
Certificates of Deposit [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	1,741,000	1,989,000
Gross Unrealized Holding Gains	'	'
Gross Unrealized Holding Losses	'	'
Recorded Value, Current	1,741,000	1,989,000
Equity Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	16,866	16,866
Gross Unrealized Holding Gains	2,206	2,558
Gross Unrealized Holding Losses	'	'
Recorded Value, Current	$19,072	$19,424

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	6 Months Ended
	Nov. 30, 2013	Nov. 30, 2012
Stockholders' Equity (Textual)	'	'
Number of common stock purchased, Shares	'	3,600
Purchases of common stock, Value	'	$16,571
Previously announced repurchase plan, Shares	'	150,000
Shares remain available for purchase	56,318	'
Cash dividend per common share to stockholders	'	$1.50
Cash Dividend Paid	'	($2,970,093)