TSR (TSRI) 10-Q 9 Jan 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Nov. 30, 2014	Dec. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	TSR INC
Entity Central Index Key	98338
Amendment Flag	FALSE
Current Fiscal Year End Date	-26
Document Type	10-Q
Document Period End Date	30-Nov-14
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,962,062

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Nov. 30, 2014	31-May-14
Current Assets:
Cash and cash equivalents	$4,009,427	$2,841,967
Certificates of deposit and marketable securities	1,023,800	1,514,856
Accounts receivable, net of allowance for doubtful accounts of $193,000	8,507,411	8,790,338
Other receivables	1,674	9,330
Prepaid expenses	142,878	74,188
Prepaid and recoverable income taxes	31,357	32,159
Deferred income taxes	86,000	86,000
Total Current Assets	13,802,547	13,348,838
Equipment and leasehold improvements, net of accumulated depreciation and amortization of $254,967 and $245,482	33,947	34,095
Other assets	49,653	49,653
Deferred income taxes	9,000	130,000
Total Assets	13,895,147	13,562,586
Current Liabilities:
Accounts and other payables	1,205,230	929,404
Accrued expenses and other current liabilities	2,168,976	2,221,158
Advances from customers	1,390,387	1,491,946
Total Liabilities	4,764,593	4,642,508
Commitments and contingencies
Equity:
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	17,385,522	17,219,947
Shareholder's equity before treasury stock	22,519,532	22,353,957
Less: Treasury stock, 1,152,101 shares, at cost	13,514,003	13,514,003
Total TSR, Inc. Equity	9,005,529	8,839,954
Noncontrolling Interest	125,025	80,124
Total Equity	9,130,554	8,920,078
Total Liabilities and Equity	$13,895,147	$13,562,586

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Nov. 30, 2014	31-May-14
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	$254,967	$245,482
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, 2014	Nov. 30, 2013	Nov. 30, 2014	Nov. 30, 2013
Statements Of Operations [Abstract]
Revenue, net	$14,533,801	$12,166,435	$28,219,614	$24,253,132
Cost of sales	12,079,456	10,100,751	23,466,090	20,089,600
Selling, general and administrative expenses	2,179,677	1,979,938	4,406,089	4,019,367
Operating expenses	14,259,133	12,080,689	27,872,179	24,108,967
Income from operations	274,668	85,746	347,435	144,165
Other income (expense):
Interest and dividend income	1,237	1,429	2,891	3,133
Unrealized gain (loss) on marketable securities, net	1,864	1,488	7,944	-352
Income before income taxes	277,769	88,663	358,270	146,946
Provision for income taxes	110,000	36,000	144,000	56,000
Consolidated net income	167,769	52,663	214,270	90,946
Less: net income attributable to noncontrolling interest	-26,786	-20,460	-48,695	-47,825
Net income attributable to TSR, Inc.	$140,983	$32,203	$165,575	$43,121
Net income per TSR, Inc. common share	$0.07	$0.02	$0.08	$0.02
Weighted average number common shares outstanding	1,962,062	1,962,062	1,962,062	1,962,062

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
Balance at May. 31, 2013	$8,929,337	$31,142	$5,102,868	$17,305,883	($13,514,003)	$8,925,890	$3,447
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
Balance at May. 31, 2014	8,920,078	31,142	5,102,868	17,219,947	-13,514,003	8,839,954	80,124
Balance, shares at May. 31, 2014		3,114,163
Net income attributable to noncontrolling interest	48,695						48,695
Distribution to noncontrolling interest	-3,794						-3,794
Net income attributable to TSR, Inc.	165,575			165,575		165,575
Balance at Nov. 30, 2014	$9,130,554	$31,142	$5,102,868	$17,385,522	($13,514,003)	$9,005,529	$125,025
Balance, shares at Nov. 30, 2014		3,114,163

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Cash flows from operating activities:
Consolidated net income	$214,270	$90,946
Adjustments to reconcile consolidated net income to net cash provided by (used in) operating activities:
Depreciation and amortization	9,485	6,754
Unrealized (gain) loss on marketable securities, net	-7,944	352
Deferred income taxes	121,000	40,000
Changes in operating assets and liabilities:
Accounts receivable	282,927	75,317
Other receivables	7,656	1,968
Prepaid expenses	-68,690	-28,113
Prepaid and recoverable income taxes	802	7,880
Accounts and other payables and accrued expenses and other current liabilities	223,644	-564,728
Advances from customers	-101,559	53,309
Net cash provided by (used in) operating activities	681,591	-316,315
Cash flows from investing activities:
Proceeds from maturities of marketable securities	1,493,000	1,740,000
Purchases of marketable securities	-994,000	-1,492,000
Purchases of equipment and leasehold improvements	-9,337	-3,853
Net cash provided by investing activities	489,663	244,147
Cash flows from financing activities:
Distribution to noncontrolling interest	-3,794	-6,232
Net cash used in financing activities	-3,794	-6,232
Net increase (decrease) in cash and cash equivalents	1,167,460	-78,400
Cash and cash equivalents at beginning of period	2,841,967	1,881,161
Cash and cash equivalents at end of period	4,009,427	1,802,761
Supplemental disclosures of cash flow data:
Income taxes paid	$22,000	$8,000

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Nov. 30, 2014
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, 2014 are unaudited; however, in the opinion of management, such statements include all adjustments (consisting of normal recurring adjustments) 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, 2015. The consolidated balance sheet at May 31, 2014 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, 2014.

Net_Income_Per_Common_Share

Net Income Per Common Share	6 Months Ended
	Nov. 30, 2014
Net Income Per Common Share [Abstract]
Net Income Per Common Share	2	Net Income Per Common Share
	Basic net income per common share is computed by dividing income 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, 2014
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, 2014 and May 31, 2014:
			November 30,		May 31,
			2014		2014
		Cash in banks	$	2,943,879	$	2,279,148
		Money market funds		1,065,548		562,819
			$	4,009,427	$	2,841,967

Revenue_Recognition

Revenue Recognition	6 Months Ended
	Nov. 30, 2014
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.

Certificates_of_Deposit_and_Ma

Certificates of Deposit and Marketable Securities	6 Months Ended
	Nov. 30, 2014
Certificates of Deposit and Marketable Securities [Abstract]
Certificates of Deposit and Marketable Securities	5	Certificates of Deposit and Marketable Securities
	The Company has characterized its investments in certificates of deposit and 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, 2014 and May 31, 2014 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-14		Level 1		Level 2		Level 3		Total
		Certificates of Deposit		$	-	$	994,000	$	-	$	994,000
		Equity Securities			29,800		-		-		29,800
				$	29,800	$	994,000	$	-	$	1,023,800
		31-May-14		Level 1		Level 2		Level 3		Total
		Certificates of Deposit		$	-	$	1,493,000	$	-	$	1,493,000
		Equity Securities			21,856		-		-		21,856
				$	21,856	$	1,493,000	$	-	$	1,514,856
	Based upon the Company’s intent and ability to hold its certificates of deposit to maturity (which maturities range up to twelve 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 certificates of deposit and marketable securities at November 30, 2014 and May 31, 2014 are summarized as follows:
		November 30, 2014 Current		Amortized		Gross		Gross		Recorded
				Cost		Unrealized		Unrealized		Value
						Holding		Holding
						Gains		Losses
		Certificates of Deposit		$	994,000	$	-	$	-	$	994,000
		Equity Securities			16,866		12,934		-		29,800
				$	1,010,866	$	12,934	$	-	$	1,023,800
		May 31, 2014 Current		Amortized		Gross		Gross		Recorded
				Cost		Unrealized		Unrealized		Value
						Holding		Holding
						Gains		Losses
		Certificates of Deposit		$	1,493,000	$	-	$	-	$	1,493,000
		Equity Securities			16,866		4,990		-		21,856
				$	1,509,866	$	4,990	$	-	$	1,514,856
	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, 2014
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.

Equity

Equity	6 Months Ended
	Nov. 30, 2014
Equity [Abstract]
Equity		7	Equity
	During the six months ended November 30, 2014 and 2013, the Company did not purchase any shares of its common stock. As of December 31, 2014, 56,318 shares remain available for purchase under the previously announced plan.

Other_Matters

Other Matters	6 Months Ended
	Nov. 30, 2014
Other Matters [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, 2014
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	9	Recent Accounting Pronouncements
		In May 2014, the FASB issued an update to ASC 606, Revenue from Contracts with Customers. This update to ASC 606 provides a five-step process to determine when and how revenue is recognized. The core principle of the guidance is that a Company should recognize revenue upon transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received in exchange for those goods or services. This update to ASC 606 will also result in enhanced disclosures about revenue, providing guidance for transactions that were not previously addressed comprehensively, and improving guidance for multiple-element arrangements. This update to ASC 606 is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the impact of this update on its consolidated financial statements.

Revenue_Recognition_Policies

Revenue Recognition (Policies)	6 Months Ended
	Nov. 30, 2014
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, 2014
Cash and Cash Equivalents [Abstract]
Summary of cash and cash equivalents			November 30,		May 31,
			2014		2014
		Cash in banks	$	2,943,879	$	2,279,148
		Money market funds		1,065,548		562,819
			$	4,009,427	$	2,841,967

Certificates_of_Deposit_and_Ma1

Certificates of Deposit and Marketable Securities (Tables)	6 Months Ended
	Nov. 30, 2014
Certificates of Deposit and Marketable Securities [Abstract]
Summary of assets measured at fair value on recurring basis
		30-Nov-14	Level 1		Level 2		Level 3		Total
		Certificates of Deposit	$	-	$	994,000	$	-	$	994,000
		Equity Securities		29,800		-		-		29,800
			$	29,800	$	994,000	$	-	$	1,023,800
		31-May-14	Level 1		Level 2		Level 3		Total
		Certificates of Deposit	$	-	$	1,493,000	$	-	$	1,493,000
		Equity Securities		21,856		-		-		21,856
			$	21,856	$	1,493,000	$	-	$	1,514,856
Summary of certificates of deposit and marketable securities
		November 30, 2014 Current	Amortized		Gross		Gross		Recorded
			Cost		Unrealized		Unrealized		Value
					Holding		Holding
					Gains		Losses
		Certificates of Deposit	$	994,000	$	-	$	-	$	994,000
		Equity Securities		16,866		12,934		-		29,800
			$	1,010,866	$	12,934	$	-	$	1,023,800
		May 31, 2014 Current	Amortized		Gross		Gross		Recorded
			Cost		Unrealized		Unrealized		Value
					Holding		Holding
					Gains		Losses
		Certificates of Deposit	$	1,493,000	$	-	$	-	$	1,493,000
		Equity Securities		16,866		4,990		-		21,856
			$	1,509,866	$	4,990	$	-	$	1,514,856

Cash_and_Cash_Equivalents_Deta

Cash and Cash Equivalents (Details) (USD $)	Nov. 30, 2014	31-May-14	Nov. 30, 2013	31-May-13
Summary of cash and cash equivalents
Cash in banks	$2,943,879	$2,279,148
Money market funds	1,065,548	562,819
Total	$4,009,427	$2,841,967	$1,802,761	$1,881,161

Certificates_of_Deposit_and_Ma2

Certificates of Deposit and Marketable Securities (Details) (USD $)	Nov. 30, 2014	31-May-14
Summary of assets measured at fair value on recurring basis
Assets measured at fair value, Total	$1,023,800	$1,514,856
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	994,000	1,493,000
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Summary of assets measured at fair value on recurring basis
Assets measured at fair value, Total	29,800	21,856
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Summary of assets measured at fair value on recurring basis
Assets measured at fair value, Total	29,800	21,856
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	29,800	21,856
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Summary of assets measured at fair value on recurring basis
Assets measured at fair value, Total	994,000	1,493,000
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	994,000	1,493,000
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

Certificates_of_Deposit_and_Ma3

Certificates of Deposit and Marketable Securities (Details 1) (Current, USD $)	6 Months Ended	12 Months Ended
	Nov. 30, 2014	31-May-14
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$1,010,866	$1,509,866
Gross Unrealized Holding Gains	12,934	4,990
Gross Unrealized Holding Losses
Recorded Value, Current	1,023,800	1,514,856
Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	994,000	1,493,000
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses
Recorded Value, Current	994,000	1,493,000
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,866	16,866
Gross Unrealized Holding Gains	12,934	4,990
Gross Unrealized Holding Losses
Recorded Value, Current	$29,800	$21,856

Equity_Details

Equity (Details)	Dec. 31, 2014
Equity (Textual)
Shares remain available for purchase	56,318