Indianapolis-based Fortune Industries Inc. turned a profit in the first quarter after posting a loss during the same three months last year.

The professional employer organization said Tuesday that it had profit of $265,000, or 2 cents per share, compared with a loss of $426,000, or 3 cents per share, in the first quarter of 2010.

Revenue for the quarter grew nearly 10 percent, to $16.8 million.

The company attributed the improvement in earnings to reducing expenses and renegotiating the company’s workers’ compensation policy.

“We are seeing evidence of the economy recovering slowly, as our same-store sales are increasing, which indicates the hiring of new employees and increased salaries for our existing clients,” Fortune CEO Tena Mayberry said in a written statement.

PEOs handle payroll, payroll taxes, Worker’s Compensation claims, health plans, and other employee benefits for employers. Fortune provides human resources consulting and management, employee-assessment, training and benefits-administration services to small- and medium-sized businesses in 49 states.

Shares of the thinly traded Fortune were priced at 68 cents each Tuesday morning.