ROUND ROCK, Texas, Aug. 15, 2022 (GLOBE NEWSWIRE) -- TSS, Inc. (Other OTC: TSSI), a data center facilities and technology services company, reported results for its second quarter ended June 30, 2022.

Second Quarter Highlights (unaudited):

• Second quarter 2022 revenue of $6.4 million compared with $3.1 million in the second quarter of 2021.
• Gross margin of 41% in the second quarter of 2022 compared with 47% in the second quarter of 2021.
• Operating income of $939,000 in the second quarter of 2022 compared to an operating loss of $(351,000) in the second quarter of 2021.
• Net income of $771,000 or $0.04 per share in the second quarter of 2022 compared to a net loss of $(456,000) or $(0.03) per share in the second quarter of 2021.
• Adjusted EBITDA income of $1,116,000 in the second quarter of 2022 compared with an Adjusted EBITDA loss of $(106,000) in the second quarter of 2021.
  

Year-to-date Highlights (unaudited):

• 2022 revenue of $11.6 million compared with $8.2 million in 2021. Reseller revenues were $2.5 million in 2022 compared to $2.3 million in 2021.
• Gross margin of 37% in 2022 compared with 33% in 2021.
• Operating income of $766,000 compared to an operating loss of $958,000 in 2021.
• Net income of $463,000 or $0.02 per share in 2022 compared to a net loss of $1,155,000 or $(0.06) per share in 2021.
• Adjusted EBITDA income of $1,159,000 in 2022 compared with an Adjusted EBITDA loss of $(439,000) in 2021.
  

“We saw very good growth across all of our business units in our second quarter and therefore delivered positive net income and adjusted EBITDA.” said Anthony Angelini, President and Chief Executive Officer of TSS. “As the supply chain situation continued to improve, we were able to deliver against some of our backlog. It is important to note our backlog remains strong and new orders continue to flow. We anticipate this trend continuing throughout our third quarter and the balance of the year. Therefore, we expect improved financial results for the remainder of 2022 as demand for our services remains very strong.”

Quarterly Conference Call Details

The Company has scheduled a conference call to discuss the second quarter 2022 financial results for Monday, August 15, 2022, at 4:30 PM Eastern. To participate on the conference call, please dial 1-866-374-5140 toll free from the U.S., or 1-404-400-0571 for international callers. The PIN# is 66889454#. The event ID number is EV00136771. Investors may also access a live audio web cast of this conference call under the “events” tab on the investor relations section of the Company's website at www.tssiusa.com.

An audio replay of the conference call will be available approximately one hour after the conclusion of the call and will be made available until September 16, 2022. The audio replay can be accessed at the following url: https://onlinexperiences.com/Launch/QReg/ShowUUID=71F0A0BE-BB23-4AC6-A028-C5373C3A51C0&LangLocaleID=1033

The passcode to access the digital playback is EV00136771. Additionally, a replay of the webcast will be available on the Company’s website approximately two hours after the conclusion of the call and will remain available for 30 calendar days.

About Non-GAAP Financial Measures

Adjusted EBITDA is a supplemental financial measure not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and provision for bad debts. We present Adjusted EBITDA because we believe this supplemental measure of operating performance is helpful in comparing our operating results across reporting periods on a consistent basis by excluding non-cash items that may, or could, have a disproportionate positive or negative impact on our results of operations in any particular period. We also use Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.

Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, Adjusted EBITDA has been reconciled to the nearest GAAP measure, and this reconciliation is located under the heading “Adjusted EBITDA Reconciliation” following the Consolidated Statements of Operations included in this press release.

About TSS, Inc.

TSS is a trusted single source provider of mission-critical planning, design, system integration, deployment, maintenance and evolution of data centers facilities and information infrastructure. TSS specializes in customizable end to end solutions powered by industry experts and innovative services that include technology consulting, engineering, design, construction, operations, facilities management, technology system installation and integration, as well as maintenance for traditional and modular data centers. For more information, visit www.tssiusa.com or call 888-321-4877.

Forward Looking Statements

This press release may contain “forward-looking statements” -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as “guidance,” “prospects,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company's future results include: we may not have sufficient resources to fund our business and may need to issue debt or equity to obtain additional funding; our reliance on a significant portion of our revenues from a limited number of customers; risks relating to operating in a highly competitive industry; risks relating to the failure to maintain effective internal control over financial reporting; risks relating to rapid technological, structural, and competitive changes affecting the industries we serve; risks involved in properly managing complex projects; risks relating to the possible cancellation of customer contracts on short notice; risks relating our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; risks relating to our ability to meet all of the terms and conditions of our debt obligations; uncertainty related to current economic conditions including the impact of the COVID-19 pandemic and the related impact on demand for our services; and other risks and uncertainties disclosed in our filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Company Contact:
TSS, Inc.
John Penver, CFO
Phone: (512) 310-1000

TSS, Inc.
Consolidated Balance Sheets
(In thousands except par values)

TSS, Inc.
Adjusted EBITDA Reconciliation
(In thousands, unaudited)