TSS, Inc. Reports Strong Second Quarter 2024 Results
TSS, Inc. (OTCQB: TSSI) reported strong Q2 2024 results, with 345% growth in Net Income and 62% improvement in Adjusted EBITDA compared to Q2 2023. The company, which integrates AI and high-performance computing infrastructure, saw significant growth in higher-yielding systems integration and facility management revenues. Key highlights include:
- Q2 2024 revenue of $12.2 million
- Gross profit of $4.5 million, up 41% year-over-year
- Net income of $1.4 million, a 345% increase
- Adjusted EBITDA of $2.0 million, up 62%
TSS expanded its production capacity in June, driven by increased demand for AI-related server rack builds. The company expects strong performance in the second half of 2024, with ongoing AI-based customer programs.
TSS, Inc. (OTCQB: TSSI) ha riportato risultati solidi per il secondo trimestre del 2024, con una crescita del 345% nell'utile netto e un miglioramento del 62% nell'EBITDA rettificato rispetto al secondo trimestre del 2023. L'azienda, che integra l'AI e infrastrutture di calcolo ad alte prestazioni, ha visto una crescita significativa nei ricavi derivanti da sistemi di integrazione ad alto rendimento e nella gestione delle strutture. I principali punti salienti includono:
- Ricavi del secondo trimestre 2024 di 12,2 milioni di dollari
- Utile lordo di 4,5 milioni di dollari, in aumento del 41% rispetto all'anno precedente
- Utile netto di 1,4 milioni di dollari, un incremento del 345%
- EBITDA rettificato di 2,0 milioni di dollari, in crescita del 62%
TSS ha ampliato la propria capacità produttiva a giugno, spinta dalla crescente domanda per la costruzione di rack di server legati all'AI. L'azienda prevede prestazioni solide nella seconda metà del 2024, con programmi continuativi per clienti basati sull'AI.
TSS, Inc. (OTCQB: TSSI) informó resultados sólidos para el segundo trimestre de 2024, con un crecimiento del 345% en las ganancias netas y una mejora del 62% en el EBITDA ajustado en comparación con el segundo trimestre de 2023. La empresa, que integra inteligencia artificial e infraestructura de computación de alto rendimiento, experimentó un crecimiento significativo en los ingresos por integración de sistemas de mayor rendimiento y gestión de instalaciones. Los puntos destacados incluyen:
- Ingresos del segundo trimestre de 2024 de 12.2 millones de dólares
- Utilidad bruta de 4.5 millones de dólares, un aumento del 41% en comparación con el año anterior
- Ganancia neta de 1.4 millones de dólares, un incremento del 345%
- EBITDA ajustado de 2.0 millones de dólares, un aumento del 62%
TSS amplió su capacidad de producción en junio, impulsada por el aumento de la demanda por construcciones de racks de servidores relacionados con AI. La empresa espera un rendimiento sólido en la segunda mitad de 2024, con programas continuos basados en AI para clientes.
TSS, Inc. (OTCQB: TSSI)는 2024년 2분기 실적에서 순이익 345% 성장과 조정 EBITDA 62% 개선을 기록하며 강력한 성과를 보고했습니다. AI 통합 및 고성능 컴퓨팅 인프라를 제공하는 이 회사는 고수익 시스템 통합 및 시설 관리 수익에서 큰 성장을 보였습니다. 주요 하이라이트는 다음과 같습니다:
- 2024년 2분기 수익 1,220만 달러
- 총 이익 450만 달러, 전년 대비 41% 증가
- 순이익 140만 달러, 345% 증가
- 조정 EBITDA 200만 달러, 62% 증가
TSS는 AI 관련 서버 랙 제작 수요 증가에 따라 6월에 생산 용량을 확장했습니다. 이 회사는 2024년 하반기에도 AI 기반 고객 프로그램과 함께 강력한 성과를 예상하고 있습니다.
TSS, Inc. (OTCQB: TSSI) a annoncé de solides résultats pour le deuxième trimestre de 2024, avec une croissance de 345% du bénéfice net et une amélioration de 62% de l'EBITDA ajusté par rapport au deuxième trimestre de 2023. L'entreprise, qui intègre l'IA et une infrastructure de calcul haute performance, a connu une croissance significative des revenus provenant de l'intégration de systèmes à haut rendement et de la gestion des installations. Les principaux points à retenir incluent :
- Revenus du deuxième trimestre 2024 de 12,2 millions de dollars
- Bénéfice brut de 4,5 millions de dollars, en augmentation de 41% par rapport à l'année précédente
- Bénéfice net de 1,4 million de dollars, une augmentation de 345%
- EBITDA ajusté de 2,0 millions de dollars, en hausse de 62%
TSS a élargi sa capacité de production en juin, motivée par une demande croissante pour la construction de racks de serveurs liés à l'IA. L'entreprise s'attend à une forte performance dans la deuxième moitié de 2024, avec des programmes clients continus basés sur l'IA.
TSS, Inc. (OTCQB: TSSI) hat für das zweite Quartal 2024 starke Ergebnisse gemeldet, mit einem Wachstum des Nettogewinns um 345% und einer Verbesserung des bereinigten EBITDA um 62% im Vergleich zum zweiten Quartal 2023. Das Unternehmen, das KI und Hochleistungsrechnungsinfrastruktur integriert, verzeichnete ein signifikantes Wachstum bei den Umsätzen aus der Systemintegration mit höherer Rendite und im Facility Management. Wichtige Höhepunkte sind:
- Umsatz im zweiten Quartal 2024 von 12,2 Millionen US-Dollar
- Bruttogewinn von 4,5 Millionen US-Dollar, ein Anstieg um 41% im Jahresvergleich
- Nettogewinn von 1,4 Millionen US-Dollar, eine Steigerung um 345%
- Bereinigtes EBITDA von 2,0 Millionen US-Dollar, ein Anstieg um 62%
TSS hat im Juni seine Produktionskapazität ausgeweitet, bedingt durch die steigende Nachfrage nach KI-bezogenen Serverrack-Bauten. Das Unternehmen erwartet eine starke Leistung in der zweiten Hälfte von 2024 mit fortlaufenden KI-basierten Kundenprogrammen.
- 345% growth in Net Income compared to Q2 2023
- 62% improvement in Adjusted EBITDA compared to Q2 2023
- 83% increase in higher yielding systems integration and facility management revenues
- Gross profit up 41% from the prior year quarter
- Operating income growth of 74% from the prior year quarter
- Significant investment in production capacity to meet AI-related demand
- 33% year-over-year revenue growth for the first half of 2024
- 211% growth in Adjusted EBITDA for the first half of 2024
- Q2 2024 revenue of $12.2 million compared to $14.5 million in same period of 2023
- Procurement revenues decreased to $4.9 million from $10.6 million in the prior year quarter
ROUND ROCK, Texas, Aug. 14, 2024 (GLOBE NEWSWIRE) -- TSS, Inc. (OTCQB: TSSI), a data center services company that integrates AI and other high-performance computing infrastructure and software, today reported results for its second quarter and six-month period ended June 30, 2024.
“During Q2, we made a significant investment in our production capacity, which came online at the beginning of June,” said Darryll Dewan, CEO of TSS. “This expansion, compounded with process improvements, has significantly increased our volume capacity for rack integration and decreased the cycle time to complete each rack within our existing facility. The expansion was driven primarily by the surge in demand for server rack builds related to generative AI, as the AI market expands as a whole.”
“To be clear, the volume ramp we've been anticipating is now underway. Our OEM customers have robust pipelines and we are seeing their deals beginning to close including one significant program the was started in the second quarter and will more dramatically impact the third quarter. We believe our Q2 performance was a harbinger of results to come. Our strategic inclusion in key customer programs signals a bright future as OEM pipelines materialize.”
Second Quarter Highlights (unaudited):
- Second quarter 2024 revenue of
$12.2 million compared to$14.5 million in same period of 2023:$7.2 million in higher yielding systems integration and facility management revenues, combined, representing an83% increase;$4.9 million in procurement revenues compared to$10.6 million in the prior year quarter.
- Gross profit of
$4.5 million , up41% from the prior year quarter, driven by growth in higher yielding service lines. - Operating income growth of
74% from the prior year quarter. - Net income of
$1.4 million , an increase of345% from$0.3 million in the prior year quarter. $2.0 million in Adjusted EBITDA,62% growth from$1.2 million in the prior year quarter.- Increase in systems integration of AI-enabled racks beginning in the month of June 2024.
First Half Highlights (unaudited):
- Revenue of
$28.1 million for the six months ended June 30, 2024, or33% growth compared to the first six months of 2023.$11.5 million in higher yielding systems integration and facility management revenues,30% growth compared to the same period in the prior year;$16.5 million in procurement revenues,34% growth compared to the same period in the prior year.
- Gross profit of
$7.3 million , up48% from the prior year-to-date period, driven primarily from the growth in higher yielding service lines. - Operating income growth of
530% compared to the first half of 2023. - Net income of
$1.4 million vs. a loss of$0.5 million in the prior year-to-date period $2.4 million in Adjusted EBITDA for the six months ended June 30, 2024,211% growth from$0.8 million in the comparable period of 2023.
Dewan continued, “Our performance in the first half of 2024 underscores our focus on execution. We delivered
Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the second quarter 2024 financial results for Wednesday, August 14, 2024, at 4:00 PM Eastern. To participate on the conference call, please dial (800) 715-9871 toll free from the U.S. or Canada. Other international callers may access the call at 1-646-307-1963. The event ID number is 1261274. Investors may also access a live audio webcast of this conference call and replay the call for one year following the webcast, at www.webcaster4.com/Webcast/Page/2294/51043. Please allow approximately four hours following completion of the call for the recorded webcast to be available. A link to this recorded webcast will also be provided on our website at https://tss-inc.ir.rdgfilings.com.
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 net interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, provision for bad debts and certain extraordinary items. 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 items that may, or could, have a disproportionately 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 specializes in simplifying the complex. The TSS mission is to streamline the integration and deployment of high-performance computing infrastructure and software, ensuring that end users quickly receive and efficiently utilize the necessary technology. Known for flexibility, the company builds, integrates, and deploys custom, high-volume solutions that empower data centers and catalyze the digital transformation of generative AI and other leading-edge technologies essential for modern computing, data, and business needs. TSS’s reputation is built on passion and experience, quality, and fast time to value. As trusted partners of the world's leading data center technology providers, the company manages and deploys billions of dollars in technology each year. For more information, visit www.tssiusa.com.
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 and our ability to diversify our customer base; risks relating to operating in a highly competitive industry; risks relating to supply chain challenges; risk related to changes in labor market conditions; risks related to the implementation of a new enterprise resource IT system; risks related to the development of our procurement services business; 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 to our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; 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, 2023. 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.
Danny Chism, CFO
Phone: (512) 310-1000
Or
Tad Druart, Pierpont Communications
(512) 497-9880
| TSS, Inc. Consolidated Balance Sheets (In thousands except par values) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 8,311 | $ | 11,831 | |||||||
| Contract and other receivables, net | 6,995 | 3,527 | |||||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 524 | 1,310 | |||||||||
| Inventories, net | 4,939 | 2,343 | |||||||||
| Prepaid expenses and other current assets | 452 | 302 | |||||||||
| Total current assets | 21,221 | 19,313 | |||||||||
| Property and equipment, net | 2,205 | 628 | |||||||||
| Lease right-of-use assets | 3,790 | 4,062 | |||||||||
| Goodwill | 780 | 780 | |||||||||
| Intangible assets, net | - | - | |||||||||
| Other assets | 909 | 817 | |||||||||
| Total assets | $ | 28,905 | $ | 25,600 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable and accrued expenses | $ | 13,693 | $ | 14,362 | |||||||
| Deferred revenues, current | 4,960 | 3,370 | |||||||||
| Current portion of lease liabilities | 759 | 688 | |||||||||
| Total current liabilities | 19,412 | 18,420 | |||||||||
| Deferred revenues, non-current | 1,044 | - | |||||||||
| Non-current portion of lease liabilities | 3,295 | 3,631 | |||||||||
| Total liabilities | 23,751 | 22,051 | |||||||||
| Stockholders’ Equity | |||||||||||
| Preferred stock, $.0001 par value; 1,000 shares authorized at June 30, 2024 and December 31, 2023; none issued | - | - | |||||||||
| Common stock, $.0001 par value; 49,000 shares authorized at June 30, 2024 and December 31, 2023; 24,244 and 23,533 issued; 22,302 and 21,771 outstanding at June 30, 2024 and December 31, 2023, respectively | 2 | 2 | |||||||||
| Additional paid-in capital | 72,428 | 72,103 | |||||||||
| Treasury stock 1,942 and 1,762 shares at cost at June 30, 2024 and December 31, 2023 | (2,382 | ) | (2,245 | ) | |||||||
| Accumulated deficit | (64,894 | ) | (66,311 | ) | |||||||
| Total stockholders' equity | 5,154 | 3,549 | |||||||||
| Total liabilities and stockholders’ equity | $ | 28,905 | $ | 25,600 | |||||||
| TSS, Inc. Condensed Consolidated Statements of Operations (In thousands except per-share values, unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Results of Operations: | ||||||||||||||||
| Revenue | $ | 12,159 | $ | 14,537 | $ | 28,052 | $ | 21,111 | ||||||||
| Cost of revenue | 7,623 | 11,315 | 20,802 | 16,203 | ||||||||||||
| Gross profit | 4,536 | 3,222 | 7,250 | 4,908 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,719 | 2,159 | 5,108 | 4,421 | ||||||||||||
| Depreciation and amortization | 117 | 88 | 188 | 177 | ||||||||||||
| Total operating costs | 2,836 | 2,247 | 5,296 | 4,598 | ||||||||||||
| Operating income | 1,700 | 975 | 1,954 | 310 | ||||||||||||
| Interest expense, net | 272 | 648 | 501 | 760 | ||||||||||||
| Other income (expense), net | - | - | - | - | ||||||||||||
| Income (loss) before income taxes | 1,428 | 327 | 1,453 | (450 | ) | |||||||||||
| Income tax expense | 26 | 12 | 36 | 21 | ||||||||||||
| Net income (loss) | $ | 1,402 | $ | 315 | $ | 1,417 | $ | (471 | ) | |||||||
| Earnings (loss) per common share - Basic | $ | 0.06 | $ | 0.01 | $ | 0.06 | $ | (0.02 | ) | |||||||
| Earnings (loss) per common share - Diluted | $ | 0.06 | $ | 0.01 | $ | 0.06 | $ | (0.02 | ) | |||||||
| TSS, Inc. Adjusted EBITDA Reconciliation (GAAP to non-GAAP) (In thousands, unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | 1,402 | $ | 315 | $ | 1,417 | $ | (471 | ) | |||||||
| Interest expense, net | 272 | 648 | 501 | 760 | ||||||||||||
| Depreciation and amortization | 117 | 88 | 188 | 177 | ||||||||||||
| Income tax expense | 26 | 12 | 36 | 21 | ||||||||||||
| EBITDA | $ | 1,817 | $ | 1,063 | $ | 2,142 | $ | 487 | ||||||||
| Stock based compensation | 155 | 160 | 305 | 299 | ||||||||||||
| Adjusted EBITDA | $ | 1,972 | $ | 1,223 | $ | 2,447 | $ | 786 | ||||||||
FAQ
What was TSS Inc's (TSSI) net income growth in Q2 2024?
How much did TSS Inc's (TSSI) Adjusted EBITDA improve in Q2 2024?
What was TSS Inc's (TSSI) revenue for Q2 2024?
How did TSS Inc's (TSSI) systems integration and facility management revenues perform in Q2 2024?
What drove TSS Inc's (TSSI) expansion in production capacity in June 2024?
