TSS Reports First Quarter 2025 Revenue of $99.0 Million, Up 523% EPS of $0.12, Up from $0.00

About this update from Tss, Inc.

ROUND ROCK, TEXAS / ACCESS Newswire / May 15, 2025 / TSS, Inc. (NASDAQ:TSSI), a data center services company that provides AI and high-performance computing integration, deployment and related services, today reported results for its first quarter ended March 31, 2025 . "We are off to a strong start in 2025, with exponential increases in both our top and bottom lines, driven by robust growth in our Procurement and Systems Integration segments, including incremental contribution from AI rack integration services," commented Darryll Dewan , CEO of TSS. "For the first quarter, revenue was up 523%, diluted earnings per share were $0.12 compared to just over breakeven and Adjusted EBITDA increased more than tenfold compared to the year ago quarter." "Looking ahead, we are confident in the continued growth of our core businesses and expect some acceleration in the AI rack integration services revenues beginning in the second quarter. Our focus on innovation and operational excellence positions us to deliver sustained value to our customers and shareholders. We remain excited about the opportunities ahead as we build on our momentum in Systems Integration and Procurement." Dewan continued, "On May 7 , we began production at our new facility, and we remain on track to have that facility fully operational across all capabilities inJune. At full capacity, this new facility enables us to integrate several times the number of data center racks we can currently integrate in our legacy Round Rock facility. The outlook for growth of our industry is exceptionally strong. We have a solid operational foundation in place and with capacity expansion progressing according to plan, we are confident in our ability to capitalize on these opportunities, deliver profitable growth, generate positive cash from operations and drive enduring value for our shareholders." First Quarter 2025 Financial Highlights : (All comparisons are to First Quarter 2024) Revenues of $99.0 million , up 523% Procurement revenues of $90.2 million , up 676% Systems Integration revenues of $7.5 million , up 253% Facilities Management revenues of $1.3 million , down 40% Gross profit of $9.2 million , up 239% Net income of $3.0 million , up from $15,000 Diluted EPS of $0.12 , up from $0.00 Adjusted EBITDA of $5.2 million , up from $475,000 2025 Outlook Dewan concluded, "We are highly optimistic about our growth prospects for 2025 and beyond. Just last week, we began initial production at our new facility. We expect production volumes will grow in the second quarter and continue to ramp throughout the remainder of 2025 and into 2026. Based on our current visibility, and within the ever-changing geopolitical environment, we continue to expect total revenue in the first half of 2025 to exceed total revenue in the second half of 2024. For the full year 2025, we continue to expect Adjusted EBITDA to be at least 50% higher than 2024. "In light of the demanding and rapidly advancing AI computing environment, our new facility is a strong differentiator. Our team has done an exceptional job getting the building outfitted, including significant power resources available. This marks the beginning of a new and exciting chapter for TSS." Quarterly Conference Call Details The Company will conduct a conference call at 5 p.m. Eastern time today. To participate on the conference call, please dial (888) 506-0062 toll free from the U.S. or Canada . Other international callers may access the call at 1-(973) 528-0011. The event ID number is 903946. Investors may also access a live audio webcast of this conference call and replay the call until May 15, 2026 at https://www.webcaster4.com/Webcast/Page/2294/52472 . 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, 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; 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' 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 our 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, 2024 . 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. Contacts: Hayden IR James Carbonara (646-755-7412) Brett Maas (646-536-7331) [email protected] TSS, Inc. Danny Chism , CFO(512) 310-4908 [email protected] -- Tables Follow - TSS, Inc. Consolidated Balance Sheets (In thousands except par values) March 31 , 2025 December 31 , 2024 (unaudited) Current Assets: Cash and cash equivalents $ 27,339 $ 23,222 Contract and other receivables, net 11,061 16,203 Costs and estimated earnings in excess of billings on uncompleted contracts 1,778 851 Inventories, net 20,396 17,673 Prepaid expenses and other current assets 508 248 Total current assets 61,082 58,197 Property and equipment, net 23,276 8,591 Lease right-of-use asset 23,667 24,213 Goodwill 780 780 Other assets 4,734 4,787 Total assets $ 113,539 $ 96,568 Current Liabilities: Accounts payable and accrued expenses $ 66,214 $ 53,340 Deferred revenues, current 4,337 2,613 Lease liabilities, current 1,654 966 Total current liabilities 72,205 56,919 Non-current Liabilities: Long-term debt, non-current 8,200 8,200 Lease liabilities, non-current 23,062 23,540 Deferred revenues, non-current 681 771 Total non-current liabilities 31,943 32,511 Total liabilities 104,148 89,430 Commitments and Contingencies Stockholders' Equity: Preferred stock - - Common stock 3 3 Additional paid-in capital 75,128 74,200 Treasury stock, at cost (8,384 ) (6,730 ) Accumulated deficit (57,356 ) (60,335 ) Total stockholders' equity 9,391 7,138 Total liabilities and stockholders' equity $ 113,539 $ 96,568 TSS, Inc. Unaudited Condensed Consolidated Statements of Operations (In thousands except per-share values) Three Months Ended March 31 , 2025 2024 Revenues: Procurement $ 90,177 $ 11,623 Facilities management 1,298 2,146 System integration 7,484 2,123 Total revenues 98,959 15,892 Cost of revenue 89,749 13,178 Gross profit 9,210 2,714 Operating expenses: Selling, general and administrative 4,887 2,389 Depreciation and amortization 210 72 Total operating expenses 5,097 2,461 Income from operations 4,113 253 Interest expense 1,468 328 Interest income (383 ) (100 Other expense - - Pre-tax income 3,028 25 Income taxes 49 10 Net income $ 2,979 $ 15 Earnings per common share - Basic $ 0.13 $ - Earnings per common share - Diluted $ 0.12 $ - TSS, Inc. Adjusted EBITDA Reconciliation (GAAP to non-GAAP) (In thousands, unaudited) Three Months Ended March 31 , 2025 2024 Net income $ 2,979 $ 15 Interest expense, net 1,085 228 Depreciation and amortization 210 72 Income tax provision 49 10 EBITDA $ 4,323 $ 325 Stock based compensation 921 150 Adjusted EBITDA $ 0.12 $ 475 SOURCE: TSS, Inc. View the original press release on ACCESS Newswire

View stock analysis, news, and events for Tss, Inc.