Total Site Solutions Logo

Print Print page | Email Email page | PDF Download PDF
« Previous Release | Next Release »



TSS, Inc. Reports Fourth Quarter And 2014 Results

ROUND ROCK, Texas, April 22, 2015 /PRNewswire/ -- TSS, Inc. (Other OTC: TSSI), a data center and mission critical facilities and technology services company, reported results for its fourth quarter and fiscal year ended December 31, 2014.

TSS, Inc. logo

Fourth Quarter Highlights:

Fiscal Year Highlights:

The Company's results reported today reflect revenues in line with the preliminary results released on March 31, 2015.  Net income was modestly lower than net income included in preliminary results due to final cost adjustments made in completing the Company's financial statements for 2014.

"We filed our 2014 10-K today and are focused on achieving our goals of revenue growth and profitability for 2015.  We look forward to reporting our first quarter results in a few short weeks," said Anthony Angelini, President and Chief Executive Officer of TSS.

About Non-GAAP Financial Measures
Adjusted EBITDA and Normalized Adjusted EBITDA are supplemental financial measures 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. 

We define Normalized Adjusted EBITDA as Adjusted EBITDA before restructuring charges, acquisition expenses and certain other costs. We present Normalized Adjusted EBITDA because we believe it is helpful in comparing our operating results across reporting periods on a consistent basis by excluding from Adjusted EBITDA certain items that do not directly correlate to our business and may, or could, have a disproportionate positive or negative impact on our performance during a particular period.  Similar to Adjusted EBITDA, we also use Normalized Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.  

Adjusted EBITDA and Normalized Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Normalized 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 and Normalized Adjusted EBITDA have been reconciled to the nearest GAAP measure, and this reconciliation is located under the heading "Normalized 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. www.totalsitesolutions.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," "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: the Company's reliance on a significant portion of its revenues from a limited number of customers; risks relating to operating in a highly competitive industry; risks relating to rapid technological, structural, and competitive changes affecting the industries the Company serves; risks involved in properly managing complex projects; risks relating 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 and the related impact on demand for our services; and other risks and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2014. These uncertainties may cause the Company's actual future results to be materially different than those expressed in the Company's forward-looking statements. The Company does not undertake to update its forward-looking statements.
 

 






TSS, Inc.

Condensed Consolidated Balance Sheets

(In thousands except par values)















December 31,





2014


2013








Assets






Current Assets





Cash and cash equivalents


$         1,378


$          3,291


Restricted cash


-


501


Contract and other receivables, net


3,951


8,410


Costs and estimated earnings in excess of billings on uncompleted contracts


1,042


544


Inventories, net


154


217


Prepaid expenses and other current assets


243


448


   Total current assets


6,768


13,411

Property and equipment, net


670


437

Goodwill



1,907


1,907

Intangible assets, net


979


1,116

Other assets



91


154


   Total assets


$     10,415


$       17,025

Liabilities and Stockholders' Equity




Current Liabilities






Convertible notes payable, current portion, net


$          149


$             137


Borrowings under credit facility


1,171


3,000


Accounts payable and accrued expenses


5,547


7,590


Billings in excess of costs and estimated earnings on uncompleted contracts


2,009


2,316


   Total current liabilities


8,876


13,043

Convertible notes, less current portion, net


575


723

Other liabilities


18


9


   Total liabilities


9,469


13,775








Stockholders' Equity






Preferred stock- $.0001 par value; 1,000 shares authorized at December 31, 2014 and 2013; none issued


-


-


Common stock- $.0001 par value, 49,000 shares authorized at December 31, 2014 and 2013: 15,905 and 15,375 issued at


2


2


December 31, 2014 and 2013, respectively






Additional paid-in capital


67,651


67,152


Treasury stock 696 and 823 shares at cost at December 31, 2014






and 2013, respectively


(1,512)


(1,512)


Accumulated deficit


(65,195)


(62,392)


   Total stockholders' equity


946


3,250


   Total liabilities and stockholders' equity


$     10,415


$       17,025

 













TSS, Inc.

Condensed Consolidated Statement of Operations

(in thousands except per-share amounts)



















Three Months Ended

December 31,


Year Ended December 31,






2014


2013


2014


2013

Results of Operations:











Revenue



$   8,411


$   13,066


$ 27,985


$     44,429


Cost of revenue, excluding depreciation

and amortization


5,842


11,039


19,424


35,456


 

Gross profit


 

2,569


 

2,027


 

8,561


 

8,973


Operating expenses:












Selling, general and administrative


2,499


2,582


10,546


11,192



Depreciation and amortization



118


164


488


358


Total operating costs



2,617


2,746


11,034


11,550


Operating loss



(48)


(719)


(2,473)


(2,577)


Interest income (expense), net



(69)


(69)


(277)


(197)


Other income (expense), net



-


-


-


(20)


Loss before income taxes



(117)


(788)


(2,750)


(2,794)


Income tax expense



53


-


53


-


Net loss



$     (170)


$  (788)


$  (2,803)


$    (2,794)












Basic & diluted net loss per share



$   (0.01)


$   (0.05)


$   (0.19)


$     (0.19)


Shares used in computing basic &

diluted net loss per share



 

15,210


 

14,386


 

15,017


 

14,375

 

TSS, Inc.

Normalized Adjusted EBITDA Reconciliation

(In thousands, unaudited)















Three Months Ended December 31,


Year Ended December 31,






2014


2013


2014


2013













Net loss




$      (170)


$      (788)


$      (2,803)


$      (2,794)













Interest income (expense), net



69


69


277


197

Depreciation and amortization



118


83


488


358













 EBITDA





$      17


$         (636)


$      (2,038)


$      (2,239)













Stock based compensation



136


68


481


293

Provision for bad debts




(5)


14


23


17

 Provision for income taxes





53


-


53


-

Adjusted EBITDA




$        201


$         (554)


$      (1,481)


$      (1,929)













Severance charges




17


278


52


332

Other charges




-


83


285


98

Loss on disposal of assets





41




41

Acquisition expenses






61




305













Normalized Adjusted EBITDA



$        218


$         (91)


$      (1,144)


$     (1,153)

 

Logo - http://photos.prnewswire.com/prnh/20130814/CL64257LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tss-inc-reports-fourth-quarter-and-2014-results-300070568.html

SOURCE TSS, Inc.

News Provided by Acquire Media

Close window | Back to top