Welcome to the TSS Third Quarter 2020 Earnings Call. My name is Darrell, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to John Penver. John, you may begin.

Thank you, Darrell. Good afternoon, ladies and gentlemen. Thank you for joining us today on TSS’ conference call to discuss our third quarter 2020 financial results. I’m John Penver, the Chief Financial Officer for TSS. And joining me on the call today is Anthony Angelini, the President and Chief Executive Officer of TSS. As we begin the call, I would like to remind everyone to take note of the cautionary language regarding forward-looking statements contained in the press release that we issued today. That same language applies to comments and statements made on today’s conference call. This call will contain time-sensitive information as well as forward-looking statements, which are only accurate as of today, November 16, 2020. TSS expressly disclaims any obligation to update, amend, supplement or otherwise review any information or forward-looking statements made on this conference call or replay, to reflect events or circumstances that may arise after the date indicated, except as otherwise required by applicable law. For a list of the risks and uncertainties, which may affect future performance, please refer to the Company’s periodic filings with the Securities and Exchange Commission. In addition, we will be referring to non-GAAP financial measures. A reconciliation of the differences between those measures with the most directly comparable financial measures calculated in accordance with GAAP is included in today’s press release. So, I’ll begin the call with a review of our third quarter 2020 results and then turn the call over to Anthony for his comments on the business and changes we see coming. Now, earlier today, we released a press release announcing our financial results for the third quarter of 2020. A copy of that release will be made available on our website at www.tssiusa.com. Our third quarter results reflect the reversal of the negative impacts of the…

Thank you, John. Wow, this was a record quarter for TSS during my tenure. It shows we have the ability to deliver a very high level of revenue and profitability on a quarterly basis, and it could be a model for us going forward. While some of this was a makeup for some of the delayed projects in the second quarter, it shows our ability to deliver and scale to a much higher level. I think, we are all ready for 2020 and in the next six weeks. We have all adapted our business or businesses to this new environment and while the potential for vaccine is improving, we believe most of 2021 and possibly beyond will exist in what we now call the new normal. We are preparing for that and our protocols and safety steps are assuming a relative status quo for the next year. We expect our revenue and profit will continue to grow as we look at certain trends that we’re engaged in and working with not only our primary customer, but others. Our infrastructure and delivery, excuse me -- delivery models remain reinforce our ability to make a difference. While it might not seem sexy, our ability to grow and allow our customers to deliver their solutions is very strong. As John mentioned, we finished the quarter with excess of $9 million in cash. We expect to receive the proceeds of the PPP program, not guaranteed, of course, but we have met all the criteria. All our payables are current and we believe we have opportunities to use this solid balance sheet to add to our enterprise in the coming quarters. Although progress with some market leading new logos has been slower than we thought, they are progressing as companies realize the value that we can help them deliver during these times and into the future. I can’t wrap up without a few -- touching a few things. We believe our revenue will be around $8 million in the fourth quarter, and we should be adjusted EBITDA profitable. There is an exceptional thank you to our employees who have delivered day-on-day, despite very, very challenging circumstances. We are evaluating the future and how we make the enterprise reach the very higher goals that we have set for ourselves internally. With that, I’ll open it up for questions.

[Operator Instructions] And we have a question from Mark Levinson. [ph]. Go ahead, Mark.

Yes. Thank you. And congrats on a really nice quarter. Just a question again, what was your specific cash on hand at this time?

9.5 million.

Okay. And why do you anticipate needing to raise more money now?

No. Well, one of the things we explained as we went into the reseller program, and we’re not saying we’re going to raise more money. We’re just saying that as we expand the reseller program, and we’ve been able to do it on a very, very good cash to cash cycle that there’s opportunities that come in front of us that are in the 10s of millions of dollar range, and so, in some -- and with some third party new logos. So, in some cases, we may be in a position where we need additional working capital to finance those transactions. So, we can take advantage of those and get the incremental income from them. So, that’s really -- I mean, it’s not a "equity issue" as much as it is a do we have the ability from our balance sheet to have -- to take on $30 million deals as an example? And of course.

Okay. So that would be a good thing.

Right. It’s the right thing you want to be able to go do -- you want to be able to go do that in your business and take on those opportunities. We also are very cognizant that we, we don’t want to do dilution. So, we’re very -- and especially in this market, where it’s a little interesting, but obviously financing costs are down, right? So, debt costs are down. So, we believe we could take advantage of some of that opportunity. But we also don’t want to -- we also don’t want to lose the chance to grow significantly with some new logos, because we don’t have enough working capital to finance. Thanks.

Okay, I appreciate your help. Thanks for taking the time to answer my questions. Thank you.

Got it.

And our next question comes from Roger Nedro. [Ph] Go ahead, Roger.

Yes. That’s a good quarter, Anthony. You got forecast of $8 million and some change for the fourth quarter. Was the big third quarter, all just completing stuff that was kind of postpone in the second quarter and what kind of a normalized quarter can we look for if 13 point whatever in the third quarter was way high and 8 point something in the fourth quarter. Is there some kind of a number that you can come up with that was kind of a normalized quarter? Is it going to be $8 million every quarter, is it going to be $10 million every quarter, unless obviously, we get some new business?

Yes. It’s a tough, very, very difficult question to answer in this environment. We never expected our second quarter to be as low as it was, but we had the pandemic, kick in, right? And then, we were able to make up and move a lot of that business into the third quarter. But, so from quarter-to-quarter, we’re still evaluating how these fluctuations occur. So, I would suspect that us being in the $8 million to $12 million range per quarter on average -- by the way, the fourth quarter also includes a lot of holidays, which makes mix-- right. So, I would expect that our goals would be in that 8 to 12 going into 2021 per quarter. And so, kind of putting us at this $35 million to $45 million revenue range, and then it all comes down in the mix. But, we haven’t given guidance for 2021. I mean, there’s a lot of stuff still happening in the environment. So, we don’t know is the winner going to be real soft, because we can’t -- because the cases are up and we can’t count sites to go do work. And so, some of that gets pushed. I mean, it is a pretty crazy, dynamic environment right now, to say the least, right? But, I think, our third quarter showed that we have the ability to go figure out some of those things, albeit, it took us from the second quarter to the third quarter to do it. So, we’re now in a position that we can show we can deliver a $20 million quarter and $1.1 million or $1.2 million for quarter in EBITDA. I mean, that’s what we’re building the business for. So now, we just have to align that and again the macro environment is really the question mark. I don’t think -- I think our business model is solid and I think the growth areas that we have within the business model are good. I think, the challenge is what the macro environment looks like.

So, it’s -- good. So, if our revenues are $8 million and some change, you fully expect to be profitable, whether it’s $0.02, $0.03 or $0.04 for the quarter. It probably won’t meet -- the nickel that we made in the third quarter, but it could -- I mean on the low end, maybe 2, maybe on the high end $0.04?

Yes. John, help me there.

Yes. I mean, I think that’s a reasonable assertion.

[Operator Instructions] And we have no more -- oh, wait. We do have a question. Hold on.

Roger Nedro [ph] wants to ask another one.

Yes. Here comes, Roger. Roger, go ahead.

Do you guys have any intentions of being able to present your Company and what you’re trying to accomplish, and where you’re going into the investment community somewhere? I think, there was a report that was issued not too long ago by somebody that had done a little homework on TSS and wrote a little report, is there some chances to maybe get into some ultra small cap, brokerage firm houses that might pick coverage up of TSS?

Yes. So, we have actively been evaluating how do we best do our Investor Relations work. And so, we’re looking at doing a number of conferences. I mean, conferences have gotten a little disjointed, right, because they’re not live anymore, right? So, we’re actively looking at do we on a quarterly basis sort of do a micro cap or something conference that helps get some visibility into the space or the people that are most likely to be investors for us, right? So, we are looking at that. Obviously, at the end of the day, the most important thing for the investors and for us is that we deliver on numbers.

Agreed, agreed.

But, we are exploring that.

Okay. Yes. I don’t want to see out counting your Company and I’d rather have you under promise and over deliver than vice versa.

Right. Credibility is number one.

[Operator Instructions] And we have no more questions.

No more questions. Okay. Thanks, Darrell. Hey, I want -- first up, I want to thank everybody for sticking with us here. This has been an interesting year, like I said. We’re six weeks away from hopefully 2020 ending. I mean, it just has been a crazy year, to say the least. I appreciate your patience, as we’ve moved things around and worked to deliver. I mean one of the biggest things, another takeaway for all of you is, we’ve continued to operate and have our people in the field and in the factory doing work to all of this. So, there’s a big kudo and thank you to all of them, who have joined together and put together -- put themselves at some risk, right? I mean, it’d be easier to stay home locked in a room, I guess, but we feel like we’ve got the business on track. We feel like the markets that we’re stepping into including the 5G market, and the edge rollouts are going to bode well for us in the future. So, long thank you. But, everybody, stay safe and stay healthy. And with that, we’ll end the call.

Thank you. Ladies and gentlemen, this concludes today’s conference. Thank you for participating. You may now disconnect.