Earnings Labs

TSS, Inc. (TSSI)

Q2 2022 Earnings Call· Mon, Aug 15, 2022

$15.15

+0.40%

Key Takeaways · AI generated
AI summary not yet generated for this transcript. Generation in progress for older transcripts; check back soon, or browse the full transcript below.

Same-Day

+31.95%

1 Week

+56.77%

1 Month

+47.27%

vs S&P

+62.67%

Transcript

Operator

Operator

Welcome to the TSS Second Quarter 2022 Earnings Conference Call. My name is Hilda, and I will be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, the conference is being recorded. I will now turn the call over to John Penver, Chief Financial Officer. John, you may begin.

John Penver

Analyst

Thank you, Hilda. Good afternoon, everyone. Thank you for joining us on TSS' conference call to discuss our second quarter 2022 financial results. I'm John Penver, the Chief Financial Officer for TSS. And joining me today on the call is Anthony Angelini, the President and Chief Executive 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 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, August 15, 2022. 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 today's date, 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. And a reconciliation of the differences between those measures and most directly comparable financial measures are calculated in accordance with GAAP is included in today's press release. So I’ll begin the call with a review of our second quarter 2022 results and then turn the call over to Anthony for his comments on how the business and how we see 2022 shaping up. Now earlier today, we released a press release announcing our financial results for the second quarter of 2022. A copy of that release will be made available on our website at www.tssiusa.com. Overall, we had very strong operating results during the second quarter of 2022. We had…

Anthony Angelini

Analyst

Thank you, John. We are very pleased with our second quarter results. As we discussed on our last call, we expected to see improving results as we move throughout the year. The good news is that the uptick we expected began late in the second quarter and has very good momentum into our current third quarter. While we were able to deliver on some of our backlog in the second quarter, our expectations is that our backlog, which is slightly lower, will remain strong at high levels throughout the year. We continue to receive new orders while we deliver on existing orders. Fundamentally, we are seeing higher demand overall and believe our momentum in our core business will continue to improve, while potential deal flow in our reseller business is ticking up as well. We anticipate that we will deliver our highest EPS and adjusted EBITDA for a full year in over a decade. This is net of any one-time event. Our current third quarter is shaping up to be extremely strong with both our core businesses and the reseller business, delivering improved bottom-line results. Therefore, we anticipate our third quarter will deliver higher EPS and adjusted EBITDA over the second quarter. While our fourth quarter is a little less clear, we are seeing good indications of new deal flow and we anticipate that will continue to deliver positive EPS and adjusted EBITDA in the fourth quarter as well. There are a few areas to discuss to assist in understanding our results and outlook. First, while the macro environment is difficult to fully understand, our businesses support the delivery of enterprise IT infrastructure within North America. This area continues to perform well and the current trend towards regionalization should benefit our capabilities. In addition, our services enable our customers to…

Operator

Operator

Anthony Angelini

Analyst

Thank you, Hilda. We appreciate those that are attending the call. As we move through the balance of the year, we feel we've got our business very well aligned. And we'll be next talking to you in early November to just update you on the results of the third quarter, and how we foresee the fourth quarter. So thank you all for joining.

Operator

Operator

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