Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”),
a global, leading provider of specialty industrial services
offering clients access to a full suite of conventional,
specialized, and proprietary mechanical, heat-treating, and
inspection services, today reported its financial results for the
first quarter ended March 31, 2024.
First Quarter 2024
Highlights:
- Announced first quarter 2024
revenues of $199.6 million.
- Improved gross margin by 120 basis
points to 24.4% as compared to 23.2% in the 2023 first
quarter.
- Reported first quarter 2024 net
loss of $17.2 million, a $7.5 million improvement over the
2023 first quarter net loss of $24.7 million.
- Grew consolidated Adjusted EBITDA1
to $6.5 million (3.3% of consolidated revenue), an increase of
54.7% from $4.2 million (2.1% of consolidated revenue) in the
2023 first quarter.
- Reduced Adjusted Selling, General
and Administrative Expense1 by $0.8 million, as compared to the
2023 first quarter.
- Provided cash flow from operations
of $1.9 million, an increase of $19.6 million as compared to
the 2023 first quarter.
- Completed a comprehensive
commercial review and established near-term and long-term revenue
growth plan.
- Released full year 2024 Adjusted EBITDA guidance of $58 million
to $68 million.
1 See the accompanying reconciliation of
non-GAAP financial measures at the end of this press release.
“Our first quarter results demonstrate tangible
progress in our ongoing program to lower our cost structure and
increase margins. In the first quarter, we improved our gross
margin to 24.4% and Adjusted EBITDA by 55% to $6.5 million,
building on our accelerating financial and operational momentum
throughout 2023. Despite relatively flat year over year revenue,
first quarter Adjusted EBITDA for our Inspection and Heat Treating
and Mechanical Services segments increased by roughly 7% and 11%,
respectively,” said Keith D. Tucker, Team’s Chief Executive
Officer. “These improvements were delivered in what is typically
our slowest quarterly period of the year and further demonstrates
the sustainable benefit to margins and cash flow of our ongoing
efforts to improve our cost structure and streamline
operations.”
“For the past 18 months, we focused on expanding
our margins and cash flow from operations by optimizing our cost
structure and improving operational efficiency, and while that
remains a key ongoing priority, we also see opportunities to grow
our market share in both our current and adjacent end markets. With
the completion of our comprehensive commercial review performed
over the last several months, we identified a number of
opportunities to leverage our technical expertise into high-growth
and attractive margin service lines and end markets. As a result,
in the first quarter of 2024, we launched a set of targeted
commercial initiatives designed to achieve mid to high single digit
revenue growth within our core markets, while also accelerating our
expansion into attractive adjacent markets such as aerospace and
renewable energy. We believe these initiatives, together with our
ongoing commitment to improving cost efficiency, should further
strengthen our financial position and enhance shareholder value,”
commented Tucker.
“Looking to the second quarter, we believe the
strong activity levels across both of our segments, coupled with
our continued focus on cost optimization, will drive improved
margins and cash flow compared to last year’s second quarter.
Furthermore, we anticipate this strength to continue into the
second half of the year and as such, our full year 2024 Adjusted
EBITDA guidance of $58 million to $68 million represents a 48%
improvement at the midpoint over 2023. This is further evidence of
our tangible progress to date and our confidence in the underlying
strength of our franchise.”
“Finally, on Tuesday, May 21, we will present an
updated investor presentation that discusses our first quarter
results and our longer-term strategic and financial objectives
designed to further unlock the intrinsic value of TEAM,” concluded
Tucker.
Financial Results
First quarter revenues were down
$2.7 million to $199.6 million as compared to
$202.3 million in the prior-year period. This decrease was
primarily driven by an Inspection and Heat Treating (“IHT”) revenue
decline of $2.4 million due to lower activity in call out and
turnaround services, and a decline in Mechanical Services (“MS”)
revenue of $0.3 million, reflecting lower project activity in
our Canada region. Despite lower revenues in the first quarter of
2024, consolidated gross margin was $48.7 million, or 24.4% of
revenue, up 120 basis points from 23.2% or $47.0 million, in the
same quarter a year ago. Gross margin for the quarter was impacted
by favorable project mix, improved pricing, and lower overall
direct costs due to the Company’s cost reduction efforts.
Selling, general and administrative expenses for
the first quarter were $55.1 million, up by $0.4 million,
or 0.7%, from the first quarter of 2023. Adjusted Selling, General,
and Administrative Expense, which excludes expenses not
representative of TEAM’s ongoing operations as well as non-cash
expenses such as depreciation and amortization and share-based
compensation expense, declined by $0.8 million as compared to the
2023 period.
Net loss in the first quarter of 2024 was $17.2
million (a loss of $3.89 per share) compared to a net loss of $24.7
million (a loss of $5.69 per share) in the 2023 first quarter. The
Company’s Adjusted EBIT, a non-GAAP measure, was a loss of $3.8
million in the 2024 first quarter compared to a loss of $5.7
million in the prior year quarter. Consolidated Adjusted EBITDA, a
non-GAAP measure, was $6.5 million for the first quarter of 2024 up
54.7% as compared to $4.2 million for the prior year quarter, with
the improvement largely driven by the factors noted above.
Adjusted net loss, consolidated Adjusted EBIT,
Adjusted EBITDA and Adjusted Selling, General and Administrative
Expense are non-GAAP financial measures that exclude certain items
that are not indicative of TEAM’s core operating activities. A
reconciliation of these non-GAAP financial measures to the most
comparable GAAP financial measures is at the end of this earnings
release.
Segment Results
The following table illustrates the composition
of the Company’s revenue and operating income (loss) by segment for
the quarter ended March 31, 2024 and 2023 (in thousands):
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
SEGMENT INFORMATION |
|
(unaudited, in thousands) |
| |
|
|
|
|
| |
|
Three Months EndedMarch 31, |
|
Better (Worse) |
| |
|
2024 |
|
2023 |
|
$ |
|
% |
| Revenues |
|
|
|
|
|
|
|
|
|
IHT |
|
$ |
99,448 |
|
|
$ |
101,829 |
|
|
$ |
(2,381 |
) |
|
(2.3 |
)% |
|
MS |
|
|
100,152 |
|
|
|
100,448 |
|
|
|
(296 |
) |
|
(0.3 |
)% |
| |
|
$ |
199,600 |
|
|
$ |
202,277 |
|
|
$ |
(2,677 |
) |
|
(1.3 |
)% |
| |
|
|
|
|
|
|
|
|
| Operating income
(loss) |
|
|
|
|
|
|
|
|
|
IHT |
|
$ |
5,185 |
|
|
$ |
4,723 |
|
|
$ |
462 |
|
|
9.8 |
% |
|
MS |
|
|
4,091 |
|
|
|
3,193 |
|
|
|
898 |
|
|
28.1 |
% |
|
Corporate and shared support services |
|
|
(15,662 |
) |
|
|
(15,662 |
) |
|
|
— |
|
|
— |
% |
| |
|
$ |
(6,386 |
) |
|
$ |
(7,746 |
) |
|
$ |
1,360 |
|
|
17.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues. IHT revenues
decreased by $2.4 million, or 2.3%, for the 2024 first quarter as
compared to prior year period, primarily due to lower callout and
turnaround activities in the U.S. and Canada regions. MS revenue
decreased by $0.3 million, or 0.3%, for the quarter, with lower
period over period revenue in Canada of $4.3 million due to
turnaround projects that did not repeat in the 2024 quarter,
partially offset by a $1.2 million increase in U.S. operations and
a $2.8 million increase in other international operations mainly
attributable to higher nested and turnaround activity.
Operating income (loss). IHT’s
first quarter 2024 operating income increased by $0.5 million to
$5.2 million primarily driven by lower direct costs and improved
margins resulting from the Company’s ongoing cost reduction efforts
and improved job mix. MS operating income was higher compared to
prior year quarter by approximately $0.9 million or 28.1%. MS
operating income from the U.S. and other international operations
increased by $1.9 million, and $0.6 million, respectively, driven
by higher activity and improved margins, partially offset by a
decrease of $1.6 million in Canada, primarily driven by
non-repeating projects in the 2023 period. Corporate and shared
support services costs remained consistent with the prior year
period. Consolidated operating loss improved by $1.4 million to a
loss of $6.4 million driven by the factors discussed above.
Balance Sheet and Liquidity
At March 31, 2024, the Company had
$35.9 million of total liquidity, consisting of consolidated
cash and cash equivalents of $19.2 million, (excluding
$5.0 million of restricted cash) and $16.7 million of
undrawn availability under its various credit facilities.
At May 10, 2024, the Company had
$36.7 million of total liquidity, consisting of consolidated
cash and cash equivalents of $15.4 million (excluding
$5.1 million of cash held mainly as collateral for letters of
credit) and approximately $21.3 million of undrawn
availability under its various credit facilities. The Company
typically experiences negative working capital and liquidity
impacts in the run up to the higher activity routinely experienced
during the spring and fall turnaround seasons, when these negative
working capital trends have historically reversed.
The Company’s total debt as of March 31, 2024
was $307.2 million as compared to $311.4 million as of
fiscal year end 2023. The Company’s net debt (total debt less cash
and cash equivalents), a non-GAAP financial measure, was $283.0
million at March 31, 2024.
2024 Outlook
For fiscal year 2024, the Company has provided
the following operating and cash flow guidance:
- Total Company Revenue of $850
million to $900 million
- Gross Margin of between $235
million and $265 million
- Adjusted EBITDA of between $58
million and $68 million
- Capital expenditures of between $9
million to $11 million
Non-GAAP Financial Measures
The non-GAAP measures in this earnings release
are provided to enable investors, analysts and management to
evaluate Team’s performance excluding the effects of certain items
that management believes impact the comparability of operating
results between reporting periods. These measures should be used in
addition to, and not in lieu of, results prepared in conformity
with generally accepted accounting principles (“GAAP”). A
reconciliation of each of the non-GAAP financial measures to the
most directly comparable historical GAAP financial measure is
contained in the accompanying schedule for each of the fiscal
periods indicated.
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc.
(NYSE: TISI) is a global, leading provider of specialty industrial
services offering clients access to a full suite of conventional,
specialized, and proprietary mechanical, heat-treating, and
inspection services. We deploy conventional to highly specialized
inspection, condition assessment, maintenance, and repair services
that result in greater safety, reliability, and operational
efficiency for our client’s most critical assets. Through locations
in 15 countries, we unite the delivery of technological innovation
with over a century of progressive, yet proven integrity and
reliability management expertise to fuel a better tomorrow. For
more information, please visit www.teaminc.com.
Certain forward-looking information contained
herein is being provided in accordance with the provisions of the
Private Securities Litigation Reform Act of 1995. We have made
reasonable efforts to ensure that the information, assumptions, and
beliefs upon which this forward-looking information is based are
current, reasonable, and complete. However, such forward-looking
statements involve estimates, assumptions, judgments, and
uncertainties. They include but are not limited to statements
regarding the Company’s financial prospects and the implementation
of cost-saving measures. There are known and unknown factors that
could cause actual results or outcomes to differ materially from
those addressed in the forward-looking information. Although it is
not possible to identify all of these factors, they include, among
others: the Company’s ability to generate sufficient cash from
operations, access its credit facility, or maintain its compliance
with covenants under its credit facility and debt agreement, the
duration and magnitude of accidents, extreme weather, natural
disasters, and pandemics and related global economic effects and
inflationary pressures, the Company’s liquidity and ability to
obtain additional financing, the Company’s ability to continue as a
going concern, the Company’s ability to execute on its cost
management actions, the impact of new or changes to existing
governmental laws and regulations and their application, including
tariffs; the outcome of tax examinations, changes in tax laws, and
other tax matters; foreign currency exchange rate and interest rate
fluctuations; the Company’s ability to successfully divest assets
on terms that are favorable to the Company; our ability to repay,
refinance or restructure our debt and the debt of certain of our
subsidiaries; anticipated or expected purchases or sales of assets;
the Company’s continued listing on the New York Stock Exchange, and
such known factors as are detailed in the Company’s Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, each as filed with the Securities and Exchange
Commission, and in other reports filed by the Company with the
Securities and Exchange Commission from time to time. Accordingly,
there can be no assurance that the forward-looking information
contained herein, including statements regarding the Company’s
financial prospects and the implementation of cost-saving measures,
will occur or that objectives will be achieved. We assume no
obligation to publicly update or revise any forward-looking
statements made today or any other forward-looking statements made
by the Company, whether as a result of new information, future
events or otherwise, except as may be required by law.
Contact:Nelson M. HaightExecutive Vice
President, Chief Financial Officer(281) 388-5521
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
SUMMARY OF CONSOLIDATED OPERATING RESULTS |
|
(unaudited, in thousands, except per share
data) |
| |
| |
|
Three Months Ended |
| |
|
March 31, |
| |
|
2024 |
|
2023 |
| |
|
|
|
|
|
Revenues |
|
$ |
199,600 |
|
|
$ |
202,277 |
|
| Operating
expenses |
|
|
150,869 |
|
|
|
155,275 |
|
|
Gross margin |
|
|
48,731 |
|
|
|
47,002 |
|
| Selling, general, and
administrative expenses |
|
|
55,117 |
|
|
|
54,748 |
|
|
Operating loss |
|
|
(6,386 |
) |
|
|
(7,746 |
) |
| Interest expense,
net |
|
|
(12,098 |
) |
|
|
(16,741 |
) |
| Other income,
net |
|
|
1,362 |
|
|
|
635 |
|
| Loss before income
taxes |
|
|
(17,122 |
) |
|
|
(23,852 |
) |
| Provision for income
taxes |
|
|
(73 |
) |
|
|
(859 |
) |
| Net loss |
|
$ |
(17,195 |
) |
|
$ |
(24,711 |
) |
| |
|
|
|
|
| Loss per common
share: |
|
|
|
|
|
Basic and Diluted |
|
$ |
(3.89 |
) |
|
$ |
(5.69 |
) |
| |
|
|
|
|
| Weighted-average
number of shares outstanding: |
|
|
|
|
|
Basic and Diluted |
|
|
4,415 |
|
|
|
4,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
SUMMARY CONSOLIDATED BALANCE SHEET
INFORMATION |
|
(in thousands) |
| |
|
|
|
| |
March 31, |
|
December 31, |
| |
2024 |
|
2023 |
| |
(unaudited) |
|
|
| |
|
|
|
|
Cash and cash equivalents |
$ |
24,190 |
|
|
$ |
35,427 |
|
| |
|
|
|
| Other current
assets |
|
274,012 |
|
|
|
286,674 |
|
| |
|
|
|
| Property, plant, and
equipment, net |
|
123,137 |
|
|
|
127,057 |
|
| |
|
|
|
| Other non-current
assets |
|
114,144 |
|
|
|
116,586 |
|
| |
|
|
|
|
Total assets |
$ |
535,483 |
|
|
$ |
565,744 |
|
| |
|
|
|
| Current portion of
long-term debt and finance lease obligations |
$ |
7,123 |
|
|
$ |
5,212 |
|
| |
|
|
|
| Other current
liabilities |
|
163,883 |
|
|
|
169,726 |
|
| |
|
|
|
| Long-term debt and
finance lease obligations, net of current maturities |
|
300,038 |
|
|
|
306,214 |
|
| |
|
|
|
| Other non-current
liabilities |
|
38,148 |
|
|
|
38,996 |
|
| |
|
|
|
| Shareholders’
equity |
|
26,291 |
|
|
|
45,596 |
|
| |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
535,483 |
|
|
$ |
565,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TEAM INC. AND SUBSIDIARIES |
|
SUMMARY CONSOLIDATED CASH FLOW INFORMATION |
|
(unaudited, in thousands) |
| |
|
|
| |
|
Three Months Ended |
| |
|
March 31, |
| |
|
2024 |
|
2023 |
| |
|
|
|
|
| |
|
|
|
|
|
Net loss |
|
$ |
(17,195 |
) |
|
$ |
(24,711 |
) |
| |
|
|
|
|
| Depreciation and
amortization expense |
|
|
9,640 |
|
|
|
9,546 |
|
| |
|
|
|
|
| Amortization of debt
issuance costs, debt discounts and deferred financing
costs |
|
|
1,975 |
|
|
|
8,486 |
|
| |
|
|
|
|
| Deferred income
taxes |
|
|
(626 |
) |
|
|
(37 |
) |
| |
|
|
|
|
| Non-cash compensation
cost |
|
|
665 |
|
|
|
382 |
|
| |
|
|
|
|
| Working Capital and
Other |
|
|
7,427 |
|
|
|
(11,429 |
) |
| |
|
|
|
|
|
Net cash provided by (used in) operating
activities |
|
|
1,886 |
|
|
|
(17,763 |
) |
| |
|
|
|
|
| Capital
expenditures |
|
|
(3,016 |
) |
|
|
(2,692 |
) |
| |
|
|
|
|
| Proceeds from disposal
of assets |
|
|
— |
|
|
|
332 |
|
| |
|
|
|
|
|
Net cash used in investing activities |
|
|
(3,016 |
) |
|
|
(2,360 |
) |
| |
|
|
|
|
| Borrowings (payments)
under ABL Facilities, net |
|
|
(9,909 |
) |
|
|
(6,001 |
) |
| |
|
|
|
|
| Payments under ME/RE
Loans, net |
|
|
(711 |
) |
|
|
— |
|
| |
|
|
|
|
| Payments under Corre
Incremental Term Loans |
|
|
(356 |
) |
|
|
— |
|
| |
|
|
|
|
| Payments for debt
issuance costs |
|
|
(1,400 |
) |
|
|
— |
|
| |
|
|
|
|
| Other |
|
|
2,542 |
|
|
|
(235 |
) |
| |
|
|
|
|
|
Net cash used in financing activities |
|
|
(9,834 |
) |
|
|
(6,236 |
) |
| |
|
|
|
|
| Effect of exchange
rate changes |
|
|
(273 |
) |
|
|
153 |
|
| |
|
|
|
|
|
Net change in cash and cash equivalents |
|
$ |
(11,237 |
) |
|
$ |
(26,206 |
) |
| |
|
|
|
|
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
SEGMENT INFORMATION |
|
(unaudited, in thousands) |
| |
| |
|
Three Months EndedMarch 31, |
| |
|
2024 |
|
2023 |
| Revenues |
|
|
|
|
|
IHT |
|
$ |
99,448 |
|
|
$ |
101,829 |
|
|
MS |
|
|
100,152 |
|
|
|
100,448 |
|
| |
|
$ |
199,600 |
|
|
$ |
202,277 |
|
| |
|
|
|
|
| Operating income
(loss) |
|
|
|
|
|
IHT |
|
$ |
5,185 |
|
|
$ |
4,723 |
|
|
MS |
|
|
4,091 |
|
|
|
3,193 |
|
|
Corporate and shared support services |
|
|
(15,662 |
) |
|
|
(15,662 |
) |
| |
|
$ |
(6,386 |
) |
|
$ |
(7,746 |
) |
| |
|
|
|
|
| Segment Adjusted
EBIT1 |
|
|
|
|
|
IHT |
|
$ |
5,320 |
|
|
$ |
4,763 |
|
|
MS |
|
|
4,498 |
|
|
|
3,469 |
|
|
Corporate and shared support services |
|
|
(13,616 |
) |
|
|
(13,953 |
) |
| |
|
$ |
(3,798 |
) |
|
$ |
(5,721 |
) |
| |
|
|
|
|
| Segment Adjusted
EBITDA1 |
|
|
|
|
|
IHT |
|
$ |
8,349 |
|
|
$ |
7,817 |
|
|
MS |
|
|
9,147 |
|
|
|
8,222 |
|
|
Corporate and shared support services |
|
|
(10,989 |
) |
|
|
(11,832 |
) |
| |
|
$ |
6,507 |
|
|
$ |
4,207 |
|
___________________
1 See the accompanying
reconciliation of non-GAAP financial measures at the end of this
earnings release.
| |
|
TEAM, INC. AND SUBSIDIARIESNon-GAAP
Financial Measures(Unaudited) |
| |
The Company uses supplemental non-GAAP financial
measures which are derived from the consolidated financial
information, including adjusted net income (loss); adjusted net
income (loss) per share; earnings before interest and taxes
(“EBIT”); Adjusted EBIT (defined below); adjusted earnings before
interest, taxes, depreciation, and amortization (“Adjusted
EBITDA”), free cash flow and net debt to supplement financial
information presented on a GAAP basis.
The Company defines adjusted net income (loss)
and adjusted net income (loss) per share to exclude the following
items: non-routine legal costs and settlements, non-routine
professional fees, (gain) loss on debt extinguishment, certain
severance charges, non-routine write off of assets and certain
other items that we believe are not indicative of core operating
activities. Consolidated Adjusted EBIT, as defined by us, excludes
the costs excluded from adjusted net income (loss) as well as
income tax expense (benefit), interest charges, foreign currency
(gain) loss, pension credit, and items of other (income) expense.
Consolidated Adjusted EBITDA further excludes from consolidated
Adjusted EBIT depreciation, amortization and non-cash share-based
compensation costs. Segment Adjusted EBIT is equal to segment
operating income (loss) excluding costs associated with non-routine
legal costs and settlements, non-routine professional fees, certain
severance charges, and certain other items as determined by
management. Segment Adjusted EBITDA further excludes from segment
Adjusted EBIT depreciation, amortization, and non-cash share-based
compensation costs. Adjusted Selling, General and Administrative
Expense is defined to exclude non-routine legal costs and
settlements, non-routine professional fees, certain severance
charges, certain other items that we believe are not indicative of
core operating activities and non-cash expenses such as
depreciation and amortization and non-cash compensation. Free Cash
Flow is defined as net cash provided by (used in) operating
activities minus capital expenditures. Net debt is defined as the
sum of the current and long-term portions of debt, including
finance lease obligations, less cash and cash equivalents.
Management believes these non-GAAP financial
measures are useful to both management and investors in their
analysis of our financial position and results of operations. In
particular, adjusted net income (loss), adjusted net income (loss)
per share, consolidated Adjusted EBIT, and consolidated Adjusted
EBITDA are meaningful measures of performance which are commonly
used by industry analysts, investors, lenders, and rating agencies
to analyze operating performance in our industry, perform
analytical comparisons, benchmark performance between periods, and
measure our performance against externally communicated targets.
Our segment Adjusted EBIT and segment Adjusted EBITDA are also used
as a basis for the Chief Operating Decision Maker to evaluate the
performance of our reportable segments. Free cash flow is used by
our management and investors to analyze our ability to service and
repay debt and return value directly to stakeholders.
Non-GAAP measures have important limitations as
analytical tools, because they exclude some, but not all, items
that affect net earnings and operating income. These measures
should not be considered substitutes for their most directly
comparable U.S. GAAP financial measures and should be read only in
conjunction with financial information presented on a GAAP basis.
Further, our non-GAAP financial measures may not be comparable to
similarly titled measures of other companies who may calculate
non-GAAP financial measures differently, limiting the usefulness of
those measures for comparative purposes. The liquidity measure of
free cash flow does not represent a precise calculation of residual
cash flow available for discretionary expenditures. Reconciliations
of each non-GAAP financial measure to its most directly comparable
GAAP financial measure are presented below.
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(unaudited, in thousands except per share
data) |
| |
|
|
|
|
| |
|
Three Months EndedMarch 31, |
| |
|
2024 |
|
2023 |
| Adjusted Net
Loss: |
|
|
|
|
|
Net loss |
|
$ |
(17,195 |
) |
|
$ |
(24,711 |
) |
|
Professional fees and other1 |
|
|
2,081 |
|
|
|
1,721 |
|
|
Legal costs |
|
|
82 |
|
|
|
— |
|
|
Severance charges, net2 |
|
|
425 |
|
|
|
305 |
|
|
Tax impact of adjustments and other net tax items3 |
|
|
(112 |
) |
|
|
(78 |
) |
| Adjusted Net
Loss |
|
$ |
(14,719 |
) |
|
$ |
(22,763 |
) |
| |
|
|
|
|
| Adjusted Net Loss per
common share: |
|
|
|
|
|
Basic and Diluted |
|
$ |
(3.33 |
) |
|
$ |
(5.24 |
) |
| |
|
|
|
|
| Consolidated Adjusted
EBIT and Adjusted EBITDA: |
|
|
|
|
|
Net loss |
|
$ |
(17,195 |
) |
|
$ |
(24,711 |
) |
|
Provision for income taxes |
|
|
73 |
|
|
|
859 |
|
|
Gain on equipment sale |
|
|
(10 |
) |
|
|
(303 |
) |
|
Interest expense, net |
|
|
12,098 |
|
|
|
16,741 |
|
|
Professional fees and other1 |
|
|
2,081 |
|
|
|
1,721 |
|
|
Legal costs |
|
|
82 |
|
|
|
— |
|
|
Severance charges, net2 |
|
|
425 |
|
|
|
305 |
|
|
Foreign currency gain |
|
|
(1,239 |
) |
|
|
(177 |
) |
|
Pension credit4 |
|
|
(113 |
) |
|
|
(156 |
) |
| Consolidated Adjusted
EBIT |
|
|
(3,798 |
) |
|
|
(5,721 |
) |
|
Depreciation and amortization |
|
|
|
|
|
Amount included in operating expenses |
|
|
3,583 |
|
|
|
3,719 |
|
|
Amount included in SG&A expenses |
|
|
6,057 |
|
|
|
5,827 |
|
|
Total depreciation and amortization |
|
|
9,640 |
|
|
|
9,546 |
|
|
Non-cash share-based compensation costs |
|
|
665 |
|
|
|
382 |
|
| Consolidated Adjusted
EBITDA |
|
$ |
6,507 |
|
|
$ |
4,207 |
|
| |
|
|
|
|
| Free Cash
Flow: |
|
|
|
|
|
Cash provided by (used in) operating activities |
|
$ |
1,886 |
|
|
$ |
(17,763 |
) |
|
Capital expenditures |
|
|
(3,016 |
) |
|
|
(2,692 |
) |
| Free Cash
Flow |
|
$ |
(1,130 |
) |
|
$ |
(20,455 |
) |
____________________________________
|
1 |
|
For the three months ended March 31, 2024, includes $1.9 million
related to debt financing, and $0.2 million related to support
costs. For the three months ended March 31, 2023, includes $1.7
million related to costs associated with corporate support. |
|
2 |
|
Represents customary severance costs associated with staff
reductions. |
|
3 |
|
Represents the tax effect of the adjustments. |
|
4 |
|
Represents pension credits for the U.K. pension plan based on the
difference between the expected return on plan assets and the cost
of the discounted pension liability. The pension plan was frozen in
1994 and no new participants have been added since that date. |
|
|
|
|
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Continued) |
|
(unaudited, in thousands) |
| |
|
|
|
| |
|
Three Months EndedMarch 31, |
| |
|
2024 |
|
2023 |
| |
|
|
|
|
| Segment Adjusted EBIT
and Adjusted EBITDA: |
|
|
|
|
| |
|
|
|
|
| IHT |
|
|
|
|
|
Operating income |
|
$ |
5,185 |
|
|
$ |
4,723 |
|
|
Severance charges, net1 |
|
|
95 |
|
|
|
40 |
|
|
Professional fees and other2 |
|
|
40 |
|
|
|
— |
|
|
Adjusted EBIT |
|
|
5,320 |
|
|
|
4,763 |
|
|
Depreciation and amortization |
|
|
3,029 |
|
|
|
3,054 |
|
|
Adjusted EBITDA |
|
$ |
8,349 |
|
|
$ |
7,817 |
|
| |
|
|
|
|
| MS |
|
|
|
|
|
Operating income |
|
$ |
4,091 |
|
|
$ |
3,193 |
|
|
Severance charges, net1 |
|
|
325 |
|
|
|
256 |
|
|
Professional fees and other2 |
|
|
82 |
|
|
|
20 |
|
|
Adjusted EBIT |
|
|
4,498 |
|
|
|
3,469 |
|
|
Depreciation and amortization |
|
|
4,649 |
|
|
|
4,753 |
|
|
Adjusted EBITDA |
|
$ |
9,147 |
|
|
$ |
8,222 |
|
| |
|
|
|
|
| Corporate and shared
support services |
|
|
|
|
|
Net loss |
|
$ |
(26,471 |
) |
|
$ |
(32,627 |
) |
|
Provision for income taxes |
|
|
73 |
|
|
|
859 |
|
|
Gain on equipment sale |
|
|
(10 |
) |
|
|
(303 |
) |
|
Interest expense, net |
|
|
12,098 |
|
|
|
16,741 |
|
|
Foreign currency gain |
|
|
(1,239 |
) |
|
|
(177 |
) |
|
Pension credit3 |
|
|
(113 |
) |
|
|
(156 |
) |
|
Professional fees and other2 |
|
|
1,959 |
|
|
|
1,701 |
|
|
Legal costs |
|
|
82 |
|
|
|
— |
|
|
Severance charges, net1 |
|
|
5 |
|
|
|
9 |
|
|
Adjusted EBIT |
|
|
(13,616 |
) |
|
|
(13,953 |
) |
|
Depreciation and amortization |
|
|
1,962 |
|
|
|
1,739 |
|
|
Non-cash share-based compensation costs |
|
|
665 |
|
|
|
382 |
|
|
Adjusted EBITDA |
|
$ |
(10,989 |
) |
|
$ |
(11,832 |
) |
___________________
|
1 |
|
Represents customary severance costs associated with staff
reductions |
|
2 |
|
For the three months ended March 31, 2024, includes $1.9 million
related to debt financing, and $0.2 million related to support
costs. For the three months ended March 31, 2023, includes $1.7
million related to costs associated with corporate support. |
|
3 |
|
Represents pension credits for the U.K. pension plan based on the
difference between the expected return on plan assets and the cost
of the discounted pension liability. The pension plan was frozen in
1994 and no new participants have been added since that date. |
|
|
|
|
|
|
|
TEAM, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Continued) |
|
(unaudited, in thousands) |
| |
|
|
|
|
| |
|
Three Months EndedMarch 31, |
| |
|
2024 |
|
2023 |
| |
|
|
|
|
|
Selling, general, and administrative expenses |
|
$ |
55,117 |
|
|
$ |
54,748 |
|
| Less: |
|
|
|
|
|
Depreciation and Amortization in SG&A
expenses |
|
|
6,057 |
|
|
|
5,827 |
|
|
Non-cash share-based compensation costs |
|
|
665 |
|
|
|
382 |
|
|
Professional fees and other1 |
|
|
2,081 |
|
|
|
1,721 |
|
|
Legal costs |
|
|
82 |
|
|
|
— |
|
|
Severance charges included in SG&A
expenses |
|
|
425 |
|
|
|
220 |
|
|
Total non-cash/non-recurring items |
|
|
9,310 |
|
|
|
8,150 |
|
| Adjusted Selling,
General and Administrative Expense |
|
$ |
45,807 |
|
|
$ |
46,598 |
|
___________________
|
1 |
|
For the three months ended March 31, 2024, includes $1.9 million
related to debt financing, and $0.2 million related to support
costs. For the three months ended March 31, 2023, includes $1.7
million related to costs associated with corporate support. |
|
|
|
|
Team (NYSE:TISI)
過去 株価チャート
から 4 2024 まで 5 2024
Team (NYSE:TISI)
過去 株価チャート
から 5 2023 まで 5 2024
