Team, Inc. Reports Higher 2nd Qtr Earnings And Raises Full Year Guidance

ALVIN, Texas, Jan. 4, 2011 (GLOBE NEWSWIRE) -- Team, Inc., (Nasdaq:TISI) today reported second quarter revenues of $133.1 million, an increase of $9.8 million or 8% compared to the second quarter of last year. Net income available to common shareholders for the second quarter was $8.1 million ($0.41 per diluted share). Adjusted net income available to common shareholders, a non-GAAP measure defined in the table below, was $8.4 million ($0.43 per diluted share) in the current quarter versus $6.6 million ($0.34 per diluted share) in the prior year quarter, a 28% improvement.

Revenues for the six months ended November 30, 2010 were $237.6 million, an increase of $13.4 million, or 6% compared to the same prior year period. Net income available to common shareholders for the current year six-month period was $11.9 million ($0.60 per diluted share). Adjusted net income available to common shareholders was $12.2 million ($0.62 per diluted share) in the current year six month period versus $8.4 million ($0.43 per diluted share) in the prior year period, a 46% improvement.

Second Quarter Highlights

• Acquisition of Quest Integrity Group (effective 11/3/2010)

• Total current consideration of $44 million ($39.1 million in cash, $2.3 million of debt assumed, and $2.6 million valuation of restricted common stock issued).
• Estimated fair value of non-controlling interest (expected to be acquired in 2015) of $4.9 million.
• Quest Integrity contributed $1.6 million to TCM division revenues in the quarter (one month of operations).

• Quarterly Operating Highlights (excluding non-routine charges)

• 7% organic revenue growth versus the prior year quarter.
• 10.9% operating profit margin versus 9.3% in the prior year quarter.

              -- Gross margins as a percent of revenue improved to 32.9% in the current year quarter compared to 32.0% in the prior year quarter.