SUGAR LAND, Texas, March 14, 2013 (GLOBE NEWSWIRE) -- Team, Inc., (NYSE:TISI) today announced that it is lowering its earnings guidance for its fiscal year ending May 31, 2013 to a range of $1.70 to $1.85 per fully diluted share. The revised guidance is a decrease of $0.20 per share from the previously issued earnings guidance, and excludes the impact of a non-routine pre-tax charge estimated at $600,000 associated with the recent Venezuelan currency devaluation. Team is also modifying its full year revenue guidance to a range of $705 to $720 million. The revised guidance reflects disappointing results in Team's historically weak third fiscal quarter due primarily to lower than expected revenues from its Canadian and European business units as well as a now anticipated slowing of business growth in the fourth quarter due to the expected timing of large turnaround projects.
"Although we are disappointed with our third quarter results and the adjustment to our previous guidance, we remain positive about our future opportunities" said Phil Hawk, Team's Chairman and CEO. "Our business strategy and direction remain unchanged."
Expected Third Quarter ResultsExcluding the non-routine non-cash charge related to the devaluation of Venezuelan currency, Team expects its earnings for the quarter to be approximately breakeven versus earnings of $0.10 in the prior year period, on revenues of about $150 million, due primarily to the weak performance in its Canadian and European units. During the quarter, operating profits from those units declined approximately $4 million ($0.14 per share) from the prior year period as a result of both lower activity levels and increased support costs. Team's United States business units maintained satisfactory "double digit" revenue and earnings growth in the period. Team expects to issue its final third quarter financial statements on Tuesday, April 2 nd with the accompanying investor conference call currently scheduled for Wednesday, April 3 rd. Fourth Quarter Outlook Team remains positive about its prospects for both the current fourth quarter and the long term. Market conditions are generally favorable in key customer segments and Team remains well positioned to capitalize on these opportunities. However, following a recent review of the turnaround and other project work anticipated in the upcoming fourth quarter, we now expect the mix of large projects (defined as projects having revenue expectations of greater than $2 million) to be lower than in the prior year period. Consequently, we have reduced our revenue growth guidance by approximately $10 million on the high end of the range with a corresponding adjustment to our expected earnings guidance.