Team, Inc. Reports Third Quarter Results

SUGAR LAND, Texas, April 2, 2013 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE:TISI) today announced financial results for its fiscal year 2013 third quarter ending February 28, 2013. Team reported an adjusted loss of $0.01 per diluted share versus adjusted earnings of $0.10 per diluted share in the third quarter of the prior year. Revenues for the third quarter were $151.0 million compared to revenues of $136.5 million for the prior year quarter.  Adjusted net loss attributable to shareholders was $0.2 million, compared to adjusted net income available to shareholders of $2.0 million in the prior year quarter. The adjusted loss for the quarter excludes a $0.6 million pre-tax, non-routine charge associated with the Venezuelan currency devaluation announced by the government of Venezuela in February 2013. Including this charge, the loss in accordance with generally accepted accounting principles was $0.03 per diluted share and the net loss attributable to shareholders was $0.5 million.

For the fiscal year to date, adjusted earnings were $1.01 per diluted share versus adjusted earnings of $0.95 per diluted share in the first nine months of fiscal 2012. Year to date revenues were $513.1 million compared to $435.9 million in the prior year to date period and adjusted net income available to shareholders was $21.3 million versus adjusted net income available to shareholders of $19.6 million in the first nine months of fiscal 2012.

"In spite of the disappointing results for our third quarter announced on March 14, 2013, we remain on a pace for another record year in fiscal year 2013," said Phil Hawk, Team's Chairman and Chief Executive Officer. "While revenues declined in Canada and Europe for the reasons discussed in our pre-announcement conference call, we still achieved overall revenue growth of nearly 11% in the quarter. We remain confident in our business outlook and the overall strength of our end markets," said Hawk.

Highlights and Other Financial Data for Third Quarter

  • Total revenue growth rates of 11% for the quarter and 18% year to date.
  • Organic revenue growth rates of 8% for the quarter and 14% year to date.
  • Inspection and assessment revenues up 25% for the quarter and 35% year to date.
  • Operating income was 7.1% of revenue for the year to date.
  • Adjusted EBITDA of $6.3 million (4.2% of revenue) for the quarter and $53.9 million (10.5% of revenue) year to date.
  • Capital expenditures were $6 million for the quarter and $19 million year to date.
  • Net debt (total debt less cash) was $53 million at the end of the quarter.
  • Net debt to trailing twelve month adjusted EBITDA was .6 to 1.

Fiscal Year 2013 Earnings and Revenue Guidance

On March 14, 2013, Team announced that it lowered its full year earnings guidance for fiscal year 2013 to a range of $1.70 to $1.85 per diluted share and that full fiscal year revenues are expected to be $705 million to $720 million.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Wednesday, April 3, 2013 at 8:00 a.m. Central Time (9:00 a.m. Eastern). The call will be broadcast over the Web and can be accessed on Team's Website, www.teamindustrialservices.com . Individuals wishing to participate in the conference call by phone may call 877-280-4957 and use conference code 86751696 when prompted.

About Team, Inc.

Headquartered near Houston, Texas, Team, Inc. is a leading provider of specialty industrial services, including inspection and assessment, required in maintaining and installing high-temperature and high-pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. Team offers these services in over 125 locations throughout the world. Team's common stock is traded on the New York Stock Exchange under the ticker symbol "TISI".

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. Such forward-looking statements involve estimates, assumptions, judgments and uncertainties. There are known and unknown factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking information. Such known factors are detailed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q 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 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.

TEAM, INC. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS
(in thousands, except per share data)
         
  Three Months Ended Nine Months Ended
   February 28 (29),  February 28 (29),  
  2013 2012 2013 2012
  (unaudited) (unaudited) (unaudited) (unaudited)
Revenues  $ 150,975  $ 136,523  $ 513,115  $ 435,889
Operating expenses  112,084  99,920  362,224  304,393
Gross margin  38,891  36,603  150,891  131,496
         
Selling, general and administrative expenses  38,278  33,210  115,280  100,116
Earnings from unconsolidated affiliates  (4)  63  862  911
Operating income  609  3,456  36,473  32,291
         
Foreign currency loss (gain)  729  (90)  917  74
Interest expense, net  743  619  2,019  1,769
Earnings before income taxes  (863)  2,927  33,537  30,448
         
Provision for income taxes  (319)  946  12,409  11,266
Net income (544) 1,981 21,128 19,182
         
Less: Income attributable to non-controlling interest (9) (30) 166  35
Net income available to common shareholders  $ (535)  $ 2,011  $ 20,962  $ 19,147
         
Earnings per common share:    
Basic  $ (0.03)  $ 0.10  $ 1.04  $ 0.98
Diluted   $ (0.03)  $ 0.10  $ 0.99  $ 0.93
         
         
Weighted average number of shares outstanding:  
Basic  20,387  19,733  20,104  19,610
Diluted   21,311  20,728  21,078  20,600
         
Divisional revenues:      
TCM  $ 91,446  $ 76,591  $ 312,104  $ 244,600
TMS  59,529  59,932  201,011  191,289
   $ 150,975  $ 136,523  $ 513,115  $ 435,889
         
Adjusted Net income:      
 Net income available to common shareholders  $ (535)  $ 2,011  $ 20,962  $ 19,147
 Venezuelan currency devaluation  597  --   597  
 Legal settlement  --   --   --   800
 Tax impact of adjustments  (221)  --   (221)  (300)
Adjusted Net income  $ (159)  $ 2,011  $ 21,338  $ 19,647
         
Adjusted Net income per common share:  
Basic  $ (0.01)  $ 0.10  $ 1.06  $ 1.00
Diluted   $ (0.01)  $ 0.10  $ 1.01  $ 0.95
         
Adjusted EBITDA:      
 Operating income ("EBIT")  $ 609  $ 3,456  $ 36,473  $ 32,291
 Legal settlement  --   --   --   800
Adjusted EBIT  609  3,456  36,473  33,091
 Depreciation and amortization  4,800  4,578  14,454  12,913
 Non-cash share-based compensation costs  902  898  3,022  3,518
Adjusted EBITDA  $ 6,311  $ 8,932  $ 53,949  $ 49,522
 
TEAM, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION
FEBRUARY 28, 2013 AND MAY 31, 2012
(in thousands)
     
  February 28, May 31,
  2013 2012
  (unaudited)  
     
Current assets  $ 234,098  $ 218,675
     
Property, plant and equipment, net  72,503  62,041
     
Other non-current assets  140,536  123,072
     
Total assets  $ 447,137  $ 403,788
     
Current liabilities  $ 55,243  $ 61,656
     
Long term debt net of current maturities  89,063  85,872
     
Other non-current liabilities  22,224  11,259
     
Stockholders' equity  280,607  245,001
     
Total liabilities and stockholders' equity  $ 447,137  $ 403,788
CONTACT: Ted W. Owen         (281) 331-6154

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