Team, Inc. Reports Fourth Quarter and Full Year 2024 Results

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SUGAR LAND, Texas, March 19, 2025 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) ("TEAM” or the "Company”), a global leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services, today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights:

• Generated fourth quarter 2024 revenues of $213.3 million.
• Grew gross margin to $57.3 million, up 330 basis points compared to the prior year period to 26.9% of consolidated revenue.
• Reported net loss of $7.2 million, a $15.9 million improvement from the 2023 period.
• Improved consolidated Adjusted EBITDA¹ to $14.6 million (6.9% of consolidated revenue), up 50.5% from $9.7 million (4.5% of consolidated revenue) in the 2023 period.
• Generated cash flow from operations of $21.6 million and Free Cash Flow¹ of $19.6 million.
• As previously announced, successfully closed on a refinancing transaction in March 2025 that extended term maturities out to 2030 and lowered the Company's blended interest rate by more than 100 basis points.

Full Year 2024 Highlights:

• Generated revenue of $852.3 million.
• Grew gross margin to $223.2 million, up 170 basis points compared to the prior year period to 26.2% of consolidated revenue.
• Improved operating income to $10.1 million, up $23.4 million over 2023.
• Reported 2024 net loss of $38.3 million, a $37.5 million improvement over the net loss of $75.7 million in 2023.
• Delivered consolidated Adjusted EBITDA¹ of $54.3 million (6.4% of consolidated revenue), up 27.7% compared to $42.5 million (4.9% of consolidated revenue) in 2023.

^{1 See the accompanying reconciliation of non-GAAP measures at the end of this press release.}

"Our fourth quarter and full year results demonstrated the ongoing impact of our operational and commercial initiatives, with year over year expansion in both gross and Adjusted EBITDA margin. In the fourth quarter, we successfully grew Adjusted EBITDA margin across both segments while holding corporate and support costs flat, driving a 50.5% improvement in Adjusted EBITDA,” said Keith D. Tucker, Team's Chief Executive Officer. "For the full year, we expanded our Adjusted EBITDA margin by 150 basis points to 6.4%, generating a 27.7% year over year improvement in Adjusted EBITDA to $54.3 million. Importantly, both of our U.S. segments, which together represent roughly 75% of our total revenue, continued to grow their top line year over year in the fourth quarter as well as the full year.”

Mr. Tucker continued, "Building upon our continuous improvement efforts, in 2024 we launched a series of additional operational and commercial initiatives focused on driving profitable growth and cash flow generation. In the fourth quarter, we saw the benefits from these targeted initiatives, generating $21.6 million in cash flow from operations, a $10.5 million improvement over 2023, and $19.6 million of Free Cash Flow, up $11.5 million over 2023. We also completed previously announced cost optimization initiatives that we expect to yield approximately $6 million of additional annualized cost savings in 2025.”

"Heading into 2025, we expect consolidated top line growth in the mid-single digits and healthy activity levels across both segments as we begin to see the returns from our commercial initiatives targeting revenue growth in our higher margin call out and advanced service offerings and further expansion into adjacent markets such as midstream, aerospace, and general industrial lab inspection and testing . We see continued progress towards our Adjusted EBITDA margin target of at least 10% and expect at least 15% year over year growth in Adjusted EBITDA. Additionally, we recently expanded our initiatives to further optimize costs and improve workforce utilization, targeting annualized cost saving of at least $10 million. This entire management team remains committed to driving top line growth while continuously improving margins and cash flow generation. Finally, we plan to provide a more detailed investor update in the second quarter on our progress to date and our longer-term strategic vision for TEAM. I want to thank our dedicated and highly skilled employees who safely deliver best in class service every day, making it possible to continue building a financially stronger TEAM” concluded Tucker.

Financial Results

Fourth quarter revenues were $213.3 million as compared to $214.1 million in the prior year period, with revenue growth of 2.1% in the United States offset by decreases in international regions other than Canada. Consolidated gross margin was $57.3 million, or 26.9% of revenue, up 330 basis points and $6.9 million as compared to the same quarter a year ago, driven by improved pricing, a more favorable project mix and lower operating costs attributable to the Company's ongoing cost optimization program.

Selling, general and administrative expenses for the fourth quarter were $55.1 million, lower by $4.2 million, or 7.0%, from the fourth quarter of 2023 and driven by lower legal and professional fees. 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 cost, increased by $0.3 million over the third quarter of 2024 and were higher by $1.7 million as compared to the 2023 period, mainly due to the timing of certain expenses.

Operating income for the fourth quarter of 2024 was $2.2 million, an $11.1 million improvement over the 2023 period. Net loss in the fourth quarter of 2024 was $7.2 million (a loss of $1.61 per share) compared to a net loss of $23.1 million (a loss of $5.25 per share) in the 2023 fourth quarter. The Company's adjusted measure of net income/loss, consolidated Adjusted EBIT, a non-GAAP measure, was $5.7 million in the fourth quarter of 2024 compared to a loss of $0.4 million in the fourth quarter of 2023. Consolidated Adjusted EBITDA, a non-GAAP measure, improved 50.5% to $14.6 million and 6.9% of consolidated revenue for the fourth quarter of 2024, compared to $9.7 million and 4.5% of consolidated revenue for the 2023 quarter.  

For the full year 2024, consolidated revenues were $852.3 million, marginally lower as compared to $862.6 million in 2023, with revenue growth of 2.0% in the United States offset by declines year over year in Canada and, to a lesser extent, other international regions. Consolidated gross margin improved by $12.0 million to $223.2 million (26.2% of revenue) as compared to $211.2 million (24.5% of revenue) in 2023, mainly due to a more favorable project mix and lower operating costs attributable to the Company's ongoing cost optimization program.

Selling, general and administrative expenses for 2024 were $213.0 million, lower by $11.4 million, or 5.1%, compared to 2023, primarily due to lower legal and professional fees. Adjusted Selling, General and Administrative Expense declined by $0.9 million when compared to the 2023 period.

Operating income for 2024 was $10.1 million, a $23.4 million improvement over 2023. Net loss was $38.3 million (a loss of $8.64 per share), an improvement of $37.4 million over the net loss of $75.7 million (a loss of $17.32 per share) in 2023. Consolidated Adjusted EBITDA, a non-GAAP measure, improved by 27.7% to $54.3 million or 6.4% of revenue as compared to $42.5 million or 4.9% of revenue in 2023, driven by the Company's cost reduction efforts improved pricing and a more favorable job mix.

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 three months ended December 31, 2024 and 2023 (in thousands):

TEAM, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(unaudited, in thousands)
		Three Months Ended December 31,								Favorable (Unfavorable)
			2024				2023			$				%
Revenues
IHT		$	106,436			$	107,133			$	(697	)		(0.7	)%
MS			106,860				106,998				(138	)		(0.1	)%
		$	213,296			$	214,131			$	(835	)		(0.4	)%
Operating income (loss)
IHT		$	9,508			$	6,537			$	2,971			45.4	%
MS			8,099				5,364				2,735			51.0	%
Corporate and shared support services			(15,402	)			(20,769	)			5,367			25.8	%
		$	2,205			$	(8,868	)		$	11,073			124.9	%

Revenues.

IHT's revenue decreased by $0.7 million, or 0.7%, as compared to the prior year period, with higher U.S. revenue offset by lower revenue in Canada and other international regions due to reduced scope in certain customer turnaround projects. MS revenue decreased by $0.1 million or 0.1%, with lower leak repair and hot tapping activity in certain international areas of $1.7 million partially offset by higher U.S. revenue of $1.6 million driven by greater turnaround project work.

Operating income (loss). IHT's fourth quarter 2024 operating income increased by $3.0 million to $9.5 million due to improved pricing and job mix and the realized benefit from cost reductions implemented throughout 2024. MS operating income improved by approximately $2.7 million for similar reasons. Corporate and shared support services costs decreased by $5.4 million or 25.8%, driven mainly by lower legal and professional fees.

The following table illustrates the composition of the Company's revenue and operating income (loss) by segment for the twelve months ended December 31, 2024 and 2023 (in thousands):

TEAM, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(unaudited, in thousands)
		Twelve Months Ended December 31,								Favorable (Unfavorable)
			2024				2023			$				%
Revenues
IHT		$	426,722			$	429,559			$	(2,837	)		(0.7	)%
MS			425,550				433,056				(7,506	)		(1.7	)%
		$	852,272			$	862,615			$	(10,343	)		(1.2	)%
Operating income (loss)
IHT		$	37,012			$	24,220			$	12,792			52.8	%
MS			27,287				27,759				(472	)		(1.7	)%
Corporate and shared support services			(54,163	)			(65,255	)			11,092			17.0	%
		$	10,136			$	(13,276	)		$	23,412			176.3	%

Revenues.

IHT revenues decreased by $2.8 million, or 0.7%, as compared to 2023. Growth in U.S revenue of $10.1 million, driven by higher call out and turnaround activity and improved utilization at our lab inspection and testing facility in Cincinnati, was offset by lower year over year revenue from Canada and other international regions of $12.9 million attributable to reduced scope in certain customer turnaround activities and lower overall activity. MS revenue decreased by $7.5 million, or 1.7%, over the prior year, with higher revenue of $2.5 million in the U.S. driven by higher turnaround activity, offset by lower revenue of $10 million from Canada and other international regions due to lower turnaround, leak repair and machining and bolting activity.

Operating income (loss). IHT's operating income grew by 52.8% to $37.0 million, primarily due to lower costs and improved job mix driving higher gross margins in the U.S., partially offset by lower year over year results from Canada and other international regions for the reasons noted above. MS operating income decreased by $0.5 million year over year to $27.3 million, with operating income from the U.S. growing $5.3 million but offset by lower revenue from Canada and other international regions. Corporate operating loss decreased by $11.1 million, mainly due to lower legal and professional costs in the current year.

Balance Sheet and Liquidity

At December 31, 2024, the Company had $77.4 million of total liquidity, consisting of consolidated cash and cash equivalents of $31.5 million, (excluding $4.0 million of restricted cash) and $45.9 million in undrawn availability under its various credit facilities.

The Company's total debt as of December 31, 2024 was $325.1 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 $289.6 million at December 31, 2024.

On March 13, 2025, TEAM announced that it had successfully closed on a refinancing transaction (the "Transaction”) that lowers the Company's cost of capital and terms out its capital structure. The Transaction consists of a First Lien Term Loan Facility (the "First Lien Facility”) provided by HPS Investment Partners, LLC that matures in March 2030 and is comprised of a funded $175.0 million Term Loan and a $50.0 million Delayed Draw Term Loan available to the Company subject to satisfying certain conditions. The First Lien Facility was used to repay the following:

• the Company's $35 million delayed draw term loan and $22.3 million equipment and real estate loans under its ABL credit agreement
• the Company's $46.3 million senior secured incremental term loan provided by Corre Partners Management, LLC ("Corre”)
• $54.1 million of the Company's existing senior secured term loan provided by Corre

In conjunction with the Transaction, the Company also rolled over all remaining outstanding debt under the existing senior secured term loan into a new $97.4 million Second Lien Term Loan provided by Corre and maturing in June 2030. As part of the Transaction, the Company's existing ABL credit facility provided by Eclipse Business Capital will continue and was amended to permit the consummation of the Transaction.

Conference Call

As previously announced, the Company will hold a conference call to discuss its fourth quarter 2024 financial and operating results on Thursday, March 20, 2025, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Interested parties in the United States may participate toll-free by dialing (877) 270-2148. Interested parties internationally may dial (412) 902-6510. Participants should ask to join "TEAM, Inc. Fourth Quarter 2024 Conference Call.” The Company will not host questions during the call. This call will also be webcast on TEAM's website at www.teaminc.com. An audio replay will be available on the Company's website following the call.

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 customers 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 customer's most critical assets. Through locations in 13 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 facilities, or maintain its compliance with covenants under its credit facilities and debt agreements, 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. Haight

Executive Vice President, Chief Financial Officer

(281) 388-5521

TEAM, INC. AND SUBSIDIARIES

SUMMARY OF CONSOLIDATED OPERATING RESULTS

(in thousands, except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2024

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