Welcome!

Microsoft Cloud Authors: Andreas Grabner, Nick Basinger, Kevin Benedict, Pat Romanski, Liz McMillan

News Feed Item

Team, Inc. Reports FY09 Results; Provides FY2010 Guidance

ALVIN, Texas, Aug. 4 /PRNewswire-FirstCall/ -- Team, Inc. (Nasdaq: TISI) today reported net income of $5.6 million ($0.29 per diluted share) and $22.9 million ($1.16 per diluted share) for its fourth quarter and full fiscal year ended May 31, 2009, respectively.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090602/TEAMINCLOGO)

"As we work through an extremely difficult near-term market environment, we have maintained strong financial performance and flexibility," said Phil Hawk, Team's Chairman and CEO. "As market conditions improve, or other opportunities present themselves, Team is well-positioned to capitalize on them."

Fiscal Year 2009 Results

Based on the strong growth of its business in the first half of the fiscal year, Team reported the second highest level of profits in its history, which was 3% less than the record performance of last year. For the 2009 fiscal year, operating income was $41.3 million, operating profit margin as a percentage of revenue was 8.3%, and net income profit margin was 4.6%. As a result of this performance, the Company continues to strengthen its balance sheet. With strong operating cash flows, Team reduced its total net debt (total debt less cash) by $28 million during the year. At the end of the fiscal year, Team had in excess of $68 million of borrowing capacity under its existing credit facilities that do not mature until 2012.

Team's activity levels in the second half of the fiscal year were adversely impacted by the deep recession. For the fourth quarter, Team revenues were $121.2 million, down 16% from the prior year quarter. While the rate of decline during the quarter varied somewhat by Division, geography, and service line, virtually all geographic regions and service lines experienced decreases from the prior year. Total operating profits were $9.7 million. The operating profit margin as a percentage of revenue was 8.0% in the fourth quarter.

As previously reported, Team has taken steps to reduce its overall cost structure both in its field service locations and in its corporate support activities. Since the mid-point of the fiscal year, Team's total employment has declined by approximately 300. As a result of the cost actions taken, Team expects total support costs in the coming year to be approximately $10 million less than in the recently completed fiscal year.

"We remain confident that market demand for our services will rebound with improving economic conditions and as customers return to steady state maintenance practices," said Mr. Hawk. "As the market recovers, we expect to regain our historical growth momentum. In our view, the basic market fundamentals remain unchanged and Team's network and service advantages are as robust as ever."

Internal Investigation

Separately today, Team filed a Form 8-K with the SEC announcing an internal investigation and voluntary disclosure to the Department of Justice and to the SEC about possible violations of the Foreign Corrupt Practices Act involving what we believe are less than $50,000 of improper payments made over the past five years by local branch employees in Trinidad.

Business Outlook/Guidance for Fiscal Year 2010

Team expects its revenues for the coming full fiscal year (the fiscal year ending May 31, 2010) to be in the range of $460 million to $490 million. For the same period of time, net income is expected to be in a range of $.85 to $1.05 per fully diluted share. These expectations anticipate a modest sequential improvement in Team revenues in the second half of the fiscal year. Consistent with its past practices, Team does not provide specific guidance for individual quarters, but will confirm or update its annual guidance at least quarterly.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Wednesday, August 5, 2009 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 877-826-1586 and use conference code 25115706.

About Team, Inc.

Headquartered in Alvin, Texas, Team Inc. is a leading provider of specialty industrial services 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 100 locations throughout the United States, Aruba, Belgium, Canada, Singapore, The Netherlands, Trinidad and Venezuela. Named in 2008 by Forbes Magazine as one of the 200 best small companies, and by Fortune Magazine as one of the 100 fastest growing public companies, Team's common stock is traded on the NASDAQ Global Select Market 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 for the year ended May 31, 2008 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
                     UNAUDITED SUMMARY OF OPERATING RESULTS
                      (in thousands, except per share data)

                                 Three Months Ended    Twelve Months Ended
                                       May 31,                 May 31,
                                  2009         2008       2009        2008

    Revenues                  $121,203     $143,854   $497,559    $478,475
    Operating expenses          83,292       95,973    340,500     322,810
    Gross margin                37,911       47,881    157,059     155,665

    Selling, general and
     administrative expenses    28,328       30,837    116,761     109,792
    Earnings from
     unconsolidated affiliates     139            -        973           -
    Operating income             9,722       17,044     41,271      45,873

    Interest expense, net          906        1,406      4,872       6,491
    Earnings before
     income taxes                8,816       15,638     36,399      39,382

    Provision for income taxes   3,260        6,277     13,488      15,759
    Net income                  $5,556       $9,361    $22,911     $23,623


    Earnings per common share:
        Basic                    $0.29        $0.51      $1.22       $1.30
        Diluted                  $0.29        $0.47      $1.16       $1.20

    Weighted average
     number of shares
     outstanding:
      Basic                     18,837       18,491     18,793      18,226
      Diluted                   19,280       19,783     19,725      19,676

    Continuing operations
     data:

      Revenues comprised
       of:
           TCM Division        $72,895      $82,227   $270,420    $274,531
           TMS Division         48,308       61,627    227,139     203,944
                              $121,203     $143,854   $497,559    $478,475

      Gross margin comprised
       of:
           TCM Division        $23,512      $27,914    $81,654     $84,145
           TMS Division         14,399       19,967     75,405      71,520
                               $37,911      $47,881   $157,059    $155,665

    SG&A expenses:
           Field operations    $23,501      $24,803    $96,571     $91,390
           Corporate costs       4,827        6,034     20,190      18,402
           Total SG&A           28,328       30,837    116,761     109,792
    Earnings from
     unconsolidated affiliates     139            -        973           -
    Operating income            $9,722      $17,044    $41,271     $45,873



                           TEAM, INC. AND SUBSIDIARIES
             UNAUDITED SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION
                          MAY 31, 2009 AND MAY 31, 2008
                                 (in thousands)

                                                May 31,           May 31,
                                                 2009              2008

    Current assets                             $156,637          $158,214

    Property, plant and
     equipment, net                              59,582            56,138

    Other non-current assets                     59,702            66,109

    Total assets                               $275,921          $280,461

    Current liabilities                         $46,792           $56,744

    Long term debt net of current
     maturities                                  76,689            96,818

    Other non-current liabilities                 5,939             6,137

    Stockholders' equity                        146,501           120,762

    Total liabilities and stockholders'
     equity                                    $275,921          $280,461

SOURCE Team, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
Tapping into blockchain revolution early enough translates into a substantial business competitiveness advantage. Codete comprehensively develops custom, blockchain-based business solutions, founded on the most advanced cryptographic innovations, and striking a balance point between complexity of the technologies used in quickly-changing stack building, business impact, and cost-effectiveness. Codete researches and provides business consultancy in the field of single most thrilling innovative te...
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
CloudEXPO has been the M&A capital for Cloud companies for more than a decade with memorable acquisition news stories which came out of CloudEXPO expo floor. DevOpsSUMMIT New York faculty member Greg Bledsoe shared his views on IBM's Red Hat acquisition live from NASDAQ floor. Acquisition news was announced during CloudEXPO New York which took place November 12-13, 2019 in New York City.
OpsRamp is an enterprise IT operation platform provided by US-based OpsRamp, Inc. It provides SaaS services through support for increasingly complex cloud and hybrid computing environments from system operation to service management. The OpsRamp platform is a SaaS-based, multi-tenant solution that enables enterprise IT organizations and cloud service providers like JBS the flexibility and control they need to manage and monitor today's hybrid, multi-cloud infrastructure, applications, and wor...
The Master of Science in Artificial Intelligence (MSAI) provides a comprehensive framework of theory and practice in the emerging field of AI. The program delivers the foundational knowledge needed to explore both key contextual areas and complex technical applications of AI systems. Curriculum incorporates elements of data science, robotics, and machine learning-enabling you to pursue a holistic and interdisciplinary course of study while preparing for a position in AI research, operations, ...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
Intel is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world's second largest and second highest valued semiconductor chip maker based on revenue after being overtaken by Samsung, and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactu...