SUGAR LAND, Texas, May 4, 2021 /PRNewswire/ -- Team,
Inc. (NYSE: TISI), a global leading provider of integrated,
digitally-enabled asset performance assurance and optimization
solutions, today reported its financial results for the first
quarter ended March 31, 2021.
First Quarter 2021 Results:
- Revenue of $194.6 million, down
$42.2 million, or 17.8%, from Q1
2020
- Gross margin was $43.7 million,
or 22.5%, slightly below the 24.3% from Q1 2020
- Reduced quarterly SG&A by $12.3
million or 15.7% as compared to Q1 2020
- Strong decremental despite a 17.8% drop in revenue, as a result
of disciplined cost management
"TEAM's first quarter results were adversely impacted by
numerous headwinds," said Amerino
Gatti, TEAM's Chairman and Chief Executive Officer. "As
expected, we experienced a slow start to the year. January is
historically a weak month as our clients' focus is on scheduling
maintenance and capital projects. February's typical uptick in
activity was delayed by the unprecedented winter storms that caused
large scale power outages across the U.S. Midwest and Gulf Coast.
These storms resulted in a large number of refining and
petrochemical plants shutting down temporarily, which reduced our
nested activity and postponed projects. We estimate the storms
negatively affected our first quarter revenue by approximately
$10 million. Our international
markets were also affected, as COVID‑related lockdowns limited
travel and necessitated quarantine restrictions.
"Although we are not pleased with our first quarter results, we
were able to minimize the Adjusted EBITDA decremental to 3%
compared to Q1 2020, despite a $42.2
million year‑over‑year revenue decline. The favorable fall
through we generated was supported by our 2020 disciplined cost
reduction actions. During the quarter, we began to roll back some
of our variable cost initiatives that started in late March
2020. We also increased our investments in sales, account
management, and technician training and certifications in order to
position us to competitively gain market share as our end markets
expand and the labor market tightens.
"In March, our activity levels improved significantly with
clients returning to more normalized operations as well as the
startup of several large turnaround projects. Specifically, our
Inspection and Heat Treating and Mechanical Services segments
realized approximately a 40% increase in billable hours over
February levels. Quest segment's revenues increased approximately
40% in March over its January and February average. These
March activity levels have continued into April and early
May.
"The U.S. economy is rebounding, and as COVID-related
restrictions are lifted, people are driving more and returning to
the workplace, increasing global demand and consumption. The
growth in economic activity has provided greater confidence in our
2021 outlook.
"Looking ahead, we continue investing to build upon our
competitive advantages. Our balanced operating models which
include nested, project and turnarounds, and call-out work provide
TEAM the agility to successfully compete in the dynamic
environment. Our critical asset solutions and advanced
technology applications position TEAM to deliver accretive services
and be an integrated service partner. Lastly, our new group
structure is designed to accelerate global revenue growth and
promote our integrated and innovative solutions. The strong
economic outlook – combined with our competitive advantages – have
positioned TEAM for growth in 2021 and beyond," concluded Mr.
Gatti.
Financial Results
Consolidated net loss in the first quarter of 2021 was
$34.3 million ($1.11 loss per diluted share) compared to a loss
of $199.7 million ($6.54 loss per diluted share) in the first
quarter of 2020. Consolidated Adjusted EBITDA, a non-GAAP measure,
was negative $5.3 million for the
first quarter of 2021 compared to negative $3.9 million for the prior year quarter.
Consolidated revenue for the first quarter of 2021 was
$194.6 million compared to
$236.8 million in the prior year
quarter. Revenue decreased due to lower activity levels as a result
of the negative impact of the COVID-19 pandemic and the winter
storms in the Midwest and Gulf Coast. In the first quarter of 2021,
consolidated gross margin was $43.7
million, or 22.5%, compared with 24.3% in the same quarter a
year ago.
SG&A for the first quarter was $66.1
million, down $12.3 million,
or a 15.7% improvement from the first quarter of 2020. The
company's adjusted measure of net income/loss, Consolidated
Adjusted EBIT, was a loss of $18.6
million in the first quarter compared to a loss of
$17.2 million in the prior year
comparable quarter.
First quarter 2021 reported results include certain net charges
not indicative of TEAM's core operating activities, including:
$0.8 million of professional costs
related to the previously announced new strategic organizational
structure ("Operating Group Reorganization"), $2.0 million of severance charges primarily
associated with the Operating Group Reorganization, $2.5 million for an accrued legal matter and
other legal fees, and $0.4 million of
certain other non-recurring professional and administrative
fees. Net of tax, these items totaled $4.5 million or $0.14 per diluted share.
Adjusted net loss, consolidated Adjusted EBIT, and Adjusted
EBITDA 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
release.
Segment Results
The following table illustrates the composition of the company's
revenue and operating income (loss) by segment for the quarters
ended March 31, 2021 and 2020 (in
thousands):
|
Three Months
Ended
March
31,
|
Increase
(Decrease)
|
|
2021
|
|
2020
|
|
$
|
%
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
Revenues by business
segment:
|
|
|
|
|
|
|
IHT
|
$
|
91,139
|
|
|
$
|
107,881
|
|
|
$
|
(16,742)
|
|
(15.5)
|
%
|
MS
|
87,396
|
|
|
104,519
|
|
|
(17,123)
|
|
(16.4)
|
%
|
Quest
Integrity
|
16,083
|
|
|
24,439
|
|
|
(8,356)
|
|
(34.2)
|
%
|
Total
|
$
|
194,618
|
|
|
$
|
236,839
|
|
|
$
|
(42,221)
|
|
(17.8)
|
%
|
Operating income
(loss):
|
|
|
|
|
|
|
IHT
|
$
|
364
|
|
|
$
|
(192,150)
|
|
|
$
|
192,514
|
|
NM1
|
MS
|
115
|
|
|
1,022
|
|
|
(907)
|
|
(88.7)
|
%
|
Quest
Integrity
|
(252)
|
|
|
6,106
|
|
|
(6,358)
|
|
(104.1)
|
%
|
Corporate and shared
support services
|
(24,527)
|
|
|
(27,910)
|
|
|
3,383
|
|
12.1
|
%
|
Total
|
$
|
(24,300)
|
|
|
$
|
(212,932)
|
|
|
$
|
188,632
|
|
88.6
|
%
|
_____________
|
1
NM - Not meaningful
|
The decrease in year-over-year activity levels across the
company was due to the negative impact of the COVID-19 pandemic and
winter storms in the Midwest and Gulf Coast, resulting in the
postponement of client projects and lower activity
levels.
Quest Integrity was particularly affected by the pandemic as
stay-at-home orders limited travel and necessitated quarantine
restrictions. The travel restrictions resulted in many of Quest's
first quarter projects getting delayed until the second quarter of
2021 or later in the year.
Cash and Debt
Consolidated cash and cash equivalents were $22.3 million at March 31,
2021. The company's net debt (total debt less cash and cash
equivalents) was $310.7 million at
March 31, 2021, compared to
$287.9 million at Dec. 31, 2020.
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.
Conference Call and Webcast Details
Team, Inc. will host a conference call on Wednesday, May 5, 2021 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to review its first
quarter 2021 results.
By Phone: Dial 1-877-407-5794 inside the U.S. or 1-201-389-0869
outside the U.S. at least 10 minutes before the call. A telephone
replay will be available through May 12,
2021 by dialing 1-877-660-6853 inside the U.S. or
201-612-7415 outside the U.S. using the Conference ID
13718673#.
By Webcast: The call will be broadcast over the web and can be
accessed on TEAM's website, www.teaminc.com under "Investor
Relations." Please log on at least 10 minutes in advance to
register and download any necessary software. A replay will be
available shortly after the call.
About Team, Inc.
Headquartered in Sugar Land,
Texas, Team Inc. (NYSE: TISI) is a global leading provider
of integrated, digitally-enabled asset performance assurance and
optimization solutions. We deploy conventional to highly
specialized inspection, condition assessment, maintenance and
repair services that result in greater safety, reliability and
operational efficiency for our client's most critical assets.
Through locations in more than 20 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. 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 duration and magnitude of the COVID-19 pandemic, related
economic effects and the resulting negative impact on demand for
oil and gas 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 projected
cost savings, 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:
Kevin Smith
Senior Director, Investor Relations
(281) 388-5551
TEAM, INC. AND
SUBSIDIARIES
|
SUMMARY OF
CONSOLIDATED OPERATING RESULTS
|
(unaudited, in
thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Revenues
|
|
$
|
194,618
|
|
|
$
|
236,839
|
|
Operating
expenses
|
|
150,917
|
|
|
179,353
|
|
Gross
margin
|
|
43,701
|
|
|
57,486
|
|
Selling, general
and administrative expenses
|
|
66,124
|
|
|
78,444
|
|
Restructuring and
other related charges, net
|
|
1,877
|
|
|
186
|
|
Goodwill
impairment charge
|
|
—
|
|
|
191,788
|
|
Operating
loss
|
|
(24,300)
|
|
|
(212,932)
|
|
Interest expense,
net
|
|
9,396
|
|
|
6,776
|
|
Other expense,
net
|
|
950
|
|
|
472
|
|
Loss before income
taxes
|
|
(34,646)
|
|
|
(220,180)
|
|
Less: Benefit for
income taxes
|
|
(355)
|
|
|
(20,453)
|
|
Net
loss
|
|
$
|
(34,291)
|
|
|
$
|
(199,727)
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
Basic and
diluted
|
|
$
|
(1.11)
|
|
|
$
|
(6.54)
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
Basic and
diluted
|
|
30,878
|
|
30,540
|
TEAM, INC. AND
SUBSIDIARIES
|
SUMMARY
CONSOLIDATED BALANCE SHEET INFORMATION
|
(in
thousands)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
(unaudited)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
22,344
|
|
|
$
|
24,586
|
|
|
|
|
|
Other current
assets
|
271,888
|
|
|
259,146
|
|
|
|
|
|
Property, plant
and equipment, net
|
166,524
|
|
|
170,309
|
|
|
|
|
|
Other non-current
assets
|
275,430
|
|
|
276,934
|
|
|
|
|
|
Total
assets
|
$
|
736,186
|
|
|
$
|
730,975
|
|
|
|
|
|
Current portion of
long-term debt and finance lease obligations
|
$
|
352
|
|
|
$
|
337
|
|
|
|
|
|
Other current
liabilities
|
147,947
|
|
|
132,667
|
|
|
|
|
|
Long-term debt and
finance lease obligations, net of current maturities
|
332,723
|
|
|
312,159
|
|
|
|
|
|
Other non-current
liabilities
|
72,304
|
|
|
71,209
|
|
|
|
|
|
Stockholders'
equity
|
182,860
|
|
|
214,603
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
$
|
736,186
|
|
|
$
|
730,975
|
|
TEAM INC. AND
SUBSIDIARIES
|
SUMMARY
CONSOLIDATED CASH FLOW INFORMATION
|
(unaudited, in
thousands)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(34,291)
|
|
|
$
|
(199,727)
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,959
|
|
|
11,708
|
|
|
|
|
|
|
Allowance for
credit losses
|
|
352
|
|
|
(45)
|
|
|
|
|
|
|
Deferred income
taxes
|
|
(920)
|
|
|
(5,764)
|
|
|
|
|
|
|
Non-cash
compensation cost
|
|
2,330
|
|
|
1,530
|
|
|
|
|
|
|
Goodwill
impairment charge
|
|
—
|
|
|
191,788
|
|
|
|
|
|
|
Working capital
changes
|
|
2,462
|
|
|
(263)
|
|
|
|
|
|
|
Other items
affecting operating cash flows
|
|
1,925
|
|
|
1,690
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
(17,183)
|
|
|
917
|
|
|
|
|
|
|
Capital
expenditures
|
|
(3,413)
|
|
|
(8,305)
|
|
|
|
|
|
|
Cash used for
business acquisitions, net
|
|
—
|
|
|
(1,013)
|
|
|
|
|
|
|
Proceeds from
disposal of assets
|
|
29
|
|
|
—
|
|
|
|
|
|
|
Other items
affecting investing cash flow
|
|
—
|
|
|
6
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(3,384)
|
|
|
(9,312)
|
|
|
|
|
|
|
Net borrowings
under Credit Facility revolver
|
|
—
|
|
|
20,153
|
|
|
|
|
|
|
Net borrowings
under ABL facility
|
|
19,000
|
|
|
—
|
|
|
|
|
|
|
Payment under
Credit Facility term loan
|
|
—
|
|
|
(1,250)
|
|
|
|
|
|
|
Payments for debt
issuance costs
|
|
(2,027)
|
|
|
—
|
|
|
|
|
|
|
Taxes paid for net
share settlement of share-based awards, net
|
|
(101)
|
|
|
(349)
|
|
|
|
|
|
|
Other items
affecting financing cash flows
|
|
(64)
|
|
|
(60)
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
16,808
|
|
|
18,494
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
1,517
|
|
|
(1,751)
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
$
|
(2,242)
|
|
|
$
|
8,348
|
|
|
|
|
|
|
TEAM, INC. AND
SUBSIDIARIES
|
SEGMENT
INFORMATION
|
(unaudited, in
thousands)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
Revenues
|
|
|
|
|
IHT
|
|
$
|
91,139
|
|
|
$
|
107,881
|
|
MS
|
|
87,396
|
|
|
104,519
|
|
Quest
Integrity
|
|
16,083
|
|
|
24,439
|
|
|
|
$
|
194,618
|
|
|
$
|
236,839
|
|
|
|
|
|
|
Operating income
(loss) ("EBIT")
|
|
|
|
|
IHT
|
|
$
|
364
|
|
1
|
$
|
(192,150)
|
|
MS
|
|
115
|
|
|
1,022
|
|
Quest
Integrity
|
|
(252)
|
|
|
6,106
|
|
Corporate and
shared support services
|
|
(24,527)
|
|
|
(27,910)
|
|
|
|
$
|
(24,300)
|
|
|
$
|
(212,932)
|
|
|
|
|
|
|
Segment Adjusted
EBIT
|
|
|
|
|
IHT
|
|
$
|
839
|
|
|
$
|
(354)
|
|
MS
|
|
254
|
|
|
1,152
|
|
Quest
Integrity
|
|
(43)
|
|
|
6,106
|
|
Corporate and
shared support services
|
|
(19,682)
|
|
|
(24,067)
|
|
|
|
$
|
(18,632)
|
|
|
$
|
(17,163)
|
|
|
|
|
|
|
Segment Adjusted
EBITDA
|
|
|
|
|
IHT
|
|
$
|
4,309
|
|
|
$
|
3,629
|
|
MS
|
|
5,693
|
|
|
6,583
|
|
Quest
Integrity
|
|
669
|
|
|
6,992
|
|
Corporate and
shared support services
|
|
(16,014)
|
|
|
(21,129)
|
|
|
|
$
|
(5,343)
|
|
|
$
|
(3,925)
|
|
|
|
|
|
|
|
|
___________________
|
1
|
Includes goodwill
impairment charge of $191.8 million for the three months ended
March 31, 2020. Excluding the goodwill impairment charge, operating
loss for IHT would be $0.4 million for the three months ended
March 31, 2020.
|
TEAM, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
The Company uses supplemental non-GAAP financial measures which
are derived from the consolidated financial information including
adjusted net income (loss); adjusted net income (loss) per diluted
share, earnings before interest and taxes ("EBIT"); adjusted EBIT
(defined below); adjusted earnings before interest, taxes,
depreciation and amortization ("adjusted EBITDA") and free cash
flow to supplement financial information presented on a GAAP
basis.
The Company defines adjusted net income (loss), adjusted net
income (loss) per diluted share and adjusted EBIT to exclude the
following items: costs associated with our OneTEAM program, costs
associated with the Operating Group Reorganization, non-routine
legal costs and settlements, restructuring charges, certain
severance charges, goodwill impairment charges, loss on debt
extinguishment and certain other items that we believe are not
indicative of core operating activities. Consolidated adjusted
EBIT, as defined by us, excludes the costs excluded from adjusted
net income (loss) as well as income tax expense (benefit), interest
charges, foreign currency (gain) loss, and items of other (income)
expense. Consolidated adjusted EBITDA further excludes from
consolidated adjusted EBIT depreciation, amortization and non-cash
share-based compensation costs. Segment adjusted EBIT is equal to
segment operating income (loss) excluding costs associated with our
OneTEAM program, costs associated with the Operating Group
Reorganization, non-routine legal costs and settlements,
restructuring charges, certain severance charges, goodwill
impairment charges and certain other items as determined by
management. Segment adjusted EBITDA further excludes from segment
adjusted EBIT depreciation, amortization, and non-cash share-based
compensation costs. Free cash flow is defined as net cash provided
by (used in) operating activities minus capital expenditures. Net
debt is defined as the sum of the current and long-term portions of
debt, including finance lease obligations, less cash and cash
equivalents.
Management believes these non-GAAP financial measures are useful
to both management and investors in their analysis of our financial
position and results of operations. In particular, adjusted net
income (loss), adjusted net income (loss) per diluted share,
consolidated adjusted EBIT, and consolidated adjusted EBITDA are
meaningful measures of performance which are commonly used by
industry analysts, investors, lenders and rating agencies to
analyze operating performance in our industry, perform analytical
comparisons, benchmark performance between periods, and measure our
performance against externally communicated targets. Our segment
adjusted EBIT and segment adjusted EBITDA is also used as a basis
for the Chief Operating Decision Maker to evaluate the performance
of our reportable segments. Free cash flow is used by our
management and investors to analyze our ability to service and
repay debt and return value directly to stakeholders.
Non-GAAP measures have important limitations as analytical
tools, because they exclude some, but not all, items that affect
net earnings and operating income. These measures should not be
considered substitutes for their most directly comparable U.S. GAAP
financial measures and should be read only in conjunction with
financial information presented on a GAAP basis. Further, our
non-GAAP financial measures may not be comparable to similarly
titled measures of other companies who may calculate non-GAAP
financial measures differently, limiting the usefulness of those
measures for comparative purposes. The liquidity measure of free
cash flow does not represent a precise calculation of residual cash
flow available for discretionary expenditures. Reconciliations of
each non-GAAP financial measure to its most directly comparable
GAAP financial measure are presented below.
TEAM, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
(unaudited, in
thousands except per share data)
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Adjusted Net
Income (Loss):
|
|
|
|
|
Net
loss
|
|
$
|
(34,291)
|
|
|
$
|
(199,727)
|
|
Professional fees
and other1
|
|
1,146
|
|
|
2,545
|
|
Legal
costs2
|
|
2,475
|
|
|
1,250
|
|
Severance charges,
net3
|
|
2,047
|
|
|
186
|
|
Goodwill impairment
charge
|
|
—
|
|
|
191,788
|
|
Tax impact of
adjustments and other net tax items4
|
|
(1,190)
|
|
|
(14,050)
|
|
Adjusted net
loss
|
|
$
|
(29,813)
|
|
|
$
|
(18,008)
|
|
|
|
|
|
|
Adjusted net loss
per common share:
|
|
|
|
|
Basic
|
|
$
|
(0.97)
|
|
|
$
|
(0.59)
|
|
Diluted
|
|
$
|
(0.97)
|
|
|
$
|
(0.59)
|
|
|
|
|
|
|
Consolidated
Adjusted EBIT and Adjusted EBITDA:
|
|
|
|
|
Net
loss
|
|
$
|
(34,291)
|
|
|
$
|
(199,727)
|
|
Provision (benefit)
for income taxes
|
|
(355)
|
|
|
(20,453)
|
|
Interest expense,
net
|
|
9,396
|
|
|
6,776
|
|
Foreign currency
loss (gain)6
|
|
1,123
|
|
|
607
|
|
Pension expense
(credit)5
|
|
(173)
|
|
|
(135)
|
|
Professional fees
and other1
|
|
1,146
|
|
|
2,545
|
|
Legal
costs2
|
|
2,475
|
|
|
1,250
|
|
Severance charges,
net3
|
|
2,047
|
|
|
186
|
|
Goodwill impairment
charge
|
|
—
|
|
|
191,788
|
|
Consolidated
Adjusted EBIT
|
|
(18,632)
|
|
|
(17,163)
|
|
Depreciation and
amortization
|
|
|
|
|
Amount included in
operating expenses
|
|
5,514
|
|
|
5,937
|
|
Amount included in
SG&A expenses
|
|
5,445
|
|
|
5,771
|
|
Total depreciation
and amortization
|
|
10,959
|
|
|
11,708
|
|
Non-cash
share-based compensation costs
|
|
2,330
|
|
|
1,530
|
|
Consolidated
Adjusted EBITDA
|
|
$
|
(5,343)
|
|
|
$
|
(3,925)
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
Cash provided by
(used in) operating activities
|
|
$
|
(17,183)
|
|
|
$
|
917
|
|
Capital
expenditures
|
|
(3,413)
|
|
|
(8,305)
|
|
Free Cash
Flow
|
|
$
|
(20,596)
|
|
|
$
|
(7,388)
|
|
|
|
____________________________________
|
1
|
For the three months
ended March 31, 2021, includes $0.8 million of costs associated
with the Operating Group Reorganization (exclusive of restructuring
costs). For the three months ended March 31, 2020, includes $1.8
million associated with the OneTEAM program (exclusive of
restructuring costs).
|
|
|
2
|
For the three months
ended March 31, 2021, primarily relates to an accrued legal matter
and other legal fees. For the three months ended March 31, 2020,
primarily relates to costs associated with international legal
matters.
|
|
|
3
|
For the three months
ended March 31, 2021, $1.9 million associated with the Operating
Group Reorganization. For the three months ended March 31, 2020,
severance charges are associated with the OneTEAM program,
including international operations.
|
|
|
4
|
Represents the tax
effect of the adjustments at an assumed marginal tax rate of 21%
for the three months ended March 31, 2021 and 2020 except for the
adjustment of the goodwill impairment charge for which the actual
tax impact was used.
|
|
|
5
|
Represents pension
expense (credit) for the U.K. pension plan based on the difference
between the expected return on plan assets and the cost of the
discounted pension liability. The pension plan has had no new
participants added since the plan was frozen in 1994 and accruals
for future benefits ceased in connection with a plan curtailment in
2013.
|
|
|
6
|
Represents foreign
currency gain/loss. For prior period, includes other nominal
fees.
|
TEAM, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (Continued)
|
(unaudited, in
thousands)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Segment Adjusted
EBIT and Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
IHT
|
|
|
|
|
Operating income
(loss)
|
|
$
|
364
|
|
|
$
|
(192,150)
|
|
Severance charges,
net1
|
|
475
|
|
|
8
|
|
Goodwill impairment
charge
|
|
—
|
|
|
191,788
|
|
Adjusted
EBIT
|
|
839
|
|
|
(354)
|
|
Depreciation and
amortization
|
|
3,470
|
|
|
3,983
|
|
Adjusted
EBITDA
|
|
$
|
4,309
|
|
|
$
|
3,629
|
|
|
|
|
|
|
MS
|
|
|
|
|
Operating
income
|
|
$
|
115
|
|
|
$
|
1,022
|
|
Severance charges,
net1
|
|
139
|
|
|
130
|
|
Adjusted
EBIT
|
|
254
|
|
|
1,152
|
|
Depreciation and
amortization
|
|
5,439
|
|
|
5,431
|
|
Adjusted
EBITDA
|
|
$
|
5,693
|
|
|
$
|
6,583
|
|
|
|
|
|
|
Quest
Integrity
|
|
|
|
|
Operating
income
|
|
$
|
(252)
|
|
|
$
|
6,106
|
|
Severance charges,
net1
|
|
209
|
|
|
—
|
|
Adjusted
EBIT
|
|
(43)
|
|
|
6,106
|
|
Depreciation and
amortization
|
|
712
|
|
|
886
|
|
Adjusted
EBITDA
|
|
$
|
669
|
|
|
$
|
6,992
|
|
|
|
|
|
|
Corporate and
shared support services
|
|
|
|
|
Net
loss
|
|
$
|
(34,518)
|
|
|
$
|
(14,705)
|
|
Provision (benefit)
for income taxes
|
|
(355)
|
|
|
(20,453)
|
|
Interest expense,
net
|
|
9,396
|
|
|
6,776
|
|
Foreign currency
loss (gain)5
|
|
1,123
|
|
|
607
|
|
Pension expense
(credit)2
|
|
(173)
|
|
|
(135)
|
|
Professional fees
and other3
|
|
1,146
|
|
|
2,545
|
|
Legal
costs4
|
|
2,475
|
|
|
1,250
|
|
Severance charges,
net1
|
|
1,224
|
|
|
48
|
|
Adjusted
EBIT
|
|
(19,682)
|
|
|
(24,067)
|
|
Depreciation and
amortization
|
|
1,338
|
|
|
1,408
|
|
Non-cash
share-based compensation costs
|
|
2,330
|
|
|
1,530
|
|
Adjusted
EBITDA
|
|
$
|
(16,014)
|
|
|
$
|
(21,129)
|
|
|
|
___________________
|
1
|
Primarily relates to
severance charges incurred associated with the Operating Group
Reorganization for the three months ended March 31, 2021. For the
three months ended March 31, 2020, relates to severance charges
associated with the OneTEAM program, including international
restructuring under the OneTEAM program.
|
|
|
2
|
Represents pension
expense (credit) for the U.K. pension plan based on the difference
between the expected return on plan assets and the cost of the
discounted pension liability. The pension plan has had no new
participants added since the plan was frozen in 1994 and accruals
for future benefits ceased in connection with a plan curtailment in
2013.
|
|
|
3
|
For the three months
ended March 31, 2021, includes $0.8 million of costs associated
with the Operating Group Reorganization (exclusive of restructuring
costs). For the three months ended March 31, 2020, includes
$1.8 million associated with the OneTEAM program (exclusive of
restructuring costs).
|
|
|
4
|
For the three months
ended March 31, 2021, primarily relates to an accrued legal matter
and other legal fees. For the three months ended March 31, 2020,
primarily relates to costs associated with international legal
matters.
|
|
|
5
|
Represents foreign
currency gain/loss. For prior period, includes other nominal
fees.
|
View original
content:http://www.prnewswire.com/news-releases/team-inc-reports-first-quarter-2021-results-301283927.html
SOURCE Team, Inc.