SUGAR LAND, Texas, Jan. 7, 2014 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE:TISI) today announced financial results for the fiscal year 2014 second quarter ended November 30, 2013. Team reported net income available to shareholders of $14.4 million ($0.68 per diluted share). Excluding a non-routine revaluation gain, adjusted net income available to shareholders was $13.1 million ($0.62 per diluted share). Revenues for the current year quarter were $200 million, approximately the same as the prior year quarter. For the six months ended November 30, 2013, adjusted earnings were $0.85 per diluted share on revenues of $375 million.
Team is affirming its full fiscal year 2014 earnings guidance (adjusted) of $1.55 to $1.85 per share and continues to expect full year revenues to be in the range of $765 million to $790 million.
Key Points
- Adjusted operating income (also referred to as "EBIT") for the quarter of $21.7 million, or 11% of revenues.
- Adjusted EBITDA for the quarter of $28.4 million, or 14% of revenues.
-
Record second quarter for Quest Integrity Group:
-- $20 million in revenue, up 29% over prior year quarter.
-- $5.5 million in EBIT, up 85% over prior year quarter. -
Inspection & Heat Treating ("IHT") and Mechanical Services combined business segment revenues declined 3% in the quarter, compared to a very strong prior year quarter, which had a record level of large project activity:
-- IHT Inspection services up 8%.
-- On-stream services up 13%.
-- Turnaround services down 24%. - Combined gross margins of IHT and Mechanical Services were virtually flat with prior year quarter (29%), reflecting progress in margin improvement initiatives.
- Repurchased 370,000 shares of our common stock in the quarter for a total consideration of approximately $13 million, leaving a remaining share repurchase authorization of about $12 million.
- Recognized a non-cash accounting gain of $2.1 million upon the revaluation of contingent consideration in a recent acquisition.
"We are pleased with the overall results of our second quarter, which reflect the strong rebound by Quest, as expected, and a stabilizing of our job margins after several quarters of cost pressure" said Phil Hawk, Team's Chairman and Chief Executive Officer. "We remain confident in both our near-term and long-term growth and performance potential."
Earnings Conference Call
In connection with this earnings release, Team will hold its quarterly conference call on Wednesday, January 8, 2014 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 866-515-2915 and use conference code 52443864 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 | Six Months Ended | |||
| November 30, | November 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Revenues | $ 200,493 | $ 200,648 | $ 374,804 | $ 362,140 |
| Operating expenses | 135,678 | 138,184 | 260,992 | 250,140 |
| Gross margin | 64,815 | 62,464 | 113,812 | 112,000 |
| Selling, general and administrative expenses | 43,422 | 39,928 | 84,757 | 77,002 |
| Earnings from unconsolidated affiliates | 350 | 504 | 793 | 866 |
| Gain from revaluation of contingent consideration | 2,138 | -- | 2,138 | -- |
| Operating income | 23,881 | 23,040 | 31,986 | 35,864 |
| Foreign currency loss | 140 | 114 | 530 | 188 |
| Interest expense, net | 811 | 677 | 1,419 | 1,276 |
| Earnings before income taxes | 22,930 | 22,249 | 30,037 | 34,400 |
| Provision for income taxes | 8,333 | 8,232 | 10,963 | 12,728 |
| Net income | 14,597 | 14,017 | 19,074 | 21,672 |
| Less: Income attributable to non-controlling interest | 172 | 81 | 139 | 175 |
| Net income available to common shareholders | $ 14,425 | $ 13,936 | $ 18,935 | $ 21,497 |
| Earnings per common share: | ||||
| Basic | $ 0.71 | $ 0.69 | $ 0.93 | $ 1.08 |
| Diluted | $ 0.68 | $ 0.66 | $ 0.89 | $ 1.03 |
| Weighted average number of shares outstanding: | ||||
| Basic | 20,409 | 20,052 | 20,459 | 19,963 |
| Diluted | 21,233 | 20,994 | 21,323 | 20,932 |
| TEAM, INC. AND SUBSIDIARIES | ||||
| ADDITIONAL FINANCIAL INFORMATION | ||||
| (in thousands, except per share data) | ||||
| Three Months Ended | Six Months Ended | |||
| November 30, | November 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Adjusted Net income: | ||||
| Net income available to common shareholders | $ 14,425 | $ 13,936 | $ 18,935 | $ 21,497 |
| Non-routine revaluation contingent consideration | (2,138) | -- | (2,138) | -- |
| Non-routine severance costs | -- | -- | 742 | -- |
| Tax impact of adjustments | 780 | -- | 505 | -- |
| Adjusted Net income | $ 13,067 | $ 13,936 | $ 18,044 | $ 21,497 |
| Adjusted Net income per common share: | ||||
| Basic | $ 0.64 | $ 0.69 | $ 0.88 | $ 1.08 |
| Diluted | $ 0.62 | $ 0.66 | $ 0.85 | $ 1.03 |
| Adjusted EBITDA: | ||||
| Operating income ("EBIT") | $ 23,881 | $ 23,040 | $ 31,986 | $ 35,864 |
| Non-routine revaluation contingent consideration | (2,138) | -- | (2,138) | -- |
| Non-routine severance costs | -- | -- | 742 | -- |
| Adjusted EBIT | 21,743 | 23,040 | 30,590 | 35,864 |
| Depreciation and amortization | 5,308 | 5,081 | 10,691 | 9,654 |
| Non-cash share-based compensation costs | 1,340 | 1,237 | 2,210 | 2,120 |
| Adjusted EBITDA | $ 28,391 | $ 29,358 | $ 43,491 | $ 47,638 |
| Segment Data: | ||||
| Revenues: | ||||
| IHT | $ 109,427 | $ 108,935 | $ 205,260 | $ 191,145 |
| MS | 70,987 | 76,171 | 136,756 | 141,498 |
| Quest | 20,079 | 15,542 | 32,788 | 29,497 |
| $ 200,493 | $ 200,648 | $ 374,804 | $ 362,140 | |
| Adjusted EBIT: | ||||
| IHT | $ 15,562 | $ 16,313 | $ 25,745 | $ 25,972 |
| MS | 7,380 | 10,459 | 14,181 | 17,703 |
| Quest | 5,512 | 2,985 | 4,816 | 6,006 |
| Corporate and shared support | (6,711) | (6,717) | (14,152) | (13,817) |
| $ 21,743 | $ 23,040 | $ 30,590 | $ 35,864 | |
| Revenues by Service Type: | ||||
| Inspection and assessment | $ 109,483 | $ 98,275 | $ 198,069 | $ 176,317 |
| Turnaround | 50,562 | 66,746 | 96,204 | 116,008 |
| On-stream services | 40,448 | 35,627 | 80,531 | 69,815 |
| $ 200,493 | $ 200,648 | $ 374,804 | $ 362,140 | |
| TEAM, INC. AND SUBSIDIARIES | ||
| SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION | ||
| NOVEMBER 30, 2013 AND MAY 31, 2013 | ||
| (in thousands) | ||
| November 30, | May 31, | |
| 2013 | 2013 | |
| (unaudited) | ||
| Current assets | $ 259,083 | $ 246,918 |
| Property, plant and equipment, net | 79,728 | 74,939 |
| Other non-current assets | 149,155 | 138,346 |
| Total assets | $ 487,966 | $ 460,203 |
| Current liabilities | $ 71,587 | $ 72,804 |
| Long term debt net of current maturities | 91,708 | 72,946 |
| Other non-current liabilities | 23,696 | 22,263 |
| Stockholders' equity | 300,975 | 292,190 |
| Total liabilities and stockholders' equity | $ 487,966 | $ 460,203 |
| TEAM, INC. AND SUBSIDIARIES | ||
| SUMMARY CONSOLIDATED CASH FLOW INFORMATION | ||
| NOVEMBER 30, 2013 AND NOVEMBER 30, 2012 | ||
| (in thousands) | ||
| Six Months Ended | ||
| November 30, | ||
| 2013 | 2012 | |
| (unaudited) | (unaudited) | |
| Net income | $ 19,074 | $ 21,672 |
| Depreciation, amortization and non-cash share based compensation expense | 12,901 | 11,774 |
| Gain on contingent consideration revaluation | (2,138) | -- |
| Working capital changes | (12,819) | (15,198) |
| Other items affecting operating cash flow | 3,200 | 1,471 |
| Net cash provided by operating activities | $ 20,218 | $ 19,719 |
| Capital expenditures | (13,619) | (12,654) |
| Cash used for business acquisitions, net | (10,175) | (18,144) |
| Other items affecting investing cash flow | 207 | (8) |
| Net cash used in investing activities | ($23,587) | ($30,806) |
| Borrowings of debt, net | 18,000 | 19,000 |
| Repurchases of common stock | (13,334) | -- |
| Cash associated with share-based payment arrangements, net | 974 | 3,874 |
| Net cash provided by financing activities | $5,640 | $22,874 |
| Effect of exchange rate changes | 159 | 221 |
| Change in cash and cash equivalents | $ 2,430 | $ 12,008 |