Team, Inc. Receives Continued Listing Standard Notice From NYSE

Rhea-AI Summary

Team, Inc. (TISI) received a notice from the NYSE stating non-compliance with listing standards due to low market capitalization and shareholders' equity. The company plans to submit a compliance plan within 45 days to rectify the situation.

Positive

• None.

Negative

• The company's non-compliance with NYSE listing standards poses a risk to its continued listing on the exchange, potentially impacting investor confidence and share value.

Insights

Financial Analyst

Team, Inc.'s notification from the NYSE regarding non-compliance with continued listing standards due to market capitalization and shareholders' equity deficiencies is a significant red flag for investors and stakeholders. Market capitalization is a critical measure of a company's value as perceived by the stock market and is calculated by multiplying the current stock price by the number of outstanding shares. A drop below $50 million over a sustained period indicates waning investor confidence and potential liquidity issues. Shareholders' equity represents the net value of a company and is a gauge of its financial health. Falling below the $50 million threshold can signal to investors that the company's assets are not sufficient to cover its liabilities in the long term.

The company's plan to regain compliance is a key aspect to monitor. The success of such a plan could stabilize the stock and potentially restore investor confidence. However, failure to do so may result in delisting, which would likely reduce the stock's liquidity and visibility, potentially leading to a decline in share value. Investors should closely watch the company's strategic decisions during this period, as they will be critical in determining the future financial health and stock performance of Team, Inc.

Market Research Analyst

When assessing the broader implications of Team, Inc.'s situation, it's important to consider industry benchmarks. Typically, companies in a similar market tier strive to maintain compliance with listing standards to ensure investor trust and access to capital markets. A failure to meet these standards can result in a negative perception of the company's stability and growth prospects, which can, in turn, affect its competitive position.

Furthermore, the stock's continued trading on the NYSE provides a temporary reprieve, allowing the management to explore strategic options such as raising capital, restructuring, or seeking mergers and acquisitions to bolster financials. The company's ability to navigate this challenge will be indicative of management's strategic acumen and could influence investor sentiment across the sector. The outcome will also provide insights into the effectiveness of the NYSE's regulatory mechanisms in maintaining market order and investor confidence.

Legal Expert

From a legal standpoint, the Notice from the NYSE does not constitute a breach of Team, Inc.'s material debt or other contractual agreements. This is a important distinction for the company's immediate operational future. However, the potential ramifications of non-compliance, should the company fail to regain its standing, include more stringent financial covenants, higher borrowing costs, or difficulties in securing future financing. The company's proactive communication with the NYSE and its intention to submit a compliance plan are positive steps, but the uncertainty of approval adds an element of risk.

Investors should be aware that while the Notice does not affect the immediate trading of Team, Inc.'s shares, the long-term consequences of non-compliance could be substantial. The company's legal team will likely be evaluating all options to protect shareholder interests, including potential equity offerings, asset sales, or other financial instruments to improve the balance sheet. The legal intricacies of such maneuvers require careful scrutiny to ensure they align with shareholder interests and regulatory requirements.

SUGAR LAND, Texas, March 15, 2024 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) ("TEAM" or the "Company") today announced that on March 14, 2024, it received notice (the "Notice") from the New York Stock Exchange (“NYSE”) that it is not in compliance with the NYSE continued listing standards set forth in Section 802.01B of the NYSE's Listed Company Manual due to the fact that the Company's average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its shareholders' equity was less than $50 million.

In accordance with NYSE procedures, the Company intends to notify the NYSE that it plans to submit a plan within 45 days of receipt of the Notice advising the NYSE of definitive action it has taken, or is taking, to bring it into compliance with Section 802.01B within 12 months of receipt of the Notice. Any plan submitted by the Company to regain compliance would be subject to NYSE approval.

The Notice has no immediate impact on the listing of the Company's common stock, which will continue to trade on the NYSE during the applicable cure period, and does not result in a default under the Company's material debt or other agreements. The Company is considering all available options to regain compliance with the NYSE continued listing standards. The Company can provide no assurances that it will be able to satisfy any of the steps outlined above and maintain the listing of its shares on the NYSE.

About Team, Inc.

Headquartered in Sugar Land, Texas, Team, Inc. (NYSE: TISI) is a global, leading provider of specialty industrial services offering clients 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 client’s most critical assets. Through locations in 15 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 facility, or maintain its compliance with covenants under its credit facility and debt agreement; 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; the Company’s 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 NYSE; 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. The Company assumes 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

FAQ

Why did Team, Inc. (TISI) receive a notice from the NYSE?

Team, Inc. received a notice from the NYSE due to non-compliance with listing standards related to low market capitalization and shareholders' equity.

What action is Team, Inc. (TISI) planning to take in response to the notice?

Team, Inc. plans to submit a compliance plan within 45 days to the NYSE outlining steps to bring it into compliance within 12 months.

Will Team, Inc. (TISI) face immediate consequences due to the notice?

The notice does not impact the listing of the company's common stock immediately, allowing it to trade on the NYSE during the cure period.

What are the potential risks for Team, Inc. (TISI) if it fails to regain compliance with NYSE standards?

Failure to regain compliance with NYSE standards could lead to the delisting of the company's shares, affecting investor confidence and share value.