Team, Inc. Reports First Quarter 2024 Results
Team (NYSE: TISI) reported its Q1 2024 financial results. Revenue was $199.6M, down from $202.3M the previous year. Despite this, the gross margin improved to 24.4%. The net loss was reduced to $17.2M, a $7.5M improvement from Q1 2023. Adjusted EBITDA grew by 54.7% to $6.5M.
Notable achievements include a $19.6M increase in cash flow from operations and a reduction in adjusted SG&A expenses by $0.8M. The company also completed a commercial review and set a revenue growth plan, projecting full-year Adjusted EBITDA of $58M-$68M. Challenges included revenue declines in Inspection and Heat Treating services and Mechanical Services.
- Gross margin improved to 24.4%, up 120 basis points.
- Net loss reduced to $17.2M from $24.7M in Q1 2023.
- Adjusted EBITDA increased by 54.7% to $6.5M.
- Cash flow from operations improved by $19.6M.
- Adjusted SG&A expenses reduced by $0.8M.
- Completed a commercial review and established growth plans.
- Projected full-year Adjusted EBITDA of $58M-$68M.
- Revenue decreased by $2.7M to $199.6M.
- Inspection and Heat Treating revenue declined by $2.4M.
- Mechanical Services revenue fell by $0.3M.
- Net debt remains high at $283M.
- First quarter operating loss of $6.4M.
Insights
Team, Inc. (NYSE: TISI) has presented a mix of improvements and setbacks in its first quarter 2024 financial results. The company reported revenues of
However, the company has shown significant improvement in other key financial metrics. Notably, the gross margin improved by
Net loss also narrowed to
Looking ahead, Team, Inc. provided an optimistic Adjusted EBITDA guidance of
Key Takeaway for Investors: While the revenue decline may be a concern, the significant improvements in margins, EBITDA and cost efficiency could indicate a positive trajectory for future profitability. However, the substantial debt level (
The financial performance of Team, Inc. in Q1 2024 shows a company that is taking significant strides in improving its operational efficiency and profitability. The focus on cost structure optimization and expansion into high-growth markets such as aerospace and renewable energy aligns well with broader industry trends towards diversification and sustainability.
The improving margins and substantial increase in Adjusted EBITDA are particularly noteworthy. These reflect not only internal efficiencies but also possibly a more favorable market environment. This improvement, even in what is described as their slowest period, suggests strong potential for more robust performance in subsequent quarters.
However, the minor revenue decline indicates that market conditions or competitive pressures may still pose challenges. The company’s efforts to capture market share in both core and adjacent markets could be critical to reversing this trend.
Strategic Insight: For retail investors, the company’s strategic initiatives and focus on market expansion could provide long-term growth opportunities. However, it is essential to keep an eye on how effectively these initiatives are being executed, especially given the competitive nature of the industrial services market.
The first quarter results of Team, Inc. reveal some positive movements, yet the debt situation remains a significant point of caution. The company’s total debt stands at
This level of debt could pose risks, especially if the company encounters any unforeseen financial downturns or operational challenges. Investors should note that while operational efficiencies and margin improvements are positive, the high debt levels must be managed carefully to avoid liquidity crises.
Credit Perspective: Retail investors should be aware that although the company is showing signs of financial health improvement, the significant debt load could impact future financial flexibility and potentially affect shareholder value if not managed prudently. Ongoing attention to cash flow and debt reduction should be key considerations.
SUGAR LAND, Texas, May 14, 2024 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), 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, today reported its financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Highlights:
- Announced first quarter 2024 revenues of
$199.6 million . - Improved gross margin by 120 basis points to
24.4% as compared to23.2% in the 2023 first quarter. - Reported first quarter 2024 net loss of
$17.2 million , a$7.5 million improvement over the 2023 first quarter net loss of$24.7 million . - Grew consolidated Adjusted EBITDA1 to
$6.5 million (3.3% of consolidated revenue), an increase of54.7% from$4.2 million (2.1% of consolidated revenue) in the 2023 first quarter. - Reduced Adjusted Selling, General and Administrative Expense1 by
$0.8 million , as compared to the 2023 first quarter. - Provided cash flow from operations of
$1.9 million , an increase of$19.6 million as compared to the 2023 first quarter. - Completed a comprehensive commercial review and established near-term and long-term revenue growth plan.
- Released full year 2024 Adjusted EBITDA guidance of
$58 million to$68 million .
1 See the accompanying reconciliation of non-GAAP financial measures at the end of this press release.
“Our first quarter results demonstrate tangible progress in our ongoing program to lower our cost structure and increase margins. In the first quarter, we improved our gross margin to
“For the past 18 months, we focused on expanding our margins and cash flow from operations by optimizing our cost structure and improving operational efficiency, and while that remains a key ongoing priority, we also see opportunities to grow our market share in both our current and adjacent end markets. With the completion of our comprehensive commercial review performed over the last several months, we identified a number of opportunities to leverage our technical expertise into high-growth and attractive margin service lines and end markets. As a result, in the first quarter of 2024, we launched a set of targeted commercial initiatives designed to achieve mid to high single digit revenue growth within our core markets, while also accelerating our expansion into attractive adjacent markets such as aerospace and renewable energy. We believe these initiatives, together with our ongoing commitment to improving cost efficiency, should further strengthen our financial position and enhance shareholder value,” commented Tucker.
“Looking to the second quarter, we believe the strong activity levels across both of our segments, coupled with our continued focus on cost optimization, will drive improved margins and cash flow compared to last year’s second quarter. Furthermore, we anticipate this strength to continue into the second half of the year and as such, our full year 2024 Adjusted EBITDA guidance of
“Finally, on Tuesday, May 21, we will present an updated investor presentation that discusses our first quarter results and our longer-term strategic and financial objectives designed to further unlock the intrinsic value of TEAM,” concluded Tucker.
Financial Results
First quarter revenues were down
Selling, general and administrative expenses for the first quarter were
Net loss in the first quarter of 2024 was
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 quarter ended March 31, 2024 and 2023 (in thousands):
| TEAM, INC. AND SUBSIDIARIES | |||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||
| (unaudited, in thousands) | |||||||||||||||
| Three Months Ended March 31, | Better (Worse) | ||||||||||||||
| 2024 | 2023 | $ | % | ||||||||||||
| Revenues | |||||||||||||||
| IHT | $ | 99,448 | $ | 101,829 | $ | (2,381 | ) | (2.3 | )% | ||||||
| MS | 100,152 | 100,448 | (296 | ) | (0.3 | )% | |||||||||
| $ | 199,600 | $ | 202,277 | $ | (2,677 | ) | (1.3 | )% | |||||||
| Operating income (loss) | |||||||||||||||
| IHT | $ | 5,185 | $ | 4,723 | $ | 462 | 9.8 | % | |||||||
| MS | 4,091 | 3,193 | 898 | 28.1 | % | ||||||||||
| Corporate and shared support services | (15,662 | ) | (15,662 | ) | — | — | % | ||||||||
| $ | (6,386 | ) | $ | (7,746 | ) | $ | 1,360 | 17.6 | % | ||||||
Revenues. IHT revenues decreased by
Operating income (loss). IHT’s first quarter 2024 operating income increased by
Balance Sheet and Liquidity
At March 31, 2024, the Company had
At May 10, 2024, the Company had
The Company’s total debt as of March 31, 2024 was
2024 Outlook
For fiscal year 2024, the Company has provided the following operating and cash flow guidance:
- Total Company Revenue of
$850 million to$900 million - Gross Margin of between
$235 million and$265 million - Adjusted EBITDA of between
$58 million and$68 million - Capital expenditures of between
$9 million to$11 million
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 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; 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 | ||||||||
| (unaudited, in thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | $ | 199,600 | $ | 202,277 | ||||
| Operating expenses | 150,869 | 155,275 | ||||||
| Gross margin | 48,731 | 47,002 | ||||||
| Selling, general, and administrative expenses | 55,117 | 54,748 | ||||||
| Operating loss | (6,386 | ) | (7,746 | ) | ||||
| Interest expense, net | (12,098 | ) | (16,741 | ) | ||||
| Other income, net | 1,362 | 635 | ||||||
| Loss before income taxes | (17,122 | ) | (23,852 | ) | ||||
| Provision for income taxes | (73 | ) | (859 | ) | ||||
| Net loss | $ | (17,195 | ) | $ | (24,711 | ) | ||
| Loss per common share: | ||||||||
| Basic and Diluted | $ | (3.89 | ) | $ | (5.69 | ) | ||
| Weighted-average number of shares outstanding: | ||||||||
| Basic and Diluted | 4,415 | 4,344 | ||||||
| TEAM, INC. AND SUBSIDIARIES | |||||||
| SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION | |||||||
| (in thousands) | |||||||
| March 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| Cash and cash equivalents | $ | 24,190 | $ | 35,427 | |||
| Other current assets | 274,012 | 286,674 | |||||
| Property, plant, and equipment, net | 123,137 | 127,057 | |||||
| Other non-current assets | 114,144 | 116,586 | |||||
| Total assets | $ | 535,483 | $ | 565,744 | |||
| Current portion of long-term debt and finance lease obligations | $ | 7,123 | $ | 5,212 | |||
| Other current liabilities | 163,883 | 169,726 | |||||
| Long-term debt and finance lease obligations, net of current maturities | 300,038 | 306,214 | |||||
| Other non-current liabilities | 38,148 | 38,996 | |||||
| Shareholders’ equity | 26,291 | 45,596 | |||||
| Total liabilities and shareholders’ equity | $ | 535,483 | $ | 565,744 | |||
| TEAM INC. AND SUBSIDIARIES | ||||||||
| SUMMARY CONSOLIDATED CASH FLOW INFORMATION | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net loss | $ | (17,195 | ) | $ | (24,711 | ) | ||
| Depreciation and amortization expense | 9,640 | 9,546 | ||||||
| Amortization of debt issuance costs, debt discounts and deferred financing costs | 1,975 | 8,486 | ||||||
| Deferred income taxes | (626 | ) | (37 | ) | ||||
| Non-cash compensation cost | 665 | 382 | ||||||
| Working Capital and Other | 7,427 | (11,429 | ) | |||||
| Net cash provided by (used in) operating activities | 1,886 | (17,763 | ) | |||||
| Capital expenditures | (3,016 | ) | (2,692 | ) | ||||
| Proceeds from disposal of assets | — | 332 | ||||||
| Net cash used in investing activities | (3,016 | ) | (2,360 | ) | ||||
| Borrowings (payments) under ABL Facilities, net | (9,909 | ) | (6,001 | ) | ||||
| Payments under ME/RE Loans, net | (711 | ) | — | |||||
| Payments under Corre Incremental Term Loans | (356 | ) | — | |||||
| Payments for debt issuance costs | (1,400 | ) | — | |||||
| Other | 2,542 | (235 | ) | |||||
| Net cash used in financing activities | (9,834 | ) | (6,236 | ) | ||||
| Effect of exchange rate changes | (273 | ) | 153 | |||||
| Net change in cash and cash equivalents | $ | (11,237 | ) | $ | (26,206 | ) | ||
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| SEGMENT INFORMATION | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | ||||||||
| IHT | $ | 99,448 | $ | 101,829 | ||||
| MS | 100,152 | 100,448 | ||||||
| $ | 199,600 | $ | 202,277 | |||||
| Operating income (loss) | ||||||||
| IHT | $ | 5,185 | $ | 4,723 | ||||
| MS | 4,091 | 3,193 | ||||||
| Corporate and shared support services | (15,662 | ) | (15,662 | ) | ||||
| $ | (6,386 | ) | $ | (7,746 | ) | |||
| Segment Adjusted EBIT1 | ||||||||
| IHT | $ | 5,320 | $ | 4,763 | ||||
| MS | 4,498 | 3,469 | ||||||
| Corporate and shared support services | (13,616 | ) | (13,953 | ) | ||||
| $ | (3,798 | ) | $ | (5,721 | ) | |||
| Segment Adjusted EBITDA1 | ||||||||
| IHT | $ | 8,349 | $ | 7,817 | ||||
| MS | 9,147 | 8,222 | ||||||
| Corporate and shared support services | (10,989 | ) | (11,832 | ) | ||||
| $ | 6,507 | $ | 4,207 | |||||
___________________
1 See the accompanying reconciliation of non-GAAP financial measures at the end of this earnings release.
| 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 share; earnings before interest and taxes (“EBIT”); Adjusted EBIT (defined below); adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), free cash flow and net debt to supplement financial information presented on a GAAP basis.
The Company defines adjusted net income (loss) and adjusted net income (loss) per share to exclude the following items: non-routine legal costs and settlements, non-routine professional fees, (gain) loss on debt extinguishment, certain severance charges, non-routine write off of assets 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, pension credit, 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 non-routine legal costs and settlements, non-routine professional fees, certain severance 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. Adjusted Selling, General and Administrative Expense is defined to exclude non-routine legal costs and settlements, non-routine professional fees, certain severance charges, certain other items that we believe are not indicative of core operating activities and non-cash expenses such as depreciation and amortization and non-cash compensation. 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 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 are 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, | ||||||||
| 2024 | 2023 | |||||||
| Adjusted Net Loss: | ||||||||
| Net loss | $ | (17,195 | ) | $ | (24,711 | ) | ||
| Professional fees and other1 | 2,081 | 1,721 | ||||||
| Legal costs | 82 | — | ||||||
| Severance charges, net2 | 425 | 305 | ||||||
| Tax impact of adjustments and other net tax items3 | (112 | ) | (78 | ) | ||||
| Adjusted Net Loss | $ | (14,719 | ) | $ | (22,763 | ) | ||
| Adjusted Net Loss per common share: | ||||||||
| Basic and Diluted | $ | (3.33 | ) | $ | (5.24 | ) | ||
| Consolidated Adjusted EBIT and Adjusted EBITDA: | ||||||||
| Net loss | $ | (17,195 | ) | $ | (24,711 | ) | ||
| Provision for income taxes | 73 | 859 | ||||||
| Gain on equipment sale | (10 | ) | (303 | ) | ||||
| Interest expense, net | 12,098 | 16,741 | ||||||
| Professional fees and other1 | 2,081 | 1,721 | ||||||
| Legal costs | 82 | — | ||||||
| Severance charges, net2 | 425 | 305 | ||||||
| Foreign currency gain | (1,239 | ) | (177 | ) | ||||
| Pension credit4 | (113 | ) | (156 | ) | ||||
| Consolidated Adjusted EBIT | (3,798 | ) | (5,721 | ) | ||||
| Depreciation and amortization | ||||||||
| Amount included in operating expenses | 3,583 | 3,719 | ||||||
| Amount included in SG&A expenses | 6,057 | 5,827 | ||||||
| Total depreciation and amortization | 9,640 | 9,546 | ||||||
| Non-cash share-based compensation costs | 665 | 382 | ||||||
| Consolidated Adjusted EBITDA | $ | 6,507 | $ | 4,207 | ||||
| Free Cash Flow: | ||||||||
| Cash provided by (used in) operating activities | $ | 1,886 | $ | (17,763 | ) | |||
| Capital expenditures | (3,016 | ) | (2,692 | ) | ||||
| Free Cash Flow | $ | (1,130 | ) | $ | (20,455 | ) | ||
____________________________________
| 1 | For the three months ended March 31, 2024, includes | |
| 2 | Represents customary severance costs associated with staff reductions. | |
| 3 | Represents the tax effect of the adjustments. | |
| 4 | Represents pension credits 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 was frozen in 1994 and no new participants have been added since that date. | |
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Segment Adjusted EBIT and Adjusted EBITDA: | ||||||||
| IHT | ||||||||
| Operating income | $ | 5,185 | $ | 4,723 | ||||
| Severance charges, net1 | 95 | 40 | ||||||
| Professional fees and other2 | 40 | — | ||||||
| Adjusted EBIT | 5,320 | 4,763 | ||||||
| Depreciation and amortization | 3,029 | 3,054 | ||||||
| Adjusted EBITDA | $ | 8,349 | $ | 7,817 | ||||
| MS | ||||||||
| Operating income | $ | 4,091 | $ | 3,193 | ||||
| Severance charges, net1 | 325 | 256 | ||||||
| Professional fees and other2 | 82 | 20 | ||||||
| Adjusted EBIT | 4,498 | 3,469 | ||||||
| Depreciation and amortization | 4,649 | 4,753 | ||||||
| Adjusted EBITDA | $ | 9,147 | $ | 8,222 | ||||
| Corporate and shared support services | ||||||||
| Net loss | $ | (26,471 | ) | $ | (32,627 | ) | ||
| Provision for income taxes | 73 | 859 | ||||||
| Gain on equipment sale | (10 | ) | (303 | ) | ||||
| Interest expense, net | 12,098 | 16,741 | ||||||
| Foreign currency gain | (1,239 | ) | (177 | ) | ||||
| Pension credit3 | (113 | ) | (156 | ) | ||||
| Professional fees and other2 | 1,959 | 1,701 | ||||||
| Legal costs | 82 | — | ||||||
| Severance charges, net1 | 5 | 9 | ||||||
| Adjusted EBIT | (13,616 | ) | (13,953 | ) | ||||
| Depreciation and amortization | 1,962 | 1,739 | ||||||
| Non-cash share-based compensation costs | 665 | 382 | ||||||
| Adjusted EBITDA | $ | (10,989 | ) | $ | (11,832 | ) | ||
___________________
| 1 | Represents customary severance costs associated with staff reductions | |
| 2 | For the three months ended March 31, 2024, includes | |
| 3 | Represents pension credits 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 was frozen in 1994 and no new participants have been added since that date. | |
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Selling, general, and administrative expenses | $ | 55,117 | $ | 54,748 | ||||
| Less: | ||||||||
| Depreciation and Amortization in SG&A expenses | 6,057 | 5,827 | ||||||
| Non-cash share-based compensation costs | 665 | 382 | ||||||
| Professional fees and other1 | 2,081 | 1,721 | ||||||
| Legal costs | 82 | — | ||||||
| Severance charges included in SG&A expenses | 425 | 220 | ||||||
| Total non-cash/non-recurring items | 9,310 | 8,150 | ||||||
| Adjusted Selling, General and Administrative Expense | $ | 45,807 | $ | 46,598 | ||||
___________________
| 1 | For the three months ended March 31, 2024, includes | |
FAQ
What were Team's Q1 2024 revenues?
How did Team's gross margin change in Q1 2024?
What was Team's net loss for Q1 2024?
How much did Team's Adjusted EBITDA increase in Q1 2024?
What is Team's full-year 2024 Adjusted EBITDA guidance?
What were the significant challenges Team faced in Q1 2024?
How much did Team's cash flow from operations improve in Q1 2024?
