Team, Inc. Reports Second Quarter 2022 Results
Team, Inc. (TISI) reported a 5.2% increase in Q2 2022 revenue, totaling $251.3 million, driven by strong performance in the Quest Integrity and Mechanical Services segments. Gross margin rose to $70 million (27.8% of revenue), with Adjusted EBITDA up 57% to $14.3 million. However, the company faced a net loss of $21.6 million. A strategic sale of the Quest Integrity business to Baker Hughes for $280 million is anticipated to enhance liquidity and reduce debt, marking a significant step in the company’s transformation plan.
- 5.2% revenue increase year-over-year, reaching $251.3 million.
- Gross margin improved to $70 million, up 7.2 million from the prior year.
- Adjusted EBITDA rose 57% to $14.3 million.
- Quest Integrity revenue grew 22.6%, contributing to overall performance.
- Strategic sale of Quest Integrity to Baker Hughes for $280 million expected to strengthen balance sheet and improve liquidity.
- GAAP net loss of $21.6 million, compared to a $17.5 million loss in Q2 2021.
- IHT segment experienced a 2.8% revenue decline due to project delays.
- Increased selling, general, and administrative expenses by 6.2% to $72.7 million.
Consolidated revenue increased
Announced strategic sale of Quest Integrity Business to Baker Hughes
SUGAR LAND, Texas, Aug. 15, 2022 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a global leading provider of integrated, digitally-enabled asset performance assurance and optimization solutions, today reported its financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial and Operational Results:
- Second quarter 2022 revenues were
$251.3 million , an increase of5.2% over the prior year quarter - Gross margin was
$70.0 million (27.8% of revenues), up$7.2 million from$62.8 million (26.3% of revenues) in Q2 2021 - GAAP net loss was
$21.6 million - Consolidated Adjusted EBITDA was
$14.3 million , up57% as compared to$9.1 million in the 2021 period; and - Announced strategic sale of Quest Integrity Business to Baker Hughes for
$280 million cash, before customary post-closing adjustments.
“Our second quarter results reflected the underlying strength of the business with revenue in the Quest Integrity and Mechanical Services (MS) segments exceeding the prior year quarter by
“During the quarter, we continued our ongoing examination of our cost structure and took steps to lower costs in order to improve margins and cash flow while maintaining our ability to safely deliver world class service to our customers. We expect the impact of these actions will begin to be realized in the third quarter.
“As announced earlier today, after a thorough assessment of the Company’s portfolio, our Board of Directors determined selling Quest Integrity would be a key step in our plan to strengthen our balance sheet and is in the best interests of our shareholders. The Quest Integrity sale is an important step in our transformation plan and allows the Company to make a substantial debt paydown, improve liquidity, and focus on its core IHT and MS businesses.
“Looking ahead, we will focus on refining and accelerating the execution of our go forward plan, including addressing our capital structure and driving additional financial and operational improvements, while continuing to invest in opportunities to capitalize on the Company’s extensive capabilities to grow our revenue in our IHT and MS segments. Following the close of the Quest transaction, which is expected by the end of this year, we anticipate being in a position to present our longer-term commercial, operational and balance sheet improvement plans in greater detail,” concluded Tucker.
Financial Results
Consolidated revenue for the second quarter of 2022 was
Selling general and administrative expenses for the second quarter of 2022 was
Consolidated net loss in the second quarter of 2022 was
Second quarter 2022 reported results include certain net charges not indicative of TEAM’s core operating activities, including:
Adjusted net loss, consolidated Adjusted EBIT, and consolidated 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 presented 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 quarters ended June 30, 2022 and 2021 (in thousands):
Three Months Ended June 30, | Increase (Decrease) | ||||||||||||
2022 | 2021 | $ | % | ||||||||||
(unaudited) | (unaudited) | ||||||||||||
Revenues by business segment: | |||||||||||||
IHT | $ | 114,124 | $ | 117,462 | $ | (3,338 | ) | (2.8) | % | ||||
MS | 107,416 | 97,167 | 10,249 | 10.5 | % | ||||||||
Quest Integrity | 29,725 | 24,244 | 5,481 | 22.6 | % | ||||||||
Total | $ | 251,265 | $ | 238,873 | $ | 12,392 | 5.2 | % | |||||
Operating income (loss): | |||||||||||||
IHT | $ | 5,514 | 7,395 | $ | (1,881 | ) | (25.4) | % | |||||
MS | 6,984 | 2,328 | 4,656 | NM | |||||||||
Quest Integrity | 8,014 | 5,702 | 2,312 | 40.5 | % | ||||||||
Corporate and shared support services | (23,292 | ) | (21,419 | ) | (1,873 | ) | (8.7) | % | |||||
Total | $ | (2,780 | ) | $ | (5,994 | ) | $ | 3,214 | 53.6 | % |
1 NM - Not meaningful
IHT’s year-over-year revenue declined
MS’s revenue grew by
Quest Integrity’s results include a significant
Liquidity
Consolidated cash and cash equivalents were
The sale of Quest is expected to be completed in the fourth quarter of 2022, subject to customary closing conditions and regulatory approvals. The sales proceeds of
Quarterly Earnings Conference Call
The Company will not host an earnings call this quarter due to its previously announced strategic review process and ongoing execution of its operational and financial turnaround plan.
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 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. They include but are not limited to the Company’s financial prospects and the implementation of cost saving measures. Many factors 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 hire a permanent chief executive officer in the near future, if necessary; the duration and magnitude of accidents, extreme weather, natural disasters, and pandemics (such as COVID-19) and related economic effects, the Company’s liquidity and ability to obtain additional financing, 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 and COVID-19 vaccination requirements; 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 statement 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:
Christopher Robinson, CFA
Vice President, Corporate Development & Investor Relations
(281) 388-5551
TEAM, INC. AND SUBSIDIARIES | ||||||||||||||||
SUMMARY OF CONSOLIDATED OPERATING RESULTS | ||||||||||||||||
(unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues | $ | 251,265 | $ | 238,873 | $ | 469,841 | $ | 433,491 | ||||||||
Operating expenses | 181,312 | 176,109 | 344,790 | 327,026 | ||||||||||||
Gross margin | 69,953 | 62,764 | 125,051 | 106,465 | ||||||||||||
Selling, general and administrative expenses | 72,733 | 68,478 | 144,018 | 134,602 | ||||||||||||
Restructuring and other related charges, net | — | 280 | 16 | 2,157 | ||||||||||||
Operating loss | (2,780 | ) | (5,994 | ) | (18,983 | ) | (30,294 | ) | ||||||||
Interest expense, net | (18,480 | ) | (9,598 | ) | (37,085 | ) | (18,994 | ) | ||||||||
Other income (expense) | 1,476 | (1,044 | ) | 4,178 | (1,994 | ) | ||||||||||
Loss before income taxes | (19,784 | ) | (16,636 | ) | (51,890 | ) | (51,282 | ) | ||||||||
Provision for income taxes | (1,768 | ) | (857 | ) | (2,124 | ) | (502 | ) | ||||||||
Net loss | $ | (21,552 | ) | $ | (17,493 | ) | $ | (54,014 | ) | $ | (51,784 | ) | ||||
Loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.50 | ) | $ | (0.57 | ) | $ | (1.34 | ) | $ | (1.68 | ) | ||||
Weighted-average number of shares outstanding: | ||||||||||||||||
Basic and diluted | 43,179 | 30,940 | 40,454 | 30,909 |
TEAM, INC. AND SUBSIDIARIES | |||||
SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION | |||||
(in thousands) | |||||
June 30, | December 31, | ||||
2022 | 2021 | ||||
(unaudited) | |||||
Cash and cash equivalents | $ | 67,446 | $ | 65,315 | |
Other current assets | 326,362 | 287,743 | |||
Property, plant and equipment, net | 157,039 | 161,359 | |||
Other non-current assets | 172,949 | 190,068 | |||
Total assets | $ | 723,796 | $ | 704,485 | |
Current portion of long-term debt and finance lease obligations | $ | 487,204 | $ | 669 | |
Other current liabilities | 181,553 | 183,456 | |||
Long-term debt and finance lease obligations, net of current maturities | 4,656 | 405,191 | |||
Other non-current liabilities | 49,834 | 63,302 | |||
Stockholders’ equity | 549 | 51,867 | |||
Total liabilities and stockholders’ equity | $ | 723,796 | $ | 704,485 |
TEAM INC. AND SUBSIDIARIES | ||||||||
SUMMARY CONSOLIDATED CASH FLOW INFORMATION | ||||||||
(unaudited, in thousands) | ||||||||
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Net loss | $ | (54,014 | ) | $ | (51,784 | ) | ||
Depreciation and amortization | 19,609 | 21,306 | ||||||
Allowance for credit losses | 30 | 965 | ||||||
Deferred income taxes | (357 | ) | (2,318 | ) | ||||
Non-cash compensation (credits) costs | (59 | ) | 4,468 | |||||
Write-off of deferred financing costs | 2,748 | — | ||||||
Changes in operating assets and liabilities | (38,042 | ) | (11,789 | ) | ||||
Other | 16,694 | 4,353 | ||||||
Net cash used in operating activities | (53,391 | ) | (34,799 | ) | ||||
Capital expenditures | (14,001 | ) | (9,220 | ) | ||||
Proceeds from disposal of assets | 5,119 | 49 | ||||||
Net cash used in investing activities | (8,882 | ) | (9,171 | ) | ||||
Net borrowings under ABL facilities | 66,053 | 40,300 | ||||||
Issuance of common stock | 9,696 | — | ||||||
Payments for debt issuance costs | (10,640 | ) | (2,326 | ) | ||||
Taxes paid for net share settlement of share-based awards, net | — | (102 | ) | |||||
Other | (323 | ) | (206 | ) | ||||
Net cash provided by financing activities | 64,786 | 37,666 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (382 | ) | 73 | |||||
Net change in cash and cash equivalents | $ | 2,131 | $ | (6,231 | ) | |||
TEAM, INC. AND SUBSIDIARIES | ||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenues | ||||||||||||||||
IHT | $ | 114,124 | $ | 117,462 | $ | 209,721 | $ | 208,601 | ||||||||
MS | 107,416 | 97,167 | 200,857 | 184,563 | ||||||||||||
Quest Integrity | 29,725 | 24,244 | 59,263 | 40,327 | ||||||||||||
$ | 251,265 | $ | 238,873 | $ | 469,841 | $ | 433,491 | |||||||||
Operating income (loss) (“EBIT”) | ||||||||||||||||
IHT | $ | 5,514 | $ | 7,395 | $ | 5,648 | $ | 7,759 | ||||||||
MS | 6,984 | 2,328 | 7,497 | 2,443 | ||||||||||||
Quest Integrity | 8,014 | 5,702 | 14,218 | 5,450 | ||||||||||||
Corporate and shared support services | (23,292 | ) | (21,419 | ) | (46,346 | ) | (45,946 | ) | ||||||||
$ | (2,780 | ) | $ | (5,994 | ) | $ | (18,983 | ) | $ | (30,294 | ) | |||||
Segment Adjusted EBIT | ||||||||||||||||
IHT | $ | 5,539 | $ | 7,405 | $ | 5,689 | $ | 8,244 | ||||||||
MS | 7,038 | 2,544 | 7,551 | 2,798 | ||||||||||||
Quest Integrity | 8,026 | 5,744 | 14,230 | 5,701 | ||||||||||||
Corporate and shared support services | (16,472 | ) | (19,064 | ) | (32,321 | ) | (38,746 | ) | ||||||||
$ | 4,131 | $ | (3,371 | ) | $ | (4,851 | ) | $ | (22,003 | ) | ||||||
Segment Adjusted EBITDA | ||||||||||||||||
IHT | $ | 8,635 | $ | 10,675 | $ | 12,039 | $ | 14,984 | ||||||||
MS | 11,672 | 7,587 | 17,069 | 13,280 | ||||||||||||
Quest Integrity | 8,595 | 6,454 | 15,376 | 7,123 | ||||||||||||
Corporate and shared support services | (14,628 | ) | (15,602 | ) | (29,785 | ) | (31,616 | ) | ||||||||
$ | 14,274 | $ | 9,114 | $ | 14,699 | $ | 3,771 | |||||||||
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 U.S. generally accepted accounting principles (“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 past integration and transformation program, costs associated with the Company’s new strategic organizational structure implemented in January 2021 (“Operating Group Reorganization”), non-routine legal costs and settlements, restructuring charges, certain severance charges, goodwill impairment charges 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 past integration and transformation 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 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Adjusted Net Income (Loss): | ||||||||||||||||
Net loss | $ | (21,552 | ) | $ | (17,493 | ) | $ | (54,014 | ) | $ | (51,784 | ) | ||||
Professional fees and other1 | 4,693 | 688 | 10,036 | 1,834 | ||||||||||||
Legal costs2 | 1,200 | 1,634 | 1,728 | 4,109 | ||||||||||||
Severance charges, net3 | 1,020 | 301 | 2,370 | 2,348 | ||||||||||||
Natural disaster insurance recovery | (872 | ) | — | (872 | ) | — | ||||||||||
Tax impact of adjustments and other net tax items4 | (2 | ) | (40 | ) | (6 | ) | (63 | ) | ||||||||
Adjusted net loss | $ | (15,513 | ) | $ | (14,910 | ) | $ | (40,758 | ) | $ | (43,556 | ) | ||||
Adjusted net loss per common share: | ||||||||||||||||
Basic and diluted | $ | (0.36 | ) | $ | (0.48 | ) | $ | (1.01 | ) | $ | (1.41 | ) | ||||
Consolidated Adjusted EBIT and Adjusted EBITDA: | ||||||||||||||||
Net loss | $ | (21,552 | ) | $ | (17,493 | ) | $ | (54,014 | ) | $ | (51,784 | ) | ||||
Provision (benefit) for income taxes | 1,768 | 857 | 2,124 | 502 | ||||||||||||
Gain on equipment sale | (1,170 | ) | — | (3,483 | ) | — | ||||||||||
Interest expense, net | 18,480 | 9,598 | 37,085 | 18,994 | ||||||||||||
Professional fees and other1 | 4,693 | 688 | 10,036 | 1,834 | ||||||||||||
Legal costs2 | 1,200 | 1,634 | 1,728 | 4,109 | ||||||||||||
Severance charges, net3 | 1,020 | 301 | 2,370 | 2,348 | ||||||||||||
Foreign currency (gain) loss5 | 754 | 1,218 | 569 | 2,341 | ||||||||||||
Pension credit6 | (190 | ) | (174 | ) | (393 | ) | (347 | ) | ||||||||
Natural disaster insurance recovery | (872 | ) | — | (872 | ) | — | ||||||||||
Consolidated Adjusted EBIT | $ | 4,131 | $ | (3,371 | ) | $ | (4,850 | ) | $ | (22,003 | ) | |||||
Depreciation and amortization | ||||||||||||||||
Amount included in operating expenses | 4,333 | 5,036 | 8,912 | 10,550 | ||||||||||||
Amount included in SG&A expenses | 5,245 | 5,311 | 10,697 | 10,756 | ||||||||||||
Total depreciation and amortization | 9,578 | 10,347 | 19,609 | 21,306 | ||||||||||||
Non-cash share-based compensation costs | 565 | 2,138 | (59 | ) | 4,468 | |||||||||||
Consolidated Adjusted EBITDA | $ | 14,274 | $ | 9,114 | $ | 14,700 | $ | 3,771 | ||||||||
Free Cash Flow: | ||||||||||||||||
Cash provided by (used in) operating activities | $ | (3,385 | ) | $ | (17,616 | ) | $ | (53,391 | ) | $ | (34,799 | ) | ||||
Capital expenditures | (6,933 | ) | (5,807 | ) | (14,001 | ) | (9,220 | ) | ||||||||
Free Cash Flow | $ | (10,318 | ) | $ | (23,423 | ) | $ | (67,392 | ) | $ | (44,019 | ) |
1 | For the three and six months ended June 30, 2022, includes |
2 | For the three and six months ended June 30, 2022, primarily relates to accrued legal matters. For the three and six months ended June 30, 2021, primarily relates to accrued legal matters and other legal fees. |
3 | For the three months ended June 30, 2022 includes |
4 | Represents the tax effect of the adjustments. Beginning in Q2 2021, we use the statutory tax rate, net of valuation allowance by legal entity to determine the tax effect of the adjustments. Prior to Q2 2021, we used an assumed marginal tax rate of |
5 | Represents foreign currency losses primarily due to strengthening USD against EUR, GBP, CAN and AUD. |
6 | 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 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. |
TEAM, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Segment Adjusted EBIT and Adjusted EBITDA: | ||||||||||||||||
IHT | ||||||||||||||||
Operating income | $ | 5,514 | $ | 7,395 | $ | 5,648 | $ | 7,759 | ||||||||
Severance charges, net1 | 25 | 10 | 41 | 485 | ||||||||||||
Adjusted EBIT | 5,539 | 7,405 | 5,689 | 8,244 | ||||||||||||
Depreciation and amortization | 3,096 | 3,270 | 6,350 | 6,740 | ||||||||||||
Adjusted EBITDA | $ | 8,635 | $ | 10,675 | $ | 12,039 | $ | 14,984 | ||||||||
MS | ||||||||||||||||
Operating income | $ | 6,984 | $ | 2,328 | $ | 7,497 | $ | 2,443 | ||||||||
Severance charges, net1 | 54 | 216 | 54 | 355 | ||||||||||||
Adjusted EBIT | 7,038 | 2,544 | 7,551 | 2,798 | ||||||||||||
Depreciation and amortization | 4,634 | 5,043 | 9,518 | 10,482 | ||||||||||||
Adjusted EBITDA | $ | 11,672 | $ | 7,587 | $ | 17,069 | $ | 13,280 | ||||||||
Quest Integrity | ||||||||||||||||
Operating income (loss) | $ | 8,014 | $ | 5,702 | $ | 14,218 | $ | 5,450 | ||||||||
Severance charges, net1 | 12 | 42 | 12 | 251 | ||||||||||||
Adjusted EBIT | 8,026 | 5,744 | 14,230 | 5,701 | ||||||||||||
Depreciation and amortization | 569 | 710 | 1,146 | 1,422 | ||||||||||||
Adjusted EBITDA | $ | 8,595 | $ | 6,454 | $ | 15,376 | $ | 7,123 | ||||||||
Corporate and shared support services | ||||||||||||||||
Net loss | $ | (42,031 | ) | $ | (32,918 | ) | $ | (81,398 | ) | $ | (67,436 | ) | ||||
Provision (benefit) for income taxes | 1,768 | 857 | 2,124 | 502 | ||||||||||||
Gain on equipment sale | (1,203 | ) | — | (3,463 | ) | — | ||||||||||
Interest expense, net | 18,480 | 9,598 | 37,085 | 18,994 | ||||||||||||
Foreign currency (gain) losses2 | 754 | 1,218 | 569 | 2,341 | ||||||||||||
Pension credit3 | (190 | ) | (174 | ) | (393 | ) | (347 | ) | ||||||||
Professional fees and other4 | 4,693 | 688 | 10,036 | 1,834 | ||||||||||||
Legal costs5 | 1,200 | 1,634 | 1,728 | 4,109 | ||||||||||||
Severance charges, net1 | 929 | 33 | 2,263 | 1,257 | ||||||||||||
Natural disaster insurance recovery | (872 | ) | — | (872 | ) | — | ||||||||||
Adjusted EBIT | (16,472 | ) | (19,064 | ) | (32,321 | ) | (38,746 | ) | ||||||||
Depreciation and amortization | 1,279 | 1,324 | 2,595 | 2,662 | ||||||||||||
Non-cash share-based compensation costs | 565 | 2,138 | (59 | ) | 4,468 | |||||||||||
Adjusted EBITDA | $ | (14,628 | ) | $ | (15,602 | ) | $ | (29,785 | ) | $ | (31,616 | ) |
1 | For the three months ended June 30, 2022 includes |
2 | Represents foreign currency losses primarily due to strengthening USD against EUR, GBP, CAN and AUD. |
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 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. |
4 | For the three and six months ended June 30, 2022, includes |
5 | For the three and six months ended June 30, 2022, primarily relates to accrued legal matters. For the three and six months ended June 30, 2021, primarily relates to accrued legal matters and other legal fees. |
FAQ
What were Team, Inc.'s revenue figures for Q2 2022?
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What strategic move did Team, Inc. announce in August 2022?
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