Team, Inc. Reports Record Second Quarter Fiscal Year 2015 Results

SUGAR LAND, Texas, Jan. 6, 2015 (GLOBE NEWSWIRE) -- Team, Inc. TISI today announced record financial results for the second quarter ending November 30, 2014 of fiscal year 2015. Team reported earnings of $17.4 million ($0.80 per diluted share), versus adjusted earnings of $13.1 million ($0.62 per diluted share) for the prior year quarter. Revenues for the current year quarter were $240.6 million, a 20% increase compared to revenues of $200.5 million for the prior year quarter. (There were no non-routine adjustments in the current quarter. Adjusted earnings in the prior year quarter excludes $1.4 million (net of tax), or $0.06 per share, of non-routine revaluation gain recognized in the prior year quarter).

Year-to-date revenues were $428.7 million, a 14% increase compared to revenues of $374.8 million for the prior year. Year-to-date adjusted earnings were $24.5 million ($1.12 per diluted share), versus adjusted earnings of $18.0 million ($0.85 per diluted share) for the prior year. (Adjusted earnings in the prior year excludes $0.9 million (net of tax), or $0.04 per share, of non-routine items recognized in the prior year).

"We are very pleased with our excellent second quarter performance. Record revenues coupled with solid service execution across all three of our business segments led to a 33% increase in adjusted earnings over last year," said Ted Owen, Team's President and Chief Executive Officer."With our strong year-to-date results and continued positive momentum across all of our business segments, we remain on-track to achieving our full year earnings budget of $2.00 per diluted share."

Second Quarter Highlights

• Record revenues ($241 million) and earnings ($0.80 per diluted share).
• Revenues up 20% in the quarter and 14% year to date.
• Adjusted earnings before interest and taxes ("Adjusted EBIT") of $28.7 million for the quarter and $40.7 million year to date -- up 32% for the current quarter and up 33% year to date.
• Adjusted EBIT margin of 11.9% in the quarter and 9.5% year to date -- a full percentage point improvement for both the quarter and year-to-date periods.
• Operating leverage (defined as the change in Adjusted EBIT divided by the change in revenue) of 17% in the current quarter and 19% year to date.
• Adjusted EBITDA (Adjusted EBIT plus depreciation, amortization and non-cash compensation expenses) of $35.8 million in the quarter (up 26%) and $54.3 million for the year to date (up 25%).
• Trailing twelve month ("TTM") Adjusted EBITDA of $89 million -- an 11% margin on TTM revenues of $803 million.
• All 3 business segments posted record revenues and double digit growth in the current quarter:
  • Inspection & Heat Treating ("IHT") revenues of $134.1 million; up 23% over last year's quarter.
  • Mechanical Services ("MS") revenues of $84.2 million, up 19% over last year's quarter.
  • Quest Integrity revenues of $22.3 million, up 11% over last year's quarter.
• Net debt of $44 million ($85 million debt less $41 million cash). Net debt to TTM Adjusted EBITDA of 0.50 to 1.
• Year-to-date capital expenditures of $11.4 million; including $3.7 million associated with the development of a new ERP system.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Wednesday, January 7, 2015 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 866-318-8612 and use conference code 69427848 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.