SUGAR LAND, Texas, March 07, 2017 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE:TISI) (“Team,” “we,” “our,” or the “Company”) today reported its financial results for the fourth quarter and full year ended December 31, 2016. Team reported a net loss of $9.4 million ($0.32 loss per diluted share) for the current year quarter versus net income of $5.5 million ($0.26 earnings per diluted share) for the prior year quarter. Excluding certain non-routine items, adjusted net income was $2.5 million ($0.08 adjusted earnings per diluted share) for the current quarter versus adjusted net income of $8.4 million ($0.39 adjusted earnings per diluted share) for the prior year quarter. Revenues for the current quarter increased by 25% to $319.8 million compared to revenues of $255.0 million for the prior year quarter due primarily to the Furmanite acquisition. Adjusted net income excludes certain non-routine items that are not indicative of Team’s ongoing operating activities of $11.9 million (net of tax), or $0.40 per diluted share, for the current year quarter and $2.9 million (net of tax), or $0.13 per diluted share, for the prior year quarter, as detailed in the accompanying schedule of non-GAAP items.

Among the non-routine costs incurred in the fourth quarter were $5.5 million of one-time exit costs and other related charges, primarily related to severance obligations, associated with the closure of acquired Furmanite operations in Western Europe. Those businesses had operating losses averaging $2 million annually over each of the last five years, including $1.1 million in 2016 since the date of acquisition.

Additionally, in the fourth quarter, the Company completed the sale of an acquired Furmanite process management inspection business resulting in proceeds of $14.8 million (net of selling costs), including a promissory note of $1.5 million. The operating results and disposal of this business are classified as discontinued operations in our consolidated financial statements.

Year-to-date revenues were $1.197 billion, a 29% increase compared to revenues of $926.4 million for the prior year period. Net loss was $12.7 million ($0.45 loss per diluted share) compared to net income of $25.2 million ($1.18 earnings per diluted share) for the prior year. Year-to-date adjusted net income was $12.9 million ($0.46 adjusted earnings per diluted share), versus adjusted net income of $35.6 million ($1.67 adjusted earnings per diluted share) for the prior year. Adjusted net income excludes non-routine items of $25.6 million (net of tax), or $0.91 per diluted share, for the current year period and $10.4 million (net of tax), or $0.49 per diluted share in the prior year period, as detailed in the accompanying schedule of non-GAAP items.

Commenting on the results, Ted Owen, Team’s President and Chief Executive Officer, said, “We are obviously disappointed in our results for the quarter, especially after seeing increased demand levels during our busiest fall turnaround months of September and October. We were encouraged then that the early fall activity levels were the first signs of more normalized market activity, but that did not turn out to be the case.  After the brief spike in demand for our services during the first month of the fourth quarter, demand weakened again in November and December. In spite of the soft demand in 2016, we continue to be optimistic that end markets will improve during 2017 and we are no less confident in the platform we are building as the premier industrial services company. However, until we begin to see a sustained pattern of market normalization, we will continue to withhold earnings guidance for 2017.”

Conference Call

Team, Inc. has scheduled a conference call to discuss its fourth quarter and full year 2016 results, which will be broadcast live over the Internet, on Wednesday, March 8, 2017 at 9:00 a.m. Eastern Time / 8:00 a.m. Central Time. To participate in the call, dial 847-852-4067 and ask for the Team conference call at least 10 minutes prior to the start time, or access it live over the Internet at www.teaminc.com. For those who cannot listen to the live call, a replay will be available through March 15, 2017 and may be accessed by dialing 404-537-3406 and using pass code 78574407#. Also, an archive of the webcast will be available shortly after the call at www.teaminc.com for 90 days.

About Team, Inc.

Headquartered near Houston, Texas, Team Inc. is a leading provider of specialty industrial services, including inspection, mechanical services and engineering 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 across its 220 branch locations and more than 20 countries throughout the world. Team’s common stock is traded on the New York Stock Exchange under the ticker symbol “TISI”. For more information, please visit www.teaminc.com.

Non-GAAP Financial Measures

This press release presents information about the Company’s adjusted net income and adjusted net income per share, and the Company sometimes uses adjusted EBITDA, EBIT and adjusted EBIT, which are non-GAAP financial measures provided as supplemental to the results provided in accordance with GAAP. A reconciliation of each of the foregoing historical 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.

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
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; adjusted net income per share, earnings before interest and taxes (“EBIT”); adjusted EBIT; and adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) to supplement financial information presented on a GAAP basis. Adjusted net income and adjusted net income per share, each as defined by the Company, exclude the following items from net income (loss): acquisition costs associated with business combinations, non-routine legal costs in our Quest Integrity segment associated with patent defense litigation,  professional fees for acquired business integration and changing our fiscal year end, losses on the revaluation of contingent consideration, non-capitalized ERP implementation costs, exit costs associated with the restructuring/closure of the acquired Furmanite operations in Western Europe, losses on our investment in Venezuela, certain other non-routine items and the related income tax impacts. We also exclude the income tax impacts of certain special income tax items including changes to valuation allowances in several foreign subsidiaries. The identification of these special tax items is judgmental in nature, and their calculation is based on various assumptions and estimates. EBIT, as defined by the Company, excludes discontinued operations, income tax expense, interest charges and items of other (income) expense and therefore is equal to operating income reported in accordance with GAAP. Adjusted EBIT further excludes the following items: acquisition costs associated with business combinations, non-routine legal costs in our Quest Integrity segment associated with patent defense litigation, professional fees for acquired business integration and changing our fiscal year end, losses on the revaluation of contingent consideration, non-capitalized ERP implementation costs, exit costs associated with the restructuring /closure of the acquired Furmanite operations in Western Europe and certain other non-routine items. Adjusted EBITDA further excludes from adjusted EBIT depreciation, amortization and non-cash share based compensation costs.

Management believes that excluding certain items from GAAP results allows management to better understand the consolidated financial performance from period to period and to better identify operating trends that may not otherwise be apparent. Moreover, the Company believes these non-GAAP financial measures will provide its stakeholders with useful information to help them evaluate operating performance. However, there are limitations to the use of the non-GAAP financial measures presented in this report. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies who may calculate non-GAAP financial measures differently than Team does, limiting the usefulness of those measures for comparative purposes.

The non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for net income (loss) as a measure of operating performance or to cash flows from operating activities as a measure of liquidity, prepared in accordance with GAAP, and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure are presented below. You are encouraged to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented.

* Represents the tax effect of non-routine adjustments at an assumed marginal tax rate of 37% and certain other special items and discrete items including changes to valuation allowances in several foreign subsidiaries and Internal Revenue Service audit settlements. The identification of these special tax items is judgmental in nature, and their calculation is based on various assumptions and estimates.

Contact:
Greg L. Boane
Chief Financial Officer
(281) 388-5541