Exhibit 99.1
TEAM, INC. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS
(in thousands, except per share data)
Three Months Ended | Year Ended | |||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 2015 | ||||||||||||||||
(unadited) | (unadited) | (unadited) | (unaudited) | (unaudited) | ||||||||||||||||
Revenues(a) | $ | 192,407 | $ | 235,399 | $ | 243,552 | $ | 254,998 | $ | 926,356 | ||||||||||
Operating expenses | 138,364 | 159,921 | 173,931 | 183,249 | 655,465 | |||||||||||||||
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Gross margin | 54,043 | 75,478 | 69,621 | 71,749 | 270,891 | |||||||||||||||
Selling, general and administrative expenses | 46,344 | 53,444 | 62,242 | 61,048 | 223,078 | |||||||||||||||
Equity earnings in JV | — | — | — | — | — | |||||||||||||||
Loss from revaluation of contingent consideration | — | — | 522 | — | 522 | |||||||||||||||
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Operating income | 7,699 | 22,034 | 6,857 | 10,701 | 47,291 | |||||||||||||||
Foreign currency loss / (gain) | 374 | (51 | ) | 606 | 196 | 1,125 | ||||||||||||||
Other expense / (income), net | 1,179 | (3 | ) | 8 | — | 1,184 | ||||||||||||||
Interest expense, net | 567 | 574 | 2,397 | 2,254 | 5,792 | |||||||||||||||
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Earnings before income taxes | 5,579 | 21,514 | 3,846 | 8,251 | 39,190 | |||||||||||||||
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Provision for income taxes | 2,213 | 7,446 | 1,299 | 2,786 | 13,744 | |||||||||||||||
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Net income | 3,366 | 14,068 | 2,547 | 5,465 | 25,446 | |||||||||||||||
Less: Income attributable to non-controlling interest | 60 | 153 | — | — | 213 | |||||||||||||||
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Net income available to common shareholders | $ | 3,306 | $ | 13,915 | $ | 2,547 | $ | 5,465 | $ | 25,233 | ||||||||||
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Earnings per common share: | ||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.69 | $ | 0.13 | $ | 0.26 | $ | 1.21 | ||||||||||
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Diluted | $ | 0.15 | $ | 0.65 | $ | 0.12 | $ | 0.26 | $ | 1.18 | ||||||||||
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Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 20,396 | 20,296 | 20,375 | 21,242 | 20,780 | |||||||||||||||
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Diluted | 21,592 | 21,339 | 21,445 | 21,393 | 21,378 | |||||||||||||||
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TEAM, INC. AND SUBSIDIARIES
ADDITIONAL FINANCIAL INFORMATION
(in thousands, except per share data)
Three Months Ended | Year Ended | |||||||||||||||||||
3/31/2015 | 6/30/2015 | 9/30/2015 | 12/31/2015 | 2015 | ||||||||||||||||
(unadited) | (unadited) | (unadited) | (unaudited) | (unaudited) | ||||||||||||||||
Adjusted Net Income: | ||||||||||||||||||||
Net income available to common shareholders | $ | 3,306 | $ | 13,915 | $ | 2,547 | $ | 5,465 | $ | 25,233 | ||||||||||
Non-routine revaluation contingent consideration (IHT) | — | — | 522 | — | 522 | |||||||||||||||
Non-routine acquisition costs (Corp) | — | 3,614 | 1,283 | 1,885 | 6,782 | |||||||||||||||
Non-routine foreign currency loss | 673 | — | — | — | 673 | |||||||||||||||
Non-routine Venezuela deconsolidation | 1,177 | — | — | — | 1,177 | |||||||||||||||
Non-routine legal fees (Quest) | 1,096 | 248 | 866 | 536 | 2,746 | |||||||||||||||
Non-routine EA asset write-off (MS) | 383 | — | — | — | 383 | |||||||||||||||
Non-routine ERP costs (Corp) | — | 609 | 1,182 | 1,084 | 2,875 | |||||||||||||||
Non-routine professional fees (Corp) | — | — | — | 897 | 897 | |||||||||||||||
Tax impact of adjustments | (1,321 | ) | (1,547 | ) | (1,301 | ) | (1,487 | ) | (5,656 | ) | ||||||||||
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Adjusted Net Income | 5,314 | 16,839 | 5,099 | 8,380 | $ | 35,632 | ||||||||||||||
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Adjusted Net income per common share: | ||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.83 | $ | 0.25 | $ | 0.39 | $ | 1.71 | ||||||||||
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Diluted | $ | 0.25 | $ | 0.79 | $ | 0.24 | $ | 0.39 | $ | 1.67 | ||||||||||
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Adjusted EBITDA: | ||||||||||||||||||||
Operating income (“EBIT”)(a) | $ | 7,699 | $ | 22,034 | $ | 6,857 | $ | 10,701 | $ | 47,291 | ||||||||||
Non-routine revaluation contingent consideration (IHT) | — | — | 522 | — | 522 | |||||||||||||||
Non-routine acquisition costs (Corp) | — | 3,614 | 1,283 | 1,885 | 6,782 | |||||||||||||||
Non-routine legal fees (Quest) | 1,096 | 248 | 866 | 536 | 2,746 | |||||||||||||||
Non-routine EA asset write-off (MS) | 383 | — | — | — | 383 | |||||||||||||||
Non-routine ERP costs (Corp) | — | 609 | 1,182 | 1,084 | 2,875 | |||||||||||||||
Non-routine professional fees (Corp) | — | — | — | 897 | 897 | |||||||||||||||
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Adjusted EBIT | 9,178 | 26,505 | 10,710 | 15,103 | 61,496 | |||||||||||||||
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Depreciation and amortization | 5,690 | 6,070 | 8,774 | 8,604 | 29,138 | |||||||||||||||
Non-cash share-based compensation costs | 1,286 | 1,138 | 1,620 | 1,420 | 5,464 | |||||||||||||||
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Adjusted EBITDA(a) | 16,154 | 33,713 | 21,104 | 25,127 | 96,098 | |||||||||||||||
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Segment Data | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
IHT | $ | 107,191 | $ | 130,221 | $ | 157,308 | $ | 154,587 | $ | 549,307 | ||||||||||
MS | 69,352 | 81,103 | 69,596 | 82,530 | 302,581 | |||||||||||||||
Quest | 15,864 | 24,075 | 16,648 | 17,881 | 74,468 | |||||||||||||||
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192,407 | 235,399 | 243,552 | 254,998 | 926,356 | ||||||||||||||||
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Adjusted EBIT: | ||||||||||||||||||||
IHT | $ | 10,375 | $ | 18,331 | $ | 14,908 | $ | 12,909 | $ | 56,523 | ||||||||||
MS | 4,824 | 9,451 | 3,249 | 9,023 | 26,547 | |||||||||||||||
Quest | 2,359 | 6,990 | 1,590 | 3,304 | 14,243 | |||||||||||||||
Corporate and shared support | (8,380 | ) | (8,267 | ) | (9,037 | ) | (10,133 | ) | (35,817 | ) | ||||||||||
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9,178 | 26,505 | 10,710 | 15,103 | 61,496 | ||||||||||||||||
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Adjusted EBITDA: | ||||||||||||||||||||
IHT | $ | 12,515 | $ | 20,589 | $ | 19,795 | $ | 17,821 | $ | 70,720 | ||||||||||
MS | 6,669 | 11,518 | 5,386 | 10,961 | 34,534 | |||||||||||||||
Quest | 3,794 | 8,436 | 3,052 | 4,765 | 20,047 | |||||||||||||||
Corporate and shared support | (6,824 | ) | (6,830 | ) | (7,129 | ) | (8,420 | ) | (29,203 | ) | ||||||||||
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16,154 | 33,713 | 21,104 | 25,127 | 96,098 | ||||||||||||||||
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TEAM, INC. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS
(in thousands, except per share data)
Three Months Ended | Year Ended | |||||||||||||||||||
3/31/2014 | 6/30/2014 | 9/30/2014 | 12/31/2014 | 2014 | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||
Revenues(a) | $ | 180,177 | $ | 207,741 | $ | 200,135 | $ | 225,024 | $ | 813,077 | ||||||||||
Operating expenses | 130,390 | 142,806 | 137,807 | 155,706 | 566,709 | |||||||||||||||
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Gross margin | 49,787 | 64,935 | 62,328 | 69,318 | 246,368 | |||||||||||||||
Selling, general and administrative expenses | 44,024 | 45,178 | 45,782 | 48,241 | 183,225 | |||||||||||||||
Equity earnings in JV | — | — | — | — | — | |||||||||||||||
Loss / (gain) from revaluation of contingent consideration | — | (9 | ) | — | 6 | (3 | ) | |||||||||||||
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Operating income | 5,763 | 19,766 | 16,546 | 21,071 | 63,146 | |||||||||||||||
Foreign currency loss | 1,807 | 1,965 | 402 | 724 | 4,898 | |||||||||||||||
Other expense / (income), net | — | 19 | — | (2 | ) | 17 | ||||||||||||||
Interest expense, net | 676 | 594 | 542 | 559 | 2,371 | |||||||||||||||
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Earnings before income taxes | 3,280 | 17,188 | 15,602 | 19,790 | 55,860 | |||||||||||||||
Provision for income taxes | 875 | 5,859 | 5,608 | 7,260 | 19,602 | |||||||||||||||
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Net income | 2,405 | 11,329 | 9,994 | 12,530 | 36,258 | |||||||||||||||
Less: Income attributable to non-controlling interest | 97 | 129 | 30 | 141 | 397 | |||||||||||||||
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Net income available to common shareholders | $ | 2,308 | $ | 11,200 | $ | 9,964 | $ | 12,389 | $ | 35,861 | ||||||||||
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Earnings per common share: | ||||||||||||||||||||
Basic | $ | 0.11 | $ | 0.55 | $ | 0.49 | $ | 0.60 | $ | 1.75 | ||||||||||
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Diluted | $ | 0.11 | $ | 0.53 | $ | 0.47 | $ | 0.57 | $ | 1.64 | ||||||||||
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Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 20,424 | 20,474 | 20,535 | 20,673 | 20,531 | |||||||||||||||
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Diluted | 21,234 | 21,263 | 21,299 | 21,906 | 21,898 | |||||||||||||||
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TEAM, INC. AND SUBSIDIARIES
ADDITIONAL FINANCIAL INFORMATION
(in thousands, except per share data)
Three Months Ended | Year Ended | |||||||||||||||||||
3/31/2014 | 6/30/2014 | 9/30/2014 | 12/31/2014 | 2014 | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||
Adjusted Net Income: | ||||||||||||||||||||
Net income available to common shareholders | $ | 2,308 | $ | 11,200 | $ | 9,964 | $ | 12,389 | $ | 35,861 | ||||||||||
Non-routine foreign currency loss | 1,858 | 2,104 | — | — | 3,962 | |||||||||||||||
Non-routine acquisition costs (MS) | — | — | 164 | — | 164 | |||||||||||||||
Tax impact of adjustments | (502 | ) | (715 | ) | (59 | ) | — | (1,276 | ) | |||||||||||
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Adjusted Net Income | $ | 3,664 | $ | 12,589 | $ | 10,069 | $ | 12,389 | $ | 38,711 | ||||||||||
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Adjusted Net income per common share: | ||||||||||||||||||||
Basic | $ | 0.18 | $ | 0.61 | $ | 0.49 | $ | 0.60 | $ | 1.89 | ||||||||||
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Diluted | $ | 0.17 | $ | 0.59 | $ | 0.47 | $ | 0.57 | $ | 1.77 | ||||||||||
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Adjusted EBITDA: | ||||||||||||||||||||
Operating income (“EBIT”)(a) | $ | 5,763 | $ | 19,766 | $ | 16,546 | $ | 21,071 | $ | 63,146 | ||||||||||
Non-routine acquisition costs (MS) | — | — | 164 | — | 164 | |||||||||||||||
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Adjusted EBIT | 5,763 | 19,766 | 16,710 | 21,071 | 63,310 | |||||||||||||||
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Depreciation and amortization | 5,356 | 5,483 | 5,548 | 5,688 | 22,075 | |||||||||||||||
Non-cash share-based compensation costs | 1,005 | 1,006 | 1,329 | 1,192 | 4,532 | |||||||||||||||
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Adjusted EBITDA(a) | 12,124 | 26,255 | 23,587 | 27,951 | 89,917 | |||||||||||||||
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Segment Data | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
IHT | $ | 98,264 | $ | 114,450 | $ | 114,624 | $ | 120,713 | $ | 448,051 | ||||||||||
MS | 65,012 | 74,868 | 69,560 | 84,497 | 293,937 | |||||||||||||||
Quest | 16,901 | 18,423 | 15,951 | 19,814 | 71,089 | |||||||||||||||
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$ | 180,177 | $ | 207,741 | $ | 200,135 | $ | 225,024 | $ | 813,077 | |||||||||||
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Adjusted EBIT: | ||||||||||||||||||||
IHT | $ | 7,810 | $ | 15,479 | $ | 16,038 | $ | 16,550 | $ | 55,877 | ||||||||||
MS | 2,894 | 8,924 | 7,077 | 8,540 | 27,435 | |||||||||||||||
Quest | 2,490 | 3,446 | 1,552 | 4,636 | 12,124 | |||||||||||||||
Corporate and shared support | (7,431 | ) | (8,083 | ) | (7,957 | ) | (8,655 | ) | (32,126 | ) | ||||||||||
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$ | 5,763 | $ | 19,766 | $ | 16,710 | $ | 21,071 | $ | 63,310 | |||||||||||
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Adjusted EBITDA: | ||||||||||||||||||||
IHT | $ | 9,756 | $ | 17,477 | $ | 18,055 | $ | 18,651 | 63,939 | |||||||||||
MS | 4,695 | 10,754 | 8,942 | 10,431 | 34,822 | |||||||||||||||
Quest | 3,894 | 4,855 | 2,958 | 6,065 | 17,772 | |||||||||||||||
Corporate and shared support | (6,221 | ) | (6,831 | ) | (6,368 | ) | (7,196 | ) | (26,616 | ) | ||||||||||
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$ | 12,124 | $ | 26,255 | $ | 23,587 | $ | 27,951 | $ | 89,917 | |||||||||||
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$ | — | $ | — | $ | — | $ | — | $ | — |
(a) | The following amounts relate to Venezuela operations in 2014. Venezuela was deconsolidated on February 1, 2015 (in thousands): |
Three Months Ended | Year Ended | |||||||||||||||||||
3/31/2014 | 6/30/2104 | 9/30/2014 | 12/31/2014 | 12/31/2014 | ||||||||||||||||
Revenue | 2,102 | (154 | ) | 298 | 657 | 2,903 | ||||||||||||||
EBIT | 1,001 | (19 | ) | 43 | 203 | 1,228 | ||||||||||||||
EBITDA | 1,009 | (21 | ) | 44 | 201 | 1,233 |