Exhibit 99.1
Team Inc. Reports Second Quarter Earnings and Affirms Outlook
ALVIN, Texas--(BUSINESS WIRE)--Dec. 17, 2003--Team Inc. (AMEX:TMI)
today reported net income of $.19 per share (diluted) for its second
quarter ending Nov. 30, 2003, up from $.16 per share in the prior year
second quarter. Year-to-date earnings were $.35 per share (fully
diluted basis), up from $.30 for the prior year.
For the three months ended Nov. 30, 2003, the Company reported
earnings before interest and taxes (EBIT) of $2.6 million on revenues
of $25.8 million, as compared to EBIT of $2.4 million on revenues of
$23.2 million for the same quarter of 2002. Net income for the 2003
quarter was $1.6 million, $.19 per share, compared to $1.4 million,
$.16 per share, for the same quarter of 2002. For the quarter,
revenues increased 11%, and net income increased 14%. Year-to-date
revenues were $50.7 million, up 12% from the prior year. Year-to-date
net income was $2.9 million, up 16%.
"Overall results for the quarter and year to date are in line with
our expectations," said Phil Hawk, the Company's chairman and CEO.
"Despite very difficult market conditions in both business segments,
and a significant charge related to a previously disclosed sales tax
matter, we were able to continue our double-digit growth in both
revenues and profits. We are pleased with the results of our growth
initiatives and affirm our earlier fiscal year 2004 earnings guidance
of $0.60 to $0.68 per share on a fully diluted basis," said Hawk.
Revenues for the Industrial Services Business Segment were $23.3
million and $45.6 million for the second quarter and year-to-date,
respectively, up 12% and 15% from the corresponding prior year
periods. Segment operating profits were $4.0 million for the quarter
and $7.7 million year-to-date, up 15% and 22%, respectively. Operating
profit as a percent of revenue was 17% for the quarter and for the
year. "In this very challenging market environment, we were pleased
with our continued business growth," said Phil Hawk, Team's chairman
and CEO. "Major plant turnaround projects and our new field valve
repair service line were significant contributors to our overall
growth during the quarter," reported Hawk.
The Equipment Sales and Rental Segment reported a $199,000
operating loss for the quarter, mostly due to a charge of $175,000
associated with the sales tax matter mentioned above. Revenue for the
quarter was $2.5 million, up slightly from the prior year. Year to
date, the segment reported a $294,000 loss on $5.1 million in
revenues. In addition to the sales tax matter, the unit struggled with
soft sales and a weaker sales mix than occurred in the prior year. "As
reported in the first quarter earnings release, we expect the second
half of the year to be much stronger for this unit because we expect
to ship a number of major orders received earlier this year. While
this unit has struggled during the first half of the year, we remain
confident that the business will be a positive contributor to our
overall results this year," said Hawk.
In connection with this earnings release, the Company will hold
its quarterly conference call on Thursday, Dec. 18, 2003 at 10:00 a.m.
Central time (11:00 a.m. Eastern). The call will be broadcast over the
Web by VCALL and can be accessed on Team's Web site,
www.teamindustrialservices.com. Individuals wishing to participate in
the conference call by phone can call 1-888-896-0862 and ask to join
the Team IR call.
Team Inc. is a professional, full-service provider of specialized
industrial services and portable field-machining tools. Headquartered
in Alvin, Texas, the Company operates in over 40 customer service
locations throughout the United States. Team Inc. common stock is
traded on the American Stock Exchange under the ticker symbol "TMI."
Certain forward-looking information contained herein is being
provided in accordance with the provisions of the Private Securities
Litigation Reform Act. Such information is subject to certain
assumptions and beliefs based on current information known to the
Company and is subject to factors that could result in actual results
differing materially from those anticipated in the forward-looking
statements contained herein. Such factors include domestic and
international economic activity, interest rates and market conditions
for the Company's customers, regulatory changes and legal proceedings,
and the Company's successful implementation of its internal operating
plans. Accordingly, there can be no assurance that the forward-looking
statements contained herein will occur or that objectives will be
achieved.
For additional information, contact Philip J. Hawk or Ted W. Owen
at 281-331-6154.
TEAM INC. AND SUBSIDIARIES
SUMMARY OF OPERATING RESULTS
Three Months Ended Six Months Ended
Nov. 30, Nov. 30,
------------------------- -------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Total Revenues $25,807,000 $23,160,000 $50,725,000 $45,168,000
============ ============ ============ ============
Gross Margin $10,219,000 $9,607,000 $20,331,000 $18,638,000
Selling, general
and
administrative
expenses $7,598,000 $7,209,000 $15,316,000 $14,202,000
Non-cash
compensation
charge $31,000 $31,000 $62,000 $52,000
------------ ------------ ------------ ------------
Earnings before
interest and
taxes $2,590,000 $2,367,000 $4,953,000 $4,384,000
============ ============ ============ ============
Pre-tax income $2,456,000 $2,211,000 $4,674,000 $4,069,000
Income tax expense $904,000 $847,000 $1,760,000 $1,557,000
------------ ------------ ------------ ------------
Net income $1,552,000 $1,364,000 $2,914,000 $2,512,000
============ ============ ============ ============
Net income per
common share-
basic $0.20 $0.18 $0.38 $0.33
============ ============ ============ ============
Net income per
common share-
diluted $0.19 $0.16 $0.35 $0.30
============ ============ ============ ============
Weighted average
shares
outstanding:
Basic 7,599,000 7,756,000 7,605,000 7,729,000
Diluted 8,285,000 8,477,000 8,267,000 8,503,000
Revenues Comprised
of:
Industrial
Services $23,282,000 $20,718,000 $45,597,000 $39,750,000
Equipment sales
and rentals 2,525,000 2,442,000 5,128,000 5,418,000
------------ ------------ ------------ ------------
Total Revenues $25,807,000 $23,160,000 $50,725,000 $45,168,000
============ ============ ============ ============
EBIT, by segment:
Industrial
Services $4,021,000 $3,482,000 $7,671,000 $6,294,000
Equipment sales
and rentals (199,000) 138,000 (294,000) 394,000
Corporate (1,232,000) (1,253,000) (2,424,000) (2,304,000)
------------ ------------ ------------ ------------
$2,590,000 $2,367,000 $4,953,000 $4,384,000
============ ============ ============ ============
TEAM INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION
NOV. 30 and MAY 31, 2003
Nov. 30, May 31,
2003 2003
--------------- --------------
Current Assets $34,230,000 $29,417,000
Net Property, Plant and Equipment $13,465,000 $12,268,000
Other non-current assets $10,506,000 $10,539,000
--------------- --------------
Total Assets $58,201,000 $52,224,000
=============== ==============
Current Liabilities $10,975,000 $9,704,000
Long term debt $11,516,000 $9,577,000
Other non-current liabilities and taxes $1,138,000 $1,208,000
Stockholders' equity $34,572,000 $31,735,000
--------------- --------------
Total liabilities and Stockholders'
Equity $58,201,000 $52,224,000
=============== ==============
CONTACT: Team Inc., Alvin
Ted W. Owen, 281-331-6154