TISI - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Team, Inc.

Third Quarter update conference call. [Operator Instructions] I will now turn the conference over to Nelson Haight, CFO. Please go ahead.

Nelson Haight

Thank you, operator. welcome operational Inc.'s and and third about everyone, XXXX quarter financial morning, to discussion Team, our Good results.

Chief On Tucker, the Officer. the our Keith Financial CEO; and discussion myself, Nelson today are Haight,

the you want without their future other control. business flow including, regarding company's income that I expense, those outside are remind management's today uncertain adjusted forward-looking limitation, operating may margin, gross by and taxes, outlook, nature commentary and revenue, and which statements, include expense, of cash to EBITDA,

Although may management's actual these based expectations current on forward-looking statements differ are and beliefs, results materially.

the some to For Inc.'s as and a their Team, information, the update with along discussion obligation that the earnings Exchange of refer which or Factors speak to Risk of latest results annual cause Team Commission, differ, to Securities please assumes associated could no with dates. our any actual and of factors release. of statements quarterly section forward-looking risk filed filings respective

to CEO. turn will I Tucker, Keith it that, With over our

Keith Tucker

you, Thank accomplishments quarter and third joining for our and our you results. to thank review us recent Welcome, Nelson. everyone,

the approaching are thus significant in I made the that of some of we As the want to accomplishments XXXX. far we've year, highlight end

executing a better Over the X improved road the years, we've Team future. map designed in past to for performance strategic been position financial and success

our We have are and margins now improved structure simplified once well sheet, again. the business, to balance worked capital to address and positioned grow our

tangible XXXX far so results the reflect in in this execution Our progress of strategy.

enhancements. adjusted implement cost continue work and to our additional We and and margin to and margins EBITDA, lowered have costs our increased reductions identify

am Team for our far helped and make that business, this all made the I'm encouraged and overall the so and by trajectory the have possible. to employees we've of thankful I progress

our third to quarter. Turning

year-over-year revenue, improvements We continue and income, with EBITDA and cash to free operating lower in adjusted solid results flow positive expenses. deliver

Heat X% revenue was Treating XXXX, our U.S. compared third to increase and in mainly Inspection turnaround the Services by in segments from a driven to up activity. X% quarter, strong QX and revenue Mechanical For due nested

partially our to by less year-over-year nested was This of activity U.S. lower segments from due growth work. both revenue revenue project offset lower turnaround and and Canadian

progress third expense $X noncash versus XX We XXXX an period. excludes nearly our basis And program down million and the the of for revenue. continued in adjusted with cost basis, administrative from quarter prior general items, lower selling, and made year management points to XX.X% on nonrecurring which

the generated months of EBITDA, And our In performance quarter, XXXX. first nearly driven months we in of improvement $XX.X operations. third by over million of EBITDA U.S. XXXX, of $XX X X the adjusted first the we strong XX% adjusted delivered million through a

can actions have costs to to to we build that margin continue Our lower believe expansion ongoing led we upon.

or first margins an important towards XX% we As adjusted has been more. goal. our previously, X noted had EBITDA are to step we X%, achieving And over to through months, the grow goal which is this

execution. we cost have far is progress strict revenue We operational and growth to there believe and we focused accomplish. XXXX, meaningful on driving in end, To that discipline made improving thus remain more

September, to a million. we are launched cost term, of yield near the actions expected in $X between Importantly, of series in and million savings $X annualized that,

initiatives a in margins. the drive are cost of of mix to our midst are improve structure steps These implementing the a operations. actions of actions top and in Canadian and of In we number improvements our growth to addition, performance line

into XXXX. from to quarter and actions see expect the in reflected performance We the these continuing in beginning our fourth results

and in by quarter. the in treating third the from XX% heat an mix, also in driven as revenue results XX% on focus increased by benefited with improved stronger pricing job our higher-margin aerospace streams increase increase Our revenue revenue demonstrated

growth initiatives cost to cash enhanced and We strengthen leading cash positive top discipline line ultimately will our our growth, financial shareholder maintaining which flow and our through on and flow position remain trajectory accelerate continued margin value. focused both keenly further generation

segments the margin across and XXXX. Looking further fourth our levels to improvement expect experience XXXX, quarter ahead versus and performance of healthy financial we performance continue in of both to activity

additional We expect we provide traction on commercial accomplishments. our XXXX. With it these as I our factors, like to enter Nelson momentum to to discuss turn together financial positive with initiatives that, to would over

Nelson Haight

Thank you, Keith.

XXXX flow, Our progress ongoing improving adjusted generating margins. cash demonstrate results on the positive third our EBITDA making we and are quarter

and increases EBITDA. year-over-year income As in revenue, Keith discussed, adjusted we saw operating

gross the importantly, financial a capital through but capital combination we better third million flow performance, and generated $X.X free of improved XX.X%, working focused for margin more quarter a management of program. Our positive was cash tightly

Our the XXXX quarter over $X a loss improvement the to for decreased period. million, million consolidated net $XX.X

We additional improvements. are streamline map structure operations, this improve road laid year cost earlier strategic implement are we out our our we confident in to the continuing and and to

ongoing further our improvements will expect program flow. margins We demonstrate and sustainable to cash

we efforts our improved business worked our stabilize from have focus out, results the be the our can road Keith the in the years, X results. seen execution on As to and map, over which pointed financial of strategic last

our of since X XXXX, year quarters. first EBITDA delivered have We EBITDA the every have we quarter straight improved adjusted year-over-year for increased adjusted since And quarterly XXXX.

trailing thus a We million $XX of and basis. in have on $XX XXXX far generated EBITDA almost XX-month million adjusted nearly

cash balance liquidity, flow we or margin achieving the improved we which for to pay further reducing towards EBITDA forward generation same ratio period, should EBITDA improved our provide In EBITDA strengthen clear of goal and adjusted dramatically allowing and while increased more the also leverage and our sheet, down. our expect margin. Furthermore, debt a path a addition, see our has over adjusted XX%

sheet on adjusted and line we pricing, terms we amended facility strengthening as further our our to ABL and extended that credit In drive balance attractive improved EBITDA September top continue successfully accessibility improvement. XXXX, and

opportunities as view further and step. successful renewal improve ABL to We continue look first capital our to for this a structure

Team. financial for I to and would like partners thank support confidence continued our their in

were am ability our successfully in our improving to operating and and and significantly a in we we that position X ago, where to improved continue strategic are now vision executing performance. confident I financial compared believe years overall our We

lead deliver value. results we that to to expect shareholder will strong We are and to excited growth continue

let me back some that, now to With it over closing Keith comments. for turn

Keith Tucker

Thanks, Nelson.

encouraged there that team We progress But this more the leadership that we we've is believes business. trajectory with do. and the made the overall of are can

we Regarding lesser flow our full full a to the that due revising year to year certain are to note underperformance working and operating international Canadian outlook, and business in I our XXXX. guidance currently want our to we for operations, cash are extent, address

$XXX $XXX revenue and and between million of and We $XXX now margin million a EBITDA million, million of million million. adjusted company and $XXX between $XX gross $XX see of total between

guidance Our capital remains expenditure unchanged.

Turning at continued the and to we financial meaningful we improved margin momentum. on lead towards further shareholder our of adjusted XXXX. initiatives value. of see growth and of We Based performance from to which and upon targeted expect operations low see our discipline, XX%, mid-single-digit believe cost commercial focus traction will progress revenue Canadian EBITDA to continued least operational all our to growth, early further and

plan the here outstanding is on I am our an strategic value Team. unlock experienced safely to working grateful for inherent such workforce that execute and at and

people because be done improvement day, not of assets proud no vital is on culture are our job and I and the safely. our continuous our to am at of end most safety too focus our very the important

because employees our excited closing, I am very I about talented capabilities, believer this leadership future a our In firm in and remain team.

to We we to in market as we results outlined execute deliver strategy continue improving the the May.

and grow XXXX which and work performance, positioned into encouraging evident profitably the some we've done over results years well past are in Team X.X The we that future. the I sustainably our are well has yielded believe to

today Thank you continued for for joining and your interest Team. us in

Operator

now you conference Thank attending The today's concluded. has presentation. for

disconnect. now may You

Team (TISI) 12 Nov 242024 Q3 Earnings call transcript