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Team(TISI) - 2025 Q1 - Quarterly Report
TISITeam(TISI)2025-05-12 21:16
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Revenue Performance - Total revenues decreased by 0.9millionor0.50.9 million or 0.5% from the prior year period, with IHT segment revenue increasing by 6.8 million or 6.8% and MS segment revenue decreasing by 7.7millionor7.77.7 million or 7.7%[109] - IHT segment revenue growth was driven by a 7.8 million increase in U.S. operations revenue, attributed to higher turnaround and capital projects activity[109] - MS segment revenue decline was mainly due to lower turnaround activities and callout projects in the U.S. and international areas[109] Operating Performance - Operating loss improved by 0.4millionor6.00.4 million or 6.0% to 6.0 million, with IHT operating income increasing by 3.5millionor67.73.5 million or 67.7% and MS operating income decreasing by 5.2 million or 127.2%[110] - Corporate operating loss decreased by 2.1millioncomparedtotheprioryearperiod,primarilyduetolowerpersonnelandprofessionalservicescosts[110]−Non−coreexpensestotaled2.1 million compared to the prior year period, primarily due to lower personnel and professional services costs[110] - Non-core expenses totaled 3.0 million in Q1 2025, leading to an operating loss of 3.0millionwhenexcludingtheseitems[112]FinancialPosition−ThecompanyregainedcompliancewithNYSEcontinuedlistingstandardsasofMarch14,2025[105]−Totaldebtandfinanceobligationsincreasedto3.0 million when excluding these items[112] Financial Position - The company regained compliance with NYSE continued listing standards as of March 14, 2025[105] - Total debt and finance obligations increased to 353.6 million as of March 31, 2025, compared to 325.1millionatDecember31,2024[139]−ThecompanyisincompliancewithitsdebtcovenantsasofMarch31,2025,whichiscrucialformaintainingfinancialstability[135]CashFlowandLiquidity−FreecashflowforQ12025was325.1 million at December 31, 2024[139] - The company is in compliance with its debt covenants as of March 31, 2025, which is crucial for maintaining financial stability[135] Cash Flow and Liquidity - Free cash flow for Q1 2025 was (30.067) million, compared to (1.130)millioninQ12024,showingasignificantdeclineincashflow[122]−Consolidatedcashandcashequivalentsof(1.130) million in Q1 2024, showing a significant decline in cash flow[122] - Consolidated cash and cash equivalents of 8.6 million as of May 8, 2025, with total liquidity amounting to 23.8million[136]−Thecompany’sliquidityassessmentindicatessufficientworkingcapitalandcashflowtofundoperationsandservicedebtforthenexttwelvemonths[129]AdjustedFinancialMetrics−AdjustednetlossforQ12025was23.8 million[136] - The company’s liquidity assessment indicates sufficient working capital and cash flow to fund operations and service debt for the next twelve months[129] Adjusted Financial Metrics - Adjusted net loss for Q1 2025 was 14.869 million, compared to 14.719millioninQ12024,reflectingaslightincreaseinlosses[122]−ConsolidatedadjustedEBITDAforQ12025was14.719 million in Q1 2024, reflecting a slight increase in losses[122] - Consolidated adjusted EBITDA for Q1 2025 was 5.310 million, down from 6.507millioninQ12024,indicatingadecreaseofapproximately18.46.507 million in Q1 2024, indicating a decrease of approximately 18.4%[122] - Segment adjusted EBITDA for the IHT segment increased to 11.624 million in Q1 2025 from 8.349millioninQ12024,representingagrowthofapproximately39.38.349 million in Q1 2024, representing a growth of approximately 39.3%[127] - The MS segment reported an adjusted EBITDA of 3.494 million in Q1 2025, down from 9.147millioninQ12024,reflectingadecreaseofapproximately61.89.147 million in Q1 2024, reflecting a decrease of approximately 61.8%[127] Cash Flow Activities - For the three months ended March 31, 2025, net cash used in operating activities was 28.7 million, a decrease of 30.5millioncomparedtonetcashprovidedbyoperatingactivitiesof30.5 million compared to net cash provided by operating activities of 1.9 million in the 2024 period[140] - Net cash used in investing activities for the three months ended March 31, 2025 was 1.4million,comparedto1.4 million, compared to 3.0 million in the same period of 2024[142] - Net cash provided by financing activities was 11.2millionforthethreemonthsendedMarch31,2025,primarilyfromnetborrowingsundertheRevolvingCreditLoans[143]DebtandRefinancing−Lossondebtextinguishmentamountedto11.2 million for the three months ended March 31, 2025, primarily from net borrowings under the Revolving Credit Loans[143] Debt and Refinancing - Loss on debt extinguishment amounted to 11.9 million due to refinancing transactions, including 7.4millionofunamortizeddebtissuancecostwrittenoff[114]−RecentrefinancingtransactionswerecompletedonMarch12,2025,toimprovethecompany′sfinancialposition[133]−Cashflowsfromfinancingactivitiesincluded7.4 million of unamortized debt issuance cost written off[114] - Recent refinancing transactions were completed on March 12, 2025, to improve the company's financial position[133] - Cash flows from financing activities included 8.1 million in debt issuance costs related to refinancing transactions as of March 12, 2025[144] Foreign Exchange and International Operations - The effect of foreign exchange rate changes on cash was positive 0.1millionforthethreemonthsendedMarch31,2025,comparedtonegative0.1 million for the three months ended March 31, 2025, compared to negative 0.3 million in 2024[146] - International cash balances as of March 31, 2025 were 4.8million,withapproximately4.8 million, with approximately 1.1 million located in countries with currency or regulatory restrictions[137] Working Capital - The company experienced higher negative working capital impacts of $23.7 million primarily due to an increase in accounts receivable[140]