Team(TISI) - 2024 Q4 - Annual Report

Revenue Performance - Total revenues decreased by $10.3 million or 1.2$2.8 million (0.7%) and MS revenues down by $7.5 million (1.7$852.3 million, reflecting the company's performance in its operational activities [200]. - Revenues for the twelve months ended December 31, 2024, were $852,272, a decrease of 1.6$862,615 in 2023 [208]. - Revenue from the United States for 2024 was $637.662 million, compared to$623.763 million in 2023, indicating an increase of about 2.3% [271]. - The revenue from Canada decreased from $84.870 million in 2023 to$66.940 million in 2024, reflecting a decline of approximately 21.1% [271]. - The company reported a total of $426.722 million in revenue from the IHT segment for 2024, slightly down from$429.559 million in 2023, a decrease of about 0.7% [271]. - The MS segment generated $425.550 million in revenue for 2024, compared to$433.056 million in 2023, marking a decline of approximately 1.7% [271]. Financial Performance - Operating income improved by $23.4 million to$10.1 million in 2024, compared to a loss of $13.3 million in 2023, with IHT's operating income increasing by 52.8$38.3 million, a 49.5% improvement from a net loss of $75.7 million in 2023 [142]. - Adjusted Net Loss for the twelve months ended December 31, 2024, was$32,918,000, a decrease from $56,681,000 in 2023, representing a 42$54,262,000 in 2024 from $42,502,000 in 2023, reflecting a 28$13,302,000, compared to a negative $21,416,000 in 2023, indicating a significant turnaround [157]. - Total operating income, excluding non-core expenses, increased by$12.7 million from $3.0 million to$15.7 million [146]. - Corporate operating loss decreased by $11.1 million year over year, attributed to lower personnel and professional costs [143]. Tax and Interest Expenses - The provision for income tax was$3.3 million on a pre-tax loss of $35.0 million in 2024, compared to$4.6 million on a pre-tax loss of $71.1 million in 2023 [150]. - Interest expense decreased by$7.4 million to $47.8 million in 2024, primarily due to reduced accelerated amortization and changes in debt refinancing [147]. - Cash interest paid increased from$19.5 million in 2023 to $24.9 million in 2024 [148]. - The effective tax rate increased from 6.4$3,276,000 compared to $4,578,000 in 2023, a decrease of approximately 28.4$26.2 million, including $10.1 million in cash and cash equivalents [173]. - For the year ended December 31, 2024, net cash provided by operating activities was$22.8 million, a significant improvement from a net cash used of $11.0 million in 2023, reflecting a favorable change of$33.8 million [177][178]. - Cash flows from operating activities generated $22,767 in 2024, a turnaround from cash used of$(10,986) in 2023 [216]. - Cash and cash equivalents as of December 31, 2024, totaled $35.5 million, slightly up from$35.4 million in 2023, with $5.1 million held in foreign accounts [175][176]. Assets and Liabilities - Total assets decreased to$528.4 million in 2024 from $565.7 million in 2023, reflecting a decline in current and non-current assets [206]. - The company's accumulated deficit increased to$415.7 million in 2024 from $377.4 million in 2023, indicating ongoing financial challenges [206]. - The current portion of long-term debt increased to$6.5 million in 2024 from $5.2 million in 2023, indicating a rise in short-term financial obligations [206]. - Total long-term debt and finance lease obligations as of December 31, 2024, were$325.1 million, an increase from $311.4 million in 2023 [297]. - The company has scheduled maturities of debt totaling$328.4 million for the years succeeding December 31, 2024 [297]. Inventory and Receivables - Trade accounts receivable decreased from $151,316,000 in 2023 to$145,743,000 in 2024, a decline of approximately 3.7% [273]. - Unbilled revenues decreased from $33,607,000 in 2023 to$30,173,000 in 2024, a decline of approximately 10.5% [273]. - Total inventory decreased from $38,853,000 in 2023 to$37,874,000 in 2024, a decline of approximately 2.5% [274]. - Prepaid expenses and other current assets decreased from $65,992,000 in 2023 to$58,643,000 in 2024, a decline of approximately 11.1% [275]. Debt and Financing - The company plans to engage in refinancing and/or extending the maturities of its existing indebtedness to improve liquidity [167]. - The actual interest rate for Revolving Credit Loans was 8.92% as of December 31, 2024, down from 10.11% in 2023 [305]. - The company recorded unrecognized tax benefits of $2.2 million as of December 31, 2024, which would affect the effective tax rate [295]. - The principal balance of the Incremental Term Loan is$46.627 million as of December 31, 2024, down from $48.052 million as of December 31, 2023, showing a decrease of approximately 3% [1]. Compliance and Governance - The company regained compliance with NYSE listing standards on March 14, 2025, after addressing previous deficiencies [140]. - The company is in compliance with its debt covenants as of December 31, 2024, indicating stable financial health [171].