Team(TISI)2025-05-12 20:47Financial Performance - First quarter 2025 revenue totaled $198.7 million, essentially flat compared to the prior year period[5] - Adjusted EBITDA for the first quarter was $5.3 million, representing 2.7% of consolidated revenue, down from $6.5 million (3.3%) in the prior year[10] - The company reported a net loss of $29.7 million, or $6.61 per share, compared to a net loss of $17.2 million, or $3.89 per share, in the prior year[10] - The net loss for the three months ended March 31, 2025, was $29,718 thousand, compared to a net loss of $17,195 thousand for the same period in 2024, representing an increase in loss of 72.9%[26] - Free cash flow for Q1 2025 was $(30,067) thousand, compared to $(1,130) thousand in Q1 2024, indicating a significant increase in cash outflow[35] Segment Performance - The Inspection and Heat Treating (IHT) segment saw revenue growth of 6.8% year-over-year, driven by higher activity in turnaround services and capital projects[14] - Revenues for the IHT segment increased to $106,215 thousand in Q1 2025 from $99,448 thousand in Q1 2024, a growth of 6.8%[28] - The Mechanical Services (MS) segment experienced a revenue decline of 7.7% year-over-year, primarily due to lower callout activity and project delays[14] - The MS segment reported revenues of $92,440 thousand in Q1 2025, down from $100,152 thousand in Q1 2024, a decrease of 7.6%[28] - Operating income for the IHT segment improved to $8,693 thousand in Q1 2025 from $5,185 thousand in Q1 2024, an increase of 67.5%[28] - The corporate and shared support services segment reported an adjusted EBIT loss of $(11,070) thousand in Q1 2025, compared to a loss of $(13,616) thousand in Q1 2024, reflecting an improvement of 18.6%[40] Expenses and Costs - Selling, General and Administrative expenses decreased to 22.7% of consolidated revenue, down from the previous year[9] - Selling, general, and administrative expenses for Q1 2025 were $53.269 million, a decrease from $55.117 million in Q1 2024[42] - Adjusted Selling, General and Administrative Expense for Q1 2025 was $45.103 million, compared to $45.807 million in Q1 2024[42] - Adjusted Selling, General and Administrative Expense as a percentage of revenue was 22.7% in Q1 2025, slightly down from 22.9% in Q1 2024[42] - Total non-cash/non-recurring items in Q1 2025 amounted to $8.166 million, compared to $9.310 million in Q1 2024[42] - Legal costs increased to $490,000 in Q1 2025 from $82,000 in Q1 2024[42] - Non-cash share-based compensation costs were a credit of $53,000 in Q1 2025, down from an expense of $665,000 in Q1 2024[42] - Severance charges included in SG&A expenses remained relatively stable at $422,000 in Q1 2025 compared to $425,000 in Q1 2024[42] - Professional fees and other expenses were $2.007 million in Q1 2025, slightly down from $2.081 million in Q1 2024[42] - Depreciation and amortization in SG&A expenses decreased to $5.300 million in Q1 2025 from $6.057 million in Q1 2024[42] - The company incurred $2.0 million related to Refinancing Transactions in Q1 2025, compared to $1.9 million related to debt financing in Q1 2024[42] Debt and Liquidity - Total debt as of March 31, 2025, was $353.6 million, an increase from $325.1 million at the end of fiscal year 2024[17] - The company had total liquidity of $29.1 million, consisting of $12.8 million in cash and $16.3 million in undrawn credit facilities[16] - The current portion of long-term debt decreased from $6,485 thousand on December 31, 2024, to $3,811 thousand on March 31, 2025, a reduction of 41.2%[25] - The company's shareholders' equity deficit increased from $1,738 thousand on December 31, 2024, to $(25,967) thousand on March 31, 2025, indicating a deterioration in financial position[25] Future Outlook - The company completed a refinancing transaction in March 2025, lowering the blended interest rate by more than 100 basis points and extending term loan maturities to 2030[5] - The company anticipates at least 15% year-over-year growth in Adjusted EBITDA for the full year 2025[7]