Team(TISI)2025-05-12 21:16Revenue Performance - Total revenues decreased by $0.9 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 $7.7 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 $0.4 million or 6.0% to $6.0 million, with IHT operating income increasing by $3.5 million or 67.7% and MS operating income decreasing by $5.2 million or 127.2%[110] - Corporate operating loss decreased by $2.1 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 $3.0 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 $325.1 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) 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 $23.8 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 $14.719 million in Q1 2024, reflecting a slight increase in losses[122] - Consolidated adjusted EBITDA for Q1 2025 was $5.310 million, down from $6.507 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 $8.349 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 $9.147 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 $30.5 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 $1.4 million, compared to $3.0 million in the same period of 2024[142] - Net cash provided by financing activities was $11.2 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 $7.4 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 $0.1 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 $4.8 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]