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Team, Inc. Reports Fourth Quarter and Full Year 2024 Results
TISITeam(TISI) GlobeNewswire·2025-03-19 20:45

Core Viewpoint - Team, Inc. reported significant improvements in its financial performance for the fourth quarter and full year of 2024, driven by operational and commercial initiatives that enhanced margins and cash flow generation [4][6][12]. Fourth Quarter 2024 Highlights - Revenues for Q4 2024 were 213.3million,slightlydownfrom213.3 million, slightly down from 214.1 million in the prior year, with a 2.1% revenue growth in the U.S. offset by declines in other international regions [6][7]. - Gross margin increased to 57.3million,representing26.957.3 million, representing 26.9% of revenue, up 330 basis points year-over-year [6][7]. - Adjusted EBITDA improved by 50.5% to 14.6 million, or 6.9% of consolidated revenue, compared to 9.7million(4.59.7 million (4.5% of revenue) in Q4 2023 [6][9]. - The net loss for Q4 2024 was 7.2 million, an improvement of 15.9millionfromthepreviousyear[6][9].FullYear2024Highlights−Totalrevenuesfor2024were15.9 million from the previous year [6][9]. Full Year 2024 Highlights - Total revenues for 2024 were 852.3 million, a slight decrease from 862.6millionin2023,withU.S.revenuegrowthof2.0862.6 million in 2023, with U.S. revenue growth of 2.0% [10][12]. - Gross margin for the year improved to 223.2 million (26.2% of revenue), up from 211.2million(24.5211.2 million (24.5% of revenue) in 2023 [10][12]. - Adjusted EBITDA for the full year was 54.3 million (6.4% of revenue), a 27.7% increase from 42.5million(4.942.5 million (4.9% of revenue) in 2023 [10][12]. - The net loss for 2024 was 38.3 million, a 37.5millionimprovementoverthenetlossof37.5 million improvement over the net loss of 75.7 million in 2023 [10][12]. Operational and Financial Initiatives - The company generated 21.6millionincashflowfromoperationsinQ42024,a21.6 million in cash flow from operations in Q4 2024, a 10.5 million improvement over 2023, and 19.6millioninFreeCashFlow,up19.6 million in Free Cash Flow, up 11.5 million from the previous year [4][6]. - Cost optimization initiatives are expected to yield approximately 6millioninannualizedsavingsin2025[4].−Thecompanyanticipatesmid−single−digitconsolidatedtoplinegrowthin2025,withatargetofatleast156 million in annualized savings in 2025 [4]. - The company anticipates mid-single-digit consolidated top line growth in 2025, with a target of at least 15% year-over-year growth in Adjusted EBITDA [4]. Segment Performance - In Q4 2024, the Industrial Heat Treating (IHT) segment generated revenues of 106.4 million, while the Mechanical Services (MS) segment brought in 106.9million,reflectingslightdeclinesinbothsegmentscomparedtothepreviousyear[16][40].−OperatingincomefortheIHTsegmentincreasedby45.4106.9 million, reflecting slight declines in both segments compared to the previous year [16][40]. - Operating income for the IHT segment increased by 45.4% to 9.5 million, and the MS segment's operating income improved by 51.0% to 8.1million[16][40].BalanceSheetandLiquidity−AsofDecember31,2024,thecompanyhadtotalliquidityof8.1 million [16][40]. Balance Sheet and Liquidity - As of December 31, 2024, the company had total liquidity of 77.4 million, including cash and cash equivalents of 31.5million[22].−Totaldebtincreasedto31.5 million [22]. - Total debt increased to 325.1 million from 311.4millionattheendof2023,withnetdebtat311.4 million at the end of 2023, with net debt at 289.6 million [23]. Refinancing Transaction - On March 13, 2025, the company successfully closed a refinancing transaction that extended term maturities to 2030 and reduced the blended interest rate by over 100 basis points [24].