Team(TISI)2025-05-13 16:02Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $5.3 million for the first quarter of 2025, with a gross margin of 23% [12][13] - Adjusted net loss for the quarter was $14.9 million, which was essentially flat compared to the first quarter of 2024 [12][13] - Selling, general, and administrative expenses decreased by approximately $2 million year-over-year [7] Business Line Data and Key Metrics Changes - Revenue from the Inspection and Heat Treating segment increased by 6.8% year-over-year, with core operations growing by 8.8% [6] - The Mechanical Service segment experienced lower callout revenue and project delays, impacting overall revenue growth [6] - Overall revenues were flat year-over-year, attributed to seasonal factors and adverse weather conditions in January [6] Market Data and Key Metrics Changes - The company reported nearly 15% revenue growth from midstream end markets during the quarter [5] - Strong activity levels were noted at the start of the second quarter, with expectations for top-line growth across both segments [9] Company Strategy and Development Direction - The company is focused on simplifying its business, expanding margins, and improving its capital structure [4] - A series of actions targeting cost improvements and operational efficiency are expected to yield annualized cost savings of around $10 million [8][13] - The company aims for at least 15% year-over-year growth in adjusted EBITDA and to achieve a target margin of at least 10% [15] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to navigate macroeconomic uncertainties, including tariff policies [9] - The company expects to see improvements in Canadian operations and overall revenue growth for the full year 2025 [15][16] - Continuous improvement in margin, cost discipline, and cash flow generation are key focuses for the future [16] Other Important Information - The company completed a refinancing transaction in March 2025, lowering its blended interest rate by over 100 basis points and extending term loan maturities to 2030 [11] - The refinancing provided financial flexibility and addressed near-term maturities [11] Q&A Session Summary - No specific questions or answers were documented in the provided content.