(Exact Name of Registrant as Specified in Its Charter) | ||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
( | ||||||||
(Registrant’s Telephone Number, Including Area Code) | ||||||||
None | ||||||||
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
N/A |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
x | Smaller reporting company | |||||||||||||||||||
Emerging growth company |
Page No. | ||||||||
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventory | |||||||||||
Income tax receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Defined benefit pension asset | |||||||||||
Other assets, net | |||||||||||
Deferred tax asset | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt and finance lease obligations | $ | $ | |||||||||
Current portion of operating lease obligations | |||||||||||
Accounts payable | |||||||||||
Other accrued liabilities | |||||||||||
Income tax payable | |||||||||||
Total current liabilities | |||||||||||
Long-term debt and finance lease obligations | |||||||||||
Operating lease obligations | |||||||||||
Deferred tax liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Restructuring and other related charges, net | |||||||||||||||||||||||
Operating income (loss) | ( | ( | ( | ||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss on debt extinguishment | ( | ( | |||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Loss from continuing operations before income taxes | ( | ( | ( | ( | |||||||||||||||||||
Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Net loss from continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Net income from discontinued operations, net of income tax | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Basic net loss per common share: | |||||||||||||||||||||||
Loss from continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Income from discontinued operations | |||||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average number of shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before tax: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), before tax | ( | ( | |||||||||||||||||||||
Tax provision attributable to other comprehensive income | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Total comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net settlement of vested stock awards | ( | — | — | ( | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | $ | ( | — | $ | ( | |||||||||||||||||||||||||||
Net settlement of vested stock awards | ( | — | — | ( | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
— | — | ( | — | ( | |||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock | — | — | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net settlement of vested stock awards | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | $ | ( | — | $ | ( | |||||||||||||||||||||||||||
Issuance of common stock | ( | — | — | ( | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Non-cash compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Write-off of deferred loan costs | |||||||||||
Loss on debt extinguishment | |||||||||||
Amortization of debt issuance costs, debt discounts, and deferred financing costs | |||||||||||
Paid-in-kind interest | |||||||||||
Allowance for credit losses | |||||||||||
Foreign currency (gains) losses | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Gain on asset disposal | ( | ( | |||||||||
Non-cash compensation costs (credits) | ( | ||||||||||
Other, net | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventory | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Other accrued liabilities | ( | ||||||||||
Income taxes | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from disposal of assets | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings under 2020 ABL Facility | |||||||||||
Payments under 2020 ABL Facility | ( | ||||||||||
Borrowings under 2022 ABL Credit Facility (Revolving Credit Loans) | |||||||||||
Payments under 2022 ABL Credit Facility (Revolving Credit Loans) | ( | ( | |||||||||
Repayment of APSC Term Loan | ( | ||||||||||
Borrowings under ME/RE Loans | |||||||||||
Borrowings under 2022 ABL Credit Facility (Delayed Draw Term Loan) | |||||||||||
Payments for debt issuance costs | ( | ( | |||||||||
Issuance of common stock, net of issuance costs | |||||||||||
Other | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended June 30, 2022 (unaudited) | Six Months Ended June 30, 2022 (unaudited) | ||||||||||
Major classes of line items constituting income (loss) from discontinued operations | |||||||||||
Revenues | $ | $ | |||||||||
Operating expenses | ( | ( | |||||||||
Selling, general and administrative expenses | ( | ( | |||||||||
Interest expense, net | ( | ( | |||||||||
Other expense | ( | ( | |||||||||
Income from discontinued operations before income taxes | |||||||||||
Benefit from income taxes | |||||||||||
Net income from discontinued operations | $ | $ |
Six Months Ended June 30, 2022 | |||||
(unaudited) | |||||
Cash flows provided by operating activities of discontinued operations: | |||||
Depreciation and amortization | $ | ||||
Cash flows provided by investing activities of discontinued operations: | |||||
Capital expenditures | $ | ||||
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||
United States and Canada | Other Countries | Total | United States and Canada | Other Countries | Total | |||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
IHT | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
MS | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||
United States and Canada | Other Countries | Total | United States and Canada | Other Countries | Total | |||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
IHT | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
MS | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Non-Destructive Evaluation and Testing Services | Repair and Maintenance Services | Heat Treating | Other | Total | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
IHT | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
MS | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Non-Destructive Evaluation and Testing Services | Repair and Maintenance Services | Heat Treating | Other | Total | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
IHT | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
MS | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Non-Destructive Evaluation and Testing Services | Repair and Maintenance Services | Heat Treating | Other | Total | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
IHT | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
MS | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Non-Destructive Evaluation and Testing Services | Repair and Maintenance Services | Heat Treating | Other | Total | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
IHT | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
MS | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Trade accounts receivable | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Total | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Balance at beginning of period | $ | $ | |||||||||
Provision for expected credit losses | |||||||||||
Recoveries collected | ( | ( | |||||||||
Write-offs | ( | ( | |||||||||
Foreign exchange effects | ( | ( | |||||||||
Balance at end of period | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
Total | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Insurance receivable | $ | $ | |||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Land | $ | $ | |||||||||
Buildings and leasehold improvements | |||||||||||
Machinery and equipment | |||||||||||
Furniture and fixtures | |||||||||||
Capitalized ERP system development costs | |||||||||||
Computers and computer software | |||||||||||
Automobiles | |||||||||||
Construction in progress | |||||||||||
Total | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
June 30, 2023 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Customer relationships | $ | $ | ( | $ | |||||||||||||
Trade names | ( | ||||||||||||||||
Technology | ( | ||||||||||||||||
Licenses | ( | ||||||||||||||||
Intangible assets | $ | $ | ( | $ |
December 31, 2022 | |||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Customer relationships | $ | $ | ( | $ | |||||||||||||
Trade names | ( | ||||||||||||||||
Technology | ( | ||||||||||||||||
Licenses | ( | ||||||||||||||||
Intangible assets | $ | $ | ( | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Legal and professional accruals | $ | $ | |||||||||
Payroll and other compensation expenses | |||||||||||
Insurance accruals | |||||||||||
Property, sales and other non-income related taxes | |||||||||||
Accrued interest | |||||||||||
Volume discount | |||||||||||
Other accruals | |||||||||||
Total | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
2022 ABL Credit Facility | $ | $ | |||||||||
APSC Term Loan1 | |||||||||||
Uptiered Loan1 | |||||||||||
ME/RE Loans1 | |||||||||||
Total | |||||||||||
Convertible Debt2 | |||||||||||
Finance lease obligations | |||||||||||
Total long-term debt and finance lease obligations | |||||||||||
Current portion of long-term debt and finance lease obligations | ( | ( | |||||||||
Total long-term debt and finance lease obligations, less current portion | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Principal balance | Debt issuance cost and discount, net of accumulated amortization | Net carrying balance | Principal balance | Debt issuance cost and discount, net of accumulated amortization | Net carrying balance | ||||||||||||||||||||||||||||||
APSC Term Loan | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Uptiered Loan | ( | ( | |||||||||||||||||||||||||||||||||
ME/RE Loans | $ | $ | ( | $ | $ | $ | $ |
Original | After Reverse Stock Split (Effective date December 22, 2022) | |||||||||||||||||||||||||
Holder | Date | Number of shares | Exercise price | Expiration date | Number of shares | Exercise price | Expiration date | |||||||||||||||||||
APSC Holdco II, LP | ||||||||||||||||||||||||||
Original, as awarded | 12/18/2020 | $ | 6/14/2028 | |||||||||||||||||||||||
Amended | 11/9/2021 | $ | 6/14/2028 | |||||||||||||||||||||||
Amended | 12/8/2021 | $ | 12/8/2028 | |||||||||||||||||||||||
Total APSC | $ | 12/8/2028 | $ | 12/8/2028 | ||||||||||||||||||||||
Corre | 12/8/2021 | $ | 12/8/2028 | $ | 12/8/2028 | |||||||||||||||||||||
Total warrants |
June 30, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Liability component: | |||||||||||
Principal | $ | $ | |||||||||
Unamortized issuance costs | ( | ||||||||||
Unamortized discount | ( | ||||||||||
Net carrying amount of the liability component1 | $ | $ | |||||||||
Equity component: | |||||||||||
Carrying amount of the equity component, net of issuance costs2 | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
Interest cost | $ | $ | $ | $ | ||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||
Amortization of prior service cost | ||||||||||||||||||||
Unrecognized Net Actuarial Loss | ||||||||||||||||||||
Net periodic pension credit | $ | ( | $ | ( | $ | ( | $ | ( |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plans | Tax Provision | Total | Foreign Currency Translation Adjustments | Defined Benefit Pension Plans | Tax Provision | Total | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
IHT | $ | $ | $ | $ | |||||||||||||||||||
MS | |||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
IHT | $ | $ | $ | $ | |||||||||||||||||||
MS | |||||||||||||||||||||||
Corporate and shared support services | ( | ( | ( | ( | |||||||||||||||||||
Total Operating income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Capital expenditures1: | |||||||||||||||||||||||
IHT | $ | $ | $ | $ | |||||||||||||||||||
MS | |||||||||||||||||||||||
Corporate and shared support services | |||||||||||||||||||||||
Total Capital expenditures | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||
IHT | $ | $ | $ | $ | |||||||||||||||||||
MS | |||||||||||||||||||||||
Corporate and shared support services | |||||||||||||||||||||||
Total Depreciation and amortization | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Total Revenues1 | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Canada | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Other foreign countries | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended June 30, | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||
Revenues by business segment: | |||||||||||||||||||||||
IHT | $ | 116,740 | $ | 114,124 | $ | 2,616 | 2.3 | % | |||||||||||||||
MS | 122,752 | 107,416 | 15,336 | 14.3 | % | ||||||||||||||||||
Total revenues | $ | 239,492 | $ | 221,540 | $ | 17,952 | 8.1 | % | |||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
IHT | $ | 6,548 | $ | 5,514 | $ | 1,034 | 18.8 | % | |||||||||||||||
MS | 12,720 | 6,984 | 5,736 | 82.1 | % | ||||||||||||||||||
Corporate and shared support services | (14,672) | (23,292) | 8,620 | 37.0 | % | ||||||||||||||||||
Total operating income (loss) | $ | 4,596 | $ | (10,794) | $ | 15,390 | 142.6 | % | |||||||||||||||
Interest expense, net | $ | (16,691) | $ | (18,476) | $ | 1,785 | 9.7 | % | |||||||||||||||
Loss on debt extinguishment | (1,582) | — | (1,582) | NM | |||||||||||||||||||
Other income, net | 13 | 3,259 | (3,246) | (99.6) | % | ||||||||||||||||||
Loss before income taxes | $ | (13,664) | $ | (26,011) | $ | 12,347 | 47.5 | % | |||||||||||||||
Provision for income taxes | (2,089) | (2,191) | 102 | 4.7 | % | ||||||||||||||||||
Net loss from continuing operations | $ | (15,753) | $ | (28,202) | $ | 12,449 | 44.1 | % | |||||||||||||||
NM = Not meaningful |
Three Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating income (loss) | $ | 4,596 | $ | (10,794) | |||||||
Professional fees and other | 2,647 | 4,693 | |||||||||
Legal costs | 200 | 1,200 | |||||||||
Severance charges, net | 217 | 1,008 | |||||||||
Total non-core expenses | 3,064 | 6,901 | |||||||||
Operating income (loss), excluding non-core expenses | $ | 7,660 | $ | (3,893) | |||||||
Six Months Ended June 30, | Increase (Decrease) | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||
Revenues by business segment: | |||||||||||||||||||||||
IHT | $ | 218,569 | $ | 209,721 | $ | 8,848 | 4.2 | % | |||||||||||||||
MS | 223,200 | 200,857 | 22,343 | 11.1 | % | ||||||||||||||||||
Total revenues | $ | 441,769 | $ | 410,578 | $ | 31,191 | 7.6 | % | |||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
IHT | $ | 11,271 | $ | 5,648 | $ | 5,623 | 99.6 | % | |||||||||||||||
MS | 15,913 | 7,497 | 8,416 | 112.3 | % | ||||||||||||||||||
Corporate and shared support services | (30,334) | (46,346) | 16,012 | 34.5 | % | ||||||||||||||||||
Total operating loss | $ | (3,150) | $ | (33,201) | $ | 30,051 | 90.5 | % | |||||||||||||||
Interest expense, net | $ | (33,432) | $ | (37,055) | $ | 3,623 | 9.8 | % | |||||||||||||||
Loss on debt extinguishment | (1,582) | — | (1,582) | NM | |||||||||||||||||||
Other income (expense), net | 648 | 6,438 | (5,790) | (89.9) | % | ||||||||||||||||||
Loss before income taxes | $ | (37,516) | $ | (63,818) | $ | 26,302 | 41.2 | % | |||||||||||||||
Provision for income taxes | (2,948) | (2,717) | (231) | (8.5) | % | ||||||||||||||||||
Net loss from continuing operations | $ | (40,464) | $ | (66,535) | $ | 26,071 | 39.2 | % | |||||||||||||||
NM = Not meaningful |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating loss | $ | (3,150) | $ | (33,201) | |||||||
Professional fees and other | 4,368 | 10,037 | |||||||||
Legal costs | 200 | 1,728 | |||||||||
Severance charges, net | 522 | 2,358 | |||||||||
Total non-core expenses | 5,090 | 14,123 | |||||||||
Operating income (loss), excluding non-core expenses | $ | 1,940 | $ | (19,078) |
TEAM, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Adjusted Net Loss: | ||||||||||||||||||||||||||
Net loss | $ | (15,753) | $ | (28,202) | $ | (40,464) | $ | (66,535) | ||||||||||||||||||
Professional fees and other1 | 2,647 | 4,693 | 4,368 | 10,037 | ||||||||||||||||||||||
Legal costs2 | 200 | 1,200 | 200 | 1,728 | ||||||||||||||||||||||
Severance charges, net3 | 217 | 1,008 | 522 | 2,358 | ||||||||||||||||||||||
Natural disaster insurance recovery | — | (872) | — | (872) | ||||||||||||||||||||||
Loss on debt extinguishment | 1,582 | — | 1,582 | — | ||||||||||||||||||||||
Tax impact of adjustments and other net tax items4 | (7) | (3) | (85) | (7) | ||||||||||||||||||||||
Adjusted Net Loss | $ | (11,114) | $ | (22,176) | $ | (33,877) | $ | (53,291) | ||||||||||||||||||
Adjusted Net Loss per common share: | ||||||||||||||||||||||||||
Basic | $ | (2.55) | $ | (5.14) | $ | (7.78) | $ | (13.17) | ||||||||||||||||||
Consolidated Adjusted EBIT and Adjusted EBITDA: | ||||||||||||||||||||||||||
Net loss | $ | (15,753) | $ | (28,202) | $ | (40,464) | $ | (66,535) | ||||||||||||||||||
Provision for income taxes | 2,089 | 2,191 | 2,948 | 2,717 | ||||||||||||||||||||||
Loss (gain) on equipment sale | 7 | (1,172) | (296) | (3,485) | ||||||||||||||||||||||
Interest expense, net | 16,691 | 18,476 | 33,432 | 37,055 | ||||||||||||||||||||||
Professional fees and other1 | 2,647 | 4,693 | 4,368 | 10,037 | ||||||||||||||||||||||
Legal costs2 | 200 | 1,200 | 200 | 1,728 | ||||||||||||||||||||||
Severance charges, net3 | 217 | 1,008 | 522 | 2,358 | ||||||||||||||||||||||
Foreign currency (gain) loss | 143 | (1,029) | (34) | (1,691) | ||||||||||||||||||||||
Pension credit5 | (162) | (189) | (318) | (393) | ||||||||||||||||||||||
Natural disaster insurance recovery | — | (872) | — | (872) | ||||||||||||||||||||||
Loss on debt extinguishment | 1,582 | — | 1,582 | — | ||||||||||||||||||||||
Consolidated Adjusted EBIT | 7,661 | (3,896) | 1,940 | (19,081) | ||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Amount included in operating expenses | 3,694 | 3,914 | 7,413 | 8,072 | ||||||||||||||||||||||
Amount included in SG&A expenses | 5,845 | 5,095 | 11,672 | 10,391 | ||||||||||||||||||||||
Total depreciation and amortization | 9,539 | 9,009 | 19,085 | 18,463 | ||||||||||||||||||||||
Non-cash share-based compensation costs | 245 | 565 | 627 | (59) | ||||||||||||||||||||||
Consolidated Adjusted EBITDA | $ | 17,445 | $ | 5,678 | $ | 21,652 | $ | (677) | ||||||||||||||||||
Free Cash Flow: | ||||||||||||||||||||||||||
Cash used in operating activities | $ | (5,854) | $ | (511) | $ | (23,617) | $ | (56,486) | ||||||||||||||||||
Capital expenditures | (2,381) | (5,279) | (5,073) | (11,416) | ||||||||||||||||||||||
Free Cash Flow | $ | (8,235) | $ | (5,790) | $ | (28,690) | $ | (67,902) |
TEAM, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Segment Adjusted EBIT and Adjusted EBITDA: | ||||||||||||||||||||||||||
IHT | ||||||||||||||||||||||||||
Operating income | $ | 6,548 | $ | 5,514 | $ | 11,271 | $ | 5,648 | ||||||||||||||||||
Severance charges, net1 | 165 | 25 | 205 | 41 | ||||||||||||||||||||||
Professional fees and other | 828 | — | 828 | — | ||||||||||||||||||||||
Adjusted EBIT | 7,541 | 5,539 | 12,304 | 5,689 | ||||||||||||||||||||||
Depreciation and amortization | 3,188 | 3,096 | 6,242 | 6,350 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 10,729 | $ | 8,635 | $ | 18,546 | $ | 12,039 | ||||||||||||||||||
MS | ||||||||||||||||||||||||||
Operating income | $ | 12,720 | $ | 6,984 | $ | 15,913 | $ | 7,497 | ||||||||||||||||||
Severance charges, net1 | 52 | 54 | 308 | 54 | ||||||||||||||||||||||
Professional fees and other | 47 | — | 67 | — | ||||||||||||||||||||||
Adjusted EBIT | 12,819 | 7,038 | 16,288 | 7,551 | ||||||||||||||||||||||
Depreciation and amortization | 4,704 | 4,634 | 9,457 | 9,518 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 17,523 | $ | 11,672 | $ | 25,745 | $ | 17,069 | ||||||||||||||||||
Corporate and shared support services | ||||||||||||||||||||||||||
Net loss | $ | (35,021) | $ | (40,700) | $ | (67,648) | $ | (79,680) | ||||||||||||||||||
Provision for income taxes | 2,089 | 2,191 | 2,948 | 2,717 | ||||||||||||||||||||||
Gain on equipment sale | 7 | (1,172) | (296) | (3,485) | ||||||||||||||||||||||
Interest expense, net | 16,691 | 18,476 | 33,432 | 37,055 | ||||||||||||||||||||||
Foreign currency gain | 143 | (1,029) | (34) | (1,691) | ||||||||||||||||||||||
Pension credit2 | (162) | (189) | (318) | (393) | ||||||||||||||||||||||
Professional fees and other3 | 1,772 | 4,693 | 3,473 | 10,037 | ||||||||||||||||||||||
Legal costs4 | 200 | 1,200 | 200 | 1,728 | ||||||||||||||||||||||
Severance charges, net1 | — | 929 | 9 | 2,263 | ||||||||||||||||||||||
Loss on debt extinguishment | 1,582 | — | 1,582 | — | ||||||||||||||||||||||
Natural disaster insurance recovery | — | (872) | — | (872) | ||||||||||||||||||||||
Adjusted EBIT | (12,699) | (16,473) | (26,652) | (32,321) | ||||||||||||||||||||||
Depreciation and amortization | 1,647 | 1,279 | 3,386 | 2,595 | ||||||||||||||||||||||
Non-cash share-based compensation costs | 245 | 565 | 627 | (59) | ||||||||||||||||||||||
Adjusted EBITDA | $ | (10,807) | $ | (14,629) | $ | (22,639) | $ | (29,785) | ||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
Cash flows provided by (used in): | 2023 | 2022 | Increase (Decrease) | |||||||||||||||||
Operating activities | $ | (23,617) | $ | (53,391) | 56 | % | ||||||||||||||
Investing activities | (4,741) | (8,882) | 47 | % | ||||||||||||||||
Financing activities | 483 | 64,786 | (99) | % | ||||||||||||||||
Effect of exchange rate changes on cash | 237 | (382) | NM | |||||||||||||||||
Net change in cash and cash equivalents | $ | (27,638) | $ | 2,131 | NM | |||||||||||||||
NM - Not meaningful |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | Certificate of Designations of Series A Preferred Stock of Team, Inc., as filed with the Secretary of State of the State of Delaware on February 2, 2022 (filed as Exhibit 3.1 to Team, Inc.’s Current Report on Form 8-K (File No. 001-08604) filed on February 2, 2022, incorporated by reference herein). | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
31.3 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
32.3 | ||||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
TEAM, INC. (Registrant) | ||||||||
Date: August 10, 2023 | /S/ Keith D. Tucker | |||||||
Keith D. Tucker Chief Executive Officer (Principal Executive Officer) | ||||||||
/S/ Nelson M. Haight | ||||||||
Nelson M. Haight Chief Financial Officer (Principal Financial Officer) | ||||||||
/S/ Matthew E. Acosta | ||||||||
Matthew E. Acosta Vice President, Chief Accounting Officer (Principal Accounting Officer) |
By: | /s/ André C. Bouchard | ||||||||||||||||||||||
Name: | André C. Bouchard | ||||||||||||||||||||||
Title: | Executive Vice President, Administration, Chief Legal Officer & Secretary |
1. | I have reviewed this Quarterly Report on Form 10-Q of Team, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Keith D. Tucker Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Team, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Nelson M. Haight Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Team, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Matthew E. Acosta Vice President, Chief Accounting Officer (Principal Accounting Officer) |
Keith D. Tucker Chief Executive Officer (Principal Executive Officer) | |||||
August 10, 2023 |
Nelson M. Haight Chief Financial Officer (Principal Financial Officer) | |||||
August 10, 2023 |
Matthew E. Acosta Vice President, Chief Accounting Officer (Principal Accounting Officer) | |||||
August 10, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 21, 2022 |
Dec. 20, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|
Statement of Financial Position [Abstract] | |||||
Allowance for credit loss, current | $ 5,145 | $ 5,262 | $ 7,843 | ||
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | |||
Common stock, par value (in usd per share) | $ 0.30 | $ 0.30 | |||
Common stock, shares authorized (in shares) | 12,000,000 | 12,000,000 | 120,000,000 | ||
Common stock, shares issued (in shares) | 4,368,422 | 4,342,909 | |||
Common stock, shares, outstanding (in shares) | 4,368,422 | 4,342,909 | 4,342,909 | 43,429,089 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||
Income Statement [Abstract] | ||||||||
Revenues | $ 239,492 | $ 221,540 | $ 441,769 | $ 410,578 | ||||
Operating expenses | 178,576 | 169,426 | 333,851 | 317,334 | ||||
Gross margin | 60,916 | 52,114 | 107,918 | 93,244 | ||||
Selling, general and administrative expenses | 56,320 | 62,908 | 111,068 | 126,429 | ||||
Restructuring and other related charges, net | 0 | 0 | 0 | 16 | ||||
Operating income (loss) | 4,596 | (10,794) | (3,150) | (33,201) | ||||
Interest expense, net | (16,691) | (18,476) | (33,432) | (37,055) | ||||
Loss on debt extinguishment | (1,582) | 0 | (1,582) | 0 | ||||
Other income, net | 13 | 3,259 | 648 | 6,438 | ||||
Loss from continuing operations before income taxes | (13,664) | (26,011) | (37,516) | (63,818) | ||||
Provision for income taxes | (2,089) | (2,191) | (2,948) | (2,717) | ||||
Net loss from continuing operations | (15,753) | (28,202) | (40,464) | (66,535) | ||||
Discontinued operations: | ||||||||
Net income from discontinued operations, net of income tax | 0 | 6,650 | 0 | 12,521 | ||||
Net Income (Loss) Attributable to Parent, Total | $ (15,753) | $ (21,552) | $ (40,464) | [1] | $ (54,014) | [1] | ||
Basic net loss per common share: | ||||||||
Loss from continuing operations, Basic (in USD per share) | $ (3.61) | $ (6.53) | $ (9.30) | $ (16.45) | ||||
Income from discontinued operations, basic (in USD per share) | 0 | 1.54 | 0 | 3.10 | ||||
Basic (in dollars per share) | $ (3.61) | $ (4.99) | $ (9.30) | $ (13.35) | ||||
Weighted-average number of shares outstanding: | ||||||||
Weighted-average number of basic shares outstanding (in shares) | 4,362 | 4,318 | 4,353 | 4,045 | ||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||
Statement of Comprehensive Income [Abstract] | ||||||||
Net loss | $ (15,753) | $ (21,552) | $ (40,464) | [1] | $ (54,014) | [1] | ||
Other comprehensive income (loss) before tax: | ||||||||
Foreign currency translation adjustment | 1,277 | (5,463) | 2,055 | (5,117) | ||||
Other comprehensive income (loss), before tax | 1,277 | (5,463) | 2,055 | (5,117) | ||||
Tax provision attributable to other comprehensive income | (23) | 0 | (46) | 0 | ||||
Other comprehensive income (loss), net of tax | 1,254 | (5,463) | 2,009 | (5,117) | ||||
Total comprehensive loss | $ (14,499) | $ (27,015) | $ (38,455) | $ (59,131) | ||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands |
6 Months Ended | |||
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Jun. 30, 2023 |
Jun. 30, 2022 |
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Cash flows from operating activities: | ||||
Net loss | [1] | $ (40,464) | $ (54,014) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | [1] | 19,085 | 19,609 | |
Write-off of deferred loan costs | [1] | 0 | 2,748 | |
Loss on debt extinguishment | [1] | 1,582 | 0 | |
Amortization of debt issuance costs, debt discounts, and deferred financing costs | [1] | 16,229 | 12,077 | |
Paid-in-kind interest | [1] | 7,117 | 9,962 | |
Allowance for credit losses | [1] | 276 | 30 | |
Foreign currency (gains) losses | [1] | (35) | 569 | |
Deferred income taxes | [1] | 730 | (357) | |
Gain on asset disposal | [1] | (245) | (3,532) | |
Non-cash compensation costs (credits) | [1] | 627 | (59) | |
Other, net | [1] | (2,169) | (2,382) | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | [1] | (9,037) | (29,595) | |
Inventory | [1] | (1,140) | (1,620) | |
Prepaid expenses and other current assets | [1] | (2,043) | (3,305) | |
Accounts payable | [1] | 3,994 | (5,889) | |
Other accrued liabilities | [1] | (17,201) | 3,367 | |
Income taxes | [1] | (923) | (1,000) | |
Net cash used in operating activities | [1] | (23,617) | (53,391) | |
Cash flows from investing activities: | ||||
Capital expenditures | [1] | (5,073) | (14,001) | |
Proceeds from disposal of assets | [1] | 332 | 5,119 | |
Net cash used in investing activities | [1] | (4,741) | (8,882) | |
Cash flows from financing activities: | ||||
Borrowings under 2020 ABL Facility | [1] | 0 | 10,300 | |
Payments under 2020 ABL Facility | [1] | 0 | (72,300) | |
Repayment of APSC Term Loan | [1] | (37,092) | 0 | |
Borrowings under 2022 ABL Credit Facility (Delayed Draw Term Loan) | [1] | 27,398 | 0 | |
Payments for debt issuance costs | [1] | (5,327) | (10,640) | |
Issuance of common stock, net of issuance costs | [1] | 0 | 9,696 | |
Other | [1] | (495) | (323) | |
Net cash provided by financing activities | [1] | 483 | 64,786 | |
Effect of exchange rate changes on cash | [1] | 237 | (382) | |
Net increase (decrease) in cash and cash equivalents | [1] | (27,638) | 2,131 | |
Cash and cash equivalents at beginning of period | [1] | 58,075 | 65,315 | |
Cash and cash equivalents at end of period | [1] | 30,437 | 67,446 | |
Revolving Credit loans | ||||
Cash flows from financing activities: | ||||
Borrowings under 2022 ABL Credit Facility | [1] | 30,797 | 104,641 | |
Payments under 2022 ABL Credit Facility (Revolving Credit Loans) | [1] | (14,798) | (1,588) | |
Delayed Draw Term Loan | ||||
Cash flows from financing activities: | ||||
Borrowings under 2022 ABL Credit Facility | [1] | $ 0 | $ 25,000 | |
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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business. Unless otherwise indicated, the terms “we,” “our,” “us,” and “Team” are used in this report to refer to either Team, Inc., to one or more of its consolidated subsidiaries or to all of them taken as a whole. We are a global leading provider of specialty industrial services offering clients access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. We deploy conventional to highly specialized inspection, condition assessment, maintenance and repair services that result in greater safety, reliability and operational efficiency for our clients’ most critical assets. We conduct operations in two segments: Inspection and Heat Treating (“IHT”) and Mechanical Services (“MS”). Through the capabilities and resources in these two segments, we believe that we are uniquely qualified to provide integrated solutions: inspection to assess condition; engineering assessment to determine fitness for purpose in the context of industry standards and regulatory codes; and mechanical services to repair, rerate or replace based upon the client’s election. In addition, we are capable of escalating with the client’s needs, as dictated by the severity of the damage found and the related operating conditions, from standard services to some of the most advanced services and integrated asset integrity and reliability management solutions available in the industry. We also believe that we are unique in our ability to provide services in three distinct client demand profiles: (i) turnaround or project services, (ii) call-out services and (iii) nested or run-and-maintain services. IHT provides conventional and advanced non-destructive testing services primarily for the process, pipeline and power sectors, pipeline integrity management services, and field heat treating services, as well as associated engineering and condition assessment services. These services can be offered while facilities are running (on-stream), during facility turnarounds or during new construction or expansion activities. IHT also provides advanced digital imaging including remote digital video imaging. MS provides solutions designed to serve clients’ unique needs during both the operational (onstream) and off-line states of their assets. Our onstream services include our range of standard to custom-engineered leak repair and composite solutions; emissions control and compliance; hot tapping and line stopping; and on-line valve insertion solutions, which are delivered while assets are in an operational condition, which maximizes client production time. Asset shutdowns can be planned, such as a turnaround maintenance event, or unplanned, such as those due to component failure or equipment breakdowns. Our specialty maintenance, turnaround and outage services are designed to minimize client downtime and are primarily delivered while assets are off-line and often through the use of cross-certified technicians, whose multi-craft capabilities deliver the production needed to achieve tight time schedules. These critical services include on-site field machining; bolted-joint integrity; vapor barrier plug testing; and valve management solutions. We market our services to companies in a diverse array of heavy industries which include: •Energy (refining, power, renewables, nuclear and liquefied natural gas); •Manufacturing and Process (chemical, petrochemical, pulp and paper industries, automotive and mining); •Midstream and Others (valves, terminals and storage, pipeline and offshore oil and gas); •Public Infrastructure (amusement parks, bridges, ports, construction and building, roads, dams and railways); and •Aerospace and Defense. Reverse Stock Split. On December 21, 2022, we completed a reverse stock split of our outstanding common stock at a ratio of one-for-ten (the “Reverse Stock Split”). The Reverse Stock Split effected a proportionate reduction in our authorized shares of common stock from 120,000,000 shares to 12,000,000 shares and reduced the number of shares of common stock outstanding from approximately 43,429,089 shares to approximately 4,342,909 shares. We have made proportionate adjustments to the number of common shares issuable upon exercise or conversion of our outstanding warrants, equity awards and convertible securities, as well as the applicable exercise prices and weighted average fair value of the equity awards. No fractional shares were issued in connection with the Reverse Stock Split. Recent Refinancing Transactions. On June 16, 2023, we entered into the following separate amendments / agreements with our lenders. Corre Amended and Restated Term Loan Credit Agreement. On June 16, 2023, we entered into an amendment and restatement of that certain subordinated term loan credit agreement dated as of November 9, 2021 (as amended and restated, the “A&R Term Loan Credit Agreement”). Available funding commitments under the A&R Term Loan Credit Agreement, subject to certain conditions, include a $57.5 million senior secured first lien term loan (the “Incremental Term Loan”) provided by Corre Partners Management, LLC (“Corre”) and certain of its affiliates, consisting of a $37.5 million term loan tranche and a $20.0 million delayed draw term loan tranche. Amounts outstanding under the existing subordinated term loan credit agreement (the “Uptiered Loan”) have become senior secured obligations of the Company and the A&R Term Loan Guarantors, secured on a pari passu basis with the Incremental Term Loans. All outstanding amounts in respect of the Incremental Term Loan under the A&R Term Loan Credit Agreement mature and become due and payable on December 31, 2026. All outstanding amounts in respect of the Uptiered Loan under the A&R Term Loan Credit Agreement mature and become due and payable on December 31, 2027; provided that, if greater than $50.0 million (including amounts in respect of payments in kind) of the Uptiered Loan is outstanding on December 31, 2026, then all outstanding amounts in respect of the Uptiered Loan under the A&R Term Loan Credit Agreement become due and payable on December 31, 2026. As discussed in Note 11 - Debt, $42.5 million of the $57.5 million Incremental Term Loan under the A&R Term Loan Credit Agreement was drawn down and the proceeds thereof were used to repay the Notes (as defined below) that matured on August 1, 2023. Eclipse Amendment No. 3 to Credit Agreement. On June 16, 2023, we also entered into Amendment No. 3 (“ABL Amendment No. 3”) to that certain credit agreement with Eclipse (defined below), dated as of February 11, 2022 (as amended by Amendment No. 1 dated as of May 6, 2022 and Amendment No. 2 dated as of November 1, 2022 and ABL Amendment No.3, the “ABL Credit Agreement”). The ABL Amendment No. 3 amended the ABL Credit Agreement to, among other things, (i) provide the Company with a new $27.4 million term loan (the “ME/RE Loans”) secured by a first priority lien and mortgage on certain real estate and machinery and equipment of the Company and the ABL Guarantors, as defined below, (the “Specified RE/ME”), (ii) increase borrowing base availability under the revolving credit facility by an additional $2.5 million, (iii) extend the maturity date for the entire facility under the ABL Credit Agreement to August 11, 2025, (iv) amend the financial maintenance covenant therein to match the maximum unfinanced capital expenditures covenant included in the A&R Term Loan Credit Agreement, and (v) amend provisions applicable to the $35.0 million delayed draw term loans under the ABL Credit Agreement to remove the ability of the Company to repay and reborrow such loans, to remove the ability to pay any portion of the interest on such loans in PIK (as defined below) and add a mandatory prepayment with respect to such loan in relation to any sale of certain collateral principally supporting such loans. The ME/RE Loans were drawn in full on the closing date and were used to pay off the amounts owed under the existing term loan credit agreement dated as of December 18, 2020 (as amended from time to time), among the Company, the lenders party thereto and Atlantic Park Strategic Capital Fund, L.P., as agent, which was repaid and terminated in full on June 16, 2023. See Note 11 - Debt for additional information. Liquidity and Going Concern. These condensed consolidated financial statements have been prepared in accordance with GAAP and assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issue date of these unaudited condensed consolidated financial statements. As discussed above, we successfully negotiated amendments to existing debt instruments (including to the financial covenants contained therein) and / or entered into new agreements with our lenders. These actions removed the substantial doubt about our ability to continue as a going concern that previously existed and had been disclosed in prior periods. In addition, as of June 30, 2023, we are in compliance with our debt covenants. Based on the Company’s forecast and the amendments/new agreements entered in June 2023, we believe that our current working capital including cash on hand, our capital expenditure financing and the remaining borrowing availability under our various debt agreements is sufficient to fund our operations, maintain compliance with our debt covenants (as amended), and satisfy the Company’s obligations as they come due within one year after the date of issuance of these unaudited condensed consolidated financial statements. Our ability to maintain compliance with the financial covenants contained in the various debt agreements is dependent upon our future operating performance and future financial condition, both of which are subject to various risks and uncertainties. While our lenders agreed to amend the financial covenants contained therein and, in the case of the ABL Credit Agreement, to extend the maturity, there can be no assurance that our lenders will provide additional waivers or amendments in the event of future non-compliance with our debt covenants, or other possible events of default that could happen. Basis for presentation. These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain disclosures have been condensed or omitted from the interim financial statements included in this report. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission. Consolidation. The condensed consolidated financial statements include the accounts of our subsidiaries where we have control over operating and financial policies. All material intercompany accounts and transactions have been eliminated in consolidation. Reclassifications. Certain amounts in prior periods have been reclassified to conform to the current year presentation, including the separate presentation and reporting of discontinued operations. Such reclassifications did not have any effect on our financial condition or results of operations as previously reported. Significant Accounting Policies. Our significant accounting policies are disclosed in Note 1 - Summary of Significant Accounting Policies and Practices in our Annual Report on Form 10-K for the year ended December 31, 2022. On an ongoing basis, we evaluate the estimates and assumptions, including among other things, those related to long-lived assets. Since the date of our Annual Report on Form 10-K for the year ended December 31, 2022, there have been no material changes to our significant accounting policies. Discontinued operations. On November 1, 2022, we completed the sale of Quest Integrity (the “Quest Integrity Transaction”). The criteria for reporting Quest Integrity as a discontinued operation were met during the third quarter of 2022 pursuant to that certain Equity Purchase Agreement by and between us and Baker Hughes Holdings LLC, dated as of August 14, 2022 (the “Sale Agreement”), and, as such, the prior year amounts presented in this Quarterly Report on Form 10-Q have been recast to present Quest Integrity as a discontinued operation. Unless otherwise specified, the financial information and discussion in this Quarterly Report on Form 10-Q are based on our continuing operations (IHT and MS segments) and exclude any results of our discontinued operations (Quest Integrity). Refer to Note 2 - Discontinued Operations for additional details.
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DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On November 1, 2022, we completed the Quest Integrity Transaction with Baker Hughes for an aggregate purchase price of approximately $279.0 million, in accordance with the Sale Agreement. We used approximately $238.0 million of the net proceeds from the sale of Quest Integrity to pay down $225.0 million of our term loan debt, and to pay certain fees associated with that repayment and related accrued interest, with the remainder reserved for general corporate purposes, thereby reducing our future debt service obligations and leverage, and improving our liquidity. During the fourth quarter of 2022, we recorded total gain of $203.4 million, net of tax and working capital adjustments, on the sale of Quest Integrity. We settled the working capital adjustment in the second quarter of 2023. Quest Integrity previously represented a reportable segment. Following the completion of the Quest Integrity Transaction, we now operate in two segments, IHT and MS. Refer to Note 1 – Description of Business and Basis of Presentation for additional details regarding our IHT and MS operating segments. Our condensed consolidated statements of operations for the three and six months ended June 30, 2022 report discontinued operations separate from continuing operations. Our condensed consolidated statements of comprehensive loss and statements of shareholders’ equity for the three and six months ended June 30, 2022 as well as statements of cash flows for the six months ended June 30, 2022 combine continuing and discontinued operations. A summary of financial information related to our discontinued operations is presented in the tables below. The following table represents the reconciliation of the major line items consisting of pretax income from discontinued operations to the after-tax income from discontinued operations (in thousands):
The following table presents the depreciation and amortization and capital expenditures of Quest Integrity (in thousands):
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE Disaggregation of revenue. Essentially all of our revenues are associated with contracts with customers. A disaggregation of our revenue from contracts with customers by geographic region, by reportable operating segment and by service type is presented below (in thousands): Geographic area:
Revenue by Operating segment and service type (in thousands):
For additional information on our reportable operating segments and geographic information, refer to Note 15 - Segment and Geographic Disclosures. Contract balances. The timing of revenue recognition, billings, and cash collections results in trade accounts receivable, contract assets and contract liabilities on the condensed consolidated balance sheets. Trade accounts receivable include billed and unbilled amounts currently due from customers and represent unconditional rights to receive consideration. The amounts due are stated at their net estimated realizable value. Refer to Note 4 - Receivables for additional information on our trade receivables and the allowance for credit losses. Contract costs. We recognize the incremental costs of obtaining contracts as selling, general and administrative expenses when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. Costs to fulfill a contract are recorded as assets if they relate directly to a contract or a specific anticipated contract, the costs to generate or enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered. Costs to fulfill a contract recognized as assets primarily consist of labor and material costs and generally relate to engineering and set-up costs incurred prior to when the satisfaction of performance obligations begins. Assets recognized for costs to fulfill a contract are included in the “Prepaid expenses and other current assets” line of the condensed consolidated balance sheets and were not material as of June 30, 2023 and December 31, 2022. Such assets are recognized as expenses as we transfer the related goods or services to the customer. All other costs to fulfill a contract are expensed as incurred. Remaining performance obligations. As permitted by ASC 606, Revenue from Contracts with Customers, we have elected not to disclose information about remaining performance obligations where (i) the performance obligation is part of a contract that has an original expected duration of one year or less or (ii) when we recognize revenue from the satisfaction of the performance obligation in accordance with the right-to-invoice practical expedient, which permits us to recognize revenue in the amount to which we have a right to invoice the customer if that amount corresponds directly with the value to the customer of our performance completed to date. As most of our contracts with customers are short-term in nature and billed on a time and material basis, there were no material amounts of remaining performance obligations as of June 30, 2023 and December 31, 2022.
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RECEIVABLES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES | RECEIVABLES A summary of accounts receivable as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
We measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This applies to financial assets measured at amortized cost, including trade and unbilled accounts receivable, and requires immediate recognition of lifetime expected credit losses. Significant factors that affect the expected collectability of our receivables include macroeconomic trends and forecasts in the oil and gas, refining, power, and petrochemical markets and changes in our results of operations and forecasts. For unbilled receivables, we consider them as short-term in nature as they are normally converted to trade receivables within 90 days, thus future changes in economic conditions will not have a significant effect on the credit loss estimate. The following table shows a rollforward of the allowance for credit losses (in thousands):
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INVENTORY |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY | INVENTORY A summary of inventory as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
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PREPAID AND OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID AND OTHER CURRENT ASSETS | PREPAID AND OTHER CURRENT ASSETS A summary of prepaid and other current assets as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
The insurance receivable relates to the receivable from our third-party insurance providers for a legal claim that is recorded in other accrued liabilities, refer to Note 9 - Other Accrued Liabilities. These receivables are covered by our third-party insurance providers for any litigation matter that has been settled, or pending settlements where the deductibles have been satisfied. The prepaid expenses primarily relate to prepaid insurance and other expenses that have been paid in advance of the coverage period. The other current assets primarily include items such as software implementation costs, other receivables, and other accounts receivables.
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PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
Included in the table above are assets under finance leases of $8.2 million and $7.4 million, and related accumulated amortization of $2.6 million and $2.3 million as of June 30, 2023 and December 31, 2022, respectively. Depreciation expense for the three months ended June 30, 2023 and 2022 was $5.5 million and $5.7 million, respectively. Depreciation expense for the six months ended June 30, 2023 and 2022 was $11.1 million and $11.8 million, respectively.
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INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS A summary of intangible assets as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
Amortization expense of intangible assets for the three months ended June 30, 2023 and 2022 was $3.2 million and $3.2 million, respectively. Amortization expense of intangible assets for the six months ended June 30, 2023 and 2022 was $6.4 million and $6.4 million, respectively. The weighted-average amortization period for intangible assets subject to amortization was 13.7 years as of June 30, 2023 and December 31, 2022.
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OTHER ACCRUED LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ACCRUED LIABILITIES | OTHER ACCRUED LIABILITIES A summary of other accrued liabilities as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
Legal and professional accruals include accruals for legal and professional fees as well as accrued legal claims, refer to Note 14 - Commitments and Contingencies. Certain legal claims are covered by insurance and the related insurance receivable for these claims is recorded in prepaid expenses and other current assets, refer to Note 6 - Prepaid and Other Current Assets. Payroll and other compensation expenses include all payroll related accruals including, among others, accrued vacation, severance, and bonuses. Insurance accruals primarily relate to accrued medical and workers compensation costs. Property, sales and other non-income related taxes includes accruals for items such as sales and use tax, property tax and other related tax accruals. Accrued interest relates to the interest accrued on our long-term debt. Other accruals include various business accruals.
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INCOME TAXES |
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Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESWe recorded an income tax provision of $2.1 million and $2.9 million for the three and six months ended June 30, 2023 compared to a provision of $2.2 million and $2.7 million for the three and six months ended June 30, 2022. The effective tax rate, inclusive of discrete items, was a provision of 15.3% for the three months ended June 30, 2023, compared to a provision of 8.5% for the three months ended June 30, 2022. For the six months ended June 30, 2023, our effective tax rate, inclusive of discrete items, was a provision of 7.7%, compared to a provision of 4.2% for the six months ended June 30, 2022. The effective tax rate differed from the statutory tax rate due to changes in the valuation allowance in certain jurisdictions. |
DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT As of June 30, 2023 and December 31, 2022, our total long-term debt and finance lease obligations are summarized as follows (in thousands):
_________________ 1 Net carrying balances of the loans are presented below (in thousands):
2 Comprised of principal amount outstanding, less unamortized discount and issuance costs. See Convertible Debt section below for additional information. 2022 ABL Credit Facility On February 11, 2022, we entered into a new credit agreement, with the lender parties thereto, and Eclipse Business Capital, LLC, a Delaware limited liability company, as agent, (“Eclipse”) (such agreement, as amended by Amendment No. 1 dated as of May 6, 2022, Amendment No. 2 dated as of November 1, 2022 and Amendment No.3 (described below) dated June 16, 2023, the “2022 ABL Credit Agreement”). Available funding commitments to us under the 2022 ABL Credit Agreement, subject to certain conditions, include a revolving credit line in an amount of up to $130.0 million to be provided by certain affiliates of Eclipse (the “Revolving Credit Loans”), with a $35.0 million sublimit for swingline borrowings and a $26.0 million sublimit for issuances of letters of credit, and an incremental delayed draw term loan of up to $35.0 million (the “Delayed Draw Term Loan”) provided by Corre Partners Management, LLC and certain of its affiliates (“Corre”) (collectively, the “2022 ABL Credit Facility”). The 2022 ABL Credit Facility was originally scheduled to mature in February 2025 but is now extended to August 2025 by Amendment No.3 as described below. Our obligations under the 2022 ABL Credit Agreement are guaranteed by certain of our direct and certain indirect subsidiaries referenced below as the “ABL Guarantors” and, together with the Company, the “ABL Loan Parties.” Our obligations under the 2022 ABL Credit Facility are secured on a first priority basis by, among other things, accounts receivable, deposit accounts, securities accounts and inventory of the ABL Loan Parties and are secured on a second priority basis by substantially all of the other assets of the ABL Loan Parties. Availability under the revolving credit line is based on a percentage of the value of qualifying accounts receivable and inventory, reduced by certain reserves. After the execution of Amendment No.3, described below, Revolving Credit Loans under the 2022 ABL Credit Facility bear interest through maturity at a variable rate based upon an Adjusted Term Secured Overnight Financing Rate (SOFR) (or a base rate if the SOFR Rate is unavailable for any reason), plus an applicable margin (“SOFR Loan” and “Base Rate Loan,” respectively). Prior to Amendment No.3, as described below, the rate utilized was LIBOR. The “base rate” is a fluctuating interest rate equal to the greatest of (1) 2.00%, (2) the federal funds rate plus 0.50%, (3) Term SOFR for a one-month tenor in effect on such day plus 1.00%, and (4) Wells Fargo Bank, National Association’s prime rate. The “applicable margin” is defined as a rate of 3.15%, 3.40% or 3.65% for Base Rate Loans with a 2.00% base rate floor and a rate of 4.15%, 4.40% or 4.65% for SOFR Loans with a 1.00% SOFR floor, in each case depending on the amount of EBITDA as of the most recent measurement period as reported in a monthly compliance certificate. The Delayed Draw Term Loan bears interest through maturity at a rate of the Adjusted Term SOFR Rate plus 10.0%, provided that, in the event that Adjusted Term SOFR is unavailable for any reason, then such rate shall be a rate per annum equal to the sum of the Base Rate, plus 9.00% per annum. The fee for undrawn revolving amounts is 0.50% and the fee for undrawn Delayed Draw Term Loan amounts is 3.00%. Interest under the 2022 ABL Credit Facility is payable monthly. The Company will also be required to pay customary letter of credit fees, as necessary. The Company may make voluntary prepayments of the loans under the 2022 ABL Credit Facility from time to time, subject, in the case of the Delayed Draw Term Loan, to certain conditions. Mandatory prepayments are also required in certain circumstances, including with respect to the Delayed Draw Term Loan, if the ratio of aggregate value of the collateral under the 2022 ABL Credit Facility to the sum of the Delayed Draw Term Loan plus revolving facility usage outstanding is less than 130%. Amounts repaid under the Revolving Credit Loans may be re-borrowed, subject to compliance with the borrowing base and the other conditions set forth in the 2022 ABL Credit Agreement. Amounts repaid under the Delayed Draw Term Loan cannot be re-borrowed. Certain permanent repayments of the 2022 ABL Credit Facility loans are subject to the payment of a premium of 1.00% from the ABL Amendment No.3 Effective Date (defined below) until August 11, 2024, and 0.50% after August 11, 2024 until August 11, 2025. The 2022 ABL Credit Agreement contains customary conditions to borrowings and covenants, including covenants that restrict our ability to sell assets, make changes to the nature of our business, engage in mergers or acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay dividends, issue equity instruments, make distributions or redeem or repurchase capital stock or make other investments, engage in transactions with affiliates and make payments in respect of certain debt. The 2022 ABL Credit Agreement following the execution of Amendment No.3, as described below, also requires that we will not exceed $15.0 million in unfinanced capital expenditures in any CapEx Test Period (as defined therein); provided the Company shall be permitted to make up to $25.0 million in unfinanced capital expenditures in any CapEx Test Period (as defined therein) if we maintain a net leverage ratio of less than or equal to 2.00 to 1.00 on a pro forma basis immediately after giving effect to each such unfinanced capital expenditures in excess of the $15.0 million maximum annual capital expenditure limit. In addition, the 2022 ABL Credit Agreement includes customary events of default, the occurrence of which may require that we pay an additional 2.00% interest on the outstanding loans under the 2022 ABL Credit Facility and that the debt becomes payable immediately. Amendment No.3 On June 16, 2023 (the “ABL Amendment No.3 Effective Date”), the Company entered into Amendment No. 3 (“ABL Amendment No. 3”) among the Company, as borrower, the lenders from time-to-time party thereto and Eclipse, as agent (the “ABL Agent”). The ABL Amendment No. 3 amended the 2022 ABL Credit Agreement to, among other things, (i) provide the Company with a new $27.4 million term loan (the “ME/RE Loans”) secured by a first priority lien and mortgage on certain real estate and machinery and equipment of the Company and the ABL Guarantors (the “Specified RE/ME”) as described further below, (ii) increase borrowing base availability under the revolving credit facility by an additional $2.5 million, (iii) extend the maturity date for the entire facility under the 2022 ABL Credit Agreement to August 11, 2025, (iv) amend the financial maintenance covenant with respect to the maximum unfinanced capital expenditures, and (iv) amend provisions applicable to the $35.0 million delayed draw term loans under the 2022 ABL Credit Agreement to remove the ability of the Company to repay and re-borrow such loans, to remove the ability to pay any portion of the interest on such loans in PIK (as defined below) and add a mandatory prepayment with respect to such loan in relation to any sale of certain collateral principally supporting such loans. The interest rate after the execution of Amendment No.3 as of June 30, 2023 was 9.92% for Revolving Credit Loans and 15.27% for the Delayed Draw Term Loan. The interest rate as of June 30, 2022 was 5.71% for Revolving Credit Loans and 11.06% for the Delayed Draw Term Loan. Cash interest paid on Revolving Credit Loans amounted to $3.0 million and $2.0 million for the six months ended June 30, 2023 and 2022, respectively. Cash interest paid on the Delayed Draw Term Loan amounted to $2.6 million and $0.8 million for the six months ended June 30, 2023 and 2022, respectively. Direct and incremental costs associated with the issuance of the 2022 ABL Credit Facility excluding Amendment No.3 were approximately $8.4 million and were capitalized as deferred financing costs. These costs were fully amortized as of June 16, 2023 due to the Maturity Reserve Trigger Date provision that was previously applicable. We incurred additional $0.3 million of financing cost related to the existing ABL Credit Facility in connection with the ABL Amendment No. 3. These costs were capitalized and amortized on a straight-line basis over the new term of the 2022 ABL Credit Facility. ME/RE Loans As described above, on June 16, 2023, we entered into ABL Amendment No. 3 that, provided us with $27.4 million of new ME/RE Loans. Our obligations in respect of the ME/RE Loans are guaranteed by certain direct and indirect material subsidiaries of the Company (the “ABL Guarantors” and, together with the Company, the “ABL Loan Parties”). The ME/RE Loans under the 2022 ABL Credit Agreement are secured on a first priority basis by, among other things, the Specified RE/ME, accounts receivable, deposit accounts, securities accounts and inventory of the ABL Loan Parties (the “ABL Priority Collateral”) and on a second priority basis by substantially all of the other assets of the ABL Loan Parties, subject to the terms of the Intercreditor Agreement. The ME/RE Loans were drawn in full on June 16, 2023 and were used to pay off the amounts owed under the existing APSC Term Loan, discussed below. The ME/RE Loans bear interest at an annual rate of the SOFR, plus a credit spread adjustment of 0.11% per annum and a margin of 5.75% per annum and is payable monthly. Amounts outstanding under the ME/RE Loans amortize each month in aggregate installments of $0.3 million, subject to certain adjustments. The Company may make voluntary prepayments of the ME/RE Loans from time to time, and mandatory prepayment is required in certain instances related to asset sales of the Specified RE/ME and with annual excess cash flow (as defined in the 2022 ABL Credit Agreement), subject to certain prepayment premiums (subject to certain exceptions), plus accrued and unpaid interest. The effective interest rate of the ME/RE Loans as of June 30, 2023 was approximately 16.54% and consisted of the 11.02% stated interest rate and an additional 5.51% due to amortization of the related debt issuance cost. No interest was paid during the six months ended June 30, 2023. Direct and incremental costs associated with the issuance of the ABL Amendment No. 3 were approximately $1.9 million and were deferred and presented as a direct deduction from the carrying amount of the related debt and are amortized on a straight-line basis over the term of the ME/RE Loans. Unamortized debt issuance cost amounted to $1.9 million as of June 30, 2023. As of June 30, 2023, we had $80.9 million of Revolving Credit Loans outstanding and $35.0 million outstanding under the Delayed Draw Term Loan. There were $10.1 million outstanding in letters of credit secured by these instruments, which are off-balance sheet. As of June 30, 2023, subject to the applicable sublimit and other terms and conditions, $21.8 million was available for loans or for issuance of new letters of credit. APSC Term Loan On December 18, 2020, we entered into that certain Term Loan Credit Agreement (as amended by Amendment No. 1, dated as of October 19, 2021, Amendment No. 2, dated as of October 29, 2021, Amendment No. 3, dated as of November 8, 2021, Amendment No. 4, dated as of December 2, 2021, Amendment No. 5, dated as of December 7, 2021 Amendment No. 6, dated as of February 11, 2022, Amendment No. 7, dated as of May 6, 2022, Amendment No. 8, dated as of November 1, 2022 and Amendment No. 9, dated as of November 4, 2022, the “Term Loan Credit Agreement”) with Atlantic Park Strategic Capital Fund, L.P., as agent (“APSC”), pursuant to which we borrowed $250.0 million (the “Term Loan”). The Term Loan had an original maturity date of December 18, 2026. On June 16, 2023, we used the proceeds from the ME/RE Loans and borrowings under the 2022 ABL Credit Facility to repay the total outstanding Term Loan balance of $35.5 million plus the applicable prepayment premium of $1.4 million and related accrued interest, resulting in a loss on debt extinguishment of $1.6 million. As of June 30, 2022, the effective interest amounted to 23.85% and consisted of a 9.00% variable interest rate paid in cash and an additional 14.85% due to the acceleration of the amortization of the related debt issuance costs. The unamortized balance of debt discounts, warrant discount and debt issuance cost amounted to $3.9 million at December 31, 2022. Cash interest paid amounted to $2.9 million and $5.5 million for the six months ended June 30, 2023 and 2022, respectively. Subordinated Term Loan Credit Agreement / Amended and Restated Term Loan Credit Agreement On November 9, 2021, we entered into a credit agreement (as amended by Amendment No. 1 dated as of November 30, 2021, Amendment No. 2 dated as of December 6, 2021, Amendment No. 3 dated as of December 7, 2021, Amendment No. 4 dated as of December 8, 2021, Amendment No. 5 dated as of February 11, 2022, Amendment No. 6 dated as of May 6, 2022, Amendment No. 7 dated as of June 28, 2022, Amendment No. 8 dated as of October 4, 2022, Amendment No. 9 dated as of November 1, 2022, Amendment No. 10 dated as of November 4, 2022, Amendment No. 11 dated as of November 21, 2022 and Amendment No. 12 dated as of March 29, 2023, the “Subordinated Term Loan Credit Agreement”) with Cantor Fitzgerald Securities, as agent, and the lenders party thereto providing for an unsecured approximately $123.1 million delayed draw subordinated term loan facility (the “Subordinated Term Loan”). Pursuant to the Subordinated Term Loan Credit Agreement, we borrowed $22.5 million on November 9, 2021, and an additional $27.5 million on December 8, 2021. On October 4, 2022, an additional approximately $57.0 million was added to the outstanding principal amount under the Subordinated Term Loan Credit Agreement in exchange for an equivalent amount of the Company’s Notes held by Corre (as defined below). On June 16, 2023, the Company, entered into an amendment and restatement of that certain subordinated term loan credit agreement dated as of November 9, 2021 (as amended and restated, the “A&R Term Loan Credit Agreement”) among the Company, as borrower, the guarantors party thereto, the lenders from time to time party thereto and Cantor Fitzgerald Securities, as agent (the “A&R Term Loan Agent”). Additional funding commitments to the Company under the A&R Term Loan Credit Agreement, subject to certain conditions, included a $57.5 million senior secured first lien term loan (the “Incremental Term Loan”) provided by Corre Partners Management, LLC (“Corre” or the “Investor Representative”) and certain of its affiliates, consisting of a $37.5 million term loan tranche and a $20.0 million delayed draw term loan tranche. Amounts outstanding under the existing subordinated term loan credit agreement (the “Uptiered Loan”) have become senior secured obligations of the Company and the A&R Term Loan Guarantors (as defined below) and are secured on a pari passu basis with the Incremental Term Loan, on the terms described below. As of the closing date of the A&R Term Loan Credit Agreement (the “Closing Date”), the aggregate principal amount of the Uptiered Loan was $123.1 million. All outstanding amounts in respect of the Incremental Term Loan under the A&R Term Loan Credit Agreement mature and become due and payable on December 31, 2026. All outstanding amounts in respect of the Uptiered Loan under the A&R Term Loan Credit Agreement mature and become due and payable on December 31, 2027; provided that, if greater than $50.0 million (including amounts in respect of payments in kind) of the Uptiered Loan is outstanding on December 31, 2026, then all outstanding amounts in respect of the Uptiered Loan under the A&R Term Loan Credit Agreement become due and payable on December 31, 2026. The Company’s obligations under the A&R Term Loan Credit Agreement are guaranteed by certain direct and indirect material subsidiaries of the Company (the “A&R Term Loan Guarantors” and, together with the Company, the “A&R Term Loan Parties”). The obligations of the A&R Term Loan Parties are secured on a second priority basis by the ABL Priority Collateral and on a first priority basis by substantially all of the other assets of the A&R Term Loan Parties, subject to the terms of an intercreditor agreement (the “Intercreditor Agreement”) between the A&R Term Loan Agent, the ABL Agent and the A&R Term Loan Parties, that sets forth the priorities in respect of the collateral and certain related agreements with respect thereto. Incremental Term Loans borrowed under the A&R Term Loan Credit Agreement bear interest at an annual rate of 12.00%, payable in cash. The Uptiered Loan under the A&R Term Loan Credit Agreement bear interest at an annual rate of 12.00%, paid-in-kind (noncash) (“PIK”) from the Closing Date through December 31, 2023, and thereafter a split between cash and PIK, with the cash portion ranging from 2.50% per annum to 12.00% per annum, and the PIK portion ranging from 9.50% per annum to 0.00% per annum, depending on the Company’s Net Leverage Ratio (as defined in the A&R Term Loan Credit Agreement). Cash interest under the A&R Term Loan Credit Agreement is payable quarterly, and PIK interest is payable monthly. In addition, if certain minimum liquidity thresholds set forth in the A&R Term Loan Credit Agreement are not met for an applicable interest payment date, all interest in respect of the Uptiered Loan payable on such interest payment date will be PIK, irrespective of the Net Leverage Ratio at such time. Amounts outstanding under the Incremental Term Loan amortize in quarterly installments of 0.75% of the original principal amount borrowed. The Company may make voluntary prepayments of the loans under the A&R Term Loan Credit Agreement from time to time, and the Company is required in certain instances related to change of control, asset sales, equity issuances, non-permitted debt issuances and with annual excess cash flow (as defined in the A&R Term Loan Credit Agreement), to make mandatory prepayments of the loans under the A&R Term Loan Credit Agreement, subject to certain prepayment premiums as specified in the A&R Term Loan Credit Agreement (subject to certain exceptions), plus accrued and unpaid interest. In addition, if certain conditions related to repayments in respect of the Incremental Term Loan are not met, certain additional quarterly fees (not to exceed 4 such fees) plus a 150 basis point increase to the applicable interest rate will be payable to the lenders under the A&R Term Loan Credit Agreement in cash or common stock of the Company, at the Company’s option. The A&R Term Loan Credit Agreement contains certain conditions to borrowings, events of default and affirmative, negative and financial covenants, including covenants that restrict the Company’s ability to sell assets, make changes to the nature of the Company’s business, engage in mergers or acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay dividends, make distributions or redeem or repurchase capital stock or make investments, engage in transactions with affiliates and make payments in respect of certain debt. The A&R Term Loan Credit Agreement also requires that the Company will not exceed $15.0 million in unfinanced capital expenditures in any four-fiscal quarter period, tested as of the end of the second and fourth fiscal quarters of each calendar year starting with the period ending December 31, 2023; provided that such amount shall increase to $25.0 million if the Company’s Total Leverage Ratio (as defined in the A&R Term Loan Credit Agreement) is less than or equal to 2.00 to 1.00 on a pro forma basis for such additional expenditure. In addition, the A&R Term Loan Credit Agreement requires that the Company not exceed a maximum Net Leverage Ratio, tested as of the end of each fiscal quarter, beginning at 9.25 to 1.00 for the fiscal quarter ending June 30, 2023 and stepping down each quarter to a ratio of 4.75 to 1.00 for the fiscal quarters ending March 31, 2026 and thereafter. Further, the A&R Term Loan Credit Agreement includes certain customary events of default, the occurrence of which may require that we pay an additional 2.00% interest on the outstanding loans and other obligations under the A&R Term Loan Credit Agreement and the debt becomes payable immediately. As of June 30, 2023, following the execution of the A&R Term Loan Credit Agreement, the effective interest rate on the Uptiered Term Loan amounted to 12.86%. At June 30, 2022, the effective interest rate of 46.79% consisted of the 12.00% stated interest and an additional 34.79% due to the accelerated amortization of the related debt issuance costs due to the Trigger Date provision. The unamortized debt issuance cost amounted to $0.7 million and $7.5 million as of June 30, 2023 and December 31, 2022, respectively. PIK interest added to principal amounted to $7.7 million and $3.0 million for the six months ended June 30, 2023 and 2022, respectively. On July 31, 2023, $42.5 million, made up of $37.5 million of the term loan tranche and $5.0 million of the delayed draw term loan tranche, of the $57.5 million Incremental Term Loan under the A&R Term Loan Credit Agreement was drawn down and the proceeds thereof were used to repay the Notes that matured on August 1, 2023. The remaining availability of the delayed draw term loan tranche of $15.0 million will be used, subject to certain maximum liquidity conditions, for working capital purposes. Warrants As of June 30, 2023 and December 31, 2022, we had the following warrants outstanding:
The exercise price and the number of shares of our common stock issuable on exercise of the warrants are subject to certain antidilution adjustments, including for stock dividends, stock splits, reclassifications, noncash distributions, cash dividends, certain equity issuances and business combination transactions. Convertible Notes Description of the Notes On July 31, 2017, we issued $230.0 million principal amount of senior unsecured 5.00% Convertible Senior Notes (the “Notes”) due 2023 in a private offering to qualified institutional buyers (as defined in the Securities Act of 1933) pursuant to Rule 144A under the Securities Act (the “Offering”). Net proceeds received from the Offering were approximately $222.3 million after deducting discounts, commissions and expenses and were used to repay outstanding borrowings under a previous credit facility. The Notes bore interest at a rate of 5.0% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2018. After a series of Note repurchases by the Company since issuance and the exchange by Corre in October 2022 of Notes totaling approximately $57.0 million for an equivalent amount of principal added to borrowings under the Subordinated Term Loan Credit Agreement, there was approximately $41.2 million of Notes outstanding at June 30, 2023. As noted above, on July 31, 2023, $42.5 million of the $57.5 million Incremental Term Loan was drawn down and the proceeds thereof were used to repay the principal and accrued interest of the outstanding Notes that matured on August 1, 2023. Accounting Treatment of the Notes As of June 30, 2023 and December 31, 2022, the Notes were recorded in our condensed consolidated balance sheet as follows (in thousands):
_________________ 1 Included in the “Long-term debt and finance lease obligation” line for June 30, 2023 and “Current portion of long-term debt and finance lease obligations” line for December 31, 2022 of the condensed consolidated balance sheets. 2 Relates to the portion of the Notes accounted for under ASC 815-15 (defined below) and is included in the “Additional paid-in capital” line of the condensed consolidated balance sheets. Under ASC 470-20, Debt with Conversion and Other Options, (“ASC 470-20”), an entity must separately account for the liability and equity components of convertible debt instruments that may be settled entirely or partially in cash upon conversion (such as the Notes) in a manner that reflects the issuer’s economic interest cost. However, entities must first consider the guidance in ASC 815-15, Embedded Derivatives (“ASC 815-15”), to determine if an instrument contains an embedded feature that should be separately accounted for as a derivative. Fair Value of Debt The fair value of our 2022 ABL Credit Facility, Uptiered Loans and ME/RE Loans are representative of the carrying value based upon the variable interest rate terms and management’s opinion that the current rates available to us with the same maturity and security structure are equivalent to that of the debt. The fair value of the Notes as of June 30, 2023 and December 31, 2022 was $41.0 million and $37.5 million, respectively, (inclusive of the fair value of the conversion option) and are a “Level 2” measurement, determined based on the observed trading price of these instruments. 1970 Group Substitute Insurance Reimbursement Facility The 1970 Group extended us credit in the form of a substitute reimbursement facility (the “Substitute Reimbursement Facility”) to provide up to approximately $21.4 million of letters of credit on our behalf in support of our workers’ compensation, commercial automotive and general liability insurance policies (the “Insurance Policies”). We are required to reimburse the 1970 Group for any draws made under the letters of credit within five business days of notice of any such draw. The Substitute Insurance Reimbursement Facility Agreement terminates upon the earlier of (i) the expiration or termination of our Insurance Policies or (ii) September 29, 2023. According to the provisions of ASC 470 – Debt, the arrangement is a Substitute Insurance Reimbursement Facility limited to the amounts drawn under the letters of credit. Therefore, until there is a draw on the Substitute Insurance Reimbursement Facility, the letters of credit are treated as an off-balance sheet credit arrangement. The fees in the amount of $2.9 million paid by us are deferred and amortized to interest expense over the term of the arrangement. As of June 30, 2023, all fees were fully amortized. Liquidity As of June 30, 2023, we had $25.0 million of unrestricted cash and cash equivalents and $5.4 million of restricted cash. International cash balances as of June 30, 2023 were $10.4 million, and approximately $0.6 million of such cash is located in countries where currency restrictions exist. As of June 30, 2023, excluding availability dedicated to repayment of Notes as part of the A&R Term Loan Credit Agreement as described above, we had approximately $36.8 million of available borrowing capacity under our various credit agreements, consisting of $21.8 million available under the Revolving Credit Loans and $15.0 million available under the Incremental Term Loan under the A&R Term Loan Credit Agreement. We have $33.7 million in letters of credit and $2.2 million in surety bonds outstanding and $0.7 million in miscellaneous cash deposits securing leases or other required obligations. Our cash and cash equivalents as of December 31, 2022 totaled $58.1 million including $1.4 million of cash located in countries where currency restrictions existed.
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EMPLOYEE BENEFIT PLANS |
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EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We have a defined benefit pension plan covering certain United Kingdom employees (the “U.K. Plan”). Net periodic pension credit includes the following components (in thousands):
Net pension credit is included in “Other income, net” on our condensed consolidated statement of operations. The expected long-term rate of return on invested assets is determined based on the weighted average of expected returns on asset investment categories for the U.K. Plan as follows: 6.4% overall, 9.5% for equities and 5.3% for debt securities. We expect to contribute $3.7 million to the U.K. Plan for 2023, of which $1.9 million has been contributed through June 30, 2023.
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STOCKHOLDERS’ EQUITY |
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STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Shareholder’s Equity and Preferred Stock On December 21, 2022, we completed a reverse stock split of our outstanding common stock at a ratio of one-for-ten. The Reverse Stock Split effected a proportionate reduction in our authorized shares of common stock from 120,000,000 shares to 12,000,000 shares and reduced the number of shares of common stock outstanding from approximately 43,429,089 shares to approximately 4,342,909 shares. We have made proportionate adjustments to the number of common shares issuable upon exercise or conversion of our outstanding warrants, equity awards and convertible securities, as well as the applicable exercise prices and weighted average fair value of the equity awards. No fractional shares were issued in connection with the Reverse Stock Split. As of June 30, 2023 there were 4,368,422 shares of our common stock outstanding and 12,000,000 shares authorized at $0.30 par value per share. As of June 30, 2023 we had 500,000 authorized shares of preferred stock, none of which had been issued. Accumulated Other Comprehensive Income (loss) A summary of changes in accumulated other comprehensive loss included within shareholders’ equity is as follows (in thousands):
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We accrue for contingencies where the occurrence of a material loss is probable and can be reasonably estimated, based on our best estimate of the expected liability. We may increase or decrease our legal accruals in the future, on a matter-by-matter basis, to account for developments in such matter. Because such matters are inherently unpredictable and unfavorable developments or outcomes can occur, assessing contingencies is highly subjective and requires judgments about future events. Notwithstanding the uncertainty as to the outcome and while our insurance coverage might not be available or adequate to cover these claims, based upon the information currently available, we do not believe that any uninsured losses that might arise from these lawsuits and proceedings will have a materially adverse effect on our condensed consolidated financial statements. Notice of Potential Environmental Violation - On April 20, 2021, Team Industrial Services, Inc. received Notices of Potential Violation from the U.S. Environmental Protection Agency (“EPA”) alleging noncompliance with various waste determination, reporting, training, and planning obligations under the Resource Conservation and Recovery Act at seven of our facilities located in Texas and Louisiana. The allegations largely related to spent film developing solutions generated through our mobile radiographic inspection services and related to the characterization and quantities of those wastes and related notices, reporting, training, and planning. On February 9, 2022, Team and the EPA agreed to settle all the claims related to this matter and the formal settlement agreement was finalized in April 2022 with our agreement to pay penalties totaling $0.2 million. Kelli Most Litigation - On November 13, 2018, Kelli Most filed a lawsuit against Team Industrial Services, Inc., individually and as a personal representative of the estate of Jesse Henson, in the 268th District Court of Fort Bend County, Texas (the “Most litigation”). The complaint asserted claims against Team for negligence resulting in the wrongful death of Jesse Henson. A jury trial commenced on this matter on May 4, 2021. On June 1, 2021, the jury rendered a verdict against Team for $222.0 million in compensatory damages. On January 25, 2022, the trial court signed a final judgment in favor of the plaintiff and against Team Industrial Services, Inc. Post-judgment motions challenging the judgment were filed on February 24, 2022 and were denied by the court on April 22, 2022. A notice of appeal was filed on April 25, 2022, and this case is currently pending in the Court of Appeals for the First District of Texas, in Houston. We believe that the likelihood that the amount of the judgment will be affirmed is not probable. We currently estimate a range of possible outcomes between $13.0 million and approximately $51.0 million, and as of June 30, 2023 we have recorded a receivable from our third-party insurance providers in other current assets with a corresponding liability of the same amount in other accrued liabilities at an amount we believe is the most likely estimate for a probable loss on this matter. Such amounts are treated as non-cash operating activities. The Most litigation is covered by our general liability and excess insurance policies which are occurrence based and subject to an aggregate $3.0 million self-insured retention and deductible. All retentions and deductibles have been met, accordingly, we believe pending the final settlement, all further claims will be fully funded by our insurance policies. We will continue to evaluate the possible outcomes of this case in light of future developments and their potential impact on factors relevant to our assessment of any possible loss. Accordingly, for all matters discussed above, we have accrued in the aggregate approximately $41.2 million as of June 30, 2023, of which approximately $2.2 million is not covered by our various insurance policies. In addition to legal matters discussed above, we are subject to various lawsuits, claims and proceedings encountered in the normal conduct of business (“Other Proceedings”). Management believes that based on its current knowledge and after consultation with legal counsel that the Other Proceedings, individually or in the aggregate, will not have a material effect on our condensed consolidated financial statements.
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SEGMENT AND GEOGRAPHIC DISCLOSURES |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT AND GEOGRAPHIC DISCLOSURES | SEGMENT AND GEOGRAPHIC DISCLOSURES ASC 280, Segment Reporting, requires us to disclose certain information about our operating segments. Operating segments are defined as “components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.” We conduct operations in two segments: IHT and MS. Segment data for our two operating segments are as follows (in thousands):
____________ 1 Excludes finance leases. Totals may vary from amounts presented in the condensed consolidated statements of cash flows due to the timing of cash payments.
Separate measures of our assets by operating segment are not produced or utilized by management to evaluate segment performance. A geographic breakdown of our revenues for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):
______________ 1 Revenues attributable to individual countries/geographic areas are based on the country of domicile of the legal entity that performs the work.
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RELATED PARTY TRANSACTIONS |
6 Months Ended |
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Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Alvarez & Marsal provided certain consulting services to the Company in connection with our former Interim Chief Financial Officer position and other corporate support costs. Effective June 12, 2022 the Interim Chief Financial Officer position ended as the Company named a permanent Chief Financial Officer. The Company paid $8.1 million in consulting fees to Alvarez & Marsal for the year ended December 31, 2022. In connection with the Company’s debt transactions, the Company engaged in transactions with Corre and APSC to provide funding as described in Note 11 - Debt.
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SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSAs of August 10, 2023, the filing date of this Quarterly Report on Form 10-Q, management evaluated the existence of events occurring subsequent to the quarter ended June 30, 2023, and determined that there were no events or transactions that would have a material impact on the Company’s results of operations or financial position except as described in Note 11 - Debt. |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis for presentation | Basis for presentation. These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain disclosures have been condensed or omitted from the interim financial statements included in this report. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission. |
Consolidation | Consolidation. The condensed consolidated financial statements include the accounts of our subsidiaries where we have control over operating and financial policies. All material intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications. Certain amounts in prior periods have been reclassified to conform to the current year presentation, including the separate presentation and reporting of discontinued operations. Such reclassifications did not have any effect on our financial condition or results of operations as previously reported. |
Discontinued operations | Discontinued operations. On November 1, 2022, we completed the sale of Quest Integrity (the “Quest Integrity Transaction”). The criteria for reporting Quest Integrity as a discontinued operation were met during the third quarter of 2022 pursuant to that certain Equity Purchase Agreement by and between us and Baker Hughes Holdings LLC, dated as of August 14, 2022 (the “Sale Agreement”), and, as such, the prior year amounts presented in this Quarterly Report on Form 10-Q have been recast to present Quest Integrity as a discontinued operation. Unless otherwise specified, the financial information and discussion in this Quarterly Report on Form 10-Q are based on our continuing operations (IHT and MS segments) and exclude any results of our discontinued operations (Quest Integrity). Refer to Note 2 - Discontinued Operations for additional details. |
DISCONTINUED OPERATIONS (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The following table represents the reconciliation of the major line items consisting of pretax income from discontinued operations to the after-tax income from discontinued operations (in thousands):
The following table presents the depreciation and amortization and capital expenditures of Quest Integrity (in thousands):
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REVENUE (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | A disaggregation of our revenue from contracts with customers by geographic region, by reportable operating segment and by service type is presented below (in thousands): Geographic area:
Revenue by Operating segment and service type (in thousands):
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RECEIVABLES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounts Receivable | A summary of accounts receivable as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
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Allowance for Credit Loss | The following table shows a rollforward of the allowance for credit losses (in thousands):
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INVENTORY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventory | A summary of inventory as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
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PREPAID AND OTHER CURRENT ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | A summary of prepaid and other current assets as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property, Plant and Equipment | A summary of property, plant and equipment as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
|
INTANGIBLE ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Intangible Assets | A summary of intangible assets as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
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OTHER ACCRUED LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Accrued Liabilities | A summary of other accrued liabilities as of June 30, 2023 and December 31, 2022 is as follows (in thousands):
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DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | As of June 30, 2023 and December 31, 2022, our total long-term debt and finance lease obligations are summarized as follows (in thousands):
_________________ 1 Net carrying balances of the loans are presented below (in thousands):
2 Comprised of principal amount outstanding, less unamortized discount and issuance costs. See Convertible Debt section below for additional information.
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Schedule of Warrants or Rights | As of June 30, 2023 and December 31, 2022, we had the following warrants outstanding:
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Schedule of Convertible Debt | As of June 30, 2023 and December 31, 2022, the Notes were recorded in our condensed consolidated balance sheet as follows (in thousands):
_________________ 1 Included in the “Long-term debt and finance lease obligation” line for June 30, 2023 and “Current portion of long-term debt and finance lease obligations” line for December 31, 2022 of the condensed consolidated balance sheets. 2 Relates to the portion of the Notes accounted for under ASC 815-15 (defined below) and is included in the “Additional paid-in capital” line of the condensed consolidated balance sheets.
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EMPLOYEE BENEFIT PLANS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Pension Cost (Credit) | Net periodic pension credit includes the following components (in thousands):
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STOCKHOLDERS’ EQUITY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Loss Included Within Shareholders' Equity | A summary of changes in accumulated other comprehensive loss included within shareholders’ equity is as follows (in thousands):
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SEGMENT AND GEOGRAPHIC DISCLOSURES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data for our Three Operating Segments | Segment data for our two operating segments are as follows (in thousands):
____________ 1 Excludes finance leases. Totals may vary from amounts presented in the condensed consolidated statements of cash flows due to the timing of cash payments.
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Geographic Breakdown of Revenues | A geographic breakdown of our revenues for the three and six months ended June 30, 2023 and 2022 is as follows (in thousands):
______________ 1 Revenues attributable to individual countries/geographic areas are based on the country of domicile of the legal entity that performs the work.
|
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) |
6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2023
USD ($)
|
Dec. 21, 2022
shares
|
Nov. 01, 2022
segment
|
Jun. 30, 2023
USD ($)
segment
profile
shares
|
Jun. 30, 2022
USD ($)
|
Jun. 16, 2023
USD ($)
|
Dec. 31, 2022
shares
|
Dec. 20, 2022
shares
|
Feb. 11, 2022
USD ($)
|
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Debt Instrument [Line Items] | |||||||||||
Number of operating segments | segment | 2 | 2 | |||||||||
Number of distinct client demand profiles | profile | 3 | ||||||||||
Reverse stock split ratio | 0.1 | ||||||||||
Common stock, shares authorized (in shares) | shares | 12,000,000 | 12,000,000 | 120,000,000 | ||||||||
Common stock, shares, outstanding (in shares) | shares | 4,342,909 | 4,368,422 | 4,342,909 | 43,429,089 | |||||||
Proceeds from secured debt | [1] | $ 27,398,000 | $ 0 | ||||||||
Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing capacity | $ 130,000,000 | ||||||||||
A&R Term Loan Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, threshold, trigger amount | $ 50,000,000 | ||||||||||
A&R Term Loan Credit Agreement | Senior Secured First Lien Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | 57,500,000 | ||||||||||
A&R Term Loan Credit Agreement | Senior Secured First Lien Term Loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from secured debt | $ 42,500,000 | ||||||||||
Term Loan | Senior Secured First Lien Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | 37,500,000 | ||||||||||
Term Loan | Senior Secured First Lien Term Loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from secured debt | 37,500,000 | ||||||||||
Delayed Draw Term Loan | Senior Secured First Lien Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | 20,000,000 | ||||||||||
Delayed Draw Term Loan | Senior Secured First Lien Term Loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from secured debt | $ 5,000,000 | ||||||||||
Delayed Draw Term Loan | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount, long-term debt issued | 35,000,000 | $ 35,000,000 | |||||||||
ABL Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowing capacity | 27,400,000 | ||||||||||
ABL Credit Agreement | Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, increase in borrowing base | $ 2,500,000 | ||||||||||
|
DISCONTINUED OPERATIONS - Additional Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Nov. 01, 2022
USD ($)
segment
|
Dec. 31, 2022
USD ($)
|
Jun. 30, 2023
segment
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Repayment of principal debt balance | $ 225.0 | ||
Number of operating segments | segment | 2 | 2 | |
Quest Integrity | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Purchase and sale agreement, consideration | $ 279.0 | ||
Net proceeds used to pay down term debt | $ 238.0 | ||
Gain on disposal | $ 203.4 |
DISCONTINUED OPERATIONS - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Major classes of line items constituting income (loss) from discontinued operations | ||||
Net income from discontinued operations | $ 0 | $ 6,650 | $ 0 | $ 12,521 |
Quest Integrity | ||||
Major classes of line items constituting income (loss) from discontinued operations | ||||
Revenues | 29,723 | 59,263 | ||
Operating expenses | (11,886) | (27,456) | ||
Selling, general and administrative expenses | (9,823) | (17,589) | ||
Interest expense, net | (4) | (30) | ||
Other expense | (1,783) | (2,260) | ||
Income from discontinued operations before income taxes | 6,227 | 11,928 | ||
Benefit from income taxes | 423 | 593 | ||
Net income from discontinued operations | $ 6,650 | 12,521 | ||
Cash flows provided by operating activities of discontinued operations: | ||||
Depreciation and amortization | 1,146 | |||
Cash flows provided by investing activities of discontinued operations: | ||||
Capital expenditures | $ 2,585 |
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 239,492 | $ 221,540 | $ 441,769 | $ 410,578 |
Non-Destructive Evaluation and Testing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94,305 | 91,701 | 175,911 | 168,152 |
Repair and Maintenance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122,241 | 106,846 | 222,082 | 198,640 |
Heat Treating | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,928 | 15,843 | 29,934 | 29,739 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,018 | 7,150 | 13,842 | 14,047 |
IHT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 116,740 | 114,124 | 218,569 | 209,721 |
IHT | Non-Destructive Evaluation and Testing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94,305 | 91,701 | 175,911 | 168,152 |
IHT | Repair and Maintenance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 219 | 115 | 222 | 139 |
IHT | Heat Treating | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,717 | 15,787 | 29,445 | 29,626 |
IHT | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,499 | 6,521 | 12,991 | 11,804 |
MS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122,752 | 107,416 | 223,200 | 200,857 |
MS | Non-Destructive Evaluation and Testing Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
MS | Repair and Maintenance Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122,022 | 106,731 | 221,860 | 198,501 |
MS | Heat Treating | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 211 | 56 | 489 | 113 |
MS | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 519 | 629 | 851 | 2,243 |
United States and Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 195,639 | 189,224 | 366,201 | 346,533 |
United States and Canada | IHT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113,013 | 111,541 | 211,544 | 204,919 |
United States and Canada | MS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 82,626 | 77,683 | 154,657 | 141,614 |
Other Countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,853 | 32,316 | 75,568 | 64,045 |
Other Countries | IHT | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,727 | 2,583 | 7,025 | 4,802 |
Other Countries | MS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 40,126 | $ 29,733 | $ 68,543 | $ 59,243 |
RECEIVABLES - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Receivables [Abstract] | |||
Trade accounts receivable | $ 159,330 | $ 160,572 | |
Unbilled receivables | 42,848 | 31,379 | |
Allowance for credit losses | (5,145) | (5,262) | $ (7,843) |
Total | $ 197,033 | $ 186,689 |
RECEIVABLES - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts receivable, payment terms | 90 days |
RECEIVABLES - Summary of Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 5,262 | $ 7,843 |
Provision for expected credit losses | 783 | 1,059 |
Recoveries collected | (498) | (1,114) |
Write-offs | (369) | (2,479) |
Foreign exchange effects | (33) | (47) |
Balance at end of period | $ 5,145 | $ 5,262 |
INVENTORY (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 9,829 | $ 8,978 |
Work in progress | 2,749 | 2,945 |
Finished goods | 25,283 | 24,408 |
Total | $ 37,861 | $ 36,331 |
PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Insurance receivable | $ 39,000 | $ 39,000 |
Prepaid expenses | 15,021 | 15,238 |
Other current assets | 6,582 | 11,441 |
Total | $ 60,603 | $ 65,679 |
PROPERTY, PLANT AND EQUIPMENT - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total | $ 433,662 | $ 431,355 |
Accumulated depreciation | (301,706) | (293,256) |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization, Total | 131,956 | 138,099 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 4,006 | 4,006 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 62,229 | 50,833 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 285,403 | 277,852 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total | 10,794 | 10,558 |
Capitalized ERP system development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total | 45,903 | 45,917 |
Computers and computer software | ||
Property, Plant and Equipment [Line Items] | ||
Total | 19,797 | 19,457 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,369 | 3,536 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,161 | $ 19,196 |
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | |||||
Assets under finance leases | $ 8.2 | $ 8.2 | $ 7.4 | ||
Accumulated amortization for assets under finance leases | 2.6 | 2.6 | $ 2.3 | ||
Depreciation expense | $ 5.5 | $ 5.7 | $ 11.1 | $ 11.8 |
INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 189,410 | $ 189,341 |
Accumulated Amortization | (120,407) | (113,934) |
Net Carrying Amount | 69,003 | 75,407 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 165,282 | 165,231 |
Accumulated Amortization | (97,507) | (91,296) |
Net Carrying Amount | 67,775 | 73,935 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,571 | 20,563 |
Accumulated Amortization | (19,957) | (19,830) |
Net Carrying Amount | 614 | 733 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,714 | 2,707 |
Accumulated Amortization | (2,100) | (1,978) |
Net Carrying Amount | 614 | 729 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 843 | 840 |
Accumulated Amortization | (843) | (830) |
Net Carrying Amount | $ 0 | $ 10 |
INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization expense of intangible assets | $ 3.2 | $ 3.2 | $ 6.4 | $ 6.4 | |
Intangible assets, estimated weighted average useful life | 13 years 8 months 12 days | 13 years 8 months 12 days | 13 years 8 months 12 days |
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Legal and professional accruals | $ 44,637 | $ 46,665 |
Payroll and other compensation expenses | 38,615 | 48,507 |
Insurance accruals | 6,659 | 7,483 |
Property, sales and other non-income related taxes | 4,673 | 7,348 |
Accrued interest | 2,740 | 3,963 |
Volume discount | 2,282 | 2,050 |
Other accruals | 2,326 | 3,251 |
Total | $ 101,932 | $ 119,267 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ 2,089 | $ 2,191 | $ 2,948 | $ 2,717 |
Effective tax rate (benefit) provision | 15.30% | 8.50% | 7.70% | 4.20% |
DEBT - Long-Term Debt Balances (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Net carrying balance | $ 263,820 | $ 239,383 |
Finance lease obligations | 5,900 | 5,902 |
Total long-term debt and finance lease obligations | 310,881 | 285,935 |
Current portion of long-term debt and finance lease obligations | (4,547) | (280,993) |
Total long-term debt and finance lease obligations, less current portion | 306,334 | 4,942 |
Convertible debt | ||
Debt Instrument [Line Items] | ||
Net carrying balance | 41,161 | 40,650 |
Principal balance | 41,161 | 41,162 |
APSC Term Loan | ||
Debt Instrument [Line Items] | ||
Debt issuance cost and discount, net of accumulated amortization | (3,900) | |
APSC Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Net carrying balance | 0 | 31,562 |
Principal balance | 0 | 35,510 |
Debt issuance cost and discount, net of accumulated amortization | 0 | (3,948) |
Uptiered Loan | Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Net carrying balance | 122,416 | 107,905 |
Principal balance | 123,129 | 115,443 |
Debt issuance cost and discount, net of accumulated amortization | (713) | (7,538) |
ME/RE Loans | Secured Debt | ||
Debt Instrument [Line Items] | ||
Net carrying balance | 25,489 | 0 |
Principal balance | 27,398 | 0 |
Debt issuance cost and discount, net of accumulated amortization | (1,909) | 0 |
Revolving Credit Facility | 2022 ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Net carrying balance | $ 115,915 | $ 99,916 |
DEBT - ABL Facility, Additional Information (Details) - USD ($) |
6 Months Ended | |||
---|---|---|---|---|
Feb. 11, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 16, 2023 |
|
ABL Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 27,400,000 | |||
ABL Corre DDTL | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, effective interest rate | 15.27% | 11.06% | ||
Interest paid | $ 2,600,000 | $ 800,000 | ||
2022 ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, gross | $ 300,000 | 8,400,000 | ||
Secured Debt | Delayed Draw Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount, long-term debt issued | $ 35,000,000 | 35,000,000 | ||
Commitment fees on unused borrowing capacity | 3.00% | |||
Prepayment trigger percentage | 130.00% | |||
Secured Debt | Delayed Draw Term Loan | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 10.00% | |||
Secured Debt | Delayed Draw Term Loan | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 9.00% | |||
Revolving Credit Facility | ABL Eclipse | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, effective interest rate | 9.92% | 5.71% | ||
Interest paid | $ 3,000,000 | $ 2,000,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 130,000,000 | |||
Floor interest rate | 2.00% | |||
Commitment fees on unused borrowing capacity | 0.50% | |||
Maximum unfinanced capital expenditures | $ 15,000,000 | |||
Maximum unfinanced capital expenditures with maintained leverage ratio | $ 25,000,000 | |||
Covenant, leverage ratio, maximum | 2.00 | |||
Maximum annual capital expenditure limit | $ 15,000,000 | |||
Increase in interest rate in event of default | 2.00% | |||
Revolving Credit Facility | Line of Credit | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Prepayment fee percent | 1.00% | |||
Revolving Credit Facility | Line of Credit | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Prepayment fee percent | 0.50% | |||
Revolving Credit Facility | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Floor interest rate | 1.00% | |||
Basis spread on variable rate | 1.00% | |||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Variable Rate Component One | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.15% | |||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Variable Rate Component Two | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.40% | |||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Variable Rate Component Three | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.65% | |||
Revolving Credit Facility | Line of Credit | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Floor interest rate | 2.00% | |||
Revolving Credit Facility | Line of Credit | Base Rate | Variable Rate Component One | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.15% | |||
Revolving Credit Facility | Line of Credit | Base Rate | Variable Rate Component Two | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.40% | |||
Revolving Credit Facility | Line of Credit | Base Rate | Variable Rate Component Three | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.65% | |||
Revolving Credit Facility | Line of Credit | ABL Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, increase in borrowing base | $ 2,500,000 | |||
Bridge Loan | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 35,000,000 | |||
Letter of Credit | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 26,000,000 |
DEBT - ME/RE Loans, Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 16, 2023 |
Feb. 11, 2022 |
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 130,000,000 | |||
Line of Credit | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 26,000,000 | |||
Line of Credit | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
ME/RE Loans | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 27,400,000 | |||
Debt instrument, effective interest rate | 16.54% | 16.54% | ||
Debt instrument, interest rate, stated percentage | 11.02% | 11.02% | ||
Debt instrument, additional interest rate | 5.51% | |||
Interest paid | $ 0 | $ 0 | ||
Unamortized debt issuance costs | 1,900,000 | 1,900,000 | ||
ME/RE Loans | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Periodic payment | $ 300,000 | |||
ME/RE Loans | Secured Debt | Delayed Draw Term Loan | ||||
Debt Instrument [Line Items] | ||||
Borrowing under credit facility | 35,000,000 | 35,000,000 | ||
ME/RE Loans | Secured Debt | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.11% | |||
Debt instrument, effective interest rate | 5.75% | |||
ME/RE Loans | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing under credit facility | 80,900,000 | 80,900,000 | ||
ME/RE Loans | Line of Credit | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing under credit facility | 10,100,000 | 10,100,000 | ||
Available borrowing capacity | $ 21,800,000 | $ 21,800,000 |
DEBT - Atlantic Park Term Loan, Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 16, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Dec. 18, 2020 |
|
Debt Instrument [Line Items] | |||||||
Loss on debt extinguishment | $ (1,582,000) | $ 0 | $ (1,582,000) | $ 0 | |||
APSC Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount, long-term debt issued | $ 250,000,000 | ||||||
Repayments of Senior Debt | $ 35,500,000 | ||||||
Early Repayment of Senior Debt | 1,400,000 | ||||||
Loss on debt extinguishment | $ 1,600,000 | ||||||
Debt instrument, effective interest rate | 23.85% | 23.85% | |||||
Unamortized discount and issuance costs | $ 3,900,000 | ||||||
Interest paid | $ 2,900,000 | $ 5,500,000 | |||||
APSC Term Loan | Variable Interest Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 9.00% | ||||||
APSC Term Loan | Accelerated Debt Issue Costs | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, effective interest rate | 14.85% | 14.85% |
DEBT - Subordinated Term Loan (Details) |
6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2023
USD ($)
|
Jun. 16, 2023
USD ($)
|
Dec. 08, 2021
USD ($)
|
Nov. 09, 2021
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2026 |
Dec. 31, 2022
USD ($)
|
Oct. 04, 2022
USD ($)
|
|||
Debt Instrument [Line Items] | |||||||||||
Paid-in-kind interest | [1] | $ 7,117,000 | $ 9,962,000 | ||||||||
Proceeds from secured debt | [1] | $ 27,398,000 | $ 0 | ||||||||
Subordinated Term Loan | Subordinated Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount, long-term debt issued | $ 123,100,000 | ||||||||||
Proceeds from debt | $ 27,500,000 | $ 22,500,000 | |||||||||
Debt instrument, increase (decrease) in face amount | $ 57,000,000 | ||||||||||
Debt instrument, effective interest rate | 12.86% | 46.79% | |||||||||
Debt instrument, interest rate, stated percentage | 12.00% | ||||||||||
Unamortized debt issuance costs | $ 700,000 | $ 7,500,000 | |||||||||
Paid-in-kind interest | $ 7,700,000 | $ 3,000,000 | |||||||||
Subordinated Term Loan | Subordinated Debt | Accelerated Debt Issue Costs | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, effective interest rate | 34.79% | ||||||||||
A&R Term Loan Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, threshold, trigger amount | $ 50,000,000 | ||||||||||
Debt instrument, effective interest rate | 12.00% | ||||||||||
Maximum unfinanced capital expenditures | $ 15,000,000 | ||||||||||
Maximum unfinanced capital expenditures with maintained leverage ratio | $ 25,000,000 | ||||||||||
Covenant, leverage ratio, maximum | 2.00 | 9.25 | |||||||||
Increase in interest rate in event of default | 2.00% | ||||||||||
Available borrowing capacity | $ 36,800,000 | ||||||||||
A&R Term Loan Credit Agreement | Forecasted | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Covenant, leverage ratio, maximum | 4.75 | ||||||||||
A&R Term Loan Credit Agreement | Senior Secured First Lien Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | $ 57,500,000 | ||||||||||
Debt instrument, interest rate during period | 0.75% | ||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
A&R Term Loan Credit Agreement | Senior Secured First Lien Term Loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from secured debt | $ 42,500,000 | ||||||||||
A&R Term Loan Credit Agreement | Uptiered Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount, long-term debt issued | $ 123,100,000 | ||||||||||
Debt instrument, effective interest rate | 12.00% | ||||||||||
A&R Term Loan Credit Agreement | Payable in Cash | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, effective interest rate | 2.50% | ||||||||||
A&R Term Loan Credit Agreement | Payment in Kind (PIK) Note | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, effective interest rate | 9.50% | ||||||||||
A&R Term Loan Credit Agreement | Payment in Kind (PIK) Note | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, effective interest rate | 0.00% | ||||||||||
Term Loan | Senior Secured First Lien Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | $ 37,500,000 | ||||||||||
Term Loan | Senior Secured First Lien Term Loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from secured debt | 37,500,000 | ||||||||||
Delayed Draw Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Available borrowing capacity | $ 15,000,000 | ||||||||||
Delayed Draw Term Loan | Senior Secured First Lien Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | $ 20,000,000 | ||||||||||
Delayed Draw Term Loan | Senior Secured First Lien Term Loan | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from secured debt | 5,000,000 | ||||||||||
Available borrowing capacity | $ 15,000,000 | ||||||||||
|
DEBT - Warrants (Details) - $ / shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 08, 2021 |
Nov. 09, 2021 |
Dec. 18, 2020 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Class of warrant or right, outstanding (in shares) | 1,000,000 | 1,000,000 | 10,000,000 | |||
APSC Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Class of warrant or right, outstanding (in shares) | 500,000 | 500,000 | 5,000,000 | 917,051 | 500,000 | 3,582,949 |
Class of warrant or right, exercise price (in dollars per share) | $ 15.00 | $ 15.00 | $ 1.50 | $ 1.50 | $ 1.50 | $ 7.75 |
Delayed Draw Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Class of warrant or right, outstanding (in shares) | 500,000 | 500,000 | 5,000,000 | |||
Class of warrant or right, exercise price (in dollars per share) | $ 15.00 | $ 15.00 | $ 1.50 |
DEBT - Convertible Notes, Additional Information (Details) - USD ($) |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jul. 31, 2023 |
Jul. 31, 2017 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 16, 2023 |
Dec. 31, 2022 |
|||
Debt Instrument [Line Items] | ||||||||
Convertible debt | $ 263,820,000 | $ 239,383,000 | ||||||
Proceeds from secured debt | [1] | $ 27,398,000 | $ 0 | |||||
Convertible debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount, long-term debt issued | $ 230,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 5.00% | 5.00% | ||||||
Repurchase of convertible debt | $ 222,300,000 | |||||||
Debt conversion, principle amount | $ 57,000,000 | |||||||
Convertible debt | $ 41,161,000 | $ 40,650,000 | ||||||
Senior Secured First Lien Term Loan | A&R Term Loan Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Current borrowing capacity | $ 57,500,000 | |||||||
Senior Secured First Lien Term Loan | A&R Term Loan Credit Agreement | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from secured debt | $ 42,500,000 | |||||||
|
DEBT - Detail of Convertible Debt Carrying Amount (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounting Standards Update 2017-12 | Convertible debt embedded derivative | ||
Debt Instrument [Line Items] | ||
Carrying amount of the equity component, net of issuance costs | $ 37,276 | $ 37,276 |
Convertible debt | ||
Debt Instrument [Line Items] | ||
Principal | 41,161 | 41,162 |
Unamortized issuance costs | 0 | (377) |
Unamortized discount | 0 | (135) |
Net carrying amount of the liability component | $ 41,161 | $ 40,650 |
DEBT - Fair Value of Debt, Additional Information (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revolving Credit Facility | Level 2 | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 41.0 | $ 37.5 |
DEBT - 1970 Group Substitute Insurance Reimbursement Facility (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Sep. 29, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||
Debt Instrument [Line Items] | |||||
Payments of debt issuance costs | [1] | $ 5,327 | $ 10,640 | ||
Letter of Credit | 1970 Group Substitute Insurance Reimbursement Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 21,400 | ||||
Payments of debt issuance costs | $ 2,900 | ||||
|
DEBT - Liquidity, Additional Information (Details) - USD ($) |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Cash and cash equivalents | $ 30,437,000 | $ 58,075,000 |
Surety Bond | ||
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 2,200,000 | |
Miscellaneous Cash Deposit | ||
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 700,000 | |
Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 33,700,000 | |
2022 ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Cash | 10,400,000 | |
Restricted cash | 600,000 | |
A&R Term Loan Credit Agreement | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 36,800,000 | |
ME/RE Loans | Letter of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 21,800,000 | |
Delayed Draw Term Loan | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 15,000,000 | |
Unrestricted Cash and Cash Equivalents | 2022 ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facilities, collateral | 25,000,000 | |
Restricted Cash | 2022 ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facilities, collateral | $ 5,400,000 | |
Foreign Financial Institutions | ||
Debt Instrument [Line Items] | ||
Restricted cash | $ 1,400,000 |
EMPLOYEE BENEFIT PLANS - Schedule of Net Pension Cost (Credit) (Details) - Pension Plan - United Kingdom - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 689 | $ 390 | $ 1,376 | $ 813 |
Expected return on plan assets | (927) | (582) | (1,852) | (1,211) |
Amortization of prior service cost | 7 | 8 | 15 | 16 |
Unrecognized Net Actuarial Loss | 71 | 0 | 142 | 0 |
Net periodic pension credit | $ (160) | $ (184) | $ (319) | $ (382) |
EMPLOYEE BENEFIT PLANS - Additional Information (Details) - United Kingdom - Pension Plan $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted-average of expected returns on asset investment, percentage | 6.40% |
Expected contributions for current year | $ 3.7 |
Total contributions to date | $ 1.9 |
Defined Benefit Plan, Equity Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted-average of expected returns on asset investment, percentage | 9.50% |
Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Weighted-average of expected returns on asset investment, percentage | 5.30% |
STOCKHOLDERS’ EQUITY - Additional Information (Details) |
6 Months Ended | |||
---|---|---|---|---|
Dec. 21, 2022
shares
|
Jun. 30, 2023
$ / shares
shares
|
Dec. 31, 2022
$ / shares
shares
|
Dec. 20, 2022
shares
|
|
Equity [Abstract] | ||||
Reverse stock split ratio | 0.1 | |||
Common stock, shares authorized (in shares) | 12,000,000 | 12,000,000 | 120,000,000 | |
Common stock, shares, outstanding (in shares) | 4,342,909 | 4,368,422 | 4,342,909 | 43,429,089 |
Fractional shares issued (in shares) | 0 | |||
Common stock, shares issued (in shares) | 4,368,422 | 4,342,909 | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.30 | $ 0.30 | ||
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
STOCKHOLDERS’ EQUITY - Summary of Changes in AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 94,138 | $ 27,070 | $ 117,760 | $ 51,867 |
Other comprehensive income, before tax | 1,277 | (5,463) | 2,055 | (5,117) |
Tax Provision | (23) | 0 | (46) | 0 |
Other comprehensive income, net of tax | 1,254 | (5,463) | 2,009 | (5,117) |
Ending balance | 79,872 | 549 | 79,872 | 549 |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (28,859) | (23,286) | ||
Other comprehensive income, before tax | 2,055 | (5,117) | ||
Ending balance | (26,804) | (28,403) | (26,804) | (28,403) |
Defined Benefit Pension Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (10,474) | (3,277) | ||
Other comprehensive income, before tax | 0 | 0 | ||
Ending balance | (10,474) | (3,277) | (10,474) | (3,277) |
Tax Provision | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 336 | (169) | ||
Tax Provision | (46) | 0 | ||
Ending balance | 290 | (169) | 290 | (169) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (38,242) | (26,386) | (38,997) | (26,732) |
Ending balance | $ (36,988) | $ (31,849) | $ (36,988) | $ (31,849) |
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions |
Feb. 09, 2022
USD ($)
|
Jun. 01, 2021
USD ($)
|
Jun. 30, 2023
USD ($)
|
Apr. 20, 2021
facility
|
---|---|---|---|---|
Loss Contingencies [Line Items] | ||||
Number of facilities with potential violations | facility | 7 | |||
Self-insured retention and deductible | $ 3.0 | |||
Kelli Most Litigation | ||||
Loss Contingencies [Line Items] | ||||
Amount awarded to other party | $ 222.0 | |||
Kelli Most Litigation | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 13.0 | |||
Kelli Most Litigation | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 51.0 | |||
Simon, Vige, and Roberts Matter | ||||
Loss Contingencies [Line Items] | ||||
Legal and professional accruals | 41.2 | |||
Amount not covered by insurance | $ 2.2 | |||
Environmental Protection Agency (EPA) | ||||
Loss Contingencies [Line Items] | ||||
Cost incurred in dispute | $ 0.2 |
SEGMENT AND GEOGRAPHIC DISCLOSURES - Additional Information (Details) - segment |
6 Months Ended | |
---|---|---|
Nov. 01, 2022 |
Jun. 30, 2023 |
|
Segment Reporting [Abstract] | ||
Number of operating segments | 2 | 2 |
SEGMENT AND GEOGRAPHIC DISCLOSURES - Segment Data for our Three Operating Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 239,492 | $ 221,540 | $ 441,769 | $ 410,578 |
Total Operating income (loss) | 4,596 | (10,794) | (3,150) | (33,201) |
Total Capital expenditures | 2,269 | 4,966 | 4,297 | 10,588 |
Total Depreciation and amortization | 9,539 | 9,009 | 19,085 | 18,463 |
IHT | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 116,740 | 114,124 | 218,569 | 209,721 |
MS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 122,752 | 107,416 | 223,200 | 200,857 |
Operating segments | IHT | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 116,740 | 114,124 | 218,569 | 209,721 |
Total Operating income (loss) | 6,548 | 5,514 | 11,271 | 5,648 |
Total Capital expenditures | 1,595 | 3,326 | 3,022 | 8,097 |
Total Depreciation and amortization | 3,188 | 3,096 | 6,242 | 6,350 |
Operating segments | MS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 122,752 | 107,416 | 223,200 | 200,857 |
Total Operating income (loss) | 12,720 | 6,984 | 15,913 | 7,497 |
Total Capital expenditures | 674 | 1,621 | 1,275 | 2,434 |
Total Depreciation and amortization | 4,704 | 4,634 | 9,457 | 9,518 |
Corporate and shared support services | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating income (loss) | (14,672) | (23,292) | (30,334) | (46,346) |
Total Capital expenditures | 0 | 19 | 0 | 57 |
Total Depreciation and amortization | $ 1,647 | $ 1,279 | $ 3,386 | $ 2,595 |
SEGMENT AND GEOGRAPHIC DISCLOSURES - Geographic Breakdown of Revenues and Total Long-Lived Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Revenues from External Customers [Line Items] | ||||
Total Revenues | $ 239,492 | $ 221,540 | $ 441,769 | $ 410,578 |
United States | ||||
Revenues from External Customers [Line Items] | ||||
Total Revenues | 165,311 | 156,447 | 317,805 | 294,387 |
Canada | ||||
Revenues from External Customers [Line Items] | ||||
Total Revenues | 30,328 | 32,778 | 48,396 | 52,145 |
Europe | ||||
Revenues from External Customers [Line Items] | ||||
Total Revenues | 21,731 | 16,285 | 38,062 | 30,459 |
Other foreign countries | ||||
Revenues from External Customers [Line Items] | ||||
Total Revenues | $ 22,122 | $ 16,030 | $ 37,506 | $ 33,587 |
RELATED PARTY TRANSACTIONS (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Alvarez And Marsal | |
Related Party Transaction [Line Items] | |
Consulting Fees | $ 8.1 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |
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