8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 4, 2009

TEAM, Inc.

(Exact Name of Registrant as Specified in Charter)

Texas	001-08604	74-1765729
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

200 Hermann Drive

Alvin, Texas 77511

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code: (281) 331-6154

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate line below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

r Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

r Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

r Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

r Pre-commencement communications pursuant to Rule 13e-4(c) under the  Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On August 4, 2009, we disseminated a press release announcing our fiscal year 2009 financial results and our earnings guidance regarding expected financial performance for the fiscal year ending May 31, 2010. A copy of such press release is furnished herewith as Exhibit 99.1.

The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished pursuant to Item  2.02 of Form 8-K and shall not be deemed “filed” with the Securities and Exchange Commission nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

This Form 8-K contains forward looking statements. We based our forward-looking statements on our current expectations, estimates and projections about ourselves and our industry. We caution that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in the forward-looking statements. Differences between actual results and any future performance suggested in these forward-looking statements could result from a variety of factors, including those listed in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as new information, future events, or otherwise.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits. The following exhibit is furnished as part of Item 2.02 of this Current Report on Form 8-K:

Exhibit number	Description
99.1	Team, Inc.’s Press Release issued August 4, 2009

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TEAM, INC.
Dated: August 4, 2009	By:	/s/ Ted W. Owen
		Ted W. Owen
		Senior Vice President and Chief Financial Officer

EX-99.1

NEWS

TEAM, INC.	For immediate release
P. O. Box 123	Contact: Ted W. Owen
Alvin, Texas 77512	(281) 331-6154

TEAM, INC. REPORTS  FY09 RESULTS; PROVIDES FY2010 GUIDANCE

ALVIN, TX, August 4, 2009---- Team, Inc. (NASDAQ: TISI) today reported net income of $5.6  million ($0.29 per diluted share) and $22.9 million ($1.16 per diluted share) for its fourth quarter and full fiscal year ended May 31, 2009, respectively.

“As we work through an extremely difficult near-term market environment, we have maintained strong financial performance and flexibility,” said Phil Hawk, Team’s Chairman and CEO. “As market conditions improve, or other opportunities present themselves, Team is well-positioned to capitalize on them.”

Fiscal Year 2009 Results

Based on the strong growth of its business in the first half of the fiscal year, Team reported the second highest level of profits in its history, which was 3% less than the record performance of last year.  For the 2009 fiscal year, operating income was $41.3 million, operating profit margin as a percentage of revenue was 8.3%, and net income profit margin was 4.6%.  As a result of this performance, the Company continues to strengthen its balance sheet.  With strong operating cash flows, Team reduced its total net debt (total debt less cash) by $28 million during the year.  At the end of the fiscal year, Team had in excess of $68 million of borrowing capacity under its existing credit facilities that do not mature until 2012.

Team’s activity levels in the second half of the fiscal year were adversely impacted by the deep recession.  For the fourth quarter, Team revenues were $121.2 million, down 16% from the prior year quarter.  While the rate of decline during the quarter varied somewhat by Division, geography, and service line, virtually all geographic regions and service lines experienced decreases from the prior year.  Total operating profits were $9.7 million.  The operating profit margin as a percentage of revenue was 8.0% in the fourth quarter.

As previously reported, Team has taken steps to reduce its overall cost structure both in its field service locations and in its corporate support activities.  Since the mid-point of the fiscal year, Team’s total employment has declined by approximately 300.  As a result of the cost actions taken, Team expects total support costs in the coming year to be approximately $10 million less than in the recently completed fiscal year.

“We remain confident that market demand for our services will rebound with improving economic conditions and as customers return to steady state maintenance practices,” said Mr. Hawk.  “As the market recovers, we expect to regain our historical growth momentum.  In our view, the basic market fundamentals remain unchanged and Team’s network and service advantages are as robust as ever. ”

Internal Investigation

Separately today, Team filed a Form 8-K with the SEC announcing an internal investigation and voluntary disclosure to the Department of Justice and to the SEC about possible violations of the Foreign Corrupt Practices Act  involving what we believe are less than $50,000 of improper payments made over the past five years by local branch employees in Trinidad.

Business Outlook/Guidance for Fiscal Year 2010

Team expects its revenues for the coming full fiscal year (the fiscal year ending May 31, 2010) to be in the range of $460 million to $490 million.  For the same period of time, net income is expected to be in a range of $.85 to $1.05 per fully diluted share.  These expectations anticipate a modest sequential improvement in Team revenues in the second half of the fiscal year. Consistent with its past practices, Team does not provide specific guidance for individual quarters, but will confirm or update its annual guidance at least quarterly.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Wednesday, August 5, 2009 at 8:00 a.m. Central Time (9:00 a.m. Eastern).  The call will be broadcast over the Web and can be accessed on Team’s Website, www.teamindustrialservices.com.  Individuals wishing to participate in the conference call by phone may call 877-826-1586 and use conference code 25115706.

About Team, Inc.

Headquartered in Alvin, Texas, Team Inc. is a leading provider of specialty industrial services required in maintaining and installing high-temperature and high-pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries.  Team offers these services in over 100 locations throughout the United States, Aruba, Belgium, Canada, Singapore, The Netherlands, Trinidad and Venezuela.  Named in 2008 by Forbes Magazine as one of the 200 best small companies, and by Fortune Magazine as one of the 100 fastest growing public companies, Team’s common stock is traded on the NASDAQ Global Select Market under the ticker symbol “TISI”.

Certain forward-looking information contained herein is being provided in accordance with the provisions of the Private Securities Litigation Reform Act of 1995.  We have made reasonable efforts to ensure that the information, assumptions and beliefs upon which this forward-looking information is based are current, reasonable and complete. Such forward-looking statements involve estimates, assumptions, judgments and uncertainties. There are known and unknown factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking information. Such known factors are detailed in the Company's Annual Report on Form 10-K for the year ended May 31, 2008 and in the Company's Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission, and in other reports filed by the Company with the Securities and Exchange Commission from time to time.

Accordingly, there can be no assurance that the forward-looking information contained herein will occur or that objectives will be achieved.  We assume no obligation to publicly update or revise any forward-looking statements made today or any other forward-looking statements made by the company, whether as a result of new information, future events or otherwise.

TEAM, INC. AND SUBSIDIARIES

UNAUDITED SUMMARY OF OPERATING RESULTS

(in thousands, except per share data)

		Three Months Ended May 31,				Twelve Months Ended May 31,
		2009		2008		2009		2008
Revenues	$	121,203	$	143,854	$	497,559	$	478,475
Operating expenses		83,292		95,973		340,500		322,810
Gross margin		37,911		47,881		157,059		155,665
Selling, general and administrative expenses		28,328		30,837		116,761		109,792
Earnings from unconsolidated affiliates		139		-		973		-
Operating income		9,722		17,044		41,271		45,873
Interest expense, net		906		1,406		4,872		6,491
Earnings before income taxes		8,816		15,638		36,399		39,382
Provision for income taxes		3,260		6,277		13,488		15,759
Net income	$	5,556	$	9,361	$	22,911	$	23,623
Earnings per common share:
Basic	$	0.29	$	0.51	$	1.22	$	1.30
Diluted	$	0.29	$	0.47	$	1.16	$	1.20
Weighted average number of shares
outstanding:
Basic		18,837		18,491		18,793		18,226
Diluted		19,280		19,783		19,725		19,676
Continuing operations data:
Revenues comprised of:
TCM Division	$	72,895	$	82,227	$	270,420	$	274,531
TMS Division		48,308		61,627		227,139		203,944
	$	121,203	$	143,854	$	497,559	$	478,475
Gross margin comprised of:
TCM Division	$	23,512	$	27,914	$	81,654	$	84,145
TMS Division		14,399		19,967		75,405		71,520
	$	37,911	$	47,881	$	157,059	$	155,665
SG&A expenses:
Field operations	$	23,501	$	24,803	$	96,571	$	91,390
Corporate costs		4,827		6,034		20,190		18,402
Total SG&A		28,328		30,837		116,761		109,792
Earnings from unconsolidated affiliates		139		-		973		-
Operating income	$	9,722	$	17,044	$	41,271	$	45,873

TEAM, INC. AND SUBSIDIARIES

UNAUDITED SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION

MAY 31, 2009 AND MAY 31, 2008

(in thousands)

	May 31,		May 31,
	2009		2008
Current assets	$	156,637	$	158,214
Property, plant and equipment, net		59,582		56,138
Other non-current assets		59,702		66,109
Total assets	$	275,921	$	280,461
Current liabilities	$	46,792	$	56,744
Long term debt net of current maturities		76,689		96,818
Other non-current liabilities		5,939		6,137
Stockholders' equity		146,501		120,762
Total liabilities and stockholders' equity	$	275,921	$	280,461