-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H7P2Tk7ZGAxPQUQNkYWa1IzukRhH26VG+aHhTIaEgsEkwr0QpMXorcpHFsTG7klg kXDRVCRlItkjb+P8M0kc6Q== 0001157523-04-006369.txt : 20040715 0001157523-04-006369.hdr.sgml : 20040715 20040715090312 ACCESSION NUMBER: 0001157523-04-006369 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040714 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEAM INC CENTRAL INDEX KEY: 0000318833 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS REPAIR SERVICES [7600] IRS NUMBER: 741765729 STATE OF INCORPORATION: TX FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08604 FILM NUMBER: 04914885 BUSINESS ADDRESS: STREET 1: 200 HERMANN DRIVE CITY: ALVIN STATE: TX ZIP: 77056 BUSINESS PHONE: 2813316154 MAIL ADDRESS: STREET 1: 1019 SOUTH HOOD STREET CITY: ALVIN STATE: TX ZIP: 77551 8-K 1 a4680470.txt TEAM, INC. 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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: July 14, 2004) TEAM, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Texas 0-9950 74-1765729 - ----- ------ ---------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) 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 --------------------------------------------------------------- ITEM 5. OTHER EVENTS On July 14, 2004, the Registrant disseminated a Press Release announcing its earnings for the quarter ended May 31, 2004. The information contained in the Press Release dated July 14, 2004 is incorporated herein by reference and attached as Exhibit 99.1 hereto. ITEM 7. FINANCIAL STATEMENTS, PROFORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits. 99.1 The Registrant's Press Release dated July 14, 2004. SIGNATURE 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 thereunto duly authorized. TEAM, INC. By: /s/ Ted W. Owen --------------------------- Ted W. Owen Senior Vice President - Finance and Administration Date: July 14, 2004 EX-99.1 2 a4680470ex991.txt PRESS RELEASE EXHIBIT 99.1 Team Inc. Reports 31% Earnings Growth for Fiscal Year 2004 and Provides Guidance for Fiscal Year 2005 ALVIN, Texas--(BUSINESS WIRE)--July 14, 2004--Team Inc. (AMEX:TMI) today reported net income of $0.22 per share (diluted basis) for its fourth quarter and $0.69 per share (diluted basis) for the fiscal year ending May 31, 2004. For the corresponding periods in the prior fiscal year, Team's earnings were $0.17 and $0.53 per share, respectively. For the full fiscal year, revenues were $107.7 million, up 17% from the prior year. Net income was $5.8 million ($0.69 per share fully diluted), up 31%. For the fourth quarter, total revenues increased 28% to $31.8 million, and net income grew 39% to $1.9 million. "Fiscal year 2004 was a very successful year for Team in a number of important dimensions. We are pleased with our continued strong revenue growth across our businesses reflecting the continued success of our business development strategy. We are also pleased with the even stronger growth in Team's profits as we continue to capitalize upon the inherent operating leverage in our business model," said Phil Hawk, Team's chairman and CEO. "Also, during the fourth quarter, Team completed its acquisition of Thermal Solutions, a field heat treating company, which offers additional exciting growth potential in the coming year," added Hawk. Industrial Services For the year, the Industrial Services Business Segment revenues increased 17% to $94.5 million. Segment operating profit increased 16% to $14.0 million. Overall, the operating profit margin (Earnings before interest and taxes, or "EBIT") for the year and for the quarter was 15%. For the fourth quarter, segment revenues were up 26% to $28.0 million. Operating profit grew 16% to $4.1 million. The revenues for this segment included $2.5 million of Thermal Solutions revenues following its acquisition in April 2004. Excluding those revenues, the organic growth from the remainder of the industrial services business was 15% and 14% for the quarter and full year, respectively. The organic growth in the remaining services was broad based, with double-digit revenue growth in nearly all service lines. As a result of continued market penetration with multi-service, multi-plant customer agreements and increased turnaround projects. With the acquisition of Thermal Solutions during the fourth quarter, the company has taken steps to align the operations of both the heat treating and NDT inspection services more closely with Team's mechanical services. While both services will continue to be delivered by dedicated service personnel, we are increasing common marketing and sales activities among all service lines. Also in conjunction with these efforts, we have renamed our heat treating and inspection businesses as Team Thermal Solutions and Team Inspection Services, respectively. Equipment Sales and Rental The Equipment Sales and Rental Business Segment (Climax Portable Machine Tool Company) also had strong results for the year and quarter. For the year, revenues increased 22% to $13.1 million. Operating profit was $1.2 million, approximately double last year's results. Profits for the year included two offsetting items: a $235,000 gain from the sale of idle real estate and a $245,000 loss provision associated with special sales tax obligations. For the quarter, revenues were $3.8 million, up 41%. Operating profits were $0.6 million versus break-even results in the fourth quarter. The strong revenue growth was the result of several major special machine shipments during the second half of the fiscal year. "Climax continues to pursue these special machine sales opportunities as a supplement to its standard machine sales and rental offerings. The level of new special machine project interest remains high going into the current year," said Phil Hawk. FY05 Outlook "Reflecting continued organic growth plus the full year impact of Thermal Solutions, we anticipate that our total company revenues for fiscal year 2005 will be in the $120 to $130 million range. From an earnings perspective, we estimate that full year earnings will be between $0.84 and $0.90 per share on a fully diluted basis," he said. Consistent with the earnings guidance provided last year, Team is not projecting individual quarterly results for investors. During each conference call, the Company will affirm or adjust its full year projections as appropriate. A significant portion of Thermal Solutions' service activity and sales are related to major plant outages or turnarounds. These outages are concentrated in the fall and spring calendar quarters, which will modestly shift the seasonality of Team's overall sales and earnings as a result. As previously announced, the Company has scheduled an earnings conference call to discuss these results tomorrow, July 15th at 11 a.m. Eastern Daylight Time (10 a.m. CDT). The call will be broadcast over the Web by Vcall and can be accessed on Team's Web site, www.teamindustrialservices.com. Individuals wishing to participate in the conference call by phone can call 1-888-896-0862 and ask to join the "Team IR" call. Team Inc. is a professional, full-service provider of specialty industrial services. Team's current industrial service offering encompasses on-stream leak repair, hot tapping, fugitive emissions monitoring, NDT inspection, field machining, technical bolting, field valve repair, and with the acquisition of Thermal Solutions, field heat treating. All these services are required in maintaining high temperature, high pressure piping systems and vessels utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. Headquartered in Alvin, Texas, the Company operates in over 40 customer service locations throughout the United States. The Company also serves the international market through both its own international subsidiaries as well as through licensed arrangements in 14 countries. Team Inc. common stock is traded on the American Stock Exchange under the ticker symbol "TMI". Certain forward-looking information contained herein is being provided in accordance with the provisions of the Private Securities Litigation Reform Act. Such information is subject to certain assumptions and beliefs based on current information known to the Company and is subject to factors that could result in actual results differing materially from those anticipated in the forward-looking statements contained herein. Such factors include domestic and international economic activity, interest rates, and market conditions for the Company's customers, regulatory changes and legal proceedings, and the Company's successful implementation of its internal operating plans. Accordingly, there can be no assurance that the forward-looking statements contained herein will occur or that objectives will be achieved. TEAM INC. AND SUBSIDIARIES SUMMARY OF OPERATING RESULTS Three Months Ended Year Ended May 31, May 31, ------------------------------------------------- 2004 2003 2004 2003 ----------- ----------- ------------ ------------ Total Revenues $31,807,000 $24,931,000 $107,669,000 $91,876,000 =========== =========== ============ ============ Gross Margin $12,402,000 $10,103,000 $42,684,000 $37,192,000 Selling, general and admin. expenses $9,240,000 $7,579,000 $32,589,000 $29,183,000 Non-cash compensation charge $250,000 $32,000 $344,000 $115,000 Other expense (income) $(165,000) $150,000 $10,000 $150,000 ----------- ----------- ------------ ------------ Earnings before interest and taxes $3,077,000 $2,342,000 $9,741,000 $7,744,000 =========== =========== ============ ============ Pre-tax income $2,954,000 $2,194,000 $9,222,000 $7,143,000 Income tax expense $1,072,000 $843,000 $3,446,000 $2,741,000 ----------- ----------- ------------ ------------ Net income $1,882,000 $1,352,000 $5,776,000 $4,402,000 =========== =========== ============ ============ Net income per common share-basic $0.24 $0.18 $0.75 $0.57 =========== =========== ============ ============ Net income per common share-diluted $0.22 $0.17 $0.69 $0.53 =========== =========== ============ ============ Weighted average shares outstanding: Basic 7,946,000 7,619,000 7,709,000 7,707,000 Diluted 8,752,000 8,146,000 8,429,000 8,369,000 Revenues Comprised of: Industrial Services $28,023,000 $22,247,000 $94,546,000 $81,122,000 Equipment sales and rentals 3,784,000 2,684,000 13,123,000 10,754,000 ----------- ----------- ------------ ------------ Total Revenues $31,807,000 $24,931,000 $107,669,000 $91,876,000 =========== =========== ============ ============ TEAM INC. AND SUBSIDIARIES SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION MAY 31, 2004 AND MAY 31, 2003 2004 2003 ------------- ------------- Current Assets $41,267,000 $29,417,000 Net Property, Plant and Equipment $15,885,000 $12,268,000 Other non-current assets $17,244,000 $10,539,000 ------------- ------------- Total Assets $74,396,000 $52,224,000 ============= ============= Current Liabilities $13,555,000 $9,704,000 Long term debt $17,095,000 $9,577,000 Other non-current liabilities and taxes $1,447,000 $1,208,000 Stockholders' equity $42,299,000 $31,735,000 ------------- ------------- Total liabilities and Stockholders' Equity $74,396,000 $52,224,000 ============= ============= CONTACT: Team Inc., Alvin Philip J. Hawk or Ted W. Owen, 281-331-6154 -----END PRIVACY-ENHANCED MESSAGE-----