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): October 3, 2007

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:

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

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

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

¨ 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 October 3, 2007, Team, Inc. disseminated a press release announcing its financial results for the first quarter of fiscal 2008. 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 and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

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 dated October 3, 2007

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.

By: /s/ Ted W. Owen

Ted W. Owen

Senior Vice President and Chief

Financial Officer

Dated: October 5, 2007

EX-99.1

Exhibit 99.1

TEAM, INC. REPORTS STRONG FIRST QUARTER RESULTS FOR FISCAL YEAR 2008; RAISES FULL YEAR GUIDANCE

ALVIN, TX, October 3, 2007 — Team Inc., (NASDAQ: TISI) today reported a 131 percent increase in net income to $3.5 million ($0.18 per diluted share) for its first quarter ended August 31, 2007 compared to net income of $1.5 million ($0.08 per diluted share) for the corresponding prior year quarter. Earnings per diluted share in both the current and prior year periods reflect the effects of the previously announced stock split on August 29, 2007. For the current year first quarter, total revenues increased 57 percent to $103.5 million.

“We are pleased with our results which reflect continued strong organic growth plus the addition of our recent Aitec acquisition,” reported Phil Hawk, Chairman and CEO. “Reflecting our sustained attractive growth over many years, we are also proud of Team’s recent listing in the Fortune Magazine 2007 List of the 100 Fastest Growing Companies.”

Discussion of First Quarter Performance

For the quarter, revenues in the period ended August 31, 2007 were $103.5 million compared to $65.7 million in the period ended August 31, 2006, an increase of $37.7 million or 57 percent. Team’s current period results include $10.1 million of revenues attributable to the recent Aitec acquisition. Excluding the effect of the Aitec acquisition, Team’s revenues grew organically 42 percent versus the prior year period. Revenues for Team’s TCM Division (Team’s inspection and field heat treating service lines, inclusive of Aitec) were $59.8 million for the current period, up $26.1 million or 78 percent from the prior period. Revenues for Team’s TMS Division (Team’s mechanical service lines of leak repair, hot tapping, fugitive emissions monitoring, field machining, technical bolting and field valve repair) for the current period were $43.7 million, up $11.6 million or 36 percent from the prior period. The demand across both divisions was favorably affected by an extended Spring turnaround season. In addition, Team has continued its growth in technician capacity – adding 115 technicians in the current period.

Operating income in the period ended August 31, 2007 increased 110 percent to $7.8 million compared to $3.7 million in the period ended August 31, 2006. Operating profit as a percentage of sales was 7.5 percent, up nearly two percentage points versus the prior year. These profit results reflect the strong revenue growth of the business mentioned above, a small decline in gross margin relative to sales, and a significant reduction in SG&A relative to sales.

Gross margin in the period ended August 31, 2007 was $32.3 million compared to $21.8 million in the period ended August 31, 2006, an increase of $10.5 million or 48 percent. Gross margin as a percentage of revenue was 31 percent in the current period compared to 33 percent in the prior period. The decline in gross margin as a percentage of revenue reflects the mix effect resulting from the higher TCM growth rate, the impact of the Aitec acquisition (which currently has lower gross margins), and lower summer labor utilization rates accentuated by our staffing increases.

SG&A in the period ended August 31, 2007 was $24.5 million compared to $18.1 million in the period ended August 31, 2006, an increase of $6.4 million or 36 percent. The increase in SG&A was due to the Aitec acquisition and investments in field infrastructure and personnel to support the growth of the business. SG&A as a percentage of revenues decreased to 24 percent in the current period compared to 28 percent in the prior period.

“We are pleased with our strong growth in profit and profit margin in the quarter. We also remain very pleased and excited about our recent Aitec acquisition and our new colleagues from Aitec. Our experiences to date have affirmed their outstanding service capabilities and fit with Team,” said Hawk.

Team Raises Full Year Guidance

Reflecting the strong results and continued positive outlook, Team has revised upwards its earnings guidance for the full fiscal year ending May 31, 2008. Team now projects that its revenues for the full year will be approximately $425 million and that earnings will be $1.05 to $1.15 per fully diluted share. This new range reflects approximately a 5 percent increase from Team’s previous guidance. “Clearly, our first quarter revenue and profits exceeded our internal expectations, and we are very optimistic about our prospects for the remaining three quarters of the year. However, we caution against getting too far ahead of ourselves after only one quarter’s results,” Phil Hawk continued.

Planned Construction of New Houston HQ, Manufacturing, Distribution, and Training Facility

On October 9, 2007, Team expects to complete a $5 million purchase of nearly fifty acres of land in the Houston area that will become the home of a new multi-use facility encompassing the corporate headquarters, TMS manufacturing, equipment center, and global training activities. The estimated completion and move-in date for the new facility is January 2009.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Thursday, October 4, 2007 at 10:00 a.m. Central Time (11:00 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 1-888-896-0862 and use conference code #9307836.

About Team, Inc.

Headquartered in Alvin, Texas, Team Inc. is a leading provider of specialty and construction services required in maintaining high-temperature and high-pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries. The Company’s inspection services also serve a broader customer base that includes the aerospace and automotive industries. Recently named by Fortune Magazine as one of the 100 fastest growing public companies, Team offers these services in over 80 locations throughout the United States, Aruba, Canada, Singapore, Trinidad and Venezuela. The Company licenses its proprietary techniques and materials to various companies outside the United States and receives royalties based upon revenues earned by its licensees. Team Inc. 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. 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

(in thousands, except per share data)

	Three Months Ended August 31,
	2007			2006
	(unaudited)			(unaudited)
Revenues	$	103,488		$	65,739
Operating expenses		71,181			43,947
Gross margin		32,307			21,792
Selling, general and administrative expenses		24,536			18,090
Operating income		7,771			3,702
Interest expense, net		1,754			1,050
Earnings before income taxes		6,017			2,652
Provision for income taxes		2,505			1,130
Net income	$	3,512		$	1,522
Earnings per common share:
Net income
Basic	$	0.19		$	0.09
Diluted	$	0.18		$	0.08
Weighted average number of shares outstanding:
Basic		18,023			17,298
Diluted		19,585			18,584
Continuing operations data:
Revenues comprised of:
TCM Division	$	59,797		$	33,653
TMS Division		43,691			32,086
	$	103,488		$	65,739
Gross margin comprised of:
TCM Division	$	17,022		$	9,517
TMS Division		15,285			12,275
	$	32,307		$	21,792
Operating income comprised of:
Industrial Services	$	11,465		$	7,294
Corporate		(3,694	)		(3,592	)
	$	7,771		$	3,702

TEAM, INC. AND SUBSIDIARIES

SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION

AUGUST 31, 2007 AND MAY 31, 2007

(in thousands)

	August 31, 2007		May 31, 2007
	(unaudited)
Current assets	$	120,052	$	107,513
Net property, plant and equipment		38,910		35,166
Other non-current assets		53,266		28,375
Total assets	$	212,228	$	171,054
Current liabilities	$	40,677	$	37,284
Long term debt net of current maturities		81,227		48,774
Other non-current liabilities and minority interests		827		793
Stockholders’ equity		89,497		84,203
Total liabilities and stockholders’ equity	$	212,228	$	171,054

CONTACT:	Team, Inc., Alvin
	Ted W. Owen, 281-331-6154