Team, Inc. Reports Third Quarter Results

ALVIN, Texas, March 30 /PRNewswire-FirstCall/ -- Team, Inc., (Nasdaq: TISI) today reported adjusted earnings of $0.06 per diluted share on revenues of $104 million for its third quarter ended February 28, 2010. Adjusted earnings for the quarter exclude a $2.1 million pre-tax, non-routine charge associated with the recent Venezuelan currency devaluation, which was previously reported in January 2010, and a $0.5 million pre-tax, non-routine charge associated with legal and accounting costs related to an ongoing, independent investigation.  Including these non-routine costs, the Company reported a net loss for the quarter of $400 thousand, or $0.02 per share. Revenues for the current quarter were consistent with the prior year quarter.

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Revenues for the nine months ended February 28, 2010 were $328 million and adjusted net income for the same period was $9.5 million ($0.49 per diluted share).  Inclusive of the non-routine charges of $4.9 million for the year to date period, net income as reported was $6.5 million ($0.34 per diluted share).

On March 18, 2010, the Company revised its current year revenue and earnings guidance, reflecting the continued weakness in customer demand. The revised guidance reflects a current revenue estimate of $450-$460 million for fiscal 2010 and adjusted earnings of $0.80-$0.90 per fully diluted share. This guidance excludes the impact of previously announced non-routine charges associated with an independent investigation and the recent Venezuelan currency devaluation.  

"Due to the continuing profit pressures facing our customers, it remains a challenging market environment," said Phil Hawk, Team's Chairman and CEO.  "We remain confident that as spending rates return to normal levels, we are well-positioned to continue our long-term business growth."

As previously reported, the Audit Committee has been conducting an independent investigation regarding possible violations of the U.S. Foreign Corrupt Practices Act (FCPA) in cooperation with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).  The independent investigators reported their findings to the Audit Committee in March 2010 and the Company expects the investigation results to be communicated to the SEC and DOJ in Team's fourth quarter.  The independent investigation supports management's belief that any possible violations of the FCPA are limited in size and scope. The total professional costs associated with the investigation are projected to be approximately $3.0 million.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Wednesday, March 31, 2010 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 26627738.

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 world.  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, 2009 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.

SOURCE Team, Inc.