Team, Inc. · NYSE:TISI
Team — Q1 2024 Earnings Presentation
29 slides from Team's earnings presentation, May 2024
Slide 1: Refocused Global Specialty Industrial Services Leader With a Century of Innovation
Refocused Global Specialty Industrial Services Leader With a Century of Innovation May 2024
Slide 2: Disclaimer & Forward-Looking Statements
Disclaimer & Forward-Looking Statements This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts inclu
Slide 3: Leading Global Provider of Asset Integrity and Performance Solutions
Leading Global Provider of Asset Integrity and Performance Solutions WHO WE ARE Extensive Breadth of Service and Geographic Reach Aging Infrastructure and Increasingly Stringent Safety Market Leader Across & Environmental Regulations All of Our Key End Markets Driving Secular Growth Story Highly Res
Slide 4: Safety and Sustainability are Core Values
Safety and Sustainability are Core Values Committed to Safety and ESG Industry Leading Safety Culture1 2022 ESG Report Total Recordable Incident Rate 1.40 (“TRIR”) 1.20 1.00 0.80 0.60 “At TEAM, we have a passion for safety that is reflected in everything we do. Our highest value is the health and sa
Slide 5: Company Leadership
Company Leadership Experienced Team with A Track Record of Success Prior Experience ▪ Appointed CEO in March 2022 Keith D. Tucker ▪ Joined TEAM in 2005 and has served TEAM as President, Inspection & Heat Treating Group, Executive Vice Chief Executive Officer President - North Division, Executive Vic
Slide 6: TEAM Faced Numerous Challenges Exiting 2020
TEAM Faced Numerous Challenges Exiting 2020 Internal External • Outsized and complex management structure • Lost market share in higher margin call-out and resulted in burdensome corporate center costs emergency services • Highly centralized decision-making process • Customer concern over financial
Slide 7: Strategic Roadmap to Unlock Intrinsic Value
Strategic Roadmap to Unlock Intrinsic Value Simplified the Business, Addressed Capital Structure, Improving Margins and Growth Fiscal Years 2021 - 2023 Fiscal Year 2024 & Beyond Stabilize Refocus Execute • Strengthened Management Team • Streamlined and simplified • Capitalize on leading position in
Slide 8: Revamped Operating Model with Improving Adjusted EBITDA
Revamped Operating Model with Improving Adjusted EBITDA Longer-Term Target to Achieve at Least 10% Adjusted EBITDA Margin in Line with Peers 1 Adjusted EBITDA & Adjusted EBITDA Margin ($ in millions) FY20A – FY24E CAGR: 34% $58-$68 ✓ Successful execution of strategic roadmap already $47.9 Target: de
Slide 9: Company Update
Company Update © TEAM, Inc. All rights reserved.
Slide 10: Integrated Solutions for Critical and Aging Infrastructure
Integrated Solutions for Critical and Aging Infrastructure Robust Breadth and Depth of Solutions with Long-Standing Client Relationships Providing Integrated Products & Services ~5,000–5,500 15+ countries & 140+ 20+ 100+ years team members1 branches across the globe unique industry sectors serviced
Slide 11: A Century of Leading Innovation
A Century of Leading Innovation Commitment to Innovation Supporting Continuous Growth and Improvement 1924 1929 2005 2008 2013 2017 2021 EUGENE CLAY FURMANITE TEAM TEAM TEAM TEAM TEAM FURMAN BECOMES FULL INTRODUCES INTRODUCES INTRODUCES SUCCESSFULLY INTRODUCES DEVELOPS LEAK SEALING METHOD 21 SPECIAL
Slide 12: Operating Models to Service Customers
Operating Models to Service Customers Attractive Mix of Recurring and Higher Margin Short Cycle Revenue Call-Out & Emergency Nested/Run & Maintain Turnaround Projects ✓ Focus on highly critical emergency ✓ On-site, full time personnel ✓ Highly planned workstream provides and unplanned services good
Slide 13: Long-Standing "Blue-Chip" Client Base In Critical Industries
Long-Standing “Blue-Chip” Client Base In Critical Industries Diverse Client Base with Long-term Relationships Chemical and Petrochemical Refining 30% 25% 2023 Power & Energy 18% Revenue 7% Pipeline & Storage $863mm 16% 4% Manufacturing & Process Aerospace & Defense, Other Commercial Focus on Key Gro
Slide 14: Global Presence Serves A Diverse Range Of Attractive End Markets
Global Presence Serves A Diverse Range Of Attractive End Markets 140+ Locations Serving More Than 15 Countries Globally, with A Core North American Presence l l ll l l l l ll North America Rest of World l l l l l l l l l l l l l l l l l l l l l l l l lll l l l l l l lll l l l ll ll ll l l l l ll l l
Slide 15: Inspection & Heat Treating Segment Overview
Inspection & Heat Treating Segment Overview Global Leader in Standard and Advanced Testing, Assessments and Inspection Services Financial Snapshot1 $430 million 21.6% $38 million 8.9% 2023 Revenue 2023 Gross Margin 2023 Adj. EBITDA2 2023 Adj. EBITDA Margin2 Segment Highlights Robotic ✓ Engineering a
Slide 16: Mechanical & Onstream Services Segment Overview
Mechanical & Onstream Services Segment Overview Global Leader in Maintenance and Repair Services Resolving Critical Asset Issues Financial Snapshot1 $433 million 27.4% $47 million 11.0% 2023 Revenue 2023 Gross Margin 2023 Adj. EBITDA2 2023 Adj. EBITDA Margin2 Segment Highlights ✓ Custom engineered l
Slide 17: Identified Commercial Initiatives Provide Multiple Avenues for Future Growth
Identified Commercial Initiatives Provide Multiple Avenues for Future Growth Growth Oriented Enterprise Focused on Growing Cash Flow Key Priorities Actions ➢ Regain core call out & emergency market share ✓ Targeted sales effort with dedicated technical resources ➢ Improve technician and asset utiliz
Slide 18: Financial Update
Financial Update © TEAM, Inc. All rights reserved.
Slide 19: Continued Improvement in First Quarter of 2024
Continued Improvement in First Quarter of 2024 Improved Margins, Adjusted EBITDA and Cash Flow Improved gross margin by 120 basis points to 24.4% as compared to 23.2% in the 2023 first quarter Grew Adjusted EBITDA1 by 55% to $6.5 million (3.3% of consolidated revenue) as compared to $4.2 million (2.
Slide 20: TEAM Adjusted EBITDA Bridge – 2022 to 2024B
TEAM Adjusted EBITDA Bridge – 2022 to 2024B Adjusted EBITDA Growth Driven by Cost Efficiency with Modest Topline Growth Assumptions Forecasted Adjusted EBITDA Bridge FY23 to FY24 Detail2 ($ in millions) ~$25M in actioned cost savings which are forecasted ✓ Expected 2024 Cost Savings to be fully real
Slide 21: Strengthened Balance Sheet and Stable Liquidity
Strengthened Balance Sheet and Stable Liquidity Enhanced Financial Flexibility to Manage Maturities and Liquidity ✓ Successfully simplified and extended the Company’s Instrument (as of March 31, 2024) Maturity Debt balance sheet runway over last two years ABL Credit Facility Aug 2025 $103.5 ME/RE Lo
Slide 22: Fiscal Year 2024 Outlook
Fiscal Year 2024 Outlook Higher Margins and Cash Flow with Modest Expected Revenue Growth $millions FY 2023 Actual FY 2024 Outlook Revenues Mechanical Services $433 $425 - $450 ✓ 2024 Revenue forecast to be in-line with 2023, Inspection and Heat Treating $430 $425 - $450 with focus on increasing pro
Slide 23: The Right Company with the Right Values
The Right Company with the Right Values Building a Sustainable TEAM 1 Premium Provider of Asset Integrity Services with Robust Breadth of Services and Footprint 2 Aging Infrastructure and Stringent Safety & Environmental Regulations Driving Secular Growth Story 3 Revamped Operating Model with Improv
Slide 24: Appendix
Appendix © TEAM, Inc. All rights reserved.
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin for Fiscal Years 2019 through 2023 (in thousands, except percentage) 2019 2020 2021 2022 2023 Net Income (loss) available to Shareholders $ (60,598) $ (253,096) $ (184,845) $ (150,087) $ (75,722) Income taxes (4
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin by Segment for Fiscal Years 2022 and 2023 (in thousands, except percentage) 2023 2022 IHT Operating income $ 24,220 $ 17,093 Professional fees and other 941 — 1. For 2023, represents customary severance costs as
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin for First Quarter 2024 and 2023 Three Months Ended March 31, (unaudited, in thousands except percentage) 2024 2023 Adjusted EBITDA: Net loss $ (17,195) $ (24,711) Provision for income taxes 73 859 Gain on equipm
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Selling, General and Administrative Expense Three Months Ended March 31, (unaudited, in thousands) 2024 2023 Selling, general, and administrative expenses $ 55,117 $ 54,748 Less: Depreciation and Amortization in SG&A expenses 6,057 5,827 Non-cas
Slide 29: To Get the Most From Your Assets, It Takes a TEAM
To Get the Most From Your Assets, It Takes a TEAM Investor Relations 13131 Dairy Ashford, Suite 600, Sugar Land, Texas 77478 +1 281.388.5500 email: [email protected]