TISI - Team, Inc.

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Team Inc.
200 Hermann Drive
Alvin, TX 77511
United States - Map
Phone: 281-331-6154
Fax: 281-388-5597
Web Site: http://www.teamindustrialservices.com

DETAILS   
Index Membership: N/A
Sector: Services
Industry: Business Services
Full Time Employees: 3,400


BUSINESS SUMMARY   
Team, Inc. provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are primarily utilized in heavy industries. The company offers leak repair services, which include on-stream repairs of leaks in pipes, valves, flanges, and other parts of piping systems and related equipment; hot tapping services; emissions control services that comprise identification, monitoring, data management, and reporting services for the chemical, refining, and natural gas processing industries; and field machining and technical bolting services, which involve the use of machining equipment to repair or modify machinery, equipment, vessels, and piping systems, as well as offers flange facing, pipe cutting, line boring, journal turning, drilling, and milling services. Team, Inc. also provides field valve repair services that include onsite repair of process manual and control valves, and pressure and safety relief valves, as well as specialty valve actuator diagnostics and repair; non-destructive testing and inspection services, which consists of the examination and evaluation of piping, piping components, and equipment; and field heat treating services that comprise electric resistance and gas-fired combustion, used by industrial users. The company markets its services to companies in the petrochemical, refining, power, pipeline, pulp and paper, steel, aerospace, and automotive industries, as well as engineering and construction firms, original equipment manufacturers distributors, and end users. Team, Inc. operates in the United States, Aruba, Canada, Singapore, Trinidad, and Venezuela. The company was founded in 1973 and is headquartered in Alvin, Texas.
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nice earnings beat, raises guidance. Company has a knack for integrating aquisiitions very well.

http://biz.yahoo.com/bw/071003/20071003006220.html?.v=1

stock up on big volume

http://stockcharts.com/h-sc/ui?s=TISI&p=D&b=5&g=0&id=p59191861522

I bought this one a few years ago after the stock hit $15 (pre-split) the stock appeared on the IBD 100 list and then subsequently fell back off  the list when it couldn't hold $15. It was TMI back then and was very volatile. Still a top (best overall) rated stock in it's sector, although IBD includes it in pollution contol group, which is only a part of their business. By the way SRCL (medical hazardous waste) is second best overall in IBD's pollution control services group,, another stock I bought just recently during the market correction. Still own both. I wouldn't be surprised to see TISI back on the IBD 100 soon.

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TISI  now on the IBD 100 at #43.

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Broke out today on strong volume.

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Nice follow through today on heavy volume.

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I bought this one a few years ago after the stock hit $15 (pre-split) the stock appeared on the IBD 100 list and then subsequently fell back off  the list when it couldn't hold $15. It was TMI back then and was very volatile. Still a top (best overall) rated stock in it's sector, although IBD includes it in pollution contol group, which is only a part of their business. By the way SRCL (medical hazardous waste) is second best overall in IBD's pollution control services group,, another stock I bought just recently during the market correction. Still own both. I wouldn't be surprised to see TISI back on the IBD 100 soon.
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SRCL is rising on increasing on rising volume and nearing a breakout point.

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Breakout on SRCL!

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TISI beats on top and bottom, increases guidance, announces aquisition.
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Team, Inc. Reports Strong Results for Second Quarter Fiscal Year 2008; Announces European Acquisition; and Raises Full Year Guidance
Monday January 7, 4:57 pm ET


ALVIN, Texas--(BUSINESS WIRE)--Team Inc., (NASDAQ:TISI - News) today reported a 43 percent increase in net income to $7.8 million ($0.40 per diluted share) for its second quarter ended November 30, 2007 compared to net income of $5.5 million ($0.29 per diluted share) for the corresponding prior year quarter. For the current year second quarter, total revenues increased 47 percent to $122.3 million. Net income for the six months ended November 30, 2007 was $11.3 million ($0.58 per diluted share), up $4.3 million or 62 percent from the prior year. Revenues for the same six month period were $225.8 million, up $76.9 million or 52 percent from the prior year period.
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"We continue to be very pleased with our business growth and development throughout North America and are well positioned for continued growth here," reported Phil Hawk, Chairman and CEO. "And with today's announcement of a planned acquisition of a European industrial service company with whom we have had a twenty year relationship, we are now well positioned to expand our services in Europe, as well."

Discussion of Second Quarter Performance

Team's fiscal year 2008 second quarter revenues for the period ending November 30, 2007 were $122.3 million compared to $83.2 million in the prior year quarter. The current period results include $15.9 million of revenues attributable to the recent Aitec acquisition. Excluding the effect of the Aitec acquisition, Team's second quarter revenues organically grew 28 percent versus the prior year period. Team achieved significant revenue growth in both of its divisions. Revenues for Team's TCM Division (Team's inspection and field heat treating service lines, inclusive of Aitec) were $73.4 million for the current period, up $29.4 million or 67 percent from the prior year period. Excluding the impact of the Aitec acquisition, TCM Division organic revenue growth in the quarter was 31 percent. 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 $48.9 million, up $9.7 million or 25 percent from the prior year period. The demand across both divisions was broad based with significant growth in nearly all regions and service lines.

Operating income for the period increased 41 percent to $14.6 million. Operating profit as a percentage of sales was 12 percent similar to the prior year period.

Planned Acquisition of European Industrial Services Business

Team also announced that it expects to complete the purchase of Leak Repairs Specam ("LRS"), a specialty industrial services company from the GTI Group in the The Netherlands. GTI is an affiliate of the Suez Group. LRS, which is headquartered in Vlissingen, The Netherlands, currently provides a range of services similar to those offered by Team's TMS division including on-stream leak sealing, hot tapping, fugitive emissions monitoring, field machining, and bolting services. It is a market leader in the Benelux region with current annual revenues of approximately $22 million from five service locations in The Netherlands and Belgium. For the past twenty years, LRS has been a licensee of Team's leak repair, hot tapping, and fugitive emissions technologies. The entire management team of LRS and its 90 employees will be joining Team. The purchase price of the acquisition is approximately $18 million subject to possible working capital adjustments. Team expects to finance the entire transaction from its current credit facility. The transaction is fully negotiated and documented and is pending only a few final approvals which are expected to be completed this week.

"We are delighted that the LRS team is joining Team Industrial Services. Given our twenty year relationship, we are very familiar with this high quality company and its management team. We look forward to building upon this successful business base and service network as we pursue future European growth opportunities," said Mr. Hawk. "Given its relative small size, we do not expect the new LRS business to be materially accretive to our earnings for the remainder of this fiscal year," continued Mr. Hawk.

Team Raises Full Year Guidance

Reflecting the strong results and continued positive outlook, Team has raised 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 $450 million and that earnings will be $1.10 to $1.20 per fully diluted share. This new range reflects approximately a 5 percent increase from Team's previous guidance. The revenue estimate does not include the potential impact of the LRS acquisition. "We are pleased with the results we have achieved in the first half of the year and remain optimistic about our future prospects," said Phil Hawk.

Earnings Conference Call

In connection with this earnings release, Team will hold its quarterly conference call on Tuesday, January 8, 2008 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 1-877-826-1586 and use conference code 20163231.

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. Team offers these services in over 80 locations throughout the United States, Aruba, Canada, Singapore, Trinidad and Venezuela. Recently named 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. 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   Six Months Ended 
  November 30,   November 30, 
  2007   2006   2007   2006 
  (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Revenues   $  122,310    $  83,185    $  225,798    $  148,924   
Operating expenses      80,456         52,769         151,637         96,716     
Gross margin    41,854     30,416     74,161     52,208   
           
Selling, general and administrative expenses      27,301         20,103         51,840         38,222     
Operating income    14,553     10,313     22,321     13,986   
           
Interest expense, net      1,713         1,121         3,464         2,142     
Earnings before income taxes    12,840     9,192     18,857     11,844   
           
Provision for income taxes      5,024         3,725         7,529         4,855     
Net income   $  7,816      $  5,467      $  11,328      $  6,989     
           
           
Earnings per common share:         
Basic   $  0.43      $  0.31      $  0.63      $  0.40     
Diluted   $  0.40      $  0.29      $  0.58      $  0.37     
           
Weighted average number of shares outstanding:         
         
Basic      18,164         17,412         18,044         17,354     
Diluted      19,685         18,884         19,550         18,794     
           
Continuing operations data:         
           
Revenues comprised of:         
TCM Division   $  73,396    $  43,987    $  133,195    $  77,611   
TMS Division      48,914         39,198         92,603         71,313     
  $  122,310      $  83,185      $  225,798      $  148,924     
           
Gross margin comprised of:         
TCM Division   $  23,369    $  14,611    $  40,295    $  24,128   
TMS Division      18,485         15,805         33,866         28,080     
  $  41,854      $  30,416      $  74,161      $  52,208     
           
Operating income comprised of:         
Industrial Services   $  18,600    $  13,496    $  30,062    $  20,761   
Corporate      (4,047  )      (3,183  )      (7,741  )      (6,775  ) 
  $  14,553      $  10,313      $  22,321      $  13,986     
         
TEAM, INC. AND SUBSIDIARIES 
SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION 
NOVEMBER 30, 2007 AND MAY 31, 2007 
(in thousands) 
       
  November 30,   May 31, 
  2007   2007 
  (unaudited)   
       
Current assets   $  136,156   $  107,513 
       
Property, plant and equipment, net    47,247    35,166 
       
Other non-current assets    53,075    28,375 
         
Total assets   $  236,478   $  171,054 
       
Current liabilities   $  44,882   $  37,284 
       
Long term debt net of current maturities    88,659    48,774 
       
Other non-current liabilities and minority interests    1,778    793 
       
Stockholders' equity    101,159    84,203 
         
Total liabilities and stockholders' equity   $  236,478   $  171,054 




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

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Source: Team Inc.