Team Q1 Profit Up 56%, Beats View, But Revenues Miss; Backs Outlook

(RTTNews) - Team, Inc. (TISI), a provider of specialty industrial services, on Monday reported a 56 percent increase in profit for the first quarter from last year on higher revenues across all its segments.

Adjusted earnings per share for the quarter matched analysts' expectations, while revenues missed their estimates. Looking ahead, the company affirmed its earnings outlook for fiscal 2015.

The Texas-based company's net income available to common shareholders for the first quarter was $7.03 million or $0.33 per share, up from $4.51 million or $0.21 per share for the year-ago quarter.

The latest quarter's results include the impact of the acquisition-related expenses of $0.2 million associated with the acquisition of a $10 million valve repair business in the United Kingdom that is now part of the Mechanical Services business group. The prior-year quarter's results include severance costs of $0.7 million.

Excluding items, adjusted net income for the quarter was $7.14 million or $0.34 per share, compared to $5.00 million or $0.23 per share in the prior-year quarter. On average, seven analysts polled by Thomson Reuters expected the company to earn $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Team operates in three segments: Inspection and Heat Treating Services Group; Mechanical Services Group; and Quest Integrity Group.

Revenues for the quarter rose 8 percent to $188.12 million from $174.31 million in the same period last year. Analysts had a consensus revenue estimate of $194.55 million for the quarter.

IHT Business Group revenues for the quarter increased 10 percent, while Quest Integrity Group revenues rose 16 percent from last year. Total U.S. revenues grew 12 percent during the quarter.

The company noted that its EBIT margin improved 1.3 percentage points to 6.4 percent in the seasonally weaker quarter.

Looking ahead to fiscal 2015, Team said it remains on track to achieve its adjusted earnings target of $2.00 per share. Analysts currently expect the company to earn $1.97 per share for the year.

TISI closed Monday's trading at $37.71, down $0.35 or 0.92 percent on a volume of 95,551 shares.