Team, Inc. Q3 2014 Earnings Results Conference Call Transcript


Good day, ladies and gentlemen, and welcome to the Q3 FY2014 Team Inc. Earnings Conference Call. My name is Morris. I will be your operator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. And I would like to turn the call over to Phil Hawk, Chairman and CEO. Please proceed.

Philip Hawk – Chairman and CEO

Thank you, Morris, and good morning, everyone. Again, it’s my pleasure to welcome you to the Team web conference call to discuss recent company performance. Again, my name is Phil Hawk. I’m Team’s Chairman and Chief Executive Officer. Joining me again this morning is Mr. Ted Owen, the company’s Executive Vice President and Chief Financial Officer.

The purpose of today’s conference call is to discuss our recently released financial results for the company’s third quarter for fiscal year 2014, which ended on February 28. As with past calls, our primary objective is to provide our shareholders and potential shareholders with an enhanced understanding of our company’s performance and prospects. This discussion is intended to supplement our quarterly earnings releases, filings to the SEC, as well as our annual report. Ted will begin with a review of the financial results. I will then follow Ted with a few additional remarks and observations about our performance and prospects. Following these remarks, we’ll then take questions from our listeners.

Now with that introduction out of the way, Ted, let me turn it over to you.

Ted W. Owen – Executive Vice President and CFO

Thank you, Phil. As usual, let me begin with the safe harbor statement. I want to remind everyone that any forward-looking information we discuss today 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. However, a variety of factors could cause actual results to differ materially from those anticipated in any forward-looking information. A description of those factors is set forth in the company’s SEC filings.

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Accordingly, there can be no assurance that the forward-looking information discuss today will occur or that our objectives will be achieved. And 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.

Now with that out of the way, for the financial results. Our adjusted net income available to shareholder was $0.01 per share in the current year quarter versus a $0.01 loss in last year’s quarter. The adjusted net income for the quarter excludes a $1.9 million pretax accounting loss associated with the revaluation of our net assets in Venezuela as I discussed at length on our call on March 20.

Revenues for the quarter were $163 million; that’s up 8% over last year’s quarter despite the weather issues that we discussed previously in our March 20 call.

Now here is the breakdown of those revenues by business group. First, inspection and heat treating revenues were $85.1 million, up $4 million from last year’s third quarter. Mechanical service revenues were $63.4 million, also up $4 million from last year, and finally, Quest revenues were $14.6 million, up 43% from last year’s quarter.

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