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Team Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: January 8, 2013 03:09PM

Team Inc. (TISI) filed Quarterly Report for the period ended 2012-11-30. Team, Inc. has a market cap of $743.4 million; its shares were traded at around $41.57 with a P/E ratio of 22.1 and P/S ratio of 1.2. Team, Inc. had an annual average earning growth of 15.4% over the past 10 years. GuruFocus rated Team, Inc. the business predictability rank of 2.5-star.



Highlight of Business Operations:

Revenues. Our revenues for the three months ended November 30, 2012 were $200.6 million compared to $158.3 million for the three months ended November 30, 2011, an increase of $42.3 million or 27%. Organic revenue growth in the quarter was $37.2 million, or 24%, while acquired revenue was $5.1 million. Revenues for our TCM division for the three months ended November 30, 2012 were $124.5 million compared to $91.0 million for the three months ended November 30, 2011, an increase of $33.5 million or 37%. TCM growth was primarily driven by increased demand for inspection and assessment services, which totaled $95 million and grew more than 40% in the quarter compared to the same quarter of fiscal 2012. Revenues for our TMS division for the three months ended November 30, 2012 were $76.2 million compared to $67.3 million for the three months ended November 30, 2011, an increase of $8.9 million or 13%. TMS revenue growth was driven by robust demand for turnaround services, which were up over 30% in the quarter.

Gross margin. Our gross margin for the three months ended November 30, 2012 was $62.5 million compared to $50.4 million for the three months ended November 30, 2011, an increase of $12.1 million or 24%. Gross margin as a percentage of revenue was 31% for the three months ended November 30, 2012 compared to 32% for the three months ended November 30, 2011. About half of the decline in gross margin percentage was due to businesses acquired in the quarter, which had substantially lower margins than our legacy businesses. The rest of the decline is due to a changing project mix, compared to the prior year quarter. We do not believe the decline in margins in the quarter is indicative of any trend.

Selling, general and administrative expenses. Our SG&A expenses for the three months ended November 30, 2012 were $39.9 million compared to $33.8 million for the three months ended November 30, 2011, an increase of $6.1 million or 18%. As a percentage of revenues, SG&A expenses were 20% in the current year quarter, down from 21% in the prior year quarter, due to the leverage of revenue growth.

Revenues. Our revenues for the six months ended November 30, 2012 were $362.1 million compared to $299.4 million for the six months ended November 30, 2011, an increase of $62.7 million or 21%. Revenues for our TCM division for the six months ended November 30, 2012 were $220.7 million compared to $168.0 million for the six months ended November 30, 2011, an increase of $52.7 million or 31%. Most of the TCM revenue growth came from the strong demand for inspection and assessment services, which increased 40% year over year to $173 million. Revenues for our TMS division for the six months ended November 30, 2012 were $141.5 million compared to $131.4 million for the six months ended November 30, 2011, an increase of $10.1 million or 8%.

Selling, general and administrative expenses. Our SG&A expenses for the six months ended November 30, 2012 were $77.0 million compared to $66.9 million for the six months ended November 30, 2011, an increase of $10.1 million or 15%. As a percentage of revenues, SG&A expenses were 21% in the current year to date period, down from 22% in the prior year to date period, due to the leverage of revenue growth.

Read the The complete Report



Stocks Discussed: TISI,
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