Company: TISI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000318833-25-000037
Chunk: 39

Company: TEAM INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 approximately $1.7 million is not covered by our various insurance policies.In addition to legal matters discussed above, we are subject to various lawsuits, claims and proceedings encountered in the normal conduct of business (“Other Proceedings”). Management believes that based on its current knowledge and after 

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consultation with legal counsel that the Other Proceedings, individually or in the aggregate, will not have a material effect on our condensed consolidated financial statements.

    14. SEGMENT DISCLOSURES 

We conduct operations in two segments: IHT and MS. Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the services we offer. The reportable segments results are reviewed regularly by the chief operating decision maker (“CODM”), who is our Chief Executive Officer, in deciding how to allocate resources and assess performance. Our CODM evaluates the segments’ operating performance based on adjusted EBITDA defined as net income (loss) before income taxes, interest expense, depreciation and amortization, and other non-recurring and non-operational items. Our CODM uses adjusted EBITDA as a measure to make resource allocation decisions for each segment for the budgeting process and reviews budget-to-actual variances to access performance and allocate capital.Segment data for our two operating segments are as follows (in thousands): Three Months EndedMarch 31, 2025 IHTMSTotal(unaudited)(unaudited)(unaudited)Revenues$106,215 $92,440 $198,655 Adjusted operating expenses179,695 68,552 148,247 Adjusted selling, general and administrative expenses214,896 20,394 35,290 Adjusted EBITDA$11,624 $3,494 $15,118  Three Months EndedMarch 31, 2024 IHTMSTotal(unaudited)(unaudited)(unaudited)Revenues$99,448 $100,152 $199,600 Adjusted operating expenses176,133 71,163 147,296 Adjusted selling, general and administrative expenses214,966 19,842 34,808 Adjusted EBITDA$8,349 $9,147 $17,496 _____________1    Represent operating expenses excluding indirect depreciation and amortization, and severance cost.2    Represent segment selling, general and administrative expenses excluding depreciation and amortization, noncash share-based compensation, professional