Company: TISI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000318833-25-000070
Chunk: 5

Company: TEAM INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 5
---
 million in the prior year quarter. IHT operating income increased by $1.7 million or 16.9% reflecting the contributions from revenue growth for the quarter, with operating income from the U.S. increasing by $1.0 million, and improved operating income from Canada of $0.4 million driven mainly by higher customer project activity. MS operating income increased by $1.4 million or 31.2% as compared to the prior year quarter, with an increase in U.S. operating income of $1.9 million and Canada of $1.0 million. This improvement was partially offset by lower operating income from other international regions of $1.5 million, driven by lower customer project activity as compared to the prior year quarter. Corporate operating loss increased by $4.9 million, primarily due to higher non-recurring professional fees and legal costs, see details noted in the table below. 

28 

 Operating income includes net expenses totaling $4.1 million for the three months ended September 30, 2025 and net credits totaling $1.3 million for the three months ended September 30, 2024, that we do not believe are indicative of our core operating activities, as detailed in the table below (in thousands):

 Three Months Ended September 30, 20252024Operating income$1,342 $3,158 Professional fees and other1,977 318 Legal costs (credits) and litigation reserves1,972 (1,975)Severance charges, net151 309 Total non-core expenses (credits)4,100 (1,348)Operating income, excluding non-core expenses$5,442 $1,810 

Excluding the impact of these identified non-core items in both periods, operating income increased by $3.6 million  or 200.7%, from $1.8 million in the three months ended September 30, 2024 to $5.4 million for the three months ended September 30, 2025. See our non-GAAP reconciliation for additional details of our non-core expenses.

Interest expense, net. Interest expense remained consistent in the current quarter as compared to the prior year quarter.  

Cash interest paid during the quarter ended September 30, 2025 and 2024 was $9.8 million and $7.1 million, respectively, with the increase in cash interest driven by the timing of interest payments on the First Lien Term Loan.  

Loss on