Company: TISI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000318833-25-000037
Chunk: 5

Company: TEAM INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 127.2% as compared to the prior year period. MS operating income from U.S. and International operations, excluding Canada, decreased by $3.0 million and $2.3 million, respectively, primarily driven by lower year over year revenue due to projects from the prior year period that did not repeat in 2025. Corporate operating loss decreased by $2.1 million compared to the prior year period, primarily due to lower personnel and professional services costs in the current period.

For the three months ended March 31, 2025 and 2024, operating income (loss) includes net expenses totaling $3.0 million and $2.6 million, respectively, that we do not believe are indicative of our core operating activities, as detailed in the table below (in thousands):

24 

 Three Months Ended March 31, 20252024Operating loss$(6,003)$(6,386)Professional fees and other2,0072,081 Legal costs490 82 Severance charges, net467 425 Total non-core expenses2,964 2,588 Operating loss, excluding non-core expenses$(3,039)$(3,798)

Excluding the impact of these identified non-core items in both periods, operating loss decreased by $0.8 million, from $3.8 million to $3.0 million. See our non-GAAP reconciliation for additional details of our non-core expenses.

Interest expense, net. Interest expense, net decreased by $0.7 million from the prior year period. The decrease was primarily attributable to lower interest rates on our ABL Revolving Credit Loans and other facilities. 

Cash interest paid for the three months ended March 31, 2025 and 2024 was $8.9 million and $5.9 million, respectively.

Loss on debt extinguishment. On March 12, 2025, pursuant to the Refinancing Transactions, we repaid the total outstanding balances under the ME/RE Loans, Corre Delayed Draw Term Loan and Corre Incremental Term Loan and made a partial payment on the Corre Uptiered Loan, together with any applicable prepayment premiums and related accrued interest, resulting in a loss on debt extinguishment of $11.9 million. The loss on debt extinguishment includes $7.4 million of unamortized debt issuance cost (noncash) written off as part of the debt payoffs.

Other income (expense), net. The overall change in