Company: TISI
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0000318833-25-000015
Chunk: 71

Company: TEAM INC
Filing Date: 2025-03-19
Form: 10-K
Item: Item 7
Chunk 71
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 of which we may not be able to anticipate at this time or control. Such risks include the following:

•loss of customers or other unforeseen deterioration in demand for our services;

•seasonal fluctuations, such as severe weather and other variations in our customers’ industries that may impede or delay the timing of customer orders and the delivery of our services; 

•rapid increases in raw materials and labor costs that may hinder our ability to meet our forecasted operating expenses; 

•persisting or increasing levels of inflation domestically and internationally and the impact of such inflation on our ability to meet our current forecast;

•changes in regulations governing our operations and unplanned costs to comply with such regulatory changes;

•counterparty credit risk related to our ability to collect our receivables; and

•unexpected or prolonged fluctuations in interest rates and their impact on our forecasted costs of raising additional capital. 

See Item 1A “Risk Factors” in this Annual Report on Form 10-K for additional information.

19

On September 30, 2024, we entered into certain amendments with our lenders. Refer to Note 11 - Debt of the consolidated financial statements for additional details about the amendments.

          ABL Amendment No.5 significantly improved availability under our Revolving Credit Loans and as of December 31, 2024, we had approximately $45.9 million of available borrowing capacity under our various credit facilities, consisting of $35.9 million available under the 2022 ABL Credit Facility and $10.0 million available under the A&R Term Loan Credit Agreement. Our principal uses of cash and liquidity are for working capital needs, capital expenditures and operations.

As of December 31, 2024 we are in compliance with our debt covenants. Our ability to maintain compliance with the financial covenants contained in our credit agreements is dependent upon our future operating performance and future financial condition, both of which are subject to various risks and uncertainties. 

On March 12, 2025, we entered into certain debt refinancing transactions with our existing and new lenders. Refer to Note 19 - Subsequent Events of the consolidated financial statements for additional details about the transactions.

As of March 17, 2025, we had consolidated cash and cash equivalents of $10.1 million, excluding $4.3 million of  restricted cash used mainly as collateral for outstanding letters of credit and commercial card programs, and approximately $16.1 million of undrawn availability under our various credit facilities, resulting in total