Company: TISI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000318833-25-000057
Chunk: 55

Company: TEAM INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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24Operating income$6,100 $4,773 Professional fees and other4,3082,597 Legal costs1,289 123 Severance charges, net842 650 Total non-core expenses6,439 3,370 Operating income, excluding non-core expenses$12,539 $8,143 

Excluding the impact of these identified non-core items in both periods, operating income improved by $4.4 million, or 54.0% from $8.1 million in the six months ended June 30, 2024 to $12.5 million in the six months ended June 30, 2025. 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 Revolving Credit Loans and other facilities. 

Cash interest paid for the six months ended June 30, 2025 and 2024 was $12.8 million and $12.4 million, respectively.

Loss on debt extinguishment. On March 12, 2025, pursuant to the debt refinancing transactions executed with our existing and new lenders, 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 other income (expense), net of $4.5 million, was primarily driven by foreign currency transaction losses in the current year period reflecting the effects of unfavorable fluctuations in the value of the U.S. dollar relative to the foreign currencies to which we have exposure.

Taxes. The provision for income tax was $1.2 million on the pre-tax loss of $32.8 million in the current year-to-date period compared to income tax expense of $1.5 million on the pre-tax loss of $18.4 million in the prior year-to-date period. The effective tax rate was a provision of 3.7% for the six months ended June 30,