Company: TISI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000318833-25-000037
Chunk: 98

Company: TEAM INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 MS segment revenue decreased by $7.7 million or 7.7% compared to the prior year period, mainly driven by  lower turnaround activities and callout projects in the U.S. and lower revenue from projects in international areas other than Canada.

Operating income (loss). Overall operating loss was $6.0 million in the 2025 period, a $0.4 million or 6.0% improvement as compared to an operating loss of $6.4 million in the prior year period. IHT operating income increased by $3.5 million or 67.7%, primarily driven by increased revenue and lower costs. MS operating income decreased by $5.2 million or 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,