Company: TISI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000318833-25-000057
Chunk: 5

Company: TEAM INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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30, 2025 and 2024, operating income includes net expenses totaling $3.5 million and $0.8 million, respectively, that we do not believe are indicative of our core operating activities, as detailed in the table below (in thousands):

 Three Months Ended June 30, 20252024Operating income$12,103 $11,159 Professional fees and other2,301 516 Legal costs 799 41 Severance charges, net375 225 Total non-core expenses3,475 782 Operating income, excluding non-core expenses$15,578 $11,941 

Excluding the impact of these identified non-core items in both periods, operating income increased by $3.7 million  or 30.5%, from $11.9 million in the three months ended June 30, 2024 to $15.6 million for the three months ended June 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 June 30, 2025 and 2024 was $3.9 million and $6.5 million, respectively. The decrease in cash interest was driven by all the interest expense on the 2025 Second Lien Term Loans being PIK, as well as the timing of interest payments on the First Lien Term Loan.  

Other (expense) income, net. Overall change in other (expense) income, net of $2.9 million, is primarily due to the impact of a loss on unfavorable foreign currency fluctuations during the current quarter.

Taxes. The provision for income tax was $1.0 million on the pre-tax loss of $3.3 million in the current year quarter, compared to a $1.5 million income tax provision on a pre-tax loss of $1.3 million in the prior year quarter. The effective tax rate, inclusive of discrete items, was a provision of 29.9% for the three months ended June 30, 2025, compared to a provision of 114.0% for the three months ended June 30, 2024. The decrease in effective tax rate for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 is due to the mix of pretax income in non