# EDGAR Filing Document

**Accession Number:** 0000318833
**File Stem:** 0001193125-23-070283
**Filing Date:** 2023-3
**Character Count:** 11368
**Document Hash:** a985a0b3e69ab2879220e49c1abd0c3f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-070283.hdr.sgml**: 20230314

**ACCESSION NUMBER**: 0001193125-23-070283

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230314

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230314

**DATE AS OF CHANGE**: 20230314

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TEAM INC
- **CENTRAL INDEX KEY:** 0000318833
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MISCELLANEOUS REPAIR SERVICES [7600]
- **IRS NUMBER:** 741765729
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08604
- **FILM NUMBER:** 23732163

**BUSINESS ADDRESS:**
- **STREET 1:** 13131 DAIRY ASHFORD
- **STREET 2:** SUITE 600
- **CITY:** SUGAR LAND
- **STATE:** TX
- **ZIP:** 77478
- **BUSINESS PHONE:** 2813316154

**MAIL ADDRESS:**
- **STREET 1:** 13131 DAIRY ASHFORD
- **STREET 2:** SUITE 600
- **CITY:** SUGAR LAND
- **STATE:** TX
- **ZIP:** 77478

?xml version="1.0" encoding="utf-8" ? 8-K

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### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### Pursuant to Section 13 OR 15(d)

#### of The Securities Exchange Act of 1934

#### Date of report (Date of earliest event reported): March 14, 2023

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## TEAM, Inc.

#### (Exact Name of Registrant as Specified in its Charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-08604** | **74-1765729** |
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

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#### 13131 Dairy Ashford, Suite 600

#### Sugar Land, Texas 77478

#### (Address of Principal Executive Offices and Zip Code)

#### Registrant's telephone number, including area code: (281) 331-6154

#### Not Applicable

#### (Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CF 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange**<br> **on which registered** |
| Common Stock, $0.30 par value | TISI | New York Stock Exchange |
| Preferred Stock Purchase Rights | N/A | New York Stock Exchange |

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Indicate by check mark whether registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 8.01** | **Other Events.**  |

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As previously reported, on August 14, 2022, Team, Inc. (the "Company") entered into that certain Equity Purchase Agreement (the "Sale Agreement") with Baker Hughes Holdings LLC, a Delaware limited liability company ("Buyer"), pursuant to which Buyer acquired all of the issued and outstanding equity interests of a wholly-owned subsidiary of the Company, TQ Acquisition, Inc., a Texas corporation (the "Transaction"). On November 1, 2022 and in accordance with the Sale Agreement, the Company completed the Transaction. The Transaction was previously disclosed by the Company in its Current Report on Form 8-K filed with the Securities and Exchange Commission on November 7, 2022 and such description is incorporated herein by reference.

The following unaudited pro forma condensed consolidated statement of operations giving effect to the Transaction is filed herewith as Exhibit 99.1:

• Unaudited pro forma condensed consolidated statement of operations of the Company and its subsidiaries for the fiscal year ended December 31, 2022, giving effect to the Transaction as if it had occurred on January 1, 2022.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits**  |

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(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.

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| | |
|:---|:---|
| **Exhibit number** | **Description** |
| 99.1 | [Unaudited Pro Forma Condensed Consolidated Statement of Operations of the Company for the Year Ended December 31, 2022, giving effect to the Transaction as if it had occurred on January 1, 2022.](d334201dex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document). |

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#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| **TEAM, Inc.** | **TEAM, Inc.** |
| By: | /s/ Nelson M. Haight |
|  | Nelson M. Haight |
|  | Chief Financial Officer (Principal Financial Officer) |

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Dated: March 14, 2023

## Exhibit 99.1

**Exhibit 99.1** 

**TEAM, INC.** 

**Unaudited Pro Forma Condensed Consolidated Statement of Operations** 

On August 14, 2022, Team, Inc. (the "Company") entered into that certain Equity Purchase Agreement (the "Sale Agreement") with Baker Hughes Holdings LLC, a Delaware limited liability company ("Buyer"), pursuant to which Buyer acquired all of the issued and outstanding equity interests of a wholly-owned subsidiary of the Company, TQ Acquisition, Inc., a Texas corporation ("TQ Acquisition") (the "Transaction"). On November 1, 2022 and in accordance with the Sale Agreement, the Company completed the Transaction.

The following unaudited pro forma condensed consolidated statement of operations of the Company is derived from the Company's historical consolidated financial statements and should be read in conjunction with the audited financial statements and notes thereto appearing in the Company's Annual Report on Form 10-K for the years ended December 31, 2022 and 2021.

The unaudited condensed consolidated statement of operations and accompanying notes reflect the impact of the Transaction as if it had occurred on January 1, 2022.

The unaudited pro forma condensed consolidated statement of operations has been presented for the informational purposes only and is not indicative of any future results of operations or the results that might have occurred if the Transaction had actually been completed on the indicated dates. The unaudited pro forma condensed consolidated statement of operations is based on management's estimate of the effects on the financial statements of the Transaction. Pro forma adjustments are based on currently available information, historical results and certain assumptions that management believes are reasonable and described in the accompanying notes.

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**TEAM, INC. AND SUBSIDIARIES** 

**Unaudited Pro Forma Condensed Consolidated Statement of Operations** 

**For the Year Ended December 31, 2022** 

**(unaudited, in thousands, except per share data)** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Sale of TQ<br>Acquisition<br>(1)** | **Pro Forma<br>Adjustments** | | **Pro Forma** |
|  Revenues | $941626 | $101418 | $— |  | $840208 |
|  Operating expenses | 683641 | 45044 |  |  | 638597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross margin | 257985 | 56374 |  |  | 201611 |
|  Selling, general and administrative expenses | 273627 | 32230 |  |  | 241397 |
|  Restructuring | 16 |  |  |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) | (15658) | 24144 |  |  | (39802) |
|  Interest income (expense) | (85160) | (108) | 35450 | **(2)** | (49602) |
|  Loss on debt extinguishment | (30083) |  | (4056) | **(3)** | (34139) |
|  Gain on sale of TQ Acquisition |  |  | 202174 | **(4)** | 202174 |
|  Othre income (expense) | 3766 | (4390) |  |  | 8156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) before income taxes | (127135) | 19646 | 233567 |  | 86786 |
|  Provision for income taxes | (6136) | (2831) | (861) | **(5)** | (4166) |
|  Net income (loss) from continuing operations | (133271) | 16815 | 232706 |  | 82620 |
|  Income from discontinued operations | 203351 |  | (203351) | **(6)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $70080 | $16815 | $29355 |  | $82620 |
|  Income (loss) per common share: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and dilluted | $16.74 | $4.02 | $7.01 |  | $19.73 |
|  Weighted-average number of shares outstanding: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and dilluted | 4187 | 4187 | 4187 |  | 4187 |

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| | |
|:---|:---|
| 1 | Represents carving out historical income statement amounts associated with TQ Acquisition.  |

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|:---|:---|
| 2 | This amount consists of (a) $36,835 - a reduction of interest expense and amortization of debt issuance cost and debt discount after sale proceeds were applied to pay off a portion of debt at 1/1/2022 calculated as 95.3% of the actual interest expense (95.3% is calculated as a proportion of the debt payoff assumed at January 1, 2022) and (b) $1,385 - additional interest incurred after the sale of TQ Acquisition. Additional interest is estimated assuming additional borrowings on the revolver will be required to replace monthly cash sweeps from TQ Acquisition (average monthly interest rates on the revolvers are used).  |

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| | |
|:---|:---|
| 3 | This amount consists of (a) $34,139 - a write off of unamortized balances of debt issuance cost and debt discount after paying off a portion of debt at 1/1/2022 calculated as 95.3% of the actual balances (95.3% is calculated as a proportion of the debt payoff assumed at January 1, 2022) and (b) ($30083) - a reversal of the actual loss on debt extinguishment recorded at 11/2/2022.  |

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4 This adjustment represents a proforma gain on sale of TQ Acquisition assumed at 1/1/2022 calculated as follows:

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| | |
|:---|:---|
|  Base purchase price | $280000 |
|  Quest estimated cash at close | 9619 |
|  Net indebtedness | (9014) |
|  Estimated Quest IC | (2190) |
|  Working capital adjustment | 577 |
|  Initial purchase price | $278992 |
|  Assets | 81036 |
|  Liabilities | (14337) |
|  Net assets disposed of | 66699 |
|  Adjustment for transaction cost | (7327) |
|  Working capital and other adjustments | (2792) |
|  Proforma gain on disposal | $202174 |

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5 This adjustment represents a tax impact on the sale of TQ Acquisition.

6 This adjustment represents a reversal of the actual gain on sale of TQ Acquisition booked at 11/1/2022.