TEAM INC Q4 FY2024 earnings call

• Over the past two years, Team has been executing a strategic road map to better position the company, simplifying the business, addressing capital structure and balance sheet, improving margins. - In March 2025, successfully refinanced capital structure, lowering blended interest rate by more than 100 basis points and extending term loan maturities to 2030. - In 2024, results reflected impact of operational and commercial initiatives, with margins and adjusted EBITDA expanding. - Fourth quarter saw solid results with positive free cash flow, operating income improvements in both segments. - Selling, general and administrative expense for fourth quarter lower by over $4 million vs prior year. - Full year 2024 generated over $54 million of adjusted EBITDA, a 28% improvement over 2023. - Recently launched actions expected to yield annualized cost savings of around $10 million. - In midst of implementing steps to improve Canadian operations, mix of top-line growth and cost structure/margin improvement, expecting results in 2025 with full impact in 2026.

For the fourth quarter, revenue was nearly flat compared to the prior year period. Despite the slightly lower revenue, operating income in both segments increased by 45.4% and 51% respectively. For the full year 2024, adjusted EBITDA was over $54 million, a roughly 28% improvement over 2023. Revenue was down about 1% year-over-year in 2024, but adjusted EBITDA was up almost 28% to $54.3 million. Selling, general and administrative expense for the fourth quarter was lower by more than $4 million versus the prior year period, contributing to adjusted EBITDA being nearly $5 million higher to $14.6 million in the fourth quarter.

• Expect healthy activity levels across both segments in 2025 and further improvement in margin and financial performance vs 2024. - Expect mid-single-digit revenue growth in 2025. - Expect improved year-over-year performance from Canadian operations in 2025. - Expect at least 15% year-over-year growth in 2025 adjusted EBITDA. - Aim for adjusted EBITDA margin of 10% or more.

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