Team, Inc. (NYSE:TISI) Q2 2017 Earnings Conference Call - Final Transcript
Aug 08, 2017 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Team Second Quarter 2017 Earnings Conference Call. At this time all participants are in a listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Ted Owen, Chief Executive Officer. Sir, you may begin.
Good morning, and again, I'm Ted Owen, Team's President and Chief Executive Officer. Joining me again, today is Greg Boane, our Chief Financial Officer.
On July 24, we preannounced very disappointing results for the second quarter 2017. And yesterday, we reported our final results that were consistent with those preliminary disclosures. Importantly, in the last week, we also announced the completion of a $230 million convertible debt offering, as well as major cost reduction initiatives. Unfortunately, because of the convertible debt offering, I have been unable to speak to equity investors since our July 24 announcements.
Frankly, during the time when being available to investors was most critical, I just wasn't able to do that. I'm sorry for that, but I'm glad to be able to speak with you today. Before I do that, Greg will read through the safe harbor information and then review the financial results in detail. Greg?
Thanks, Ted. Good morning. This call will contain forward-looking information within the meaning of the federal safe harbor provisions. Any forward-looking information discussed today is provided in accordance with the Private Securities Litigation Reform Act of 1995. We've made reasonable efforts to ensure that the information, assumptions and beliefs upon which this forward-looking information is based are current, reasonable and complete.
However, a variety of factors could cause actual results to differ materially from those anticipated in any forward-looking information. A description of those factors is set forth in the company's SEC filings. There can be no assurance that the forward-looking information discussed today will occur or that our objectives will be achieved. We assume no obligation to publicly update or revise any forward-looking statements made today or any other forward-looking statements made by the company, whether as a result of new information, future events or otherwise.
Today's discussions will also include certain non-GAAP financial measures. We have excluded certain items that we believe are not indicative of Team's core operating activities when arriving at adjusted net income, adjusted EPS, adjusted EBIT and adjusted EBITDA. All of these are non-GAAP financial measures. Reconciliations of these non-GAAP and adjusted financial measures are provided in our quarterly earnings release.
I'll now go over the results for the second quarter, and we'll start off by discussing segment performance before moving on to our consolidated results. TeamQualspec current quarter revenues of $158 million were up approximately 1% from second quarter 2016 revenues. TeamFurmanite revenues of $133 million were down 17% from second quarter 2016 revenues. As we've stated in prior calls, the decrease in revenues in the TeamFurmanite segment is the