Team (TISI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $9.38 million, or $ 0.32 a share in the quarter, against a net profit of $5.46 million, or $0.26 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.51 million, or $0.08 a share compared with $8.38 million or $0.39 a share, a year ago.
Revenue during the quarter grew 25.42 percent to $319.82 million from $255 million in the previous year period. Gross margin for the quarter contracted 88 basis points over the previous year period to 27.26 percent. Operating margin for the quarter stood at negative 1.78 percent as compared to a positive 4.20 percent for the previous year period.
Operating loss for the quarter was $5.70 million, compared with an operating income of $10.70 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.07 million compared with $25.13 million in the prior year period. At the same time, adjusted EBITDA margin contracted 326 basis points in the quarter to 6.59 percent from 9.85 percent in the last year period.
Commenting on the results, Ted Owen, Team's president and chief executive officer, said, "We are obviously disappointed in our results for the quarter, especially after seeing increased demand levels during our busiest fall turnaround months of September and October. We were encouraged then that the early fall activity levels were the first signs of more normalized market activity, but that did not turn out to be the case. After the brief spike in demand for our services during the first month of the fourth quarter, demand weakened again in November and December. In spite of the soft demand in 2016, we continue to be optimistic that end markets will improve during 2017 and we are no less confident in the platform we are building as the premier industrial services company. However, until we begin to see a sustained pattern of market normalization, we will continue to withhold earnings guidance for 2017."
Debt comes down marginally
Team has recorded a decline in total debt over the last one year. It stood at $366.91 million as on Dec. 31, 2016, down 1.20 percent or $4.47 million from $371.38 million on Dec. 31, 2015.
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