Team Inc (TISI) 2021 Q3 法說會逐字稿

Greetings, and welcome to the Team, Inc. Third Quarter 2021 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Kevin Smith, Vice President of Corporate Development and Investor Relations. Thank you, sir. You may begin.

您好，歡迎加入 Team, Inc.。2021 年第三季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人，企業發展和投資者關係副總裁凱文史密斯先生。謝謝您，先生。你可以開始了。

Thank you, Laura. Welcome everyone to Team's Third Quarter 2021 Earnings Conference Call. With me on today's call are Amerino Gatti, our Chairman and Chief Executive Officer; and our Chief Financial Officer, Susan Ball. This call is also being webcast and can be accessed through the audio link under the Investor Relations section of our website at teaminc.com. Information recorded on this call speaks only as of today, November 12, 2021. Therefore, please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript reading. There will be a replay of today's call, and it will be available via webcast by going to the company's website, teaminc.com. In addition, a telephonic replay will be available until November 19. The information on how to access these replay features was provided in this morning's earnings release.

謝謝你，勞拉。歡迎大家參加團隊 2021 年第三季財報電話會議。今天與我一起參加電話會議的還有我們的董事長兼執行長 Amerino Gatti；以及我們的財務長蘇珊鮑爾（Susan Ball）。本次電話會議也正在進行網路直播，您可以透過我們網站 teaminc.com 上投資者關係部分下的音訊連結存取。本次通話中所記錄的資訊僅截至今天（2021 年 11 月 12 日）的資訊。因此，請注意，任何時間敏感資訊在重播收聽或筆錄閱讀之日起可能不再準確。今天的電話會議將會重播，您也可以透過公司網站 teaminc.com 觀看網路直播。此外，電話重播將持續到 11 月 19 日。今天早上的收益報告中提供了有關如何存取這些重播功能的資訊。

As a reminder, this call contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities and Litigation Reform Act of 1995, including statements of expectations, future events or future financial performance. Forward-looking statements involve inherent risks and uncertainties, and we caution investors that a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's Annual Report on Form 10-K and in the company's other documents and reports filed or furnished with the Securities and Exchange Commission. The company assumes no obligation to publicly update or revise any forward-looking statements, except as may be required by law.

提醒一下，本次電話會議包含根據 1995 年私人證券和訴訟改革法的安全港條款做出的前瞻性陳述，包括預期、未來事件或未來財務表現的陳述。前瞻性陳述涉及固有風險和不確定性，我們提醒投資者，多種因素可能導致實際結果與任何前瞻性陳述中的結果有重大差異。這些因素和其他風險和不確定性在公司的 10-K 表年度報告以及公司向美國證券交易委員會提交或提供的其他文件和報告中有詳細描述。除非法律另有要求，否則公司不承擔公開更新或修改任何前瞻性聲明的義務。

Given the recent capital markets transactions, we are limited in what we can say about our ongoing financing discussions. Therefore, we will be unable to take your questions during today's call.

鑑於最近的資本市場交易，我們對正在進行的融資討論能透露的資訊有限。因此，我們將無法在今天的電話會議中回答您的問題。

I would now like to turn the call over to Amerino.

現在我想將電話轉給 Amerino。

Thank you, Kevin, and good morning, everyone. I will start with our recent financing announcement, then provide a high-level review of the quarter and outline our 3 key priorities. Susan will then detail our third quarter results and financial position. After which, I will give an overview of the market trends and outlook.

謝謝你，凱文，大家早安。我將從我們最近的融資公告開始，然後對本季度進行高層回顧並概述我們的三個主要優先事項。然後蘇珊將詳細介紹我們第三季的業績和財務狀況。之後，我將概述市場趨勢和前景。

Earlier this week, we announced that Team entered into a new $50 million delayed draw subordinated term loan facility led by Corre Partners Management. The proceeds will be used to enhance our short-term liquidity position and provide Team the required capital to allow us to focus on growing the business and increasing the company's value. As part of this transaction, Atlantic Park Strategic Capital Fund, our existing term loan lender, has agreed to waive the financial covenants under our term loan until September 30, 2022. Although we have more work to do to improve our balance sheet and our overall capital structure, we view this transaction as an important step to that process.

本週早些時候，我們宣布團隊簽署了一項由 Corre Partners Management 牽頭的新的 5000 萬美元延期提取次級定期貸款協議。所得款項將用於增強我們的短期流動性狀況，並為團隊提供所需的資金，使我們能夠專注於發展業務和提高公司的價值。作為此次交易的一部分，我們現有的定期貸款貸方 Atlantic Park Strategic Capital Fund 已同意放棄我們定期貸款項下的財務契約，有效期至 2022 年 9 月 30 日。儘管我們在改善資產負債表和整體資本結構方面還有很多工作要做，但我們認為這項交易是這一進程的重要一步。

Now turning to the quarterly results. Third quarter consolidated revenues were $217.4 million, essentially flat from a year ago. Team experienced difficult market conditions during the third quarter, causing our top line performance to fall short of our expectations. Hurricane Ida caused power outages that forced at least 10 refineries and numerous petrochemical plants to significantly reduce run rates or shut down completely. The temporary shutdown of the Gulf Coast facilities reduced our nested activity and routine call out work. In addition, we continued to see global projects get pushed and experienced a delayed start to our fall turnaround season, which resulted in lower activity levels in late August and early September. We also experienced regional competitive pricing pressures that negatively impacted margins.

現在來談談季度業績。第三季綜合營收為 2.174 億美元，與去年同期基本持平。團隊在第三季經歷了艱難的市場環境，導致我們的營收表現未能達到預期。颶風艾達造成停電，迫使至少 10 家煉油廠和眾多石化廠大幅降低運轉率或徹底關閉。墨西哥灣沿岸設施的暫時關閉減少了我們的嵌套活動和常規呼叫工作。此外，我們看到全球計畫繼續推進，秋季週轉季節開始延遲，導致 8 月底和 9 月初的活動水平較低。我們也面臨區域競爭定價壓力，這對利潤產生了負面影響。

Gross margin was 24.5%, down from 29.1% in the prior year quarter. Gaining upward traction on gross margin remains a challenge. During the quarter, Team faced underlying inflationary pressures in our supply chain, including raw materials, labor, equipment, logistics and travel, as well as absorbing the higher expenses associated from the elimination of the temporary cost actions that were put in place in late March of 2020. We also incurred higher-than-normal costs, as we ramped up our investment in technician training and certifications to prepare for the fall turnaround season and an active 2022. Lastly, we experienced the shift in revenue mix that reflects fewer higher-margin services performed during the third quarter when compared to a year ago.

毛利率為24.5%，低於去年同期的29.1%。提高毛利率仍然是一個挑戰。在本季度，團隊面臨供應鏈中潛在的通膨壓力，包括原材料、勞動力、設備、物流和差旅，以及因取消 2020 年 3 月底實施的臨時成本行動而產生的更高費用。為了準備迎接秋季的轉機季和 2022 年的活躍期，我們加大了對技術人員培訓和認證的投資，因此也產生了高於正常水平的成本。最後，我們的收入結構發生了變化，與去年同期相比，第三季的高利潤服務有所減少。

Adjusted EBITDA for the quarter was approximately $1 million, down from $18.2 million, due to the unexpected sequential revenue decline, coupled with inflationary pressures and absorbing the reinstatement of the pandemic-related temporary cost initiatives.

本季調整後 EBITDA 約為 100 萬美元，低於 1,820 萬美元，原因是收入意外連續下降，加上通膨壓力以及吸收與疫情相關的臨時成本舉措的恢復。

Turning to our segment view. Beginning with Mechanical Services, revenues were down 5.2% over the same quarter in 2020, due to the delayed fall turnaround season, inflationary and competitive pricing pressures, and a change in revenue mix with fewer higher-margin services due to a reduction in midstream construction spend when compared to last year. We recently commercialized our proprietary double block and bleed SmartStop Technology. This service eliminates the need for complicated hydraulics or seal activation systems that are failure mechanisms in competitive line intervention tools. During the third quarter, we completed 5 separate Smartjob -- SmartStop jobs in the U.S. As an example, our SmartStop Technology was used on a 12-inch NGL pipeline to enable downstream repairs. We quickly deployed the solution to isolate the pipeline for 3 days, while repairs were made. Our SmartStop Technology averted the need to drain 40 miles of pipeline to complete the repairs and save time and expense when compared to a conventional line stop operation.

轉向我們的細分觀點。從機械服務開始，由於秋季週轉季節延遲、通膨和競爭性定價壓力，以及與去年相比中游建設支出減少導致高利潤服務減少，收入結構發生變化，收入比 2020 年同期下降了 5.2%。我們最近將專有的雙重阻斷和排氣 SmartStop 技術商業化。此項服務消除了對複雜液壓或密封激活系統的需求，這些系統是競爭性線路幹預工具中的故障機制。第三季度，我們在美國完成了5項獨立的Smartjob - SmartStop工作。我們迅速部署解決方案，隔離管道三天，同時進行修復。與傳統的管道停止操作相比，我們的 SmartStop 技術避免了排幹 40 英里管道來完成維修，從而節省了時間和費用。

Our Inspection and Heat Treating segment revenue profile remains less volatile, due to the run and maintain nature of the business. Although IHT's revenue was up 5% year-over-year, it was also impacted by several project delays. As one example, in Canada, a large tar sands turnaround project was delayed until October. As plant and facility operations have ramped up, our nested technician level is now approximately 96% of pre-COVID levels. We view nested activity as a leading indicator of both economic activity and our clients' focus on regulatory compliance requirements.

由於業務的運作和維護性質，我們的檢驗和熱處理部門收入狀況波動較小。儘管IHT的營收年增5％，但也受到幾個專案延遲的影響。例如，在加拿大，一個大型油砂轉產計畫被推遲到10月份。隨著工廠和設施運營的加快，我們的嵌套技術人員水準現在約為 COVID 之前的 96%。我們將嵌套活動視為經濟活動和客戶對監管合規要求關注度的領先指標。

After several successful trials over the last year, we recently received approval for missile inspection work for the U.S. Navy. This award demonstrates the Navy's confidence in our technical inspection capabilities. We expect activity to begin in late 2021 or early 2022. Defense is a new growth area for Team that should deliver above-average margins.

經過去年幾次成功的試驗，我們最近獲得了美國海軍飛彈檢查工作的批准。此項獎勵體現了海軍對我們的技術檢查能力的信心。我們預計活動將於 2021 年底或 2022 年初開始。防守是球隊的一個新的成長領域，應該能帶來高於平均的利潤。

Quest Integrity's revenue declined by 5.7% from the comparable quarter in 2020. Our clients' decisions to remain conservative with their maintenance spend during the recovery has limited Quest offline. In total, Quest has had more than $20 million of projects delayed or deferred from 2021 into 2022. This has created a large and highly visible backlog for next year. To meet this forecasted demand, we continue to invest in technology development, and we are proactively and aggressively recruiting project managers and technical sales globally. Quest is expanding in existing markets and entering new geographic regions.

Quest Integrity 的營收較 2020 年同期下降了 5.7%。我們的客戶決定在恢復期間保持保守的維護支出，這限制了 Quest 的離線狀態。總體而言，Quest 已有超過 2000 萬美元的項目從 2021 年推遲或延期至 2022 年。這為明年造成了大量且極為明顯的積壓。為了滿足這一預測需求，我們繼續投資於技術開發，並積極主動地在全球範圍內招募專案經理和技術銷售人員。Quest 正在擴大現有市場並進入新的地理區域。

During the quarter, Quest completed its first in-line inspection work on a challenging pipeline project in a large country in Asia. The buildup of carbon in fired heaters is a major downtime issue for clients. It reduces efficiency of operations and increases the likelihood of overheating and mechanical failure. Quest expanded its engineered life assessment service offering in Canada and completed its first heater optimization project in the U.S., where we provided an integrated performance assurance solution at a refinery along the Gulf Coast. This integrated approach assures we are efficiently executing across all phases of the project work scope.

本季度，Quest 公司在亞洲某大國完成了首次具有挑戰性的管線專案線上檢測工作。火焰加熱器中積碳是導致顧客停機的一大問題。它降低了操作效率並增加了過熱和機械故障的可能性。Quest 擴大了其在加拿大的工程壽命評估服務範圍，並在美國完成了其首個加熱器優化項目，我們為墨西哥灣沿岸的煉油廠提供了綜合性能保證解決方案。這種綜合方法確保我們能有效率地執行專案工作範圍的所有階段。

From a geographic perspective, despite the COVID-related challenges that have limited our ability to travel to client work sites, we continue to realize year-over-year growth in many parts of the world. In Latin America, we realized a 91% increase in revenue year-over-year, as we continued to expand our presence. We recently signed our first MSA in Guyana with a large integrated oil company for both IHT and MS segments. In addition, we are hiring and training new rope access technicians in Brazil to complete leak sealing and repair work.

從地理區域來看，儘管新冠疫情相關的挑戰限制了我們前往客戶工作現場的能力，但我們在世界許多地區仍實現了同比增長。在拉丁美洲，隨著我們業務範圍的不斷擴大，我們的收入年增了 91%。我們最近與圭亞那的一家大型綜合石油公司簽署了第一份涵蓋 IHT 和 MS 兩個領域的 MSA。此外，我們正在巴西招募和培訓新的繩索作業技術人員來完成洩漏密封和修復工作。

In Canada, the revenue growth was muted this quarter, due to limited project scopes, lingering COVID-related activity reductions and a large tar sands project deferral. In Europe, our revenue was relatively flat year-over-year, as activity levels are slowly responding from the removal of the COVID-related lockdowns. We recently completed our first international SmartStop job in the Netherlands as our proprietary technology continues to gain momentum.

在加拿大，由於項目範圍有限、新冠疫情相關活動持續減少以及大量油砂項目推遲，本季收入成長乏力。在歐洲，我們的收入比去年同期相對持平，因為隨著與新冠疫情相關的封鎖措施的解除，活動水平正在緩慢恢復。隨著我們的專有技術繼續獲得發展動力，我們最近在荷蘭完成了我們的第一個國際 SmartStop 專案。

Closer to home, we announced a multi-year inspection contract for Chevron's upstream assets in California. Our Asset Integrity & Digital group is collaborating closely with Chevron to provide technology-enabled inspection services and engineering assessment solutions. Since the project start-up in October, we have actively increased our nested technician footprint.

在國內，我們宣布了針對雪佛龍在加州的上游資產的多年期檢查合約。我們的資產完整性和數位團隊正在與雪佛龍密切合作，提供技術支援的檢查服務和工程評估解決方案。自從十月份專案啟動以來，我們積極增加嵌套技術人員的足跡。

Our management team has vast experience managing the business through adverse conditions. We have a focused execution plan to ensure stability and consistency throughout the company. Our playbook consists of cash management, expanding margins and investing in our people. First, we are focused on executing efficient cash management strategies, which consists of working capital management by leveraging our centralized billing centers, digital tools that are automating and expediting our invoicing workflow, a rigorous global collections process, and disciplined CapEx allocation. We are committed and remain steadfast in our goal to generate free cash flow to pay down debt.

我們的管理團隊擁有在不利條件下管理業務的豐富經驗。我們有一個有針對性的執行計劃，以確保整個公司的穩定性和一致性。我們的策略包括現金管理、擴大利潤和投資員工。首先，我們專注於執行高效的現金管理策略，包括利用集中計費中心、自動化和加快發票工作流程的數位工具、嚴格的全球收款流程和嚴格的資本支出分配來進行營運資本管理。我們致力於並堅定不移地實現我們的目標，即創造自由現金流來償還債務。

Second, we are focused on the recovery and improvement of margins. In response to the economic recovery and rising inflationary pressures, we discontinued COVID-related discounts last quarter, and we are adjusting our pricing and contracts to reflect the current cost environment. Strict pricing discipline and a rising demand in inflationary environment will help optimize margins across our segments and drive efficiencies. We continue taking measures to reduce operating expenses, corporate overhead, supply chain costs and facility rationalization. Combined, these cost reduction actions are expected to further optimize our cost structure. Additional savings are targeted for 2022.

第二，我們專注於利潤率的恢復和提高。為了應對經濟復甦和不斷上升的通膨壓力，我們上個季度停止了與 COVID 相關的折扣，並且正在調整定價和合約以反映當前的成本環境。嚴格的定價紀律和通膨環境中不斷增長的需求將有助於優化我們各部門的利潤率並提高效率。我們繼續採取措施降低營運費用、公司管理費用、供應鏈成本和設施合理化。綜合起來，這些降低成本的措施預計將進一步優化我們的成本結構。2022 年的目標是實現額外節省。

We remain focused on high-margin services, while also deploying technology like remote monitoring and our OneInsight digital platform. Higher-margin services will also assist Team to deliver profitable revenue growth that meets or exceeds internal margin thresholds.

我們仍然專注於高利潤服務，同時部署遠端監控和 OneInsight 數位平台等技術。利潤率更高的服務也將幫助團隊實現達到或超過內部利潤率門檻的獲利收入成長。

Finally, and most importantly, we are proud to invest in our people. Our industry-leading accredited training programs and active recruitment provides a tremendous competitive advantage for Team. Throughout the pandemic, Team's workforce management group has maintained contact with our permanent and variable group, and we have actively supported technicians by maintaining certifications and benefits. Our efforts during the pandemic assisted the ramp-up as technicians demand increased for turnaround season.

最後，最重要的是，我們很自豪能夠投資我們的員工。我們行業領先的認證培訓計劃和積極的招募為團隊提供了巨大的競爭優勢。在整個疫情期間，團隊的勞動力管理小組一直與我們的常設小組和可變小組保持聯繫，並且我們透過維護認證和福利積極支持技術人員。由於週轉季節對技術人員的需求增加，我們在疫情期間所做的努力有助於提高產量。

Given the tight labor market, Team's effective technician utilization rate reached a high of approximately 98% during the fall turnaround season. As part of our robust recruiting efforts, we have enhanced our military recruiting program, participated in several job fairs across the country, increased our engagement with vocational and trade schools, implemented training and apprentice programs, and an active employee referral program. Year-to-date, we hired approximately 500 technicians and expanded our variable labor group.

鑑於勞動市場的緊張，在秋季週轉季節，Team 的有效技術人員利用率達到約 98% 的高點。作為我們大力招募工作的一部分，我們加強了軍事招募計劃，參加了全國各地的幾次招聘會，加強了與職業學校和貿易學校的合作，實施了培訓和學徒計劃以及積極的員工推薦計劃。年初至今，我們僱用了約 500 名技術人員，並擴大了我們的可變勞動力團隊。

Our experience operating in difficult environments, in conjunction with increased activity and improving market fundamentals, provide confidence in our ability to deliver growth in 2022 and beyond.

我們在艱難環境下運作的經驗，加上活動的增加和市場基本面的改善，使我們對在 2022 年及以後實現成長的能力充滿信心。

Before I turn the call over to Susan for the final time, I would like to thank her for her leadership and partnership over the last 3 years. As you know, Susan elected to step down as our CFO. Susan has been a key player during the implementation of our OneTEAM program and has been an excellent addition to our executive team. She was instrumental in helping navigate Team through the impact of COVID and successfully implemented a new capital structure and has been a critical part of our discussions to provide Team with additional financial liquidity. Each of these achievements have helped us immensely as we work to build a strong foundation for the future of Team. Susan, I wish you and your family all the best in the future.

在我最後一次把電話轉給蘇珊之前，我想感謝她在過去三年的領導和合作。如你所知，蘇珊選擇辭去我們的財務長職務。蘇珊在我們實施 OneTEAM 計畫的過程中扮演關鍵角色，也是我們執行團隊的優秀補充。她在幫助團隊克服 COVID 的影響方面發揮了重要作用，成功實施了新的資本結構，並成為我們為團隊提供額外財務流動性的討論中的關鍵部分。在我們努力為團隊的未來奠定堅實基礎的過程中，這些成就都對我們幫助巨大。蘇珊，我祝福你和你的家人未來一切順利。

I will now turn it over to Susan for a more detailed financial review. Susan?

現在我將把它交給蘇珊進行更詳細的財務審查。蘇珊？

Thank you, Amerino, and good morning, everyone. I will first review our third quarter financial performance and quarter-over-quarter comparisons and then, provide more detail and information around our recent financing transactions.

謝謝你，阿梅里諾，大家早安。我將首先回顧我們第三季度的財務表現和季度環比比較，然後提供有關我們最近融資交易的更多細節和資訊。

As Amerino mentioned, our third quarter consolidated revenue of $217.4 million was down $1.7 million or a 0.8% decrease from the third quarter of 2020. This quarter's decreased revenue reflects impacts of delayed projects from the quarter to Q4 2021 and into 2022 with challenging market dynamics. We also had a late start to our fall turnaround season and suffered negative impacts due to Hurricane Ida, impacting routine call out work with facilities off-line during the quarter. For the quarter, IHT grew revenue over Q3 2020 by $4.8 million or a 5% increase, while Mechanical Services and Quest revenues declined by 5.2% and 5.7%, respectively.

正如 Amerino 所提到的，我們第三季的綜合收入為 2.174 億美元，比 2020 年第三季下降 170 萬美元，降幅為 0.8%。本季營收的下降反映了從本季到 2021 年第四季以及 2022 年的專案延遲以及嚴峻的市場狀況的影響。我們的秋季週轉季節開始較晚，並受到颶風艾達的負面影響，導致本季常規上門維修工作及設施離線。本季度，IHT 的營收較 2020 年第三季增加了 480 萬美元，增幅為 5%，而機械服務和 Quest 的收入分別下降了 5.2% 和 5.7%。

Consolidated gross margin for the third quarter 2021 was $53.3 million, a 16.3% decline over the prior year quarter of $63.7 million. We continue to be negatively impacted by inflationary costs that we have not fully passed on to our clients. We also absorbed training and ramp-up costs leading up to our turnaround season, and lower margin services were performed without the blend of the higher-margin work performed by Quest and Mechanical Services. On a comparative quarterly basis, we also had the impact of the reinstated temporary pandemic-related cost actions that were in effect fully in the third quarter 2020. The consolidated gross margin percentage declined to 24.5% compared to the prior year quarter of 29.1%.

2021 年第三季綜合毛利率為 5,330 萬美元，較去年同期的 6,370 萬美元下降 16.3%。我們繼續受到通貨膨脹成本的負面影響，而這些成本我們尚未完全轉嫁給我們的客戶。我們也吸收了周轉季節到來前的培訓和提升成本，並且執行了利潤較低的服務，而沒有結合 Quest 和 Mechanical Services 執行的利潤較高的工作。與上季相比，我們也受到了 2020 年第三季全面生效的與疫情相關的臨時成本措施的影響。綜合毛利率由去年同期的29.1%下降至24.5%。

The third quarter net loss of $91.2 million compares to a net loss of $9.1 million in the prior year quarter. This quarter's net loss was driven by a $55.8 million non-cash goodwill impairment charge in the Mechanical Services segment, the $10.4 million decrease in gross margin, and a $6.5 million increase in SG&A versus the comparable quarter. Adjusted net loss, a non-GAAP measure, was a negative $31.2 million or $1.01 adjusted net loss per share for the third quarter of 2021 compared to an adjusted net loss of approximately $6.5 million or $0.21 adjusted net loss per share for the same quarter in 2020. Adjustments in the third quarter included the non-cash goodwill impairment charge, approximately $2.7 million of legal costs, and $1.7 million of professional fees and severance costs.

第三季淨虧損為 9,120 萬美元，去年同期淨虧損為 910 萬美元。本季的淨虧損主要由於機械服務部門的非現金商譽減損費用 5,580 萬美元、毛利率下降 1,040 萬美元以及銷售、一般及行政費用與去年同期相比增加 650 萬美元。2021 年第三季度，非公認會計準則調整後淨虧損為負 3,120 萬美元或每股調整後淨虧損 1.01 美元，而 2020 年同期的調整後淨虧損約為 650 萬美元或每股調整後淨虧損 0.21 美元。第三季的調整包括非現金商譽減損費用、約 270 萬美元的法律費用以及 170 萬美元的專業費用和遣散費。

Consolidated adjusted EBITDA for the quarter was $1 million as compared to the prior year quarter of $18.2 million. Our selling, general and administrative expenses for the third quarter of 2021 was $67.6 million, up $6.5 million from the prior year quarter. The increase was primarily attributable to an increase in bad debt expense of $1 million, increased legal costs of $3 million, with the remainder being associated with the reinstatement of the prior year temporary cost actions. We remain diligent in managing corporate and other SG&A costs with a focus on optimizing our cost structure.

本季綜合調整後 EBITDA 為 100 萬美元，而去年同期為 1,820 萬美元。我們 2021 年第三季的銷售、一般和行政費用為 6,760 萬美元，比去年同期增加 650 萬美元。成長的主要原因是壞帳費用增加了 100 萬美元，法律費用增加了 300 萬美元，其餘部分與恢復上一年的臨時成本行動有關。我們繼續勤勉地管理公司及其他銷售、一般及行政開支，並著重於優化我們的成本結構。

Now turning to our segment performance. IHT reported third quarter revenue of $101.5 million, as previously mentioned, up 5% from the $96.6 million posted in the same period last year. The growth reflects increased hours associated with nested sites and technicians and, to a lesser degree, increases in turnaround activities. Third quarter adjusted EBITDA was $6.3 million, down $5.1 million over the prior year quarter. Adjusted EBITDA margin decreased this quarter to 6.2% as compared to 11.8% in the prior year quarter. This reduction is primarily related to the inflationary cost pressures and increased cost of training and other labor costs incurred as we ramped up for our turnaround season.

現在來談談我們的分部表現。如前所述，IHT 報告第三季營收為 1.015 億美元，較去年同期的 9,660 萬美元成長 5%。這種增長反映了與嵌套站點和技術人員相關的工作時間的增加，以及在較小程度上，週轉活動的增加。第三季調整後 EBITDA 為 630 萬美元，較去年同期下降 510 萬美元。本季調整後 EBITDA 利潤率從去年同期的 11.8% 下降至 6.2%。這一減少主要與通膨成本壓力以及我們在周轉季節加強時產生的培訓成本和其他勞動力成本的增加有關。

Mechanical Services reported third quarter 2021 revenue of $96.4 million, down 5.2% from $101.7 million in the third quarter of 2020. Adjusted EBITDA was $7.7 million in the third quarter of 2021, down from $16.9 million in the same period last year. Adjusted EBITDA margin decreased this quarter to 8% as compared to 16.6% in the prior year quarter. The overall mix of lower-margin work and the cost pressures significantly impacted this quarter's margin.

機械服務部報告稱，2021 年第三季營收為 9,640 萬美元，較 2020 年第三季的 1.017 億美元下降 5.2%。2021年第三季調整後EBITDA為770萬美元，低於去年同期的1,690萬美元。本季調整後 EBITDA 利潤率從去年同期的 16.6% 下降至 8%。低利潤業務和成本壓力的整體影響了本季的利潤率。

Quest Integrity's revenue of $19.5 million was down 5.7% from the prior year quarter. Quest activity levels were negatively impacted with delayed projects. Most of these projects have been delayed to 2022 and not canceled. Third quarter adjusted EBITDA was $2.3 million, down from $4.2 million last year. Adjusted EBITDA margin for the quarter was 11.9% compared to the prior year quarter of 20.1% as Quest cost base is more fixed in nature.

Quest Integrity 的營收為 1,950 萬美元，較去年同期下降 5.7%。專案延遲對任務活動水準產生了負面影響。其中大部分項目已被推遲至2022年，且並未取消。第三季調整後的 EBITDA 為 230 萬美元，低於去年的 420 萬美元。由於 Quest 成本基礎本質上更加固定，本季調整後 EBITDA 利潤率為 11.9%，而去年同期為 20.1%。

We ended the third quarter with $17 million of cash. Borrowings under our ABL facility were $54.1 million. Additionally, we had undrawn letters of credit against the facility of $24.4 million. Cash flow from operations for the quarter was a negative $1.1 million. Free cash flow was negative $4.2 million, which included $3.2 million in capital expenditures. We expect our full year 2021 capital spend to approximate $18 million.

第三季結束時，我們的現金餘額為 1,700 萬美元。我們的 ABL 貸款機制下的借款為 5,410 萬美元。此外，我們還有價值 2,440 萬美元的未提取信用證。本季經營活動現金流為負 110 萬美元。自由現金流為負 420 萬美元，其中包括 320 萬美元的資本支出。我們預計 2021 年全年資本支出約為 1,800 萬美元。

As Amerino mentioned, we recently entered into a credit agreement with Corre Partners Management, providing for an unsecured $50 million delayed draw subordinated term loan facility. Upon signing, we borrowed $22.5 million, and we intend to borrow an additional $27.5 million on December 8 of 2021. In conjunction with closing of the subordinated term loan, we entered into an amendment to our $250 million term loan credit agreement, which, among other things, waves our leverage covenant requirement until September 30, 2022 and increases the maximum leverage ratio required at that time with other modifications thereafter to provide us with additional flexibility. Team has and does remain in compliance with its covenant requirements under its credit facilities.

正如 Amerino 所提到的，我們最近與 Corre Partners Management 達成了一項信貸協議，提供 5000 萬美元的無擔保延期提取次級定期貸款。簽署後，我們借了 2,250 萬美元，並打算在 2021 年 12 月 8 日再藉入 2,750 萬美元。在完成次級定期貸款的同時，我們對 2.5 億美元定期貸款信貸協議進行了修訂，其中包括免除我們的槓桿契約要求直至 2022 年 9 月 30 日，並提高屆時所需的最高槓桿率，隨後進行其他修改，為我們提供額外的靈活性。團隊已經並將繼續遵守其信貸安排下的契約要求。

Before I conclude, I want to address my resignation announcement. I have really appreciated and enjoyed my experience and time at Team, working alongside Amerino, the executive leadership team, the Board, the global finance and accounting organization and all Team employees that I have been fortunate enough to work with. I feel very proud to have been able to work with some of the most dedicated and skilled employees with an incredible passion and commitment to Team, its clients and fellow employees throughout the global organization. I look forward to seeing the growth and improvements that will occur over the upcoming months.

在結束之前，我想先宣布我的辭職。我非常珍惜並享受在團隊的經歷和時光，與 Amerino、執行領導團隊、董事會、全球財務和會計組織以及我有幸共事的所有團隊員工​​一起工作。我感到非常自豪，能夠與一些最敬業、最熟練的員工一起工作，他們對團隊、客戶和全球組織的同事有著令人難以置信的熱情和承諾。我期待看到未來幾個月的成長和改善。

I will now turn the call back over to Amerino.

現在我將把電話轉回給 Amerino。

Thank you, Susan. Before I conclude the call, I will give an update on our technology and digital initiatives and provide a business and operational outlook. Starting with our technology and digital initiatives, during the third quarter, Team added several new clients to our OneInsight platform. Through our remote monitoring portal, our clients can view information on a real-time basis, eliminating the need for daily or weekly site visits. We recently installed remote well monitoring sensors for a large producer in the Permian Basin. Using sensors and the OneInsight platform, we can remotely monitor the temperature and wall thickness of piping and other storage facilities on a real-time basis. The remote monitoring solution provides our clients with a safe alternative and a significant reduction in cost versus conventional monitoring methods.

謝謝你，蘇珊。在結束通話之前，我將介紹我們的技術和數位計畫的最新情況，並提供業務和營運前景。從我們的技術和數位計劃開始，在第三季度，團隊為我們的 OneInsight 平台增加了幾個新客戶。透過我們的遠端監控門戶，我們的客戶可以即時查看訊息，無需每天或每週訪問現場。我們最近為二疊紀盆地的一家大型生產商安裝了遠端井監控感測器。使用感測器和 OneInsight 平台，我們可以即時遠端監控管道和其他儲存設施的溫度和壁厚。遠端監控解決方案為我們的客戶提供了一種安全的替代方案，與傳統監控方法相比，也顯著降低了成本。

Now moving to our business and operational outlook. We are seeing improvements in our macroeconomic environment as our end markets gradually return to more normalized levels. Specifically, global petroleum demand reached levels nearing and in some cases, even exceeding 2019 demand. As an example, U.S. gasoline demand recently reached a seasonal 5-year high. Team's operational environment has been positively influenced by these trends.

現在轉向我們的業務和營運展望。隨著我們的終端市場逐漸恢復到更正常的水平，我們看到宏觀經濟環境正在改善。具體而言，全球石油需求已接近甚至超過 2019 年的需求水準。例如，美國汽油需求最近達到了5年來的季節性最高水準。團隊的營運環境受到了這些趨勢的正面影響。

Based on the following factors, we anticipate a strong outlook for our products and services over the next several years. First, delayed maintenance and capital projects. Over the last 2 years, we have seen a significant number of projects get pushed or delayed as operators postponed maintenance and repair work to conserve cash and now more recently, have delayed work in order to capture the strong operating margins. This is a trend that is not sustainable and is creating a growing backlog of capital projects and unscheduled shutdowns due to equipment failures.

基於以下因素，我們預期未來幾年我們的產品和服務前景看好。一是維護和資本項目延遲。在過去的兩年中，我們看到大量專案被推遲或延遲，因為營運商推遲了維護和維修工作以節省現金，而最近，他們又推遲了工作以獲得強勁的營業利潤率。這種趨勢是不可持續的，並導致越來越多的資本項目積壓和由於設備故障而導致的計劃外停工。

Third-party industry sources are forecasting a 40% increase in turnaround in large capital projects in North America in 2022. Given these trends, we expect next year to be an active year for projects. This includes at least one large project award that is scheduled to kick off in early 2022. Additionally, we have started to see an uptick in emergency work as plants experienced unscheduled shutdowns, due to equipment failure as operators have pushed or delayed maintenance and repair work past the equipment's life cycle. We expect this trend will continue into 2022.

第三方產業消息預測，2022 年北美大型資本項目的周轉率將增加 40%。鑑於這些趨勢，我們預計明年將是專案活躍的一年。其中包括至少一個計劃於 2022 年初啟動的大型專案獎。此外，我們開始看到緊急工作量的增加，因為由於操作員將維護和維修工作推遲或推遲到設備的生命週期之外，導致設備故障，工廠發生計劃外停機。我們預計這一趨勢將持續到 2022 年。

Second, the increase in regulatory compliance requirements for emissions-related solutions. The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration is expected to expand federal pipeline safety standards to all onshore gas gathering pipelines. This will require pipeline operators to report safety information for their gas gathering lines. In total, this adds approximately 425,000 miles of pipelines that will be covered by federal reporting requirements. Many of these pipelines have dynamics that will be difficult to inspect and will create increased demand for Quest Integrity's in-line inspection services. As expected, the current administration recently announced regulations to significantly reduce greenhouse gas emissions from oil and gas operations and require operators to aggressively find and repair emissions leaks. While the regulation is still being formalized, we are already seeing increased demand for Team services as producers place a greater importance on emissions' compliance and maintaining wellhead integrity.

二是排放相關解決方案的監理合規要求提高。美國運輸部管道和危險材料安全管理局預計將把聯邦管道安全標準擴大到所有陸上天然氣輸送管道。這將要求管道運營商報告其天然氣輸送管道的安全資訊。總計將增加約 425,000 英里的管道，這些管道將符合聯邦報告要求。許多管道都具有難以檢測的動態特性，這將增加對 Quest Integrity 線上檢測服務的需求。正如預期的那樣，現任政府最近宣布了大幅減少石油和天然氣作業溫室氣體排放的法規，並要求營運商積極尋找和修復排放洩漏。雖然該法規仍在正式製定中，但我們已經看到對團隊服務的需求不斷增加，因為生產商更加重視排放合規性和維護井口完整性。

Shifting to our fourth quarter outlook, we experienced a strong activity recovery in October. However, with the uncertainty around the timing and the magnitude of the holiday activity slowdowns, we expect Q4 revenues to be in line with the third quarter.

展望第四季度，我們發現十月份活動強勁復甦。然而，由於假期活動放緩的時間和幅度存在不確定性，我們預計第四季營收將與第三季持平。

In closing, our management team has demonstrated a successful track record of operating both strong and challenging environments. Our execution plan is focused on cash management, expanding margins and investing in our people to ensure stability and consistency throughout the company. The global economy has bounced back from depressed pandemic-driven activity levels with petroleum demand nearing all-time highs and multi-year record high oil prices. Across multiple end markets, our clients' financial positions have improved over the last 2 quarters. Therefore, we expect to benefit from a robust recovery as delayed maintenance projects are scheduled and completed next year and beyond.

最後，我們的管理團隊在強大和充滿挑戰的環境中都擁有成功的營運記錄。我們的執行計劃專注於現金管理、擴大利潤率和投資員工，以確保整個公司的穩定性和一致性。全球經濟已從疫情導致的活動低迷中反彈，石油需求接近歷史最高水平，油價創下多年來的新高。在多個終端市場，我們的客戶的財務狀況在過去兩個季度有所改善。因此，隨著延遲的維護項目計劃在明年及以後完成，我們預計將受益於強勁的復甦。

Finally, I want to express my gratitude once again to Team's dedicated employees for their commitment and perseverance. As part of the critical and essential services network, we understand how important it is to provide reliable services and are committed to making continuous improvements towards service excellence for our clients now and into the future. Through the execution of our strategic priorities, we see substantial opportunities to leverage our innovative and diversified service and product portfolio to both new and existing clients around the world.

最後，我要再次感謝 Team 敬業員工的奉獻與堅持。作為關鍵和基本服務網絡的一部分，我們了解提供可靠服務的重要性，並致力於現在和將來為客戶提供持續改進的卓越服務。透過執行我們的策略重點，我們看到了大量機會，可以利用我們創新和多樣化的服務和產品組合為世界各地的新舊客戶提供服務。

Thank you for joining us on the call and for your continued interest in Team. We look forward to speaking with you again next quarter.

感謝您加入我們的電話會議並持續關注團隊。我們期待下個季度再次與您交談。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time and have a wonderful rest of your day.

女士們、先生們，感謝你們的參與。今天的電話會議到此結束。現在您可以斷開連接並享受美好的一天。