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R TEAM Team , Inc. Reports First Quarter 2021 Results May 5 , 2021 Reduced Quarterly SG & A by $ 12.3 Million Strong Activity Increase Realized in March & April SUGAR LAND , Texas , May 4 , 2021 / PRNewswire / -- Team , Inc. ( NYSE : TISI ) , a global leading provider of integrated , digitally - enabled asset performance assurance and optimization solutions , today reported its financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Results : • Revenue of $ 194.6 million , down $ 42.2 million , or 17.8 % , from Q1 2020 • Gross margin was $ 43.7 million , or 22.5 % , slightly below the 24.3 % from Q1 2020 • Reduced quarterly SG & A by $ 12.3 million or 15.7 % as compared to Q1 2020 • Strong decremental despite a 17.8 % drop in revenue , as a result of disciplined cost management " TEAM's first quarter results were adversely impacted by numerous headwinds , " said Amerino Gatti , TEAM's Chairman and Chief Executive Officer . " As expected , we experienced a slow start to the year . January is historically a weak month as our clients ' focus is on scheduling maintenance and capital projects . February's typical uptick in activity was delayed by the unprecedented winter storms that caused large scale power outages across the U.S. Midwest and Gulf Coast . These storms resulted in a large number of refining and petrochemical plants shutting down temporarily , which reduced our nested activity and postponed projects . We estimate the storms negatively affected our first quarter revenue by approximately $ 10 million . Our international markets were also affected , as COVID - related lockdowns limited travel and necessitated quarantine restrictions . " Although we are not pleased with our first quarter results , we were able to minimize the Adjusted EBITDA decremental to 3 % compared to Q1 2020 , despite a $ 42.2 million year - over - year revenue decline . The favorable fall through we generated was supported by our 2020 disciplined cost reduction actions . During the quarter , we began to roll back some of our variable cost initiatives that started in late March 2020. We also increased our investments in sales , account management , and technician training and certifications in order to position us to competitively gain market share as our end markets expand and the labor market tightens . " In March , our activity levels improved significantly with clients returning to more normalized operations as well as the startup of several large turnaround projects . Specifically , our Inspection and Heat Treating and Mechanical Services segments realized approximately a 40 % increase in billable hours over February levels . Quest segment's revenues increased approximately 40 % in March over its January and February average . These March activity levels have continued into April and early May . " The U.S. economy is rebounding , and as COVID - related restrictions are lifted , people are driving more and returning to the workplace , increasing global demand and consumption . The growth in economic activity has provided greater confidence in our 2021 outlook . " Looking ahead , we continue investing to build upon our competitive advantages . Our balanced operating models which include nested , project and turnarounds , and call - out work provide TEAM the agility to successfully compete in the dynamic environment . Our critical asset solutions and advanced technology applications position TEAM to deliver accretive services and be an integrated service partner . Lastly , our new group structure is designed to accelerate global revenue growth and promote our integrated and innovative solutions . The strong economic outlook – combined with our competitive advantages - have positioned TEAM for growth in 2021 and beyond , " concluded Mr. Gatti . Financial Results Consolidated net loss in the first quarter of 2021 was $ 34.3 million ( $ 1.11 loss per diluted share ) compared to a loss of $ 199.7 million ( $ 6.54 loss per diluted share ) in the first quarter of 2020. Consolidated Adjusted EBITDA , a non - GAAP measure , was negative $ 5.3 million for the first quarter of 2021 compared to negative $ 3.9 million for the prior year quarter . Consolidated revenue for the first quarter of 2021 was $ 194.6 million compared to $ 236.8 million in the prior year quarter . Revenue decreased due to lower activity levels as a result of the negative impact of the COVID - 19 pandemic and the winter storms in the Midwest and Gulf Coast . In the first quarter of 2021 , consolidated gross margin was $ 43.7 million , or 22.5 % , compared with 24.3 % in the same quarter a year ago . SG & A for the first quarter was $ 66.1 million , down $ 12.3 million , or a 15.7 % improvement from the first quarter of 2020. The company's adjusted measure of net income / loss , Consolidated Adjusted EBIT , was a loss of $ 18.6 million in the first quarter compared to a loss of $ 17.2 million in the prior year comparable quarter . First quarter 2021 reported results include certain net charges not indicative of TEAM's core operating activities , including : $ 0.8 million of professional costs related to the previously announced new strategic organizational structure ( " Operating Group Reorganization " ) , $ 2.0 million of severance charges primarily associated with the Operating Group Reorganization , $ 2.5 million for an accrued legal matter and other legal fees , and $ 0.4 million of certain other non - recurring professional and administrative fees . Net of tax , these items totaled $ 4.5 million or $ 0.14 per diluted share . Adjusted net loss , consolidated Adjusted EBIT , and Adjusted EBITDA are non - GAAP financial measures that exclude certain items that are not