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TEAM NEWS RELEASE Contact : Kevin Smith Senior Director , Investor Relations ( 281 ) 388-5551 TEAM , INC . REPORTS SECOND QUARTER 2021 RESULTS Quest Delivered 51.4 % Year - over - Year Revenue Growth IHT Revenue Increased by 46 % Year - over - Year SUGAR LAND , TX – Aug. 3 , 2021 – 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 second quarter ended June 30 , 2021 . Second Quarter 2021 Results : . • • • Revenue of $ 238.9 million , up $ 49.6 million , or 26.2 % , from Q2 2020 IHT and Quest segment revenue increased by 46.0 % and 51.4 % , respectively from Q2 2020 Gross margin was $ 62.8 million , up $ 5.4 million from Q2 2020 Quest adjusted EBITDA margin of 26.6 % , surpassing the 2020 full year average of 24.1 % “ TEAM's second quarter results reflect a mix of activity recovery and challenging market dynamics , ” said Amerino Gatti , TEAM's Chairman and Chief Executive Officer . “ Although we are not pleased with our overall results , revenue was at the upper end of our outlook . All three segments achieved revenue growth over Q2 2020 with Quest reporting the largest overall percent increase at 51 % . Inspection & Heat Treating followed at approximately 46 % and Mechanical Services at 4.7 % . The year - over - year topline growth was driven by strong April activity levels from several large turnaround projects . May and June activity benefited from increased economic activity as COVID - related restrictions began to lift . While COVID continued to force project delays , especially internationally , activity levels throughout the quarter were mostly in line with expectations , highlighting improved economic growth across the various end markets in which we serve . " TEAM faced margin headwinds in the second quarter . We experienced inflation in several areas , such as raw materials , transportation , and labor as well as increased technician training , and lingering COVID- related pricing concessions . We remain focused on cost discipline and continue to look for ways to mitigate overall inflationary pressures . Pricing negotiations have started with our clients to reflect current market conditions . Given these proactive actions , combined with the transitory nature of the cost increases , we expect our gross margin to improve in the second half of the year . " We continued our long - standing culture of technology innovation . After several successful field tests , the Mechanical Services segment commercialized our new , patent pending SmartStop ™ Isolation Technology . This new double block and bleed isolation system increases integrity and overall safety , further strengthening our competitive advantages in the hot tapping market . Additionally , we entered into an agreement to become the exclusive provider of Credosoft Integrity Management Software in North America . The software enhances TEAM's ability to monitor assets , ensure compliance and provide inspection and repair solutions . The Credosoft service offering provides TEAM a stable , subscription-