Unless otherwise indicated, the terms "Team, Inc.," "Team," "we," "our" and "us" are used in this report to refer to Team, Inc., to one or more of its consolidated subsidiaries or to all of them taken as a whole.

Cautionary Note Regarding Forward-Looking Statements.

We market our services to companies in a diverse array of heavy industries which include:

•Energy (refining, power, renewables, nuclear and liquefied natural gas);

•Manufacturing and Process (chemical, petrochemical, pulp and paper industries, manufacturing, automotive and mining);

•Midstream and Others (valves, terminals and storage, pipeline and offshore oil and gas);

•Public Infrastructure (amusement parks, bridges, ports, construction and building, roads, dams and railways); and

Significant Factors Impacting Results and Recent Developments

Recent Financing Transactions. During 2022 the Company executed a number of amendments to its debt instruments, including amendments to our ABL Credit Facility, Subordinated Term Loan Credit Agreement, and the Term Loan Credit Agreement. Refer to Note 11 - Debt to the unaudited condensed consolidated financial statements for additional details related to these amendments.

Listing Notices from NYSE. The Company's share price and total market capitalization have fallen below NYSE listing standard thresholds and therefore the Company received the following notices of non-compliance from the NYSE.

Current Quarter Financial Results and Significant Operational Trends and Events

Key consolidated financial results for the three and six months ended June 30, 2022 included:

•Revenues for the three months ended June 30, 2022 increased 5.2%, or $12.4 million, to $251.3 million as compared to consolidated revenues of $238.9 million for the three months ended June 30, 2021;

•Revenues for the six months ended June 30, 2022 increased 8.4%, or $36.4 million, to $469.8 million as compared to consolidated revenues of $433.5 million for the six months ended June 30, 2021;

The following is a comparison of our results of operations for the three months ended June 30, 2022 compared to June 30, 2021.

Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021

For the three months ended June 30, 2022, operating loss includes net expenses totaling $6.9 million that we do not believe are indicative of our core operating activities, the prior year quarter included $2.6 million of such items, as detailed by segment in the table below (in thousands):

Expenses reflected in operating loss that are not indicative of our core operating activities (unaudited) (in thousands):

The detail of operating income (loss) excluding non-core expenses are as follows (unaudited) (in thousands):

Total operating income (loss), excluding $ 4,134 $ (3,371) $ 7,505

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

The following is a comparison of our results of operations for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

The components of revenue and operating income (loss) from our operations consisted of the following (in thousands):

Expenses reflected in operating loss that are not indicative of our core operating activities (unaudited) (in thousands):

The detail of operating income (loss) excluding non-core expenses are as follows (unaudited) (in thousands):

Non-GAAP Financial Measures and Reconciliations

The following tables set forth the reconciliation of Adjusted Net Income (Loss), EBIT and EBITDA to their most comparable GAAP financial measurements:

2 For the three and six months ended June 30, 2022, primarily relates to accrued legal matters. For the three and six months ended June 30, 2021, primarily relates to accrued legal matters and other legal fees.

5 Represents foreign currency losses primarily due to strengthening USD against EUR, GBP, CAN and AUD.

(32,918) $ (81,398) $ (67,436) Provision (benefit) for income taxes

2 Represents foreign currency losses primarily due to strengthening USD against EUR, GBP, CAN and AUD.

5 For the three and six months ended June 30, 2022, primarily relates to accrued legal matters. For the three and six months ended June 30, 2021, primarily relates to accrued legal matters and other legal fees.

The following table summarizes cash flows (in thousands):

For the six months ended June 30, 2021, net cash used in investing activities was $9.2 million, primarily for capital expenditures.

For the six months ended June 30, 2021, net cash provided by financing activities was $37.7 million consisting primarily of net borrowings under our Citi Credit Agreement of $40.3 million partially offset by $2.3 million in payments of debt issuance costs.

Critical Accounting Policies and Estimates

For information about newly adopted accounting principles as well as information about new accounting principles pending adoption, see Note 1 - Summary of Significant Accounting Policies and Practices to the condensed consolidated financial statements.

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