Positive corporate culture helps Team retain employees. Acquisitions position Team to grow in a fragmented market, such as the recent acquisition of Furmanite. Quest Integrity Group boosts Team's high-tech presence in the market through proprietary technology. Diversification across industries and geographies helps protect Team against risks like fluctuations in oil prices. The analyst gives Team a rating of Market Outperform with a 12-month target price of $53.

1. November 09, 2015
TEAM INCORPORATED
TISI/NYSE
Continuing Coverage:
Team’s Full Court Press
Investment Rating: Market Outperform
PRICE: $ 38.14 S&P 500: 2,078.60 DJIA: 17,730.48 RUSSELL 2000: 1,184.45
 Positive Company corporate culture helps retain employees
 Acquisitions position Team to grow in a fragmented market
 Quest Integrity Group boosts Team’s high tech presence in the
market
 Diversification helps protect Team against macroeconomic events and
fluctuations in oil prices
 Team acquires Furmanite Co. in all stock transaction
 Our 12‐month target price is $53.00
Valuation 2015 A 2016 E 2017 E
EPS $ 1.85 $ 1.83 $ 4.77
P/E 20.6x 20.8x 8.0x
CFPS $ 3.28 $ 3.41 $ 6.20
P/CFPS 11.6x 11.2x 6.1x
Market Capitalization Stock Data
Equity Market Cap (MM): $ 826,799 52‐Week Range: $30.81 ‐ $47.55
Enterprise Value (MM): $ 827,118 12‐Month Stock Performance: ‐11.67%
Shares Outstanding (MM): 21,678 Dividend Yield: Nil
Estimated Float (MM): 20.50 Book Value Per Share: $ 0.02
3‐Mo. Avg. Daily Volume: 148,240 Beta: 0.93
Company Quick View:
Who you going to call when the issue at hand is the maintenance and repair of industrial
facilities? It’s Team, Inc. Team Inc., headquartered in Sugar Land, Texas, is one of the
largest providers of specialized industrial services in the construction and maintenance
of pressurized systems. Essentially, the Company provides “plumbing” services to heavy
industry customers. Team Inc. employs over 4,800 individuals in more than 125
locations worldwide, operating in three major segments: inspection and heat treating
services (IHT), mechanical services (MS), and Quest Integrity Group—a high tech pipe
inspection service. The Company provides a wide range of services including non‐
destructive testing (NDT), valve repair, hot tapping, and leak repair to a large variety of
industries such as petrochemical, refining, and power generation.
Company Website: www.teamindustrialservices.com
Analysts: Investment Research Manager:
Michael Swanson Katie Morgan
Sabrina Somers
Haley Fradkin
The BURKENROAD REPORTS are produced solely as a part of an educational program of Tulane University's
Freeman School of Business. The reports are not investment advice and you should not and may not rely on
them in making any investment decision. You should consult an investment professional and/or conduct your
own primary research regarding any potential investment.
Wall Street's Farm Team
BURKENROADREPORTS

2. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Figure 1: 5‐year Stock Price Performance
Source: Yahoo Finance November 9, 2015
INVESTMENT SUMMARY
Our analyst team gives Team Inc. a rating of Market Outperform with a 12‐month target price of
$53.00 per share.
Team Inc. is an international industrial services company specializing in the construction and
maintenance of pressurized systems. The Company is headquartered in Sugar Land, Texas, which
is also home to more than 100 Company operated facilities. Specifically, Team operates in three
business segments including inspection and heat treating services, mechanical services, and Quest
Integrity Group—a technology‐driven pipe inspection group. The Company develops new
inspection technologies and diversifies its offerings to facilitate growth. Team is also expanding its
market share through company acquisitions. For example, in 2015, Team purchased Qualspec
group, increasing its intangible assets and goodwill in the first quarter of fiscal year 2016. Soon
after, the Company announced plans to acquire Furmanite in an all stock transaction in the
second quarter of fiscal year 2016.
Team Inc.’s competitive advantage stems from its business strategy of one‐stop‐shop service
offerings as well as its sizable supply of skilled technicians. Company earnings were lower than
expected in the first quarter of 2015, which caused a 20% drop in Team’s stock price from $44 to
$32. We predict, however, that both organic and targeted Company growth will raise the price
throughout the fiscal year.

3. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Table 1: Historical Burkenroad Ratings and Prices
Report Date Stock Price* Rating
12‐Month Target
Price
11/14/2014 $42.93 Market Underperform $42.00
10/29/2013 $38.29 Market Perform $39.00
11/19/2012 $32.31 Market Perform $44.00
11/23/11 $24.51 Market Outperform $31.00
10/22/10 $18.51 Market Perform $21.31
11/10/09 $16.35 Market Perform $18.51
11/18/08 $22.40 Market Outperform $33.21
12/05/07 $30.28 Market Outperform $42.20
10/30/06 $15.40 Market Outperform $30.80
01/14/05 $7.86 Market Perform $15.72
04/13/04 $6.99 Market Outperform $13.98
11/22/02 $3.75 Buy $7.50
*Price at time of report date
INVESTMENT THESIS
We established a target price of $53.00 and market rating of Market Outperform for Team Inc.
We believe that Team is positioned to have future revenue growth through both organic growth
and strategic acquisitions. Furthermore, the development of the Quest Integrity Group
technology will differentiate Team Inc. in the industrial services industry. These advances,
combined with a positive and effective Company culture, help the Company to retain employees
and to produce quality work. These competitive advantages support our positive outlook on
future earnings for Team Inc.
Positive corporate culture helps retain employees
Team operates in a highly fragmented industry with many companies offering similar types of
services. The suppliers for the Company’s operations are the skilled laborers. These laborers are in
high demand in the industrial services industry and will often switch companies for a higher pay
grade. Team looks to retain its valuable employees by creating a positive company culture,
providing competitive pay, and maintaining notably safe working conditions. One measure the
Company uses to promote this culture is the low reported accident rate. In fact, the safety of
workers in the field is one of Team’s core values. This emphasis on safety helps the Company to
retain employees and create a safe positive company culture.

4. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Acquisitions position Team to grow in fragmented market
The highly fragmented nature of the industrial services industry makes it difficult for any single
company to dominate the market. As such, commanding a majority share of the market is nearly
impossible solely through organic growth. Therefore, to complement Team’s organic growth, the
Company is making strategic acquisitions in its current lines of business. Team’s current trend is
one acquisition each year. In fact, a staff member is dedicated exclusively to vetting possible
strategic and profitable acquisitions. Although the Company is not looking to consolidate the
market, acquisitions should help Team to grow in the future and ultimately command more
market share.
Quest Integrity Group boosts Team’s high tech presence in the market
The Quest Integrity Group segment of Team Inc.’s business is the most technology‐driven arm of
the Company. The advanced tools involved in Quest’s services generate high engineering and
development costs for the Company. These research and development costs in the current period
will lead to greater revenues in the future. The proprietary technology developed by Quest
Integrity Group is unique in the industrial services market and the continuing development of this
technology has led to several high paying contracts. The Company’s commitment to technology is
evident in the 36% increase in engineering and development costs since 2013 from $3.61 million
to $4.9 million. Continuing technological advancements in non‐destructive testing (NDT) methods
will make maintenance and inspection services more convenient and effective for both the
Company and its clients. Such advancements will attract customers across all industries to use
new, less disruptive testing services.
Diversification helps protect Team against macroeconomic events & fluctuations in oil prices
Although the petrochemical industry accounts for a large portion of Team’s contracts, the
depressed oil prices are not expected to heavily impact the Company. Team’s diversified services
and client base help protect the Company from negative events that may disproportionately
affect an industry or a specific client—such as volatile oil prices, credit risks, or product recalls.
The Company also operates internationally, which exposes Team to other risks, namely exchange
rate risk and a risk of over‐extension of operations. This geographic diversification, however, also
helps shield the Company from macroeconomic risks that disproportionately affect the U.S., such
as policy changes, regulations, and recessions.
Team acquires Furmanite Co. in all stock transaction
Team recently announced the acquisition of Furmanite Co. in one of the industry’s largest
mergers to date. The merger will consolidate the industrial services industry, as Furmanite is one
of few relatively large full service firms in the market with a market capitalization of $225 million.
Team will fully incorporate Furmanite into the Team brand and realize an estimated $20‐25
million in annual synergies after the second year. The merger costs $335 million and is a stock‐for‐
stock transaction. Furmanite shareholders will receive 0.215 shares of Team Inc. stock for each
share of Furmanite held. Though the issuance of new stock may be slightly dilutive to existing
shareholders, the Company expects accretive immediate earnings in the first year to total $0.25‐
$0.30 per share. Team expects the transaction to increase revenues by $400 million annually.

5. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Additionally, Team will now employ 8,300 personnel and operate 220 locations in 22 countries.
The mechanical services (MS) business segment will see the most growth and will rival the NDT
segment as Team’s most profitable business segment. The combination of these two
complementary firms will bring together two companies known as being great places to work,
boasting talented and dedicated skilled laborers. The new breadth of talent available in the
expanded labor pool will add to the economic value created by this acquisition. The deal is
expected to close in the first quarter of 2016.
VALUATION
To arrive at our 12‐month target share price of $53.00 we calculated an equally weighted average
of several valuation methods. The target price reflects the results of our discounted cash flow
(DCF), price to earnings (P/E), price to book value (P/BV), enterprise value to earnings before
interest, tax, depreciation and amortization (EV/EBITDA), and price to cash flow per share
(P/CFPS) multiples. Between the five methods, we found only a $10.23 range between the lowest
target price, $48.03 using EV/EBITDA, and the highest target price, $58.26 using P/CFPS. We were
unable to compute a dividend discount model since Team does not issue dividends. Though the
average 12‐month market projection was $44 as of the report date, that measure excludes any
adjustments related to the Furmanite merger.
Figure 2: Burkenroad Valuation
Discounted Cash Flow
A discounted cash flow analysis estimates the money an investor anticipates receiving from an
investment, adjusted for the time value of money. To calculate DCF, the model sums the present
values of free cash flows to the firm and the terminal period to determine share price. In our
model, we discounted free cash flows using a discount rate of 13.10%, which combined an after‐
tax weighted average cost of capital (WACC) of 7.10% with a 6% liquidity premium. Team’s capital
structure is weighted more heavily in equity than debt, which accounts for a WACC closer to the
cost of equity than debt.
$30.00
$34.00
$38.00
$42.00
$46.00
$50.00
$54.00
$58.00
DCF P/E P/BV EV/EBITDA P/CFPS
12‐Month
Target Price:
$53.00
Current Price:
$38.14

6. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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To calculate the present value of the terminal period, we set the terminal growth rate at 2.76%,
equal to the 20‐year Treasury rate to account for stable inflation. The terminal growth rate is
fairly conservative considering the Company’s historic average growth rate of 13% annually. Our
DCF model gave us a 12‐month target stock price of $55.36
Relative Multiple Methods
To calculate our target price using equity and enterprise value methods, we used Team’s average
historical trading multiples for the past five years instead of those from a peer group. We chose to
use historic multiples instead of peer group averages considering Team’s unique product and
service offerings, which make the Company hard to compare to direct peers, and the recent
acquisition of Furmanite.
Price to Earnings
The P/E multiple quantifies the market’s projections of Team’s earnings growth relative to its
share price. Team’s average P/E ratio over the past five years, excluding an outlier in 2014, is
19.23. While the ratio is not unreasonably high, the number indicates that investors are willing to
pay a premium on anticipated Company growth. We then multiplied the average P/E by
estimated earnings per share (EPS) for the next four quarters to arrive at 12‐month target price of
$48.47.
Price to Book Value
The P/BV multiple is a trading multiple that compares the Company’s stock price to its book value
per share. Book value per share is calculated by dividing total stockholder’s equity by weighted
average shares outstanding—it is the value of a share according to the “books.” Team’s average
P/BV multiple over the past five years is 2.32. When multiplied by the 12‐month projected book
value per share, the P/BV multiple gave us a target price of $53.39.
Enterprise Value to EBITDA
The EV/EBITDA multiple method compares enterprise value to EBITDA to derive stock price. Since
EV and EBITDA have few, serious debt implications, the multiple is considered “unlevered” and is
therefore lower than a P/E valuation. The valuation also essentially neutralizes the effects of
capital structure, which facilitates the comparison of companies with varying compositions.
Team’s average EV/EBITDA multiple over the past five years is 9.61. When multiplied by
forecasted EBITDA over the next four quarters and divided by the projected number of weighted
shares outstanding, the EV/EBITDA multiple method gave us a 12‐month target price of $48.03.
Price to Cash Flow per Share
The P/CFPS multiple method compares the share price to the Company’s operating cash flow.
Team’s average P/CFPS multiple over the past five years, excluding an outlier in 2010, is 15.45.
When multiplied by the projected operating cash flow per share over the next four quarters, the
P/CFPS method gave us a 12‐month target price of $58.26.

7. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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INDUSTRY ANALYSIS
Team Inc. operates primarily in the industrial services industry, which is highly fragmented and
has an estimated North American market size from $4.5 to $6.5 billion. The Company has over
100 competitors in this market space. Industrial service providers generally specialize in the
installation, maintenance, and repair of industrial facilities and assets. Within the industry, the
Company’s wide array of services fall into various sub‐industries: environmental and facilities
services, construction and engineering, and research and consulting services. Overall, key
economic drivers include the Industrial Production Index (see Figure 3), global oil and gas
extraction (Figure 3), the value of utilities construction, and the global prices of crude oil, natural
gas, and steel. After a significant dip in demand for industrial services following the 2008 financial
crisis, the industry’s major client groups have grown steadily in the wake of the general economic
recovery, as seen in Figure 3.
Figure 3: Industrial Production Index & Crude Petroleum and Natural Gas Extraction on the Rise
Source: Board of Governors of the Federal Reserve System (US) November 9, 2015
Figure 3 shows the upward trend of the Industrial Production Index and industrial production
related to crude petroleum and natural gas extraction. The Industrial Production index is an
economic indicator that measures real output for manufacturing, mining, electric, and gas utilities
facilities in the U.S. Since industrial service companies, including Team, conduct business related
to the facilities and assets of such industries, a rise in industrial production would necessitate a
rise in demand for industrial services. More specifically, Team’s major clients exist in the
petrochemical and refining industries, where industrial production is growing faster than the all‐
inclusive index as seen in Figure 3. An increase in extraction and resulting production and refining
activities suggests that Team’s strong midstream client base will continue to demand the
Company’s services.
50
60
70
80
90
100
110
120
130
140
150
2007 2008 2009 2010 2011 2012 2013 2014 2015
Index (2012=100)
Industrial Production Index Industrial Production: Crude Petroleum and Natural Gas Extraction

8. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Key Metrics
Team services its clients through three business segments: the Inspection and heat treating
group, mechanical services group, and Quest Integrity Group. In the large industrial services
industry, Team is a sizeable and more comprehensive player relative to the other firms.
For example, in the non‐destructive testing (NDT) market, Team has a 10.6% market share,
second only to Mistras Group, which has a 16.5% share. Because demand in this market is
growing as petrochemical production remains high and industrial output increases, so is the
demand for Team’s services. Furthermore, demand is projected to grow as production increases.
Team also operates in the highly fragmented valve installation and manufacturing market. The
demand for, and domestic production of valves is increasing as measured by the Industrial
Production Index. With the expansion of industrial output, expected demand for valves is
increasing. Due to the high market fragmentation, however, no one company, including Team
Inc., accounts for more than 2.1% of total production.
Still, Team’s variety of products and services allows the Company to brand itself as a one‐stop
shop for all industrial service needs. The increase in the Industrial Production and Capacity
Utilization Index for the oil industry suggests that strong oil production levels will drive Team
Inc.’s main business segments. Figure 4 illustrates Team’s market share range within its various
service segments.
Figure 4: Team Inc. Range of Market Share by Segment Before Furmanite Merger
Source: Team Inc. Investor Presentation 2015
Threat of Entry
The industrial services industry has moderately high barriers to entry. The industry’s large number
of suppliers, coupled with the need for highly skilled labor and specialized technology, are
formidable barriers to entry. With such a large and saturated market, little opportunity exists for
a new company to enter and undermine the status quo. The firms currently operating in this
space offer a wide variety of services in all areas of the market.
Inspection & Assessment Turnaround Services On‐Stream Services
Team Inc.
12‐25%
Team Inc.
10‐12%
Team Inc.
10‐15%

9. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
9
Customers have high bargaining power. Since the industrial services industry has a large number
of competing firms, the customers can switch to a new firm with low switching costs. If there is
not a single firm that adequately meets the needs of the customers, a new firm will join the
market and satisfy those needs. Therefore, existing firms must satisfy these highly influential
customers or else the threat of entry will become even higher.
Bargaining Power of Suppliers
Team’s main supply source is its key employee base of technicians. Team depends greatly on its
workforce of highly skilled employees to execute ten unique and specialized services in extremely
high‐pressure situations. The high demand for, and low supply of, these types of employees
increase the bargaining power of Team Inc.’s service suppliers. Because Team Inc. services
businesses worldwide and invests heavily in training and maintaining its employees, individuals
often choose to work for Team because of the culture of safety and the Company’s reputation for
excellence in service.
Bargaining Power of Buyers
Team Inc. operates in an incredibly competitive industry with many companies offering similar
services. As such, buyers have a high level of bargaining power. Buyers choose which service
company they will employ based on price, convenience, contract agreements, business
relationships, and a range of other factors. Due to the availability of industrial service companies
and competitive nature of the industry, buyers exert pressure on the service companies to
provide the highest quality products and services at the lowest price. When a company needs to
address more than one type of service need, it has the option to hire one firm or multiple
contractors to execute repairs. Although Team’s competitors may offer similar products and
services, the Company’s skilled labor force, wide range of service offerings, and focus on
customer service gives Team a competitive advantage.
Availability of Substitutes
The strict regulatory environment of the industrial service industry significantly restricts the
availability of substitutes for its products and services. All facilities with pressurized piping
systems need industrial services for uptime and safe operations. Few, if any, companies outside
the industry could provide the installation, inspection, maintenance, and repair services that
satisfy governmental and professional guidelines and regulations. Consequently, as
environmental and safety regulations increase, the availability of substitutes will decrease.
Competitive Analysis
The highly fragmented nature of the industry fosters tight competition between its many players.
Team’s wide array of services and solutions exceeds any competitor in the space, resulting in its
leading North American market share of approximately 15%. The Company’s competition stems
from other service contractors that provide similar services such as Mistras Group (MG),
Furmanite Corp (FRM), Exponent Inc. (EXPO), and TRC Cos Inc. (TRR).

10. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
10
Team has maintained and grown its market share and operations by acquiring smaller industrial
service companies. If future economic uncertainty reduces the demand for industrial services,
customer procurement could become much more competitive. This uncertainty could negatively
affect the Company’s pricing model, margins, and market share. Figure 5 illustrates the market
capitalization of Team Inc.’s key competitors.
Figure 5: Direct Competitor Market Capitalization vs. Industry Average (MM)
Source: Yahoo! Finance
Macroeconomic Factors
Most industries that require industrial services are sensitive to certain macroeconomic factors.
Industrial service contracts held by Team are heavily concentrated in the refining and
petrochemical industries, as seen in Figure 6. Macroeconomic trends resulting in diminished
demand for the industry’s products and services could affect its operations and revenues. For
example, the current decrease in oil prices is one such trend affecting Team. The Company’s
involvement in both midstream and downstream oil and gas companies, however, hedges some
of the risk that one of those components may struggle. Although regulatory requirements for
industrial services make demand relatively inelastic, an economic downturn could result in
customer plant closures and project attrition. The most pressing factors to consider include
liquidity, interest rate changes, and oil prices.
$1,149
$858
$395 $376 $369
$225
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400

11. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
11
Refineries
40%
Other
24%
Petrochemical
20%
Pipelin…
Power…
Figure 6: Team’s Customers by Industry
Source: Team Inc. Investor Presentation 2015
Liquidity and Interest Rates
Liquidity and credit spreads could prevent industrial service customers’ ability to finance both
new projects and on‐going maintenance, and prevent the Company from collecting on contracts
already performed. Furthermore, a disruption in the credit market could prevent industry growth
if players are unable to expand credit capacities. However, looking at Team’s capital structure it
appears unlikely that a poor credit environment would cripple the Company’s operations. Team
has a relatively low debt‐to‐equity ratio of 23.40%. This means that Team does not rely heavily on
debt as a way to finance projects.
Oil Prices
As the price of natural gas has fallen in the U.S., petrochemical manufacturers have taken
advantage of low input costs to expand domestic operations. Furthermore, the upward
trajectories of both the Industrial Production Index and crude petroleum and natural gas
extraction, as seen in Figure 3, suggest strengthening demand for petrochemical inputs and
increasing industrial capacity in the near future. Such growth could spur new clients and projects
for the industry. One fear, however, is that falling gas prices might reduce investments in oil
exploration, which could reduce the number of oil and refinery customers. While lower oil prices
are negatively affecting the Company’s upstream and downstream customer bases, the
Company’s heavy involvement in the facilities and equipment of midstream companies has
mitigated much of the impact.

12. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
12
ABOUT TEAM
Team Inc. (TISI/NYSE) is one of the largest providers of specialized industrial services in the
construction and maintenance of pressurized systems—colloquially described as the plumbers for
heavy industry. The Company, headquartered in Sugar Land, Texas, employs over 4,800
individuals in more than 125 locations worldwide. Team Inc. operates in three major segments:
inspection and heat treating services (IHT); mechanical services (MS); and Quest Integrity Group.
The Company provides a wide range of services including non‐destructive testing (NDT), valve
repair, hot tapping, leak repair, field machining, and technical bolting to a variety of industries
including refining, petrochemical, power generation, military, and government.
History
In 1973, Team Inc. was founded in Houston, Texas as an industrial services company specializing
in piping system repairs. Team’s range of products and services expanded as the Company
experienced steady growth in its early years. This continuous expansion led to the Company’s
announcement of its initial public offering (IPO) in October 1980. Overtime, Team has developed
its brand by acquiring various other small industrial service companies, which has contributed to
Team’s overall product sales and profitability.
In 1999, Team acquired both Cooperheat‐MQS and Aitec Inspection, which broadened the
Company’s customer base to Canada. Team’s expansion of its services positioned the Company as
a resource for industrial and petrochemical plants. The Company further advanced its business by
penetrating the European market with the purchase of Leak Repairs Specam in 2008. Today,
Team continues to acquire new companies including Quest Integrity Group, LLC in 2010, TCI
Services, Inc. in 2012, Global Ascent, Inc. in 2013, DK Amans Valve in June 2015, Qualspec Group
in July 2015, and most recently, Furmanite Co. in November 2015.
Products and Services
Team provides an array of specialty services related to the maintenance, inspection, and
construction of piping systems. Services provided include: leak repair (LRS), hot tap and line stop,
field machine services (FMS), technical bolting (TBS), valve repair (VRS), field heat treating,
NDE/NDT inspections, emissions control (ECS), pipe repair, and turnaround services. Due to its
long list of product and service offerings, Team is able to service many different industries
including: automotive, military, power generation, gas processing, and refining.
Business Segments
Team operates in three complementary business segments: inspection and heat treating services
(IHT), mechanical services (MS), and Quest Integrity Group (QIG).
The IHT unit provides inspection and assessment services, a full range of traditional and advanced
non‐destructive evaluation (NDE) methods, pipeline integrity management, and field heat
treating services. Generating 55% of income in fiscal year 2015, the IHT unit is Team’s largest
segment.

13. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
13
The MS unit provides on stream and turnaround/project services. MS is Team’s second largest
segment, generating approximately 35% of revenue in fiscal year 2015.
The QIG uses proprietary software and analytical models to provide integrity management
solutions. Services include advanced quantitative inspection and engineering assessment services
and products. Comprising 9% of fiscal year 2015 revenue, QIG is the Company’s smallest business
segment. Figure 7 highlights Team’s revenues by business segment.
Figure 7: Size of Business Segments by Revenue
Source: Team Inc. Investor Presentation 2015
Competitive Advantage
Team operates in a highly fragmented market with more than 100 competitors currently active in
the industrial services industry. As one of the only service providers with multi‐service and multi‐
national capacities, Team has an established competitive advantage in its market space and a
relatively high share of the industrial services market (as seen in Figure 4). The wide range of
technical services and geographic locations increase customer procurement rates by enabling the
Company to reach a larger client base by and providing more of the solutions customers need.
The Company’s thorough hiring and training processes result in higher customer satisfaction
rates, and encourage clients to continue to use Team for future industrial service, maintenance,
and inspection needs. Team’s acquisitions have given the Company competitive advantages,
helping it become one of the largest providers of industrial services in the U.S.
Corporate Strategy
Team’s corporate strategy revolves around two primary sources of growth: recurring revenue
streams and large one‐off acquisitions to compliment, diversify, and enhance current business
offerings. The recurring revenue business model is driven by demand for Team’s ongoing
maintenance and inspection services of existing facilities, necessitated by constantly changing
operational and safety requirements. Since personnel at Team’s service locations are the
Company’s primary marketers, customers are able to receive expert services on‐demand,
broadening the Company’s appeal and customer base.
$408M
IHT
54%
$276M
MS
37%
$66M
QIG
9%

14. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
14
For the past three fiscal years, no single customer has accounted for more than 10% of
consolidated revenues. The diverse customer base allows for many streams of recurring revenue
from all business segments. Although mergers and acquisitions (M&As) are not essential to
Team’s growth profile, revenue from acquisitions has accounted for 34% of the Company’s total
sales growth over the past ten years. Furthermore, the industry’s highly fragmented nature makes
M&A an attractive option for growth by Team, allowing it to grow both organically and through
acquisitions, ultimately strengthening its market share. Thus, with an average of nearly one
acquisition a year, Team is beginning to consolidate an extremely vast industry.
Financial Performance
Fiscal year 2015 produced a record year for Team with strong earnings. Adjusted earnings rose
35% from $31.5 million in 2014 to $43.3 million in 2015. Additionally, revenues rose 12% to $842
million from $749.5 million in 2014. Although the Company is looking forward to another record
year in 2016, the current rise in the U.S. dollar against other currencies may affect the Company’s
overseas operations and disturb Team’s 2016 profitability.
Latest Developments
November 2, 2015‐ Team announces the acquisition of Furmanite Co., one of Team’s largest
competitors. A stock‐for‐stock purchase agreement valued at $335 million will take effect in the
first calendar quarter of 2016.
August 10, 2015‐ Team’s Board of Directors welcomed Michael Lucas, President and CEO of
Powell Industries. He is replacing Jack Johnson, who will retire from his seat on the Board at the
end of this term.
July 6, 2015‐ Team Inc. announced the acquisition of Qualspec Group through a stock purchase
agreement. Qualspec was one of Team’s competitors in the non‐destructive testing (NDT)
inspection market.
January 13, 2015‐ After a strong 2015 fiscal year, Team relaunched its stock repurchase program.
Recent Projects
 Inspection ‐ Team was selected to carry out the Turkey Point & St. Lucie Nuclear power
plant capacity uprating project. Using gamma ray technology, the Company measured
thickness of walls and looked for imperfections. Team completed the project with no
injuries or accidents.
 Concrete Repair ‐ Con‐Agra selected Team to restore its 4,000 square foot concrete floor
complete with non‐slip protection.
 Valve Insertion ‐ The MetLife stadium, in New Jersey selected Team’s 8” InsertValveTM
as a
solution for isolating its hot water supply without a loss in pressure.
 Hot Tap/Line Stop ‐ A repeat customer hired Team to replace a portion of pipeline while it
remained in operation. Through a bypass and Team’s Sealtite II line stop fittings, Team
was able to complete one of the longest replacements of an operational pipeline.

15. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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PEER ANALYSIS
Due to the large and diverse state of the industrial services industry, many firms compare to
Team, but few are identical in size and services. Team is one of the larger firms in the industry and
offers a more comprehensive list of services than most of its peers. While there are many firms in
the industry that focus on one area of industrial services, Team, along with Furmanite Co. and
Mistras Group, are the only identified “all inclusive” firms. Therefore, we chose a peer group of
Furmanite Co., Mistras Group, and Exponent Inc. to analyze Team’s position relative to
competitors, as seen in Table 2.
Table 2: Peer Comparison
Company Ticker Revenue EPS
Market
Cap (Mil)
Debt/
EBITDA
D/E
P/E
(ttm)
Team TISI $842.0 $1.95 $810.42 0.86 23.40 18.15
Furmanite* FRM $529.20 $0.30 $295.13 1.93 45.13 27.57
Mistras MG $711.25 $0.56 $531.30 2.09 54.21 26.92
Exponent EXPO $304.70 $1.51 $1040.00 0.00 0.00 32.39
*Furmanite Co. pending acquisition by Team Inc.
Source: Bloomberg October 2, 2015 (Year Ending)
Furmanite Corporation (FRM/NYSE)
Furmanite Corporation offers its customers a wide range of technical and industrial services. It
operates in two segments: technical services and engineering & project solutions. Furmanite is
based in Houston, Texas and has over 40 locations worldwide. Like Team, Furmanite can provide
services to a variety of industries because of its long list of offerings including: on‐site and on‐line
plant and pipeline maintenance, industrial plant turnaround maintenance, leak sealing, hot
tapping, line stopping, bolting, field heat treating, valve testing, valve repair, and more. The
company primarily services petroleum refineries, offshore drilling rigs, chemical plants, and
electric power generating plants. Furmanite maintains contracts for continuous service provision
around the world. It has operations in the Americas, Europe, the Middle East, Africa, and the Asia‐
Pacific. In terms of revenues, Team has outperformed Furmanite in the last three fiscal years by
about $300 million.
Mistras Group (MG/NYSE)
Mistras Group (MG) is Team’s closest competitor in the non‐destructive services industry, which
includes companies that primarily perform non‐destructive tests and inspections on industrial
assets. With 16.5% market share, Mistras is the only company to maintain a larger share of the
NDT market than Team. Mistras is also Team’s closest competitor in terms of product and service
offerings. Like Team, the company operates in three major segments: services, products and
systems, and international operations. The two companies also share a similar customer base,
consisting of clients in the oil and gas market, power generation and transmission, and industrial
processing.

16. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Mistras Group provides services such as traditional NDT, advanced NDT, destructive testing, and
mechanical integrity services to a range of industries including public infrastructure, aerospace
and defense, oil and gas, transportation, fossil and nuclear power, and pharmaceuticals. The
company has over 100 locations worldwide.
Exponent Inc. (EXPO/NASDAQ)
Exponent Inc., headquartered in Menlo Park, California, is an engineering consulting firm that
provides an in‐depth analysis of complex problems in a variety of fields, such as medical/health
advancements, and structural damage response. The company does not do any physical repairs or
construction. Instead, it focuses on the engineering and science aspects of a given problem.
Therefore, overlap exists between Team’s services and Exponent’s services, but the two
companies are not identical. For example, Team focuses more heavily on the physical
construction than Exponent does. Like Team, Exponent Inc. has a majority of its offices in the U.S.,
but it also has several international offices—in Switzerland, Germany, China, and the U.K.
Exponent has an employee base of 900, nearly one‐quarter the size of Team’s workforce.
MANAGEMENT PERFORMANCE AND BACKGROUND
Team Inc.’s rapid growth and expansion is a product of the Company’s experienced corporate
team and operational strategy. Its management techniques are effective, which is evident in the
near $800 million increase in revenues over the past ten fiscal years.
Return on Invested Capital
The return on invested capital (ROIC) ratio measures how well the Company is utilizing its capital
to generate returns. Table 3 measures Team’s ROIC in comparison to its peers and major
competitors. Team’s ROIC took a downward turn from 2013‐2014 due to the increase in
engineering and development costs attributed to the Quest Integrity Group’s demand for high
tech tools. These tools require a high amount of capital both for current maintenance and for
future development.
Table 3: Return on Invested Capital
Company 5/1/2015 5/1/2014 5/1/2013 5/1/2012 5/1/2011
Team 10.28% 8.61% 9.43% 10.83% 10.53%
Mistras Group 4.99% 7.44% 4.77% 10.09% 9.94%
Furmanite Corp 6.14% 9.10% 1.39% 17.55% 8.61%
Exponent 15.75% 14.80% 17.02% 17.01% 15.04%
Source: Bloomberg October 8, 2015

17. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Ted W. Owen
Chief Executive Officer, President and Director (63)
Ted Owen joined Team Inc. in February 1998. In July 2014, Mr. Owen was promoted to President
of the Company from his former position, Executive Vice President and Chief Financial Officer. He
has also held both Secretary and Treasurer roles in the Company. The wide range of job
opportunities has granted him extensive experience as a leader at Team.
Greg L. Boane
Chief Financial Officer, Senior Vice President and Treasurer (51)
Greg Boane has served as Chief Financial Officer and Treasurer at Team since November 2014.
Mr. Boane previously served as Vice President of Finance at Cameron International Corporation,
and as Accounting Vice President at Grant Prideco.
Peter W. Wallace
President of Mechanical Services (52)
Peter Wallace has been a Team Inc. employee for 28 years. Mr. Wallace was the leader of Team’s
Field Service Operations and in 2010, before his promotion to Executive Vice President and Chief
Operating Officer. He also worked as the Senior Vice President of Commercial Support and
Business Development.
Arthur F. Victorson
President of Inspection and Heat Treating Services (53)
In 2004, Arthur Victorson joined the Company as the Vice President of the Heat Treating and
Inspection Service division and has since been promoted to President of those segments.
Jeffrey L. Ott
President of Quest Integrity Group (52)
Jeffery Ott was a Private Equity Manager at Deutsche Bank before transitioning to Team in
January 2007 during the acquisition of Quest Integrity Group. Mr. Ott has served as the President
of the branch since 2010. He has also served as Team’s Executive Officer since 2013.
Andre C. Bouchard
Senior Vice President of Administration, General Counsel, and Secretary (50)
Andre Bouchard joined Team in 2008 and since then has held several positions including the
Senior Vice President of Administration, General Counsel, and Secretary. Prior to joining Team,
Mr. Bouchard worked for the Southern Union Company for 14 years.

18. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Board of Directors
Team’s Board of Directors has seven members who either serve a three‐year term or sit on the
Board until a new member is elected. These Board Members may be reelected with no term
limits. Each member has a significant background in relevant industries such as law, real estate,
or finance. The members include: Phillip Hawk, Ted Owen, Sidney Williams, Vincent Foster, Louis
Waters, Emmett J. Lescroart, Michael Lucas, and Jack Johnson Jr. Table 4 shows the distribution
of stock options to top management and the Board of Directors at Team.
Table 4: Board of Directors
Name
Total Annual
Compensation
($)
Stock
Awards ($)
Total ($)
Total
Options
Outstanding
Phillip Hawk 463,328 625,024 1,289,605 120,000
Ted Owen 352,312 232,014 639,708 73,000
Sidney Williams 55,000 70,000 125,000 30,000
Vincent Foster 60,000 70,000 130,000 35,000
Louis Waters 50,000 70,000 120,000 30,000
Emmett Lescroart 45,000 70,000 115,000 30,000
Michael Lucas 40,000 70,000 110,000 30,000
Jack Johnson, Jr. 57,500 70,000 127,500 30,000
Source: Bloomberg October 7, 2015
SHAREHOLDER ANALYSIS
As of October 7, 2015, Team Inc. has approximately 20,910,719 shares of common stock
outstanding. Insiders hold 5.44% of those shares and institutional investors hold 84.90%. The
Company has approximately 19,260,000 shares float and no preferred stock issued.
The top nine investors in the Company are institutional investors. The tenth largest holder is
Neuberger Berman Genesis, a mutual fund. Seven of the top ten institutional investors have
increased shares in Team since 2014 (see Table 5). Most notably, the largest holder, Government
Pension Fund of Norway, increased its stake by 115.45%. These increased positions suggest that
the institutional investors have a bullish projection for the Team stock, as these funds aim to hold
companies with sustainable growth potential.

19. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Table 5: Institutional Holders of Team Inc. Stock
Institution
Shares
Held
Percent
Ownership
Percent
Change From
2014‐2015
Value
(In USD)
Government Pension Fund of
Norway
4,659,268 22.92% 115.45% 155,153,624.40
EdgePoint Investment Group, Inc. 1,607,194 7.73% 5.96% 53,519,560.20
Vanguard Group, Inc. 1,296,182 6.23% 2.83% 43,162,860.60
Ariel Investments, LLC 1,135,129 5.46% (1.11%) 37,799,795.70
EdgePoint Investment
Management Inc.
986,236 4.77% 0% 32,841,658.80
Neuberger Berman LLC 941,768 4.53% (0.86%) 31,360,874.40
Pyramis Global Advisors, LLC 896,015 4.31% 27.94% 29,837,299.50
T. Rowe Price Associates, Inc. 759,056 3.65% 1.17% 25,276,564.80
Dimensional Fund Advisors, Inc. 751,875 3.62% 4.71% 25,037,437.50
Mackenzie Investments 681,540 3.28% 1.75% 22,695,282.00
Source: Morningstar October 2, 2015
Team’s insider owners control 3.95% of the stock. The change from 2014 is a 300.7% increase with
most of that change attributed to Jeffrey Ott’s recent 812.25% increase in shares. The percent
change resulting from these trades represents a slight increase of 0.68% in insider ownership (see
Table 6).
Table 6: Insider Ownership of Team Inc. Stock
Name Position
Shares
Held
% Shares
Outstanding
Market Value
(In USD)
Jeffrey Ott
President, Quest Integrity
Group
300,030 1.43% 10,609,060
Louis Waters Lead Independent Director 179,101 0.86% 6,333,011
Sidney Williams Independent Director 112,423 0.54% 3,975,277
Ted Owen CEO, President and Director 49,640 0.24% 1,755,270
Emmett Lescroart Independent Director 47,888 0.23% 1,693,319
Vincent Foster Independent Director 43,793 0.21% 1,548,520
Philip Hawk
Executive Chairman of the
Board
30,155 0.14% 1,066,280
Peter Wallace
President, Mechanical
Services
20,973 0.1% 741,605
Arthur Victorson
President, Inspection and
Heat Treating
20,420 0.1% 722,051
Andre Bouchard
Executive VP,
Administration, Chief Legal
Officer, and Secretary
17,607 0.08% 622,583
Source: Morningstar October 7, 2015

20. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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RISK ANALYSIS AND INVESTMENT CAVEATS
The industrial services industry as a whole is exposed to operational, regulatory, and financial
risks. Team Inc. has recognized these risks and implemented mitigating frameworks to protect
itself. These frameworks are apparent in Team’s workforce management, safety protocols, and
due diligence efforts. Furthermore, recent and likely expanding environmental regulations are
both a threat and opportunity for Team. The risk of these factors triggering a greater
macroeconomic downturn is also a risk for the Company.
Operational Risks
Labor Risks
One of Team’s greatest assets is its skilled labor force. The skilled workers that make up the
principle revenue generating operation of the Company are highly valuable in the industrial
services industry. Unfortunately, no real barriers exist for skilled workers who want to switch
companies. Team tries to mitigate this risk by creating a positive Company culture. By branding
the Company as a great place to work, Team hopes to retain its laborers in the face of
competition. However, the rise in demand for skilled workers will test this culture and Team
could risk default on projects or a severely reduced profit margin if wages rise significantly to
attract and retain skilled workers.
Safety Risk
The safety of the Company’s skilled workers is imperative for successful operations. The services
provided by Team are comparatively dangerous to other service industries and require skill and
careful planning. The cost of even one injured worker can severely affect the workflow and job
profitability. Not only is the loss of a laborer costly, but also it damages Team’s reputation among
clients and its workforce. A high incident rate will severely damage the Company and could affect
not only lost person‐hours on the current project, but it could affect future corporate‐skilled
laborer relations and loyalty among Team Inc.’s field employees. Safety is one of Team Inc.’s core
values and the Company has enjoyed a downward trend of reportable incidents with 2015 being
the lowest year to date.
Acquisition Risk
The Company’s current trend of growing both organically and through an average of one
acquisition per year exposes the Company to acquisition‐related risks. The Company only
acquires firms in the industrial services industry and therefore is knowledgeable in the acquired
firm’s operations. Since each acquisition has the potential to disrupt Team’s operations,
integrating the acquired business into operations is a risk. These transactions also carry the risk
of over leveraging the firm if the Company chooses to use debt to finance the purchase. Another
potential risk is that the acquired company was previously mismanaged leading to problems
integrating it into Team. It can often be challenging to ascertain the current ratio of a private firm
under poor management, which can lead to a dangerous integration of firms’ debts. However,
Team currently has a thorough due diligence process that mitigates these acquisition risks.

21. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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Regulatory Risks
Environmental Regulations
The increase in environmental requirements is both an opportunity and a risk for Team. The
Company enjoys a boost in demand due to the increased demand for testing and ensuring plants
are meeting codes. However, the regulations can also stifle production in the facilities that Team
services, reducing demand for Team’s services.
Additionally, Team must adhere to certain regulations. The environmentally questionable nature
of the industries the Company serves means Team is subject to those industries’ regulations. For
example, the U.S. government and the Environmental Protection Agency highly regulate the
petrochemical industry, where Team conducts a large portion of its business. Team must comply
with the regulations imposed on this industry when completing jobs. More regulations mean
more safety/operating protocols and likely longer job times and higher prices.
The uncertainty of the future expansion of environmental regulations at the upcoming global
environmental summit (COP21) is also a concern for Team. These summits will likely bring more
regulation to U.S. and to international businesses. The affect these new regulations will have on
Team remains uncertain, but there is potential they could negatively affect demand for Team’s
services.
Financial Risks
Liquidity and Leverage Risk
Team’s fiscal year 2015 current ratio is 3.165. This figure means that the Company’s assets
outnumber its liabilities by just over 3 to 1. This is considered a good current ratio and suggests
the firm is sufficiently capable, for now, of repaying its liabilities with its assets. Although this
ratio is the lowest Team has reported since February 2009, the ratio is still in Team’s average five
year range. Compared to historical ratios and competitors, Team’s current ratio and debt‐to‐
equity ratios are equal to or better than the ratios of its competitors (as seen in Table 7).
Table 7: Key Liquidity Ratios of Market Leaders
Ratio Team Furmanite Co. Mistras Group
Current 3.165 3.72 1.83
Debt‐to‐Equity 23.40% 47.21% 54.21%
Source: Morningstar October 9, 2015
The Company also has a relatively low debt‐to‐equity ratio at 23.40%. This means that the
Company finances most of its projects through either cash or equity. The only nominal increase
in shares outstanding suggests that Team does most of its financing with cash. The relatively low
debt amount allows Team to operate without a large and immediate obligation to debt holders
and the fear of bankruptcy upon a default.

22. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
22
Exchange Rate Risk
The recent strengthening of the U.S. dollar has created an exchange rate risk. Although Team’s
operations are mostly in the U.S., exchange rate risk affects the Company’s international
business. The dollar’s surge means that the profits from international jobs paid in international
currencies are smaller when converted back into U.S. dollars. This risk will only affect Team Inc.
slightly, but the Company is certainly vulnerable to this risk and it may hinder future international
expansion.
FINANCIAL PERFORMANCE AND PROJECTIONS
Using various assumptions about the Company’s revenues, expenses, and future growth in our
model, we established a 12‐month target stock price of $53.00 and Market Outperform rating
for Team Inc. This price reflects adjustments made to our model to include the effects of the
Furmanite merger.
Revenues
To forecast Team’s revenues, we used an average of regression and growth models. To drive our
regression model, we used seasonality, the Industrial Production Index, and a two‐quarter‐
leading synthetic variable consisting of property plant and equipment (PPE), goodwill (GW), and
intangible assets. We excluded, however, the PPE, GW, and intangibles acquired from Furmanite
in the model in order to control the revenue generated by the merger more directly. Team
anticipates that the merger will generate an additional $400 million in revenues annually.
Seasonality is significant to the Company’s revenues, as quarters two and four have historically
been stronger than the first and third quarters of each year. For our growth model, we used
historic quarter‐over‐quarter growth rates through fiscal year 2017, which were 14%, 15%, 11%,
and 14%, respectively. For 2018 onwards, we used a lower growth rate of 5%.
Operating Expense
To forecast operating expenses, we used a regression based on seasonality for Team, gradually
included Furmanite’s cost of goods sold, and then deducted the cost‐saving synergies expected
to arise from the Furmanite merger.
Capital Expenditures
Since the Company’s capital expenditures tend to vary depending upon specific customer needs,
we used a maintenance method, applying depreciation expense with a growth factor to make up
capital expenditures.

23. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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SITE VISIT
Our group travelled to Team Inc.’s company headquarters in Sugar Land, Texas on October 2,
2015. We arrived eager to engage with the Company executives and expand our knowledge
about the industrial services industry.
We were excited to meet Don Bleasdell, the Vice President of Finance, who guided us on an
extensive tour of the office. During out tour we had the opportunity to meet a number of
employees working in nearly all of Team’s different departments. The recently redesigned offices
thoughtfully reflect the Company’s core values: Safety First and Quality Always, Integrity, Service
Leadership, Innovation, and Pride and Respect with intricate graphics of Team’s technicians at
work. Many offices are open and designed to encourage teamwork and frequent communication
among employees.
Following the tour, Mr. Bleasdell shared Team’s investor presentation highlighting the recent
performance gains due to the acquisition of Qualspec. During the presentation, Mr. Bleasdell
emphasized Company‐wide transparency regarding safety standards. Team is highly regarded
due to its extremely low rates of injury. The Company also provides an extensive training for all
Company technicians. The presentation concluded with data demonstrating Team’s favorable
market share and potential for future organic growth. Subsequently, we had the opportunity to
discuss financial operation strategies with Team’s Chief Financial Officer, Greg Boane. He shared
his past financial positions, his accomplishments, and explained why he thoroughly enjoys
working for a company like Team Inc. He touched on the recent decline in Team’s stock price,
yet, remained optimistic about the future.
The visit concluded with a gracious lunch where Kevin Andis, Team’s Assistant Controller, and
Chad Harrison, Team’s Director of Contract Support and Administration joined us. Throughout
the meal, we discussed the prospects and challenges presented by international acquisitions,
though the Company’s position on international expansion is unclear.
INDEPENDENT OUTSIDE RESEARCH
When conducting company research, our team looked to online resources and databases that
provided essential Company statistics. We gathered the majority of our information from the
financial documents reported on Edgar at SEC.gov, the Bloomberg database, analyst reports,
Yahoo Finance, and Morningstar Reports. We also used databases including IBISWorld and BMI
World located at Tulane University’s Turchin Library. In addition to online databases provided by
the A.B. Freeman School of Business, we participated in Team’s conference calls and spoke with
management on our site visit in Sugar Land, Texas to learn more about the Company operations.

24. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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ANOTHER WAY TO LOOK AT IT
ALTMAN Z‐SCORE
Edward Altman, a finance professor at New York University, created the Altman Z‐Score in
1967. The score tests the firm for bankruptcy risk. The measure aims to identify the firm’s
credit‐riskiness through the analysis of five ratios— working capital/total assets, retained
earnings/total assets, EBIT/total assets, market capitalization/book value of total liabilities,
and sales/total assets. These ratios are then weighted using Altman’s multipliers of 1.2, 1.4,
3.3, 0.6, and 1.0, respectively. Summing all these weighted ratios derives the final Altman Z‐
Score of a firm. A score of 1.8 or under means the firm is in high risk of default. A score of 3 or
above suggests the firm’s credit is safe and the firm is unlikely to enter bankruptcy. Altman
describes a score between 1.8 and 2.99 as the “grey area,” and says these firms show an
uncertain probability of bankruptcy.
Team Inc. has routinely posted a high and healthy Z‐Score. The Company’s Z‐Score for 2015 is
5.52—well above the requisite score of 3 for investors to consider a firm safe from
bankruptcy. However, the Z‐Score shows a slight dip from 2014 after four years of increasing
Z‐Scores (see Table 8). The dip does not indicate that the firm is approaching the uncertain
range, or bankruptcy. An unfavorable macroeconomic environment is one explanation for the
dip. The dip comes from a decrease in the market capitalization to BV of total equity ratio. So
alternatively, the slight decrease in the Z‐score may mean that the market is slightly less
confident in the Company’s financial plan. A decrease in confidence likely comes from the
recent acquisition of Qualspec, the announcement of the acquisition of Furmanite, and
speculation regarding future acquisitions.
Table 8: Altman Z‐Scores 2011‐2015
Source: Bloomberg November 9, 2015
Ratio 2011 2012 2013 2014 2015 Multiplier
Working Capital to Total Assets 0.367 0.389 0.378 0.358 0.377 1.2
Retained Earnings to Total Assets 0.355 0.377 0.401 0.417 0.462 1.4
EBIT to Total Assets 0.119 0.145 0.121 0.107 0.137 3.3
Market Cap to BV of Total Liabilities 2.766 3.338 4.401 5.113 4.305 0.6
Sales to Total Assets 1.429 2.766 1.552 1.546 1.607 1.0
Altman Z‐Score 4.055 4.731 5.358 5.751 5.518

25. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
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PETER LYNCH EARNINGS MULTIPLE VALUATION
Peter Lynch is highly regarded as one of the most successful mutual fund managers of all
time, reporting average annual returns of 29.2% in his portfolio for 13 years. In his book, One
Up On Wall Street, Peter Lynch revealed a chart‐simplifying tool he used to aid his investment
decisions. Lynch’s simple graph compares the price of a stock with a multiple of 15 times the
earnings per share (EPS) by plotting an earnings line of theoretical share prices. If a company
traded below the multiple, Lynch would recommend buying its stock. If the company traded
above the multiple, Lynch would sell the stock. Figure 8 represents the earnings to price
relationship for Team Inc. over the last five years.
Figure 8: Peter Lynch Earnings Multiple
Source: GuruFocus November 9, 2015
As seen in Figure 8, the current stock price as of November 9, 2015, $38.14 is well above the
earnings multiple of $28.33. Therefore, Peter Lynch would not suggest buying this stock.

26. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
26
WWBD?
What Would Ben (Graham) Do?
The British‐American “father of value investing,” Ben Graham, was raised in an environment
lacking financial security. After graduating from Columbia University, Graham went to Wall
Street where he developed many successful investment strategies to combat this insecurity.
His fundamental belief was crafted into the “margin of safety” formula, the difference
between an investment price and intrinsic value of a stock. According to Graham, if an
individual stock surpasses at least four of the eight hurdles, Mr. Graham would consider
investing. His intention was to discover undervalued stocks that are heading towards
sustained future growth. The first four hurdles measure a stock’s potential reward and the
second four hurdles assess the risk of investing in a particular stock.
On November 9, 2015, Ben Graham would consider purchasing Team Inc. stock because it
sufficiently passes four of the eight hurdles: earnings to price yield of 2X the yield on the Ten‐
Year Treasury, a price to earnings ratio down to one‐half of the stock’s highest in five years,
current ratio of 2 or more, and an earnings growth of greater than or equal to 7% over the
past two years. However, the fluctuating stock price is currently more than 1.5 times its book
value. Even at the current lower than average price, Ben Graham would not believe this
option was discounted enough to be worth an investment. Additionally, since Team does not
issue dividends, the Company does not pass Graham’s dividend hurdle. Currently, Team’s
interest‐bearing debt is $359.1 million and its book value is $329.7 million, which places
Team 10% above the maximum level Graham considers acceptable. When seeking out
investments with the potential for future growth, Ben Graham would be hesitant to invest in
a company with this level of debt. In addition, due to the recent company acquisitions and
the volatile economy, the rate of earnings has not increased at a consistent level, which Ben
Graham would consider a significant risk. All financials considered, Mr. Graham would
potentially consider investing in Team Inc.
Figure 9: Ben Graham’s Investment Dial

27. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org) November 9, 2015
27
Earnings per share (ttm) 9.41$ Price: 38.14$
Earnings to Price Yield 24.68%
10 Year Treasury (2X) 4.72%
P/E ratio as of 5/31/11 17.4
P/E ratio as of 5/31/12 16.8
P/E ratio as of 5/31/13 23.6
P/E ratio as of 5/31/14 29.9
P/E ratio as of 5/31/15 21.5
Current P/E Ratio 4.1
Dividends per share (ttm) ‐$ Price: 38.14$
Dividend Yield Nil
1/2 Yield on 10 Year Treasury 1.18%
Stock Price 38.14$
Book Value per share as of 8/31/15 15.77$
150% of book Value per share as of 8/31/15 23.65$
Interest‐bearing debt as of 8/31/15 359,100$
Book value as of 8/31/15 329,699$
Current assets as of 8/31/15 301,256$
Current liabilities as of 8/31/15 84,909$
Current ratio as of 8/31/15 3.5
EPS for year ended 5/31/15 1.85$
EPS for year ended 5/31/14 1.40$
EPS for year ended 5/31/13 1.53$
EPS for year ended 5/31/12 1.59$
EPS for year ended 5/31/11 1.32$
EPS for year ended 5/31/15 1.85$ 32%
EPS for year ended 5/31/14 1.40$ ‐8%
EPS for year ended 5/31/13 1.53$ ‐4%
EPS for year ended 5/31/12 1.59$ 20%
EPS for year ended 5/31/11 1.32$
Stock price data as of November 9, 2015
TEAM INC. (TISI)
Ben Graham Analysis
Hurdle # 1: An Earnings to Price Yield of 2X the Yield on 10 Year Treasury
Yes
Hurdle # 2: A P/E Ratio Down to 1/2 of the Stocks Highest in 5 Yrs
Yes
Hurdle # 8: Stability in Growth of Earnings
No
Hurdle # 5: Total Debt less than Book Value
No
Hurdle # 6: Current Ratio of Two or More
Yes
Hurdle # 7: Earnings Growth of 7% or Higher over past 5 years
Yes
Hurdle # 3: A Dividend Yield of 1/2 the Yield on 10 Year Treasury
No
Hurdle # 4: A Stock Price less than 1.5 BV
No

28. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org)November 9, 2015
28
TEAM INC. (TISI)
Annual and Quarterly Earnings
In thousands
2013 A2014 A2015 A31‐Aug A30‐Nov E29‐Feb E31‐May E2016 E31‐Aug E30‐Nov E28‐Feb E31‐May E2017 E
Revenues714,311$ 749,527$ 842,047$ 222,694$ 303,579$ 343,781$ 404,016$ 1,274,069$ 401,907$ 448,444$ 446,555$ 507,022$ 1,803,927$
Operating expenses501,346 527,611 584,054 159,583 204,107 251,801 275,201 890,692 288,007 301,505 327,077 345,365 1,261,955
Gross profit212,965 221,916 257,993 63,111 99,472 91,980 128,815 383,377 113,899 146,939 119,478 161,657 541,973
Selling, general and administrative expenses158,355 171,455 189,528 58,140 63,295 86,218 86,436 294,089 75,192 62,863 82,029 73,888 293,972
Earnings from unconsolidated affiliates992 822
Gain on revaluation of contingent consideration2,138 (522) (522)
Operating Income55,602 53,421 68,465 4,449 36,177 5,762 42,379 88,766 38,708 84,076 37,448 87,769 248,001
Interest expense2,734 2,851 2,489 1,712 2,815 3,124 3,394 11,046 3,355 3,355 3,355 3,355 13,421
Foreign currency (gain) loss943 4,185 1,509 493 493
Write‐off of land development costs/Loss on investment in venezuela1,177
Earnings before income taxes51,925 46,385 63,290 2,244 33,362 2,637 38,984 77,227 35,353 80,721 34,093 84,413 234,580
Provision for income taxes19,211 16,236 22,793 819 12,010 949 14,034 27,813 12,727 29,059 12,274 30,389 84,449
Less Income available from non‐controlling interest278 294 427
Net Income32,436$ 29,855$ 40,070$ 1,425$ 21,351$ 1,688$ 24,950$ 49,414$ 22,626$ 51,661$ 21,820$ 54,025$ 150,131$
Basic earnings per share1.61$ 1.46$ 1.95$ 0.07$ 0.98$ 0.07$ 0.83$ 1.95$ 0.75$ 1.70$ 0.72$ 1.77$ 4.95$
Diluted earnings per share1.53$ 1.40$ 1.85$ 0.07$ 0.94$ 0.06$ 0.80$ 1.83$ 0.72$ 1.64$ 0.69$ 1.71$ 4.77$
Weighted average shares outstanding:
Basic20,203 20,439 20,500 20,366 21,716 25,909 30,096 25,906 30,210 30,307 30,383 30,454 30,380
Diluted21,166 21,285 21,651 21,429 22,816 27,009 31,196 27,006 31,310 31,407 31,483 31,554 31,480
SELECTED COMMON‐SIZE AMOUNTS
Operating expenses70.19%70.39%69.36%71.66%67.23%73.24%68.12%69.91%71.66%67.23%73.24%68.12%69.96%
Gross profit29.81%29.61%30.64%28.34%32.77%26.76%31.88%30.09%28.34%32.77%26.76%31.88%30.04%
Selling, general and administrative expenses22.17%22.88%22.51%26.11%20.85%25.08%21.39%23.08%18.71%14.02%18.37%14.57%16.30%
Operating Income7.78%7.13%8.13%2.00%11.92%1.68%10.49%6.97%9.63%18.75%8.39%17.31%13.75%
Earnings before income taxes7.27%6.19%7.52%1.01%10.99%0.77%9.65%6.06%8.80%18.00%7.63%16.65%13.00%
Provision for income taxes2.69%2.17%2.71%0.37%3.96%0.28%3.47%2.18%3.17%6.48%2.75%5.99%4.68%
Net Income4.54%3.98%4.76%0.64%7.03%0.49%6.18%3.88%5.63%11.52%4.89%10.66%8.32%
SELECTED YEAR TO YEAR CHANGES
Revenues14.52%4.93%12.34%18.38%26.17%96.91%69.24%51.31%80.47%47.72%29.90%25.50%41.59%
Operating expenses16.95%5.24%10.70%21.09%26.17%96.91%69.24%52.50%80.47%47.72%29.90%25.50%41.68%
Gross profit9.18%4.20%16.26%12.04%26.17%96.91%69.24%48.60%80.47%47.72%29.90%25.50%41.37%
Selling, general and administrative expenses13.32%8.27%10.54%30.65%26.17%96.91%69.24%55.17%29.33%‐0.68%‐4.86%‐14.52%‐0.04%
Operating Income‐1.58%‐3.92%28.16%‐62.38%26.17%96.91%69.24%29.65%770.03%132.40%549.97%107.11%179.39%
Interest expense14.87%4.28%‐12.70%174.80%366.86%457.93%382.85%343.79%95.98%19.19%7.39%‐1.15%21.50%
Earnings before income taxes‐1.08%‐10.67%36.44%‐79.64%21.60%411.07%60.32%22.02%1475.42%141.96%1192.81%116.53%203.75%
Net Income‐1.44%‐7.96%34.22%‐79.73%22.95%455.19%62.34%23.32%1487.76%141.96%1192.81%116.53%203.82%
2017 E2016 E

29. Team Incorporated (TISI) BURKENROAD REPORTS (www.burkenroad.org)November 9, 2015
29
TEAM INC. (TISI)
Annual and Quarterly Balance Sheets
In thousands
31‐May‐13 A31‐May‐14 A31‐May‐15 A31‐Aug A30‐Nov E29‐Feb E31‐May E31‐May‐16 E31‐Aug E30‐Nov E28‐Feb E31‐May E31‐May‐17 E
Current Assets:
Cash and cash equivalents34,201$ 34,656$ 33,211$ 39,976$ 3,648$ 3,772$ 116,643$ 116,643$ 147,698$ 132,368$ 168,478$ 177,040$ 177,040$
Restricted Cash5,000 5,000 5,000 5,000 5,000
Receivables, net172,108 175,601 212,934 210,140 284,918 421,075 375,059 375,059 373,101 420,878 423,762 470,683 470,683
Income tax receivable
Inventories26,507 25,537 26,005 29,248 39,005 91,847 52,019 52,019 54,440 57,617 63,199 65,282 65,282
Deferred income taxes5,321 4,717 5,926 3,983 4,373 5,141 5,054 5,054 5,073 5,144 5,483 5,525 5,525
Prepaid expenses and other current assets8,781 8,303 10,620 12,909 11,765 21,709 21,709 21,709 21,709 21,709 21,709 21,709 21,709
Total current assets246,918 248,814 288,696 301,256 348,708 548,543 575,484 575,484 602,021 637,716 682,630 740,237 740,237
Property, plant and equipment, at cost179,990 203,621 219,050 244,623 251,412 308,280 316,340 316,340 325,357 356,343 365,612 375,471 375,471
Less: accumulated depreciation105,051 113,660 121,124 125,661 132,254 139,716 148,065 148,065 156,648 165,777 175,455 185,395 185,395
Property, plant and equipment, net74,939 89,961 97,926 118,962 119,158 168,564 168,274 168,274 168,709 190,566 190,157 190,076 190,076
Assets held for sale5,207 5,207 5,207
Intangible assets, net of accumulated25,950 23,513 20,268 97,736 96,986 103,849 103,099 103,099 102,349 101,599 100,849 100,099 100,099
Goodwill103,466 113,763 107,773 262,194 262,194 443,689 443,689 443,689 443,689 443,689 443,689 443,689 443,689
Other assets, net2,907 1,248 467 2,423 2,423 2,423 2,423 2,423 2,423 2,423 2,423 2,423 2,423
Deferred income taxes816 2,435 3,496 2,097 2,302 2,707 2,661 2,661 2,671 2,708 2,887 2,909 2,909
Total assets460,203$ 484,941$ 523,833$ 784,668$ 831,772$ 1,269,775$ 1,295,631$ 1,295,631$ 1,321,863$ 1,378,702$ 1,422,634$ 1,479,433$ 1,479,433$
Current Liabilities:
Accounts payable22,411$ 21,755$ 32,854$ 25,604$ 35,166$ 44,482$ 47,101$ 47,101$ 47,290$ 47,926$ 54,413$ 54,553$ 54,553$
Other accrued liabilities49,165 48,391 54,185 58,682 71,599 90,567 95,899 95,899 96,285 97,579 110,787 111,073 111,073
Income tax payable1,228 4,997 4,185 623 623 623 623 623 623 623 623 623 623
Total current liabilities72,804 75,143 91,224 84,909 107,388 135,672 143,623 143,623 144,199 146,128 165,823 166,250 166,250
Deferred income taxes17,166 15,655 15,631 8,668 8,626 12,652 12,635 12,635 12,636 13,184 13,164 13,152 13,152
Long‐term debt72,946 73,721 78,484 359,062 359,062 437,953 427,953 427,953 427,953 427,953 427,953 427,953 427,953
Other Long‐Term Liabilities5,097 3,377 3,119 2,330 2,330 17,016 17,016 17,016 17,016 17,016 17,016 17,016 17,016
Total liabilities 168,013 167,896 188,458 454,969 477,407 603,294 601,227 601,227 601,804 604,280 623,955 624,371 624,371
Stockholders' equity:
Common stock, par value6,176 6,142 6,273 6,495 6,532 9,011 9,045 9,045 9,079 9,103 9,124 9,146 9,146
Non‐controlling Interest5,384 5,678 6,034
Additional paid‐in capital99,278 105,872 115,642 117,196 120,473 428,424 431,362 431,362 434,357 437,035 439,451 441,789 441,789
Retained earnings (deficit)184,485 202,032 242,102 243,527 264,878 266,566 291,516 291,516 314,142 365,803 387,623 441,647 441,647
Accumulated other comprehensive income(1,789) (2,679) (13,538) (16,381) (16,381) (16,381) (16,381) (16,381) (16,381) (16,381) (16,381) (16,381) (16,381)
Treasury stock, at cost(1,344) (21,138) (21,138) (21,138) (21,138) (21,138) (21,138) (21,138) (21,138) (21,138) (21,138) (21,138)
Total stockholders' equity292,190 317,045 335,375 329,699 354,365 666,482 694,403 694,403 720,059 774,422 798,679 855,062 855,062
Total liabilities and stockholders' equity460,203$ 484,941$ 523,833$ 784,668$ 831,772$ 1,269,775$ 1,295,631$ 1,295,631$ 1,321,863$ 1,378,702$ 1,422,634$ 1,479,433$ 1,479,433$
SELECTED COMMON SIZE BALANCE SHEET AMOUNTS ( % of net sales)
Receivables, net24.09%23.43%25.29%94.36%93.85%122.48%92.83%29.44%92.83%93.85%94.90%92.83%26.09%
Inventories3.71%3.41%3.09%13.13%12.85%26.72%12.88%4.08%13.55%12.85%14.15%12.88%3.62%
Prepaid expenses and other current assets1.23%1.11%1.26%5.80%3.88%6.31%5.37%1.70%5.40%4.84%4.86%4.28%1.20%
Property, plant and equipment, net10.49%12.00%11.63%53.42%39.25%49.03%41.65%13.21%41.98%42.49%42.58%37.49%10.54%
Accounts payable3.14%2.90%3.90%11.50%11.58%12.94%11.66%3.70%11.77%10.69%12.19%10.76%3.02%
Other accrued liabilities6.88%6.46%6.43%26.35%23.59%26.34%23.74%7.53%23.96%21.76%24.81%21.91%6.16%
SELECTED COMMON SIZE BALANCE SHEET AMOUNTS ( % of total assets)
Total current assets53.65%51.31%55.11%38.39%41.92%43.20%44.42%44.42%45.54%46.25%47.98%50.04%50.04%
Property, plant and equipment, net16.28%18.55%18.69%15.16%14.33%13.28%12.99%12.99%12.76%13.82%13.37%12.85%12.85%
Goodwill22.48%23.46%20.57%33.41%31.52%34.94%34.25%34.25%33.57%32.18%31.19%29.99%29.99%
Other assets, net0.63%0.26%0.09%0.31%0.29%0.19%0.19%0.19%0.18%0.18%0.17%0.16%0.16%
Total current liabilities15.82%15.50%17.41%10.82%12.91%10.68%11.09%11.09%10.91%10.60%11.66%11.24%11.24%
Long‐term debt15.85%15.20%14.98%45.76%43.17%34.49%33.03%33.03%32.37%31.04%30.08%28.93%28.93%
Minority Interest0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Total stockholders' equity63.49%65.38%64.02%42.02%42.60%52.49%53.60%53.60%54.47%56.17%56.14%57.80%57.80%
2017 E2016 E