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.

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. 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. 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. I would now like to turn the call over to 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. 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. 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. Gross margin was 24.5%, down from 29.1% in the prior year…

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. 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. 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%. 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…

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. 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. 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. Third-party industry sources are forecasting a 40% increase in turnaround in large capital projects in…

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.