Philip J. Hawk - Executive Chairman, Chief Executive Officer and Chairman of Executive Committee Ted W. Owen - Chief Financial Officer, Principal Accounting Officer, Executive Vice President and Treasurer

Stephen Ragard - Stephens Inc., Research Division Arnold Ursaner - CJS Securities, Inc. Tahira Afzal - KeyBanc Capital Markets Inc., Research Division Charles E. Redding - BB&T Capital Markets, Research Division Tristan Richardson - D.A. Davidson & Co., Research Division Richard Wesolowski - Sidoti & Company, LLC

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2013 Team, Inc. Earnings Conference Call. My name is Patina, and I will be your coordinator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today's call, Mr. Phil Hawk, Chief Executive Officer. Please proceed. Philip J. Hawk: Thank you, Patina, and good morning, everyone. It's my pleasure to welcome you to the Team Inc. web conference call to discuss recent company performance. Again, my name is Phil Hawk. I'm the Chairman and CEO of Team. Joining me again this morning is Mr. Ted Owen, the company's Executive Vice President and Chief Financial Officer. The purpose of today's conference call is to discuss our recently released financial results for the company's fourth fiscal quarter and full fiscal year ending May 31, 2013. As with past calls, our primary objective is to provide our shareholders and potential shareholders with an enhanced understanding of our company's performance and prospects. This discussion is intended to supplement our quarterly earnings releases, 8-K, 10-Q and 10-K filings to the SEC as well as our annual report. Ted will begin with a review of the financial results. I will then follow Ted with a few remarks and observations about our performance and prospects. Following these remarks, we will take questions from our listeners. With that introduction, Ted, let me turn it over to you. Ted W. Owen: Thank you, Phil. Again, as usual, I'll start with the lawyer's disclosure. I want to remind everyone that any forward-looking information that we discuss today is being provided in accordance with the provisions of the Private Securities Litigation Reform Act of 1995. We made reasonable efforts to ensure that the information, assumptions and beliefs upon which these forward-looking information is based are current, reasonable and complete. However, a variety of factors could cause actual results to differ materially from those anticipated in any forward-looking information. A description of those factors is set forth in the company's SEC filings. Accordingly, there can be no assurance that the forward-looking information discussed today will occur or that our objectives will be achieved. We assume no obligation to publicly update or revise any forward-looking statements made today or any other forward-looking statements made by the company, whether as a result of new information, future events or otherwise. Now for the financial results. Consistent with our May guidance, for the fourth quarter, we reported net income attributable to shareholders of $0.54 per diluted share on revenues of $201 million. That reflects a total growth rate of 7% for the quarter against a very strong comparable for the fourth quarter of 2012. Our operating profit margin for the quarter was 9.5% compared to, again, the very strong 12.9% in last year's fourth quarter, primarily, as a result of lower gross margins in the quarter, as we also discussed on the May call and which Phil will more fully discuss in his remarks. For the full year, our adjusted net income attributable to shareholders was $1.55 per diluted share on revenues of $714 million, which is up 15% over the prior year. The operating profit margin for the full year was 7.8%, down from 9.1% last year again due to the imbalance in resources that we discussed on our last call. The adjusted net income for the year excludes a $600,000 pre-tax, non-routine charge that we took in the third quarter associated with the Venezuelan currency devaluation announced by its government in February of this year. And by the way, we remain concerned about the highly inflationary and restrictive economy in Venezuela and believe that a further devaluation is possible in fiscal 2014. Now with respect to some cash flow related items. Capital expenditures were $7 million in the quarter and $26 million for the year. Depreciation and amortization was $5 million in the quarter and $19.7 million for the year. Non-cash compensation expense was $900,000 for the quarter and $3.9 million for the year. So adjusted EBITDA for the quarter was $25.2 million and $79.2 million for the year. At year-end, our total debt was $73 million, which is down $16 million since the end of the third quarter due to strong cash flows in the quarter. And cash at the end of the year was $34 million. Therefore, our net debt was $39 million, and our net debt to trailing 12 months of EBITDA was 0.5:1. And with that, Phil, I will turn it back to you. Philip J. Hawk: Thanks, Ted. Now I would like to provide a few additional perspectives on both our recently completed quarter and year, as well as our outlook for the current fiscal year 2014. All financial results referred to in my remarks will be adjusted results that exclude non-routine items consistent with the information in our earnings release. Let's begin with the review of our fourth quarter performance. Overall performance was in line with our most recent revised guidance, but below our own expectations for our business over the longer term. As Ted indicated, our revenues for the quarter were $201 million, up $13 million or 7% from the prior-year period. When providing earlier revisions to our revenue guidance, we indicated that, based on our field forecast, we were expecting fewer, very large turnaround projects in the quarter compared to the very strong activity in the corresponding prior-year period. Our actual very large project results were directionally consistent with this forecast, but a bit stronger than we had expected. Total very large project revenues declined by about $7 million versus the prior year rather than the $14 million originally projected in our field estimates. The total number of very large customers in the quarter was 5 versus 7 last year and 2 in the original forecast, as several projects grew to be larger than they originally projected -- excuse me, to be larger than originally projected, exceeding the $2 million threshold that we use to define very large projects. While we are continuing to use this forecast process going forward, as you can see, it's still a work in progress. Shifting back to fourth quarter results. We were pleased that our small project day-to-day business continued to grow nicely in the quarter, resulting in overall 7% growth. Again, as we've previously discussed, I remain confident in our current and future organic business growth opportunities. We previously acknowledged that we were slow to anticipate and respond to the lumpiness and the large turnaround project timing. However, our position in our markets remains very strong and attractive. The continued double-digit growth of our day-to-day business during the quarter is additional evidence supporting this perspective. We do not expect or anticipate any permanent shift in either our overall opportunities or our future mix of business. And as we indicated, despite our revenue growth, total operating profit in the quarter actually declined about $5 million from the prior year. The primary driver of this profit decline was disappointing gross margin performance. For the quarter, Team's gross margin as a percentage of revenues was approximately 31%, about 3 percentage points lower than the nearly 34% gross margin earned in the corresponding prior period. In fairness, the prior-year quarter, the quarterly results reflected extraordinary leverage in a couple of our regions due to several very large projects that had the effect of significantly increasing the resulting gross margin percentage. Nevertheless, we still expect to achieve a 32%-plus gross margin in seasonally strong quarters like this fourth quarter. As a result, our operating profit margin in the quarter was 9.5%. While consistent with our recent guidance, it was about 1.5 to 2 percentage points below our earlier expectations. Let's now move to a discussion of our full-year results. Reflecting very strong revenue growth in the first half of the year, Team earned record revenues of $714 million, up about $90 million or 15% from the prior-year period. Excluded -- excluding acquisition-related revenues of about $20 million, total organic growth for the year was approximately 11%. While we have enjoyed attractive growth rates in all of our service lines longer term, our major growth drivers in this year have been inspection- and assessment-related services. The total growth this year for these services was $76 million, up about 29%. Within inspection services, Team grew significantly in the Quest Integrity Group, as well as with tank inspection, mechanical integrity and advanced inspection services. We continue to be pleased with our progress in building and extending our market presence. And while organic growth continues to be our primary focus, we are also supplementing this growth with new business and additional complementary capabilities through acquisitions. In the past fiscal year, we added 3 small companies: A North American-based tank inspection and repair services firm, an Asia-Pacific-based remote video inspection services company and a European valve service repair company. We are delighted with our new colleagues. Because the businesses are small, they've had a very modest impact on our results in this first year together. However, we remain very optimistic about our future growth that will be possible as a result of these new regional platforms and their respective capabilities. And just a couple of weeks ago, we announced the purchase of a small U.S. rope access services company with a leading position on the West Coast. Again, while the current business is fairly small, we have exciting plans to extend these service capabilities across our service network going forward. From a business development perspective, I remain pleased with our overall performance this year and our attractive position for continued growth for many years to come. Let's now shift to operating profits. Despite attractive overall growth in revenue, our operating profits for the year were about flat with last year. For the year, total operating profit or EBIT was about $56 million and its corresponding operating profit margin was about 8%. We experienced a decline in both gross margin and operating profit margin of approximately 1.5 percentage points. As discussed previously, we believe the causes of this decline were primarily operational and execution missteps where we expanded our resource base ahead of our business growth. Simply put, we were slow to react to the slower overall growth rates in the second half, leading to higher support expenses and lower utilization levels in some areas. We do not expect this to be a chronic issue or a source of negative margin pressure for Team. In each of our service locations, we are focusing on the key performance levers that will guide our appropriate actions to maintain or restore the appropriate revenue and resource balance. These key areas of focus include labor utilization rates, indirect cost expenses, job margins and in the [ph] erosion of job margins. While we believe the primary source of our shortfall is within the indirect expense line, we are also focused on obtaining rate increases to offset labor market wage increases that are beginning to become more prevalent in some areas and appropriate SG&A headcount and expense level for the level of business opportunities. Our long-term track record of consistent profit margin performance demonstrates our capabilities to effectively manage our resources. We expect to return to that performance level soon. Despite our challenges, I would like to note that both our fourth quarter and full-year profits were each the second best in Team's history for their respective periods. With a little fine-tuning, we expect to return to our regular expectations of a Team new best performance in this current year. Now looking forward to the current fiscal year 2014, I thought it would be appropriate to provide a little more detail to our earnings guidance than we have provided in past years. First, as a planning context, we expect our markets and overall demand for our services during the year to continue to be attractive, on par with the most recent year. In particular, we expect North American markets to benefit from active E&P development levels along with the associated infrastructure construction, stable-to-strong primary demand in the markets of our major customer segments due to both an improving North American economy and an improving relative cost position to non-North American competitors due to lower energy costs and feedstock costs. And the continuation of procurement consolidation trends, which favor larger, more professional service providers like Team. However, 1 headwind to this outlook is the likely continued postponement of new Canadian oil sands upgrader facilities due to the large volumes of light crude coming on-stream from U.S. shale production. Nonetheless, even in this region, there is still considerable maintenance demand for Team to serve. Given this positive outlook, we are forecasting approximately 10% revenue growth to the $775 million to $800 million range for the current fiscal year 2014. We are expecting attractive organic growth from all 3 of our business groups similar to our historical growth patterns. With this revenue performance, we expect to earn between $1.90 and $2.05 per fully diluted share. This net income performance corresponds to EBIT or operating profit in the range of $68 million to $75 million and an EBITDA range of $92 million to $98 million. The implied operating profit margin of the midpoint of these ranges is about 9%, an improvement of slightly more than 1 percentage point from that achieved in fiscal year 2013, but slightly less than those results achieved in fiscal year 2012. For this operating profit margin estimate, the corresponding gross margin forecast is 30.5% to 31%, a 1.5 to 1 percentage point improvement versus last year. SG&A expenses are estimated to be between 21.5% and 22%, up to a 0.5 percentage point improvement. To achieve this plan, we simply need to perform at the historical levels that we have achieved most of the years over the past decade. Now similar to past years, we will not be providing quarterly financial estimates, but we will be providing updates to our annual guidance on a quarterly basis or whenever the situation warrants. The last subject I would like to briefly touch on is our recent organization alignment, which we announced in late June. With this alignment, we now have 3 primary business units, each headed by business group president reporting directly to me. As a reminder, the 3 business groups are: Inspection and Heat Treating services, Mechanical services and Quest Integrity Group. The primary change with this new alignment is to combine all of the dedicated commercial, technical and operational support groups with their corresponding field service groups into integrated business units. While our previous approach with more centralized support groups had served Team well for many years, we expect our new alignment to provide greater focus, flexibility and agility to identify and capitalize on our business opportunities within each business group. I believe this will become even more important, as our business gets ever larger. A second related objective is to foster a greater focus on innovation across all of our business groups. While this can include the development of new technologies or technical approaches, it also includes potential combinations of services or changes in business processes that can enhance the value of our services to our customers. To supplement the primary development responsibilities of the business groups, we have established a technology advisory council to provide input as well as oversight to our innovation initiatives across the company. This is a long-term initiative, but we do expect -- we do not expect immediate results from these efforts, but we do expect to identify and pursue a number of opportunities to develop -- or improve service solutions for our customers. Our leadership in these initiatives will benefit Team in many positive ways. That now concludes my remarks, and let's -- Patina, if I can turn it back to you, and let's open it up for questions from our listeners.

[Operator Instructions] Your first question comes from the line of Stephen Ragard representing Stephens, Inc. Stephen Ragard - Stephens Inc., Research Division: My first question is on your fiscal '14 revenue outlook. Can you maybe talk around what type of growth you're expecting from the 3 segments: The inspection, turnaround and on-stream service lines? Philip J. Hawk: Well, the -- again, as we've kind of said in the past, Stephen, I think it's very difficult to precisely forecast revenues, kind of, even in aggregate, let alone, by segment, but I -- as I mentioned, we expect kind of attractive organic growth in all of our service lines, on par with or directionally consistent with what we've done historically. I'll point out that this year, as you saw in the data, that inspection and assessment services led the way and enhanced the bulk of the growth with, again, very attractive, I think, 29% overall growth. If you would look -- and it was lesser growth in mechanical services, I think, in the 3% or 4% range, kind of, overall. I would point out that, at the year prior, that the growth rates of both the mechanical services and the inspection services groups were in the 20% range. And so, what we -- I don't expect 20%, and that's not what we're forecasting, but I'm expecting attractive growth rates for the mechanical services groups just like we've had historically in those areas. I think the on-stream services will tend to grow slower because of, again, a more mature position, but we have a lot of optimism for our turnaround services as well as our inspection services. Again, it maybe a conservative posture, I think we'll just wait for the year to kind of unfold a little bit, but our 10% overall guidance is consistent with past years in terms of our revenue growth. Stephen Ragard - Stephens Inc., Research Division: Sure. Okay. And then, my follow-up, I guess, is on the gross margin. I know you talked about the decline in the quarter tied to indirect cost performance, and I appreciate all the color you provided and the puts and takes there. I guess, maybe, can you talk about when you guys feel like you have the organization back in balance, obviously, taking into account the seasonality of your businesses, August quarter versus November quarter? Philip J. Hawk: Well, I think we're -- it's a work in progress, and we're -- the -- we have very clear focus and a very clear vision of what success looks like, and it's really kind of getting back to our historical levels. You are correct to point out that, because of the seasonality of our business, that affects the gross margin and it fluctuates quarter-to-quarter to reflect, in part, that seasonality. But we expect to make progress throughout the year. It -- we didn't instantly gets -- get right or get everything perfect on June 1, but we've been working on it in terms of balance really throughout the back half of the quarter and into the new quarter, the first quarter of the current fiscal year. So we expect and anticipate improvement throughout the year.

Your next question comes from the line of Arnie Ursaner representing CJS Securities. Arnold Ursaner - CJS Securities, Inc.: During the rest of the year, trends in Canada weakened pretty significantly and caught you a little by surprise. Can you freshen up what you are seeing in Canada and how this is embedded in your outlook for the upcoming year? Philip J. Hawk: Yes, I think we had a couple of issues in Canada. I think the big macro issue was that the level of project work related to expansion of Upgrader capacity, which started the year very strong last year, really ceased fairly suddenly around the end of the calendar year, kind of, reflecting, I think, the realization of the market or industry that the amount of -- as I mentioned in my remarks, the amount of sweet crude coming on-stream in the U.S. was really putting a -- really depressing the market prices and value and therefore the investment premise of some of these very large capital investments with Upgraders. That is continuing to be the case, and we see no change in that. So that continues to be a headwind there. We also had a, kind of, a Team-specific issue with a major customer that changed ownership and it -- that impacted our relationship with that customer. That continues to impact that by the way. So that's a factor. But what -- on the positive side, there's still a tremendous amount of maintenance opportunities there, and we're continuing to build and expand our opportunities. So while we don't kind of see a return to the specific business opportunities we had in the same scope we had historically, but we continue to see attractive opportunities in Canada. And by the way, again, while it was certainly lower business levels in the fourth quarter than we enjoyed the prior year, particularly in the Western Canada area, it was an attractive profitable business for us. So it's not an area of concern in terms of, kind of, it's overall, kind of, positive contribution. But it has those headwinds in that area. We continue to see Canada and view Canada as a very attractive and growth area of our business. Ted W. Owen: [indiscernible] tack on a little bit on that, Arnie, that while specifically in the oil sands it's not as robust as it had been. We have a lot of really good attractive opportunities outside of the oil sands. So our Canadian business is not just about the oil sands. We have great opportunities in other parts of Alberta, in Saskatchewan, in Eastern Canada. So there's a lot of good things going on. Philip J. Hawk: And there's a lot of pipeline work going on in it as well that we're well positioned to participate in. Arnold Ursaner - CJS Securities, Inc.: So all in, for the upcoming year embedded in your guidance, what percent of your revenues do you expect from Canada? And do you expect it to be up year-over-year? Philip J. Hawk: I don't -- I really -- you're giving us too much credit in terms of precision for the investment. I would say the Canadian growth for the year would probably be on par or slightly less than the overall company, I would just say, because of the very strong first half of last year. But we're expecting growth from, kind of, where we were in the second half of the year. I hope that's helpful.

Your next question comes from the line of Tahira Afzal representing KeyBanc. Tahira Afzal - KeyBanc Capital Markets Inc., Research Division: This is great. It seems like you guys are back on track. I would love to get an idea of those large clients and the benefit of over performance versus what you are forecasting. Perhaps you can highlight what your expectations are whether you've built that conservatively going forward and really other key driver for why you think you seeing signs probably expand [ph] [indiscernible] above your expectations? Philip J. Hawk: Sure. With regard to the, kind of, I guess, the increased revenues from large -- very large projects versus our forecast, I think it's more a statement of our forecasting skills or experience than anything else. It's just very difficult when projects get underway to know precisely how big they will be, and our field does the best they can with what they know and kind of what their estimates and sense of things are. And I think the fact that they -- the few of them crept up in size, it wasn't that we got new customers that we didn't know about, it's that projects just got a little bit bigger -- a few projects got a little bit bigger than they had been originally forecast. So again, I'm positive about our market position and as I've mentioned several times, but I don't see that as indicative that it's a lot stronger or that we had new conquests that we had not anticipated from that standpoint. I think your next, kind of, question was just, kind of, related to revenue growth or whether it was conservative or not. I guess, I'm going to say it somewhat facetiously as I hope it turns out to be, but I think it's a reasonable kind of baseline that we've used in the past years that kind of reflects kind of just the fundamental advantages that we have and to continue to just edge out our business presence and activities. We didn't go through a lot of the specifics. But as we have in past years, we've got a lot of initiatives underway to, kind of, be more attractive to our customers and offer more capabilities, and we think those will -- that plus just great service will continue to be the basis for us to continue to grow our business. And I think it's a reasonable expectation. It's one that we have met or exceeded virtually every year, and we expect to do so again this year, again, to meet that level. Regarding profit margins, what we're trying to basically do is just get back to basics and get back to where we've operated historically. And so, I think that's a reasonable expectation. We have clarity on how to do it and kind of where the focus needs to be. Obviously, we need to do it.

We'll move to the next question. You're next question comes from the line of Charlie Redding representing BB&T Capital Markets. Charles E. Redding - BB&T Capital Markets, Research Division: Just a little bit of a follow-up. I'm just kind of looking ahead to 2014 CapEx. Are there any one-time items perhaps that we should be accounting for? Is it really too difficult to tell at this point looking ahead? Ted W. Owen: We -- as we have in the last couple of years, we've expended an order of magnitude of about $5 million in each of the last couple of years on facility-related CapEx. I think that will still be true in fiscal 2014. So again, I think that our total spend in '13 was $26 million, about $5 million of that was facility-related. Probably about the same order of magnitude for 2014. Charles E. Redding - BB&T Capital Markets, Research Division: Okay. Great. And then, really quickly, was there any impact on operations during the quarter from the Geismar fire in Louisiana back in June? Philip J. Hawk: No.

Your next question comes from the line of Tristan Richardson representing D.A. Davidson. Tristan Richardson - D.A. Davidson & Co., Research Division: Just a quick question. In past couple of quarters, you guys have talked about pipe -- you're seeing a lot of activity on the pipeline side. And so, I'm just curious, [indiscernible] historically been mid-single digit as a percent of revenue, I'm curious where you see that going? I mean, could it be as much as 10% or more percent this year or next year? Philip J. Hawk: Well, that last 2 words maybe made it a little more difficult for me. The -- not sure about this year or next year. But longer term, as we look at the opportunities, we're excited about the -- expanding our service in -- and see kind of significant opportunities to expand our service in this area. With new construction, there's -- we've historically had, in the U.S., small diameter pipe inspection activities in a number of areas. As we get to Canada, we also have the -- with our AUT capabilities have a chance to kind of participate in large diameter kind of pipe construction, where automatic routers are installed -- or utilized kind of trailing those as well. Where we're excited, I think, is just there's a growing interest in the industry, and we think we're well situated. We have a lot of capabilities related to the inspection, monitoring and rehabilitation of existing kind of population -- or kind of existing installed pipelines. And they're aging, and there's been a lot of very high profile, kind of, failures that, kind of, again, foster greater interest on how do we, as an industry, do a better job of kind of monitoring and rehabilitating and repairing these systems appropriately and timely. That's a great opportunity for us. We have some very advanced inspection capabilities of the Quest Group that are very -- they're very active in terms of kind of inspecting unpiggable pipelines and kind of getting insights in the condition that here before was impossible. But in terms of true-up of those initial inspections and true-up activities and then rehabilitation activities and kind of managing projects related to those rehabilitation activities are all fertile areas for us. We're dabbling into them now and kind of developing capabilities and kind of best and kind of -- and really learning how to make that best offering or kind of fine-tune that. So longer term, I think it's a very exciting and very significant opportunity for the company. But to say that it will be 10% this year, I don't know. Tristan Richardson - D.A. Davidson & Co., Research Division: Sure. I appreciate it. And then -- I appreciate the color on Canada. I know Europe is a small piece of your business, but I'm curious on your, sort of, outlook or thoughts on Europe as far as growth or no growth or declines? Philip J. Hawk: I think we are in the best part of Europe in terms of the Northern Europe and I think there are some indications that, kind of, things are stabilizing a little bit there. But I would just say that our opportunities in Europe are market share growth not market growth. And we're -- we have a strong base in the Netherlands. We're expanding now into Northern Belgium. We have presence in the U.K. We're beginning to serve Germany from the Netherlands, but those are, kind of, I would say, the near-term market opportunities for us. And we're looking at the -- we mentioned about a services company that was in the Netherlands, and we're integrating those services with our other mechanical services to those -- to that market and see some nice opportunities as well. Your point is a right one, though, as it's still a relatively small part of Team. And we don't expect it to be the needle mover in the short run. Tristan Richardson - D.A. Davidson & Co., Research Division: And then, just one last one. In terms of your top line guidance for '14, does it include any assumption for future acquisitions? Philip J. Hawk: No.

Your next question comes from the line of Rich Wesolowski representing Sidoti & Company. Richard Wesolowski - Sidoti & Company, LLC: I apologize if this was asked. And if so, please disregard, but I was hoping you would flesh out something you had referred to in an earlier call this year, a business development effort in the pipeline integrity and program management realm. I'm curious, what services you're cultivating or bundling together? And what's the kind of scope you're going to manage there? Philip J. Hawk: Well, actually, it was just the last call. But just to kind of briefly expand that a little bit, I would say it's still a work in progress as we're trying to, kind of, explore what's the full range of service capabilities that would fit, kind of, within that service. But the ones that we offer today, we have, with the Quest Smart Pig, the true-up through an inspection services and we have some project -- pipeline project management services, again, that's kind of part of a Quest group that's, kind of, working with that involved in pipe cleaning, pig tracking and kind of sometimes related to our in-line inspection services, but not always. On the mechanical services side, the big service we have is the hot tapping, and we have some very high profile line connections and line isolations and line inventions, kind of, in that domain. I think the -- what I mentioned, I think what's yet to be determined or kind of will evolve over time is how and what kind of integration of these services will make the most sense and offer the most value to our customers, and we continue to explore and work with them on that. Richard Wesolowski - Sidoti & Company, LLC: And secondly -- lastly, on Quest, you've gone from what was some $20 million when you acquired it. It's approaching $60 million today. It's clearly more profitable than it was then. And I'm wondering, looking ahead, is there continued leverage in the profitability as it continues to grow especially in the pipeline tools, or do you approach some natural cap in the margin for that unit? Philip J. Hawk: Well, we'll be starting to report profitability at -- because it's a kind of a 1 of our 3 business units beginning here in the first quarter. I think, as you'll see, it's a little bit more profitable. It's incrementally because of the, again, the cap -- the technology investments involved for an incremental job. Its margins are certainly higher than kind of our other field service activities of either of our other business groups. But on an overall profitability, it's somewhat higher but not dramatically so, as you'll see the information. It's a few points higher. I think there's a probably, kind of a diminishing returns to that operating leverage because of just a significant investment required to continue to develop new technologies. Richard Wesolowski - Sidoti & Company, LLC: Right. And you've done pretty good for $43 million. You should... Ted W. Owen: We think so. Philip J. Hawk: We're -- well, we love all our businesses, but they have been a great addition. We're glad to have them on-board.

With no further questions, I would now like to turn the call back to Mr. Phil Hawk for closing remarks. Philip J. Hawk: Thank you, Patina, and I want to thank, everyone, for your participation in this call and your continuing interest in Team. We look forward to updating you on our progress during this first quarter of our new fiscal year around the 1st of October. In the meantime, everyone, have a good day. Bye now.

Thank you. Ladies and gentlemen, thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.