Team, Inc. F4Q09 (Qtr End 05/31/09) Earnings Call Transcript

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2009-08-05 11:13:17.0

Tags: Team Inc., Call Transcript, Customer, Earnings, Stephens Inc., Pricing, Currency & Foreign Exchange, Marketing Research, Recruitment & Selection, Marketing, Finance, Human Resources, Workforce Management, Seeking Alpha

Question-and-Answer Session

Operator

Thank you Mr. Hawk. (Operator instructions) Our first question comes from Matt Duncan from Stephens Inc. Please go ahead.

Matt Duncan - Stephens Inc

Good morning Phil and Ted and congrats on a pretty solid performance this quarter in spite of market conditions you are facing.

Phil Hawk

Good morning Matt.

Matt Duncan - Stephens Inc

The first question I have got is with regard to pricing, it looks to us like from the gross margin you put up in this quarter it seems to be holding up fairly well. Can you just give us some general comments around what pricing for your services has been like in these difficult market conditions?

Phil Hawk

I think your general condition would be our conclusion that it is holding up fairly well. As we mentioned and alluded to, these are extremely tough times for our customers and many of them are asking for help and kind of visiting with us and really all of their service providers looking for ways to improve their cost and productivity. We are actively engaged in those conversations. Again our thrust with these customers is to fully engage and share with them and talk through all aspects of these issues and their needs and our circumstances.

A couple of things that we really focus on is because I think there is sometimes an impression in some of these customers that there have been very, very large price and margin increases over the past several years that they are again hoping to recapture or kind of I guess reflect the deflation back in their cost structure. That frankly just is not the case with us and so one of the things that we share with customers is just what our historical price increases have been with them and we share with them our margins, obviously we are a public company and walk through that.

So that with the context of that then we work through what are some reasonable ways we can work together that are win-win. We do fine-tune rates from time to time with individual customers but our real trust where the real leverage is kind of leveraging volume on our kind of a broader presence. And I think kind of combined with all of that what we expect is not a material change in our job margins overall but again we need to again stay very close and responsive to our customers and responsive to their needs and that is what we are trying to do.

 

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