Table of Content TEAM, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited, in thousands except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 Adjusted Net Income (Loss): Net loss from continuing operations $ (23,124) $ (56,932) $ (75,722) $ (150,087) 1 Professional fees and other 3,301 3,339 9,121 13,915 2 Legal costs (credit) and other 4,785 (700) 5,635 2,571 3 Severance charges, net 387 933 1,564 3,961 4 Natural disaster insurance recovery — (324) — (1,196) 5 Loss on debt extinguishment — 30,083 1,585 30,083 6 Write-off of other assets 666 — 1,295 — 7 Tax impact of adjustments and other net tax items (37) (48) (159) (79) $ (14,022) $ (23,649) $ (56,681) $ (100,832) Adjusted net loss Adjusted net loss per common share: Basic $ (3.18) $ (5.46) $ (12.97) $ (24.08) Consolidated Adjusted EBIT and Adjusted EBITDA: Net loss from continuing operations $ (23,124) $ (56,932) $ (75,722) $ (150,087) Provision (benefit) for income taxes 558 (876) 4,578 3,306 Interest expense, net 11,682 21,344 55,181 85,052 Foreign currency loss (gain) 1,510 1,263 734 (2,692) 8 Pension credit (159) (178) (640) (749) Loss (gain) on equipment sale (5) 69 (291) (4,200) 5 Loss on debt extinguishment — 30,083 1,585 30,083 1 Professional fees and other 3,301 3,339 9,121 13,915 2 Legal costs (credit) and other 4,785 (700) 5,635 2,571 3 Severance charges, net 387 933 1,564 3,961 4 Natural disaster insurance recovery — (324) — (1,196) 6 Write-off of other assets 666 — 1,295 — Consolidated Adjusted EBIT (399) (1,979) 3,040 (20,036) Depreciation and amortization Amount included in operating expenses 3,529 3,757 14,555 15,600 Amount included in SG&A expenses 5,862 5,246 23,317 20,853 Total depreciation and amortization 9,391 9,003 37,872 36,453 Non-cash share-based compensation costs 731 (323) 1,590 247 Consolidated Adjusted EBITDA $ 9,723 $ 6,701 $ 42,502 $ 16,664 Free Cash Flow: Cash provided by (used in) operating activities $ 11,083 $ (1,152) $ (10,986) $ (51,725) Capital expenditures (2,997) (3,245) (10,430) (20,544) $ 8,086 $ (4,397) $ (21,416) $ (72,269) Free Cash Flow ____________________________________ 1 The three and twelve months ended December 31, 2023, includes $2.2 million and $6.7 million, respectively, related to costs associated with debt financing, and $1.1 million and $2.4 million, respectively, for lease extinguishment charges, support and other costs. The three and twelve months ended December 31, 2022, includes $1.8 million and $10.2 million, respectively, related to costs associated with debt financing, and $1.5 million and $3.7 million of corporate support and other costs. 2 Primarily relates to accrued legal matters, adjustments to legal reserves and other legal fees related to debt restructuring and other non-routine matters. These amounts include $3.9 million for 2023 and $1.6 million for 2022 related to accruals for repayment of pandemic related subsidies in foreign jurisdiction. 3 For 2023, represents customary severance costs associated with staff reductions across multiple departments. For 2022, severance charges represent costs associated with executive departures and our ongoing cost reduction efforts across multiple segments. 17