EPS from Continuing Operations for Nine Months Ended June 30, 2008 of $0.14 Compared to a Loss of $0.62 Per Share in the Prior Year SOMERSET, N.J., Aug. 14
SOMERSET, N.J., Aug. 14 /PRNewswire-FirstCall/ -- TeamStaff, Inc.
(Nasdaq: TSTF) a national provider of healthcare, logistics and administrative
staffing services, today announced its financial results for the third fiscal
quarter ended June 30, 2008.
TeamStaff's revenues for the three months ended June 30, 2008 were $17.8
million as compared to $16.6 million in the comparable quarter last year.
Income from continuing operations for the quarter ended June 30, 2008 was $0.6
million or $0.12 per share as compared to a loss of $1.3 million or ($0.27)
per share in the comparable quarter last year. Income from continuing
operations for the nine months ended June 30, 2008 was $0.7 million or $0.14
per share as compared to a loss of $3.0 million or ($0.62) per share in the
comparable nine months last year. Earnings per share in this release have
been retroactively adjusted so as to incorporate the effect of the one-to-four
reverse stock split effective April 21, 2008.
Commenting on the Company's turnaround, TeamStaff's President and CEO,
Rick J. Filippelli, stated, "Our government staffing division, TeamStaff
Government Solutions ("GS") continues to produce solid earnings. Our strategy
to expand into Department of Defense contract opportunities as well as
vertically driving our penetration in the Veterans Administration facilities
has yielded positive results. In addition, GS is now bidding on government
logistics staffing contracts such as warehouse management and base operating
support services and has several bids outstanding. Gross margins improved due
to higher pricing, direct cost control initiatives and more direct placements
of contracted employees with less reliance on teaming partners. In our travel
division, results were below internal expectations as the slowdown in
diagnostic imagining offset the increase in nursing orders we saw during the
quarter. As we anticipated, the JCAHO ('Joint Commission on the Accreditation
of Healthcare Organizations') certification awarded to us earlier this year
has provided additional recruiting as well as sales opportunities for us. As
we continue to add to our travel sales force and expand our marketing
initiatives, we believe the number of placements will increase and results
will improve in this division." Mr. Filippelli continued, "Overall, we
continue to execute on our turnaround plan with nine month income from
continuing operations improving by $3.7 million from a year ago."
TeamStaff's gross profit was $3.3 million, or 18.6% of revenues, in the
third quarter of fiscal 2008 as compared to $3.0 million, or 17.9% of
revenues, in the third quarter of fiscal 2007.
SG&A expenses were $3.0 million in the third quarter of fiscal 2008
compared to $3.1 million in the comparable quarter last year. Adjusted for
severance expense included in the three months ended June 30, 2007 and certain
insurance items in the three months ended June 30, 2008, SG&A expenses
increased $0.3 million. While the Company continues with its cost saving
initiatives, this increase is due to an additional 35% in new business
spending as well as certain employee costs. The Company seeks continued
elimination of overhead costs deemed to be non-essential to growth or
infrastructure.
Other income, net was $0.3 million for the three months ended June 30,
2008, primarily as a result of a change in estimate related to favorable
resolution of certain periods IRS tax assessments.
Net income, including the results from discontinued operations, was $0.5
million or $0.11 per share for the third fiscal quarter of 2008, compared to a
loss of $1.2 million or ($0.26) per share for the comparable quarter in fiscal
2007.
Cash and cash equivalents were $1.3 million at June 30, 2008.
Availability at June 30, 2008 under the Company's revolving credit facility
was approximately $2.8 million. There was no outstanding balance on the
credit facility as of June 30, 2008. The Company believes that cash on hand
and the availability under the existing revolving line of credit will provide
sufficient liquidity over the next twelve months.
Nine Month Results
TeamStaff's revenues for the nine months ended June 30, 2008 were $50.6
million as compared to $50.4 million last year. TeamStaff's gross profit was
$9.0 million, or 17.8% of revenues, for the nine months ended June 30, 2008 as
compared to $8.0 million, or 15.9% of revenues, for the nine months ended June
30, 2007.
SG&A expenses were $8.2 million and $9.8 million for the nine months ended
June 30, 2008 and 2007, respectively. Adjusted for severance expense included
in the nine months ended June 30, 2007 and certain insurance items in the nine
months ended June 30, 2008, SG&A expenses decreased $0.7 million, or 7%,
despite a 39% increase in new business expense. This increased spending is
related to increased sales and marketing efforts.
Income from continuing operations was $0.7 million or $0.14 per share for
the first nine months of fiscal 2008 compared to a loss of $3.0 million or
($0.62) per share for the first nine months of fiscal 2007. Net income,
including the results from discontinued operations, was $0.6 million or $0.13
per share for the first nine months of fiscal 2008 compared to a loss of $2.8
million or ($0.57) per share for the first nine months of fiscal 2007.
About TeamStaff, Inc.
Headquartered in Somerset, New Jersey, TeamStaff serves clients and their
employees throughout the United States as a full-service provider of medical,
logistics and administrative staffing through its two subsidiaries, TeamStaff
Rx and TeamStaff Government Solutions. TeamStaff Rx is a leading provider of
travel nursing and travel allied healthcare professionals. TeamStaff Rx
operates throughout the U.S. and specializes in the supply of travel allied
medical employees and travel nurses typically placed on 13 week assignments.
TeamStaff Government Solutions specializes in providing medical, logistics and
office administration/technical professionals through nationwide Federal
Supply Schedule contracts with both the United States General Services
Administration and the United States Department of Veterans Affairs. For more
information, visit the TeamStaff web site at www.teamstaff.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:
This press release contains "forward-looking statements" as defined by the
Federal Securities Laws. Statements in this press release regarding TeamStaff,
Inc.'s business, which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. TeamStaff's actual results
could differ materially from those described in such forward-looking
statements as a result of certain risk factors and uncertainties, including
but not limited to: our ability to recruit and retain qualified temporary and
permanent healthcare professionals and administrative staff upon acceptable
terms; our ability to enter into contracts with hospitals, healthcare facility
clients, affiliated healthcare networks, physician practice groups, government
agencies and other customers on terms acceptable to us and to secure orders
related to those contracts; changes in the timing of customer orders for
placement of temporary and permanent healthcare professionals and
administrative staff; the overall level of demand for our services; our
ability to successfully implement our strategic growth, acquisition and
integration strategies; the effect of existing or future government
legislation and regulation; the loss of key officers and management personnel
that could adversely affect our ability to remain competitive; other
regulatory and tax developments; and the effect of other important factors
disclosed previously and from time-to-time in TeamStaff's filings with the
U.S. Securities Exchange Commission. For a discussion of such risks and
uncertainties which could cause actual results to differ from those contained
in the forward-looking statements, see "Risk Factors" in the Company's Annual
Report or Form 10-K for the most recently ended fiscal year. The information
in this release should be considered accurate only as of the date of the
release. TeamStaff expressly disclaims any current intention to update any
forecasts, estimates or other forward-looking statements contained in this
press release.
- Financial Tables Follow -
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(Unaudited)
For the Three Months Ended
June 30, June 30,
2008 2007
REVENUES $17,788 $16,613
DIRECT EXPENSES 14,47313,637
Gross profit 3,315 2,976
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,970 3,130
DEPRECIATION AND AMORTIZATION 7085
Income (loss) from operations275 (239)
OTHER INCOME (EXPENSE)
Interest income624
Interest expense (30) (49)
Other income 33827
Legal expense related to pre-acquisition
activity of acquired company(18) (1,053)
296(1,051)
Income (loss) from continuing
operations before tax 571(1,290)
INCOME TAX (EXPENSE) BENEFIT - -
Income (loss) from continuing operations 571(1,290)
(LOSS) INCOME FROM DISCONTINUED OPERATIONS
Loss from operations, net of tax
benefit of $0 for the quarters ended
June 30, 2008 and 2007 (30) (77)
Income from disposal, net of tax
expense of $0 for the quarters ended
June 30, 2008 and 2007 - 125
(Loss) income from discontinued operations (30) 48
Net income (loss) $541 $(1,242)
EARNINGS (LOSS) PER SHARE - BASIC & DILUTED
Income (loss) from continuing operations $0.12$(0.27)
(Loss) income from discontinued operations$(0.01)$0.01
Net earnings (loss) per share $0.11$(0.26)
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING4,868 4,824
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING 4,882 4,824
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(Unaudited)
For the Nine Months Ended
June 30, June 30,
2008 2007
REVENUES $50,554 $50,378
DIRECT EXPENSES 41,53642,384
Gross profit 9,018 7,994
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 8,220 9,809
DEPRECIATION AND AMORTIZATION 248 262
Income (loss) from operations550(2,077)
OTHER INCOME (EXPENSE)
Interest income 1858
Interest expense(131) (161)
Other income 401 124
Legal expense related to pre-acquisition
activity of acquired company (156) (1,053)
132(1,032)
Income (loss) from continuing
operations before tax 682(3,109)
INCOME TAX BENEFIT - 108
Income (loss) from continuing operations 682(3,001)
(LOSS) INCOME FROM DISCONTINUED OPERATIONS
(Loss) income from operations, net
of tax benefit of $0 and $14
for 2008 and 2007, respectively (42) 41
Income from disposal, net of tax expense
of $0 and $48 for 2008 and 2007, respectively - 202
(Loss) income from discontinued operations (42) 243
Net income (loss) $640 $(2,758)
EARNINGS (LOSS) PER SHARE - BASIC & DILUTED
Income (loss) from continuing operations $0.14$(0.62)
(Loss) income from discontinued operations$(0.01)$0.05
Net earnings (loss) per share $0.13$(0.57)
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING4,851 4,812
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING 4,865 4,812
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
June 30, September 30,
ASSETS 2008 2007
unaudited
CURRENT ASSETS:
Cash and cash equivalents$1,269 $592
Accounts receivable, net of allowance for
doubtful accounts of $5 and $17 as of June
30, 2008 and September 30, 2007, respectively8,4508,279
Prepaid workers' compensation 428 468
Assets held for sale 89 490
Other current assets 1,014 642
Total current assets11,250 10,471
EQUIPMENT AND IMPROVEMENTS:
Furniture and equipment 3,2993,276
Computer equipment 613 561
Computer software 1,134 995
Leasehold improvements 20 41
5,0664,873
Less accumulated depreciation and amortization (4,347) (4,132)
Equipment and improvements, net 719 741
TRADENAME 4,5694,569
GOODWILL 10,305 10,305
OTHER ASSETS 165 82
TOTAL ASSETS $27,008 $26,168
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS EXCEPT PAR VALUE OF SHARES)
June 30, September 30,
LIABILITIES AND SHAREHOLDERS' EQUITY 2008 2007
unaudited
CURRENT LIABILITIES:
Notes payable $1,500$1,500
Current portion of capital lease obligations 6863
Accrued payroll3,215 1,581
Accrued pension liability140 280
Accounts payable 2,808 3,727
Accrued expenses and other current liabilities 1,599 1,756
Liabilities from discontinued operations 79 263
Total current liabilities 9,409 9,170
CAPITAL LEASE OBLIGATIONS, net of current portion 146 183
ACCRUED PENSION LIABILITY, net of current portion - 66
OTHER LONG TERM LIABILITY, net of current portion 135 155
Total Liabilities 9,690 9,574
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $.10 par value;
authorized 5,000 shares;
none issued and outstanding - -
Common Stock, $.001 par value;
authorized 40,000 shares;
issued 4,874 and 4,823 at June 30, 2008
and September 30, 2007, respectively;
outstanding 4,843 and 4,821 at
June 30, 2008 and September 30, 2007,
respectively 5 5
Additional paid-in capital68,78768,726
Accumulated deficit (51,440) (52,080)
Accumulated comprehensive loss (10) (33)
Treasury stock, 2 shares at cost at
June 30, 2008 and September 30, 2007(24) (24)
Total shareholders' equity 17,31816,594
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $27,008 $26,168
Three Months Ended Nine Months Ended
Condensed Consolidated Statement ofJune 30, June 30, June 30, June 30,
Operations: 2008 2007 2008 2007
Revenue 100.0% 100.0% 100.0% 100.0%
Direct Expenses 81.4% 82.1%82.2%84.1%
Gross Profit18.6% 17.9%17.8%15.9%
Selling, general and administrative 16.7% 18.8%16.3%19.5%
Depreciation and amortization expense 0.4%0.5% 0.4% 0.5%
Income (loss) from operations1.5% -1.4% 1.1%-4.1%
Other income (expense) 1.7% -6.4% 0.3%-2.1%
Income (loss) from continuing
operations before tax 3.2% -7.8% 1.4%-6.2%
Income tax benefit 0.0%0.0% 0.0% 0.2%
Income (loss) from continuing
operations 3.2% -7.8% 1.4%-6.0%
(Loss) income from discontinued
operations -0.2%0.3%-0.1% 0.5%
Net income (loss)3.0% -7.5% 1.3%-5.5%
SOURCE TeamStaff, Inc.
