Navigation Links
TeamStaff Reports Third Quarter Results
Date:8/14/2009

SOMERSET, N.J., Aug. 14 /PRNewswire-FirstCall/ --- TeamStaff, Inc. (Nasdaq: TSTF), a national provider of healthcare and administrative staffing services, today announced its financial results for the third quarter ended June 30, 2009.

TeamStaff's operating revenues for the three months ended June 30, 2009 were $13.1 million as compared to $15.8 million in the comparable quarter last year and $13.7 million in the prior quarter ended March 31, 2009. The decrease in operating revenues from the prior year is due primarily to the impact of the economic environment on the results of TeamStaff Rx coupled with reduced personnel requirements and overtime restrictions at certain Government facilities. Net loss was $0.5 million or ($0.11) per share compared to net income of $0.5 million or $0.11 per share in the comparable quarter last year and a net loss of $0.6 million or $(0.11) per share sequentially. Adjusted to eliminate profit from certain non-recurring retroactive billings in the third quarter of last year, the results for the three months ended June 30, 2008 would have been a net income of $0.3 million, or $0.05 per share.

Commenting on the Company's third quarter results, TeamStaff's President and CEO, Rick J. Filippelli, stated, "During the quarter, the current operating environment for the TeamStaff Rx subsidiary continued to follow the contraction in hospital spending. Declining hospital revenues and overall conditions in the credit markets have made hospital access to credit markets tougher. This in turn has forced hospitals to cut spending. Permanent hospital staff is willing to work more hours resulting in a reduction in the demand for temporary staffing. This contributed to a 44% decline in third quarter Rx revenues compared to the prior year period. Although the market remains very challenging as evidenced by our significant drop in comparative third quarter revenues, we are starting to see signs that the pace of decline has slowed as open orders have increased 60% over the past month and applications from travelers continues to grow."

Mr. Filippelli continued "Looking at our Government subsidiary, TeamStaff GS, despite the weak economy, posted relatively flat sequential quarter revenues. Due to the longer term nature of Government contracts and the Government's commitment to support Veteran and active military programs, we believe that our GS business is better positioned to grow in a down economy. We have, however, experienced a longer Government sales cycle over the past two quarters. The process from solicitation to contract award has taken longer due to, we believe, key employee turnover within agencies and the slow rate that stimulus funds have flowed through the system. Over the past quarter, however, with key agency positions being filled and stimulus funding being committed, our pipeline, which represents current bid opportunities as well as solicitations expected out within the next quarter, has grown. We believe the Government's demand for contracted workers will be strong both in the short and long term. Going forward, we expect this demand to translate into substantial revenue opportunities for the Company."

TeamStaff's operating gross profit was $2.1 million, or 16.0% of revenues, in the third quarter of fiscal 2009 as compared to $3.0 million, or 19.2% of revenues, in the third quarter of fiscal 2008. The key drivers for the year over year decrease in gross profit were a higher percentage of Government revenues which carry a lower gross profit, an increase in medical expenses and lower employee turnover resulting in higher vacation expense. Effective July 1, 2009, billing increases to certain government facilities were granted that are expected to help offset these additional expenses going forward. SG&A expenses for the three months ended June 30, 2009 and June 30, 2008, were $2.7 million and $3.0 million, respectively, despite a 5.7% increase in new business expense from the third quarter of fiscal 2008 to the third quarter of fiscal 2009.

Despite the loss, the Company remains on sound financial footing. At June 30, 2009, the Company had cash and cash equivalents of $3.7 million and no balance outstanding on its revolving credit facility. During the quarter, the Company received approximately $0.5 million of insurance refunds. In addition, final settlement of the Government retro billings, anticipated prior to our September year end could net the Company $1.0 million in cash. For the quarter ended June 30, 2009, the Company was not in compliance with the debt service coverage ratio covenant required by the credit facility and has requested a waiver from Sovereign Bank. Sovereign is in the process of reviewing our request. The Company believes that it has adequate liquidity resources to fund operations over the next twelve months.

Nine Month Results

TeamStaff's operating revenues for the nine months ended June 30, 2009 were $41.5 million as compared to $47.0 million last year. TeamStaff's operating gross profit was $7.0 million, or 16.9% of revenues, for the nine months ended June 30, 2009 as compared to $8.5 million, or 18.0% of revenues, for the nine months ended June 30, 2008. SG&A expenses were $8.1 million and $8.2 million for nine months ended June 30, 2009 and 2008, respectively. Net loss was $1.0 million or ($0.21) per share for the first nine months of fiscal 2009 compared to net income of $0.6 million or $0.13 per share for the first nine months of fiscal 2008. Adjusted to eliminate profit from certain non-recurring retroactive billings in fiscal 2008, the results for the nine months ended June 30, 2008 would have been net income of $0.1 million, or $0.01 per share.

Non-GAAP Measures

This earnings release contains certain non-GAAP financial information. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP"), and may be different from non-GAAP measure reported by other companies. See table below for reconciliation of non-GAAP items.

Conference Call Details

A conference call to discuss the results of the third quarter and nine months results of fiscal year 2009 will be held today, August 14, 2009 at 11:00 am EDT. Interested parties may participate in the conference call by dialing USA/Canada (877) 869-3847, International (201) 689-8261 about 5 -10 minutes prior to 11:00 am EDT. A recording of the conference call will be available from 3:00 pm EDT August 14, 2009 through August 21, 2009. For the replay, please dial (877) 660-6853 (replay account #353, replay conference #330268). The access number for the replay for international callers is (201) 612-7415 (replay account #353, replay conference #330268).

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 and administrative staffing through its two subsidiaries, TeamStaff Rx and TeamStaff GS. 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 GS specializes in providing medical, logistic, information technology and office administration 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 continue to recruit and retain qualified temporary and permanent healthcare professionals and administrative staff on 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 attractive 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 events and 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 and its other filings with the SEC. 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
                (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                   (Unaudited)

                                                  For the Three Months Ended
                                                       June 30,  June 30,
                                                         2009      2008
                                                       -------    ------
    REVENUES
      Operating revenues                               $13,123   $15,767
      Non-recurring retroactive billings                     -     2,021
                                                           ---     -----
      Total revenue                                     13,123    17,788
                                                        ------    ------

    DIRECT EXPENSES
      Operating direct expense                          11,023    12,738
      Non-recurring retroactive billings                     -     1,735
                                                           ---     -----
      Total direct expense                              11,023    14,473
                                                        ------    ------

    GROSS PROFIT
      Operating gross profit                             2,100     3,029
      Non-recurring retroactive billings                     -       286
                                                             -       ---
      Total gross profit                                 2,100     3,315
                                                         -----     -----

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES         2,743     2,970

    DEPRECIATION AND AMORTIZATION                           62        70
                                                           ---       ---

      (Loss) income from operations                       (705)      275

    OTHER INCOME (EXPENSE)
      Interest income                                        9         6
      Interest expense                                     (31)      (30)
      Settlement of prior periods' payroll tax
       contingencies                                         -       300
      Other income, net                                    159        38
      Legal expense related to pre-acquisition activity
       of acquired company                                  (4)      (18)
                                                           ---       ---
                                                           133       296
                                                           ---       ---

      (Loss) income from continuing operations before
       taxes                                              (572)      571

    INCOME TAX BENEFIT                                      39         -

                                                          ----       ---
      (Loss) income from continuing operations            (533)      571
                                                          ----       ---

    LOSS FROM DISCONTINUED OPERATIONS
       Loss from operations, net of tax benefit of $0
        for the quarter ended June 30, 2008                  -       (30)
      Loss from discontinued operations                      -       (30)
                                                           ---       ---

                                                         -----      ----
    NET (LOSS) INCOME                                    $(533)     $541
                                                         =====      ====

    (LOSS) EARNINGS PER SHARE - BASIC & DILUTED
      (Loss) income from continuing operations          $(0.11)    $0.12
      Loss from discontinued operations                   0.00     (0.01)
                                                          ----     -----
      Net (loss) earnings per share                     $(0.11)    $0.11
                                                        ======     =====

    WEIGHTED AVERAGE BASIC SHARES OUTSTANDING            4,897     4,868
                                                         =====     =====

    WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING          4,897     4,882
                                                         =====     =====



                        TEAMSTAFF, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                   (Unaudited)

                                                    For the Nine Months Ended
                                                       June 30,  June 30,
                                                        2009      2008
                                                       -------   -------
    REVENUES
      Operating revenues                               $41,528   $47,030
      Non-recurring retroactive billings                     -     3,524
                                                           ---     -----
      Total revenue                                     41,528    50,554
                                                        ------    ------

    DIRECT EXPENSES
      Operating direct expense                          34,498    38,578
      Non-recurring retroactive billings                     -     2,958
                                                           ---     -----
      Total direct expense                              34,498    41,536
                                                        ------    ------

    GROSS PROFIT
      Operating gross profit                             7,030     8,452
      Non-recurring retroactive billings                     -       566
                                                           ---       ---
      Total gross profit                                 7,030     9,018
                                                         -----     -----

    SELLING, GENERAL AND ADMINISTRATIVE EXPENSES         8,067     8,220

    DEPRECIATION AND AMORTIZATION                          185       248
                                                           ---       ---

      (Loss) income from operations                     (1,222)      550

    OTHER INCOME (EXPENSE)
      Interest income                                       41        18
      Interest expense                                     (86)     (131)
      Settlement of prior periods' payroll tax
       contingencies                                         -       300
      Other income, net                                    211       101
      Legal expense related to pre-acquisition activity
       of acquired company                                 (16)     (156)
                                                           ---      ----
                                                           150       132
                                                           ---       ---

      (Loss) income from continuing operations before
       taxes                                            (1,072)      682

    INCOME TAX BENEFIT                                      28         -

                                                        ------       ---
      (Loss) income from continuing operations          (1,044)      682
                                                        ------       ---

    LOSS FROM DISCONTINUED OPERATIONS
      Loss from operations, net of tax benefit of $0
       for 2008                                              -       (42)
      Loss from discontinued operations                      -       (42)
                                                           ---       ---

                                                       -------      ----
    NET (LOSS) INCOME                                  $(1,044)     $640
                                                       =======      ====

    (LOSS) EARNINGS PER SHARE - BASIC & DILUTED
      (Loss) income from continuing operations          $(0.21)    $0.14
      Loss from discontinued operations                   0.00     (0.01)
                                                          ----     -----
      Net (loss) earnings per share                     $(0.21)    $0.13
                                                        ======     =====

    WEIGHTED AVERAGE BASIC SHARES OUTSTANDING            4,901     4,851
                                                         =====     =====

    WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING          4,901     4,865
                                                         =====     =====



                        TEAMSTAFF, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (AMOUNTS IN THOUSANDS)

                                                     June 30,   September 30,
    ASSETS                                             2009        2008
    ------                                           -------    ------------
                                                    (unaudited)
    CURRENT ASSETS:
      Cash and cash equivalents                       $3,721         $5,213
      Accounts receivable, net of allowance for
       doubtful accounts of $13 and $2 as of June 30,
       2009 and September 30, 2008, respectively      12,036         12,892
      Prepaid workers' compensation                      516            562
      Other current assets                               432            607
                                                         ---            ---
           Total current assets                       16,705         19,274
                                                      ------         ------

    EQUIPMENT AND IMPROVEMENTS:
      Furniture and equipment                          3,299          3,299
      Computer equipment                                 625            619
      Computer software                                1,229          1,166
      Leasehold improvements                              20             20
                                                         ---            ---
                                                       5,173          5,104

      Less accumulated depreciation and
       amortization                                   (4,595)        (4,409)
                                                      ------         ------
          Equipment and improvements, net                578            695
                                                         ---            ---

    TRADENAME                                          4,569          4,569

    GOODWILL                                          10,305         10,305

    OTHER ASSETS                                         281            151
                                                         ---            ---

    TOTAL ASSETS                                     $32,438        $34,994
                                                     =======        =======



                      TEAMSTAFF, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
              (AMOUNTS IN THOUSANDS EXCEPT PAR VALUE OF SHARES)

                                                     June 30,   September 30
    LIABILITIES AND SHAREHOLDERS' EQUITY               2009        2008
    ------------------------------------             -------    ------------
                                                    (unaudited)

    CURRENT LIABILITIES:
      Notes payable                                   $1,500        $1,500
      Current portion of capital lease obligations        64            69
      Accrued payroll                                 10,643        10,585
      Accrued pension liability                            -            70
      Accounts payable                                 1,591         2,578
      Accrued expenses and other current liabilities   1,404         2,008
      Liabilities from discontinued operations            20            66
                                                         ---           ---
           Total current liabilities                  15,222        16,876

    CAPITAL LEASE OBLIGATIONS, net of current portion     82           128

    OTHER LONG TERM LIABILITY, net of current portion     64           104
                                                         ---           ---

           Total Liabilities                          15,368        17,108
                                                      ------        ------

    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 4,900 at June 30, 2009 and
       4,874 at September 30, 2008, respectively;
       outstanding 4,898 at June 30, 2009 and 4,843
       at September 30, 2008, respectively                 5             5
      Additional paid-in capital                      69,067        68,844
      Accumulated deficit                            (51,978)      (50,934)
      Accumulated comprehensive loss                       -            (5)
      Treasury stock, 2 shares at cost at
       June 30, 2009 and September 30, 2008              (24)          (24)
                                                         ---           ---
           Total shareholders' equity                 17,070        17,886
                                                      ------        ------

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $32,438       $34,994
                                                     =======       =======



    Reconciliation of Non-GAAP Items:

                                        For the three        For the nine
                                         months ended        months ended
                                       June 30,  June 30,   June 30,  June 30,
                                        2009      2008       2009      2008
                                       -------   -------    -------   -------

    NET (LOSS) INCOME                  $(533)     $541     $(1,044)    $640
      Gross profit from non-recurring
       retroactive billings                -      (286)          -     (566)
                                         ---      ----         ---     ----
    ADJUSTED NET LOSS                  $(533)     $255     $(1,044)     $74
                                       =====      ====     =======      ===

    GAAP based diluted net (loss)
     earnings per share               $(0.11)    $0.11      $(0.21)   $0.13
      Adjustments:
      Gross profit from non-recurring
       retroactive billings               $-    $(0.06)         $-   $(0.12)
                                         ---    ------         ---   ------
    Adjusted diluted net (loss)
     earnings per share               $(0.11)    $0.05      $(0.21)   $0.01
                                      ======     =====      ======    =====

This press release includes certain non-GAAP financial measures. TeamStaff's management does not suggest that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial measures, such as net income, cash flow data or other financial information presented in the consolidated financial statements. Adjusted net (loss) income, a non-GAAP financial measure, is defined as net (loss) income minus gross profit from non-recurring retroactive billings. The Company believes it is useful for management and investors to review both GAAP information and non-GAAP financial measures to have a better understanding of the overall performance of the Company's business and trends relating to its financial condition and results of operations. Management believes that this information provides greater insight into our Company's underlying operating performance that facilitates a more meaningful comparison of its current financial results in different reporting periods. The Company has chosen to show the three and nine month comparative adjusted net (loss) income to show what results would have been in the three and nine months of fiscal 2008 had the non-recurring retroactive billings not occurred.


'/>"/>
SOURCE TeamStaff, Inc.
Copyright©2009 PR Newswire.
All rights reserved


Related medicine news :

1. TeamStaff, Inc. To Announce Third Quarter Results
2. TeamStaff Reports Second Quarter Results
3. TeamStaff Rx Signs Staffing Agreement With One of the Nations Largest Healthcare Services Networks
4. General Services Administration Awards Information Technology Schedule Contract to TeamStaffs Government Staffing Subsidiary
5. TeamStaff Promotes Kevin Wilson to President of Government Staffing Subsidiary
6. TeamStaff, Inc. Reports Preliminary Second Quarter 2008 Results
7. TeamStaff, Inc. Announces Results From Annual Meeting of Shareholders
8. TeamStaff Announces Amended Revolving Credit Facility with Sovereign Business Capital
9. Nasdaq Hearings Panel Grants TeamStaffs Request for Continued Listing Subject to a Reverse Stock Split
10. TeamStaff Rx Awarded JCAHO Certification
11. TeamStaff Reports First Quarter Net Income and $0.7 Million Income Improvement From Continuing Operations Over Prior Year
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/25/2016)... ... 25, 2016 , ... Casa Velas, an adults-only boutique hotel in Puerto Vallarta, ... its new wellness suites . The two 1,350 sq. ft. suites which debuted ... services and insuite amenities, from a custom soap selection and in-suite exercise kit to ...
(Date:5/25/2016)... , ... May 25, 2016 , ... America Walks ... Carol Reichbaum, M.S.L., M.S.P.A., of the University of Pittsburgh Graduate School of Public ... will enable Ms. Reichbaum and 24 other advocates from around the country to participate ...
(Date:5/25/2016)... ... May 25, 2016 , ... "FCPX LUT Intense allows ... your footage," said Christina Austin - CEO of Pixel Film Studios. , With ... and easily add stylish color grades to their footage. A LUT is a Lookup ...
(Date:5/25/2016)... ... May 25, 2016 , ... Consumer access to organic foods ... 2016, Kashi®, a maker of whole grain cereals and other plant-based foods, will introduce ... hard red winter wheat processed by Hesco/Dakota Organic Products. , The transitional designation ...
(Date:5/25/2016)... (PRWEB) , ... May 25, 2016 , ... Stern ... firm will be selling the device branded as Stern’s Real Time Monitoring ... to bedbugs to the hotel and motel industry, colleges for use in dormitories, shelters, ...
Breaking Medicine News(10 mins):
(Date:5/24/2016)... May 24, 2016 Een app ... zodat zij collectief patiënten kunnen behandelen, hun kennis kunnen ... idee achter de nieuwe en revolutionaire MDLinking App, ontwikkeld ... Nederlandse vaatchirurg dr. Hans Flu en oncologisch chirurg dr. ... inmiddels beschikbaar is, wordt op dinsdag 24 mei officieel ...
(Date:5/23/2016)... FLINT, Mich. , May 23, 2016 Diplomat ... the third annual Fellowship and Internship programs. The hands-on ... 12. The full-time, paid Fellowship ... Flint, Michigan . Fellows and interns are ... downtown Flint at the Riverfront ...
(Date:5/23/2016)... , May 23, 2016 ... Devices, Diagnostics and Monitoring, and Vision Care ... Which areas are going to grow at the fastest ... revenues to 2026, assessing data, trends, opportunities and prospects. ... charts, and graphs. Discover the most lucrative areas in ...
Breaking Medicine Technology: