TSTFD Teamstaff (MM)

SOMERSET, N.J., May 15 /PRNewswire-FirstCall/ -- TeamStaff, Inc. (NASDAQ:TSTFD) a national provider of healthcare, logistics and administrative staffing services, today announced its financial results for the second fiscal quarter ended March 31, 2008. TeamStaff's revenues for the three months ended March 31, 2008 were $17.3 million as compared to $17.0 million in the comparable quarter last year. Income from continuing operations for the quarter ended March 31, 2008 was $0.08 million or $0.01 per share as compared to a loss of $1.0 million or ($0.21) per share in the comparable quarter 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 initiatives and performance, TeamStaff's President and CEO, Rick J. Filippelli, stated, "We are pleased that the execution of our turnaround plan has resulted in our second sequential profitable quarter as well as a $1.1 million improvement from continuing operations over the comparable quarter in fiscal 2007 and a $1.8 million improvement from continuing operations over the six month period ended March 31, 2007. The Company continues to focus on driving the top line. Our identity and rebranding initiatives have started producing a solid return on our investment. In our travel division, the Company has moved to expand our geographic reach and is in the process of increasing its sales force 25% to 30% over fiscal 2007. Our recently received Joint Commission on Accreditation of Healthcare Organizations ("JCAHO") certification validates the Company's hiring practices and our commitment to providing quality healthcare services. We anticipate this Gold Seal will provide additional sales opportunities. TeamStaff Government Solutions, the Company's subsidiary that serves the Government sector, continues to perform well. During the second fiscal quarter TeamStaff GS was awarded approximately $1.5 million in new contracts. The Company continues to focus on expanding its contract base by bidding on Department of Defense staffing opportunities. In addition, the Company was informed by a key Department of Justice ("DOJ") official that the DOJ has no intent to charge TeamStaff or any of its subsidiaries or employees in connection with the federal investigation of procurement practices at certain Veterans Administration facilities." Mr. Filippelli continued, "The Company also remains committed to reducing selling, general and administrative expenses. Adjusted for severance and certain insurance items, expenses fell by 6% as compared to the second fiscal quarter of 2007. We continue to project a profitable year for TeamStaff." TeamStaff's gross profit was $2.9 million, or 16.9% of revenues, in the second quarter of fiscal 2008 as compared to $2.5 million, or 14.5% of revenues, in the second quarter of fiscal 2007. The improvement in gross profit primarily relates to improved pricing and direct cost control initiatives. SG&A expenses were $2.7 million in the second quarter of fiscal 2008 compared to $3.4 million in the comparable quarter last year. As previously stated, adjusted for severance and certain insurance items, SG&A expenses decreased by approximately 6% despite an increase in new business expense of approximately 45%. Other expense, net was $0.07 million for the three months ended March 31, 2008. Approximately $0.04 million of legal fees relates to our cooperation with a government investigation related to pre-acquisition activity in TeamStaff GS, our subsidiary formerly known as RS Staffing Services, Inc. Net income, including the results from discontinued operations, was $0.06 million or $0.01 per share for the second fiscal quarter of 2008, compared to a loss of $1.0 million or ($0.21) per share for the comparable quarter in fiscal 2007. Cash and cash equivalents were $1.1 million at March 31, 2008. Availability at March 31, 2008 under the Company's revolving credit facility was approximately $2.5 million. 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. Six Month Results TeamStaff's revenues for the six months ended March 31, 2008 were $32.8 million as compared to $33.8 million last year. TeamStaff's gross profit was $5.7 million, or 17.4% of revenues, for the six months ended March 31, 2008 as compared to $5.0 million, or 14.9% of revenues, for the six months ended March 31, 2007. SG&A expenses were $5.3 million and $6.7 million for the six months ended March 31, 2008 and 2007, respectively. Adjusted for severance and certain insurance items, SG&A expenses for the current fiscal year decreased by approximately $0.9 million or 14%. Income from continuing operations was $0.1 million or $0.02 per share for the first six months of fiscal 2008 compared to a loss of $1.7 million or ($0.35) per share for the first six months of fiscal 2007. Net income, including the results from discontinued operations, was $0.1 million or $0.02 per share for the first six months of fiscal 2008 compared to a loss of $1.5 million or ($0.31) per share for the first six 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 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 http://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. CONTACTS: Rick Filippelli, President and CEO TeamStaff, Inc. 1 Executive Drive Somerset, NJ 08873 866-352-5304 Donald C. Weinberger/Alisa Steinberg (media) Wolfe Axelrod Weinberger Associates, LLC 212-370-4500 - Financial Tables Follow - TEAMSTAFF, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (Unaudited) For the Three Months Ended March 31, March 31, 2008 2007 REVENUES $17,307 $17,045 DIRECT EXPENSES 14,379 14,565 Gross profit 2,928 2,480 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,693 3,421 DEPRECIATION AND AMORTIZATION 89 86 Income (loss) from operations 146 (1,027) OTHER INCOME (EXPENSE) Interest income 3 11 Interest expense (65) (55) Other income 28 46 Legal expense related to pre-acquisition activity of acquired company (37) - (71) 2 Income (loss) from continuing operations before tax 75 (1,025) INCOME TAX (EXPENSE) BENEFIT - 13 Income (loss) from continuing operations 75 (1,012) (LOSS) INCOME FROM DISCONTINUED OPERATIONS (Loss) income from operations, net of tax benefit of $0 and $0 for quarters ended March 31, 2008 and 2007, respectively (11) 10 Net income (loss) $64 $(1,002) EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED Income (loss) from continuing operations $0.01 $(0.21) Income from discontinued operations $0.00 $0.00 Net earnings (loss) per share $0.01 $(0.21) WEIGHTED AVERAGE BASIC SHARES OUTSTANDING 4,866 4,811 WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING 4,882 4,811 TEAMSTAFF, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (Unaudited) For the Six Months Ended March 31, March 31, 2008 2007 REVENUES $32,766 $33,765 DIRECT EXPENSES 27,063 28,747 Gross profit 5,703 5,018 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 5,250 6,679 DEPRECIATION AND AMORTIZATION 178 177 Income (loss) from operations 275 (1,838) OTHER INCOME (EXPENSE) Interest income 12 34 Interest expense (101) (112) Other income 63 97 Legal expense related to pre-acquisition activity of acquired company (138) - (164) 19 Income (loss) from continuing operations before tax 111 (1,819) INCOME TAX (EXPENSE) BENEFIT - 108 Income (loss) from continuing operations 111 (1,711) (LOSS) INCOME FROM DISCONTINUED OPERATIONS (Loss) income from operations, net of tax benefit of $0 and $14 for 2008 and 2007, respectively (12) 118 Income from disposal, net of tax expense of $0 and $48 for 2008 and 2007, respectively - 77 (Loss) income from discontinued operations (12) 195 Net income (loss) $99 $(1,516) EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED Income (loss) from continuing operations $0.02 $(0.35) Income from discontinued operations $0.00 $0.04 Net earnings (loss) per share $0.02 $(0.31) WEIGHTED AVERAGE BASIC SHARES OUTSTANDING 4,863 4,812 WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING 4,868 4,812 TEAMSTAFF, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS) March 31, September 30, ASSETS 2008 2007 Unaudited CURRENT ASSETS: Cash and cash equivalents $1,140 $592 Accounts receivable, net of allowance for doubtful accounts of $20 and $17 as of March 31, 2008 and September 30, 2007, respectively 8,986 8,279 Prepaid workers' compensation 289 468 Assets held for sale 89 490 Other current assets 702 642 Total current assets 11,206 10,471 EQUIPMENT AND IMPROVEMENTS: Furniture and equipment 3,276 3,276 Computer equipment 580 561 Computer software 1,116 995 Leasehold improvements 41 41 5,013 4,873 Less accumulated depreciation and amortization (4,291) (4,132) Equipment and improvements, net 722 741 TRADENAME 4,569 4,569 GOODWILL 10,305 10,305 OTHER ASSETS 60 82 TOTAL ASSETS $26,862 $26,168 TEAMSTAFF, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS EXCEPT PAR VALUE OF SHARES) March 31, September 30, LIABILITIES AND SHAREHOLDERS' EQUITY 2008 2007 Unaudited CURRENT LIABILITIES: Bank line of credit $524 $- Notes payable 1,500 1,500 Current portion of capital lease obligations 67 63 Accrued payroll 2,346 1,581 Accrued pension liability 139 280 Accounts payable 3,400 3,727 Accrued expenses and other current liabilities 1,651 1,756 Liabilities from discontinued operations 185 263 Total current liabilities 9,812 9,170 CAPITAL LEASE OBLIGATIONS, net of current portion 163 183 ACCRUED PENSION LIABILITY, net of current portion - 66 OTHER LONG TERM LIABILITY, net of current portion 148 155 Total liabilities 10,123 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 4,853 and 4,823 at March 31, 2008 and September 30, 2007, respectively; outstanding 4,851 and 4,821 at March 31, 2008 and September 30, 2007, respectively 5 5 Additional paid-in capital 68,750 68,726 Accumulated deficit (51,981) (52,080) Accumulated comprehensive loss (11) (33) Treasury stock, 2 shares at cost at March 31, 2008 and September 30, 2007 (24) (24) Total shareholders' equity 16,739 16,594 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $26,862 $26,168 DATASOURCE: TeamStaff, Inc. CONTACT: Rick Filippelli, President and CEO of TeamStaff, Inc., +1-866-352-5304; or Media, Donald C. Weinberger, , or Alisa Steinberg, , both of Wolfe Axelrod Weinberger Associates, LLC, for TeamStaff, Inc., +1-212-370-4500 Web site: http://www.teamstaff.com/

Copyright