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SMALL BUSINESS
TeamStaff Reports Second Quarter Results
- To Conduct Conference Call Today at
TeamStaff's operating revenues for the three months ended
Commenting on the Company's performance, TeamStaff's President and CEO,
Mr. Filippelli continued "Looking at our Government subsidiary, TeamStaff GS, over the past several months, we've experienced a longer Government sales cycle. Some solicitations to bid and notice of awards were delayed due to key employee turnover and the timing of the receipt of stimulus funds. We are now encouraged by the many opportunities we are starting to see as the stimulus funding are being released to the different Government agencies. In late March we were awarded Department of Defense ("DOD") contracts with estimated annual revenue of approximately
TeamStaff's operating gross profit was
Cash and cash equivalents were
Six Month Results
TeamStaff's operating revenues for the six months ended
Outlook
The initial guidance provided by TeamStaff was based upon numerous assumptions, all of which are subject to certain risks and uncertainties including the added difficulty in predicting demand caused by current economic conditions and the timing of when certain government contracts would be awarded. For a discussion of the risks and uncertainties associated with these forward looking statements, please see the "Safe Harbor Statement" below.
Over the past several months, the Company has seen turnover in key government contracting positions and agencies waiting for the receipt of stimulus funds before committing to certain projects. This has helped translate into a longer Government sales cycle. The timing and start dates of contract awards have become extremely difficult to project. Therefore, the Company is withdrawing its previous fiscal 2009 operating revenue growth estimate of 8% to 10% for the fiscal year ending
Conference Call Details
A conference call to discuss the results of the second quarter and six months results of fiscal year 2009 will be held today,
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
About TeamStaff, Inc.
Headquartered in
"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 on 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
March 31, March 31,
2009 2008
---- ----
REVENUES
Operating revenues $13,723 $16,052
Non-recurring retroactive billings - 1,255
- -----
Total revenue 13,723 17,307
------ ------
DIRECT EXPENSES
Operating direct expense 11,520 13,373
Non-recurring retroactive billings - 1,006
- -----
Total direct expense 11,520 14,379
------ ------
GROSS PROFIT
Operating gross profit 2,203 2,679
Non-recurring retroactive billings - 249
- ---
Total gross profit 2,203 2,928
----- -----
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,709 2,693
DEPRECIATION AND AMORTIZATION 61 89
-- --
(Loss) income from operations (567) 146
OTHER INCOME (EXPENSE)
Interest income 18 3
Interest expense (28) (65)
Other income, net 30 28
Legal expense related to pre-acquisition activity of
acquired company (5) (37)
-- ---
15 (71)
-- ---
(Loss) income from continuing operations before
taxes (552) 75
INCOME TAX EXPENSE (7) -
---- --
(Loss) income from continuing operations (559) 75
---- --
LOSS FROM DISCONTINUED OPERATIONS
Loss from operations, net of tax benefit of $0
for the quarter ended March 31, 2008 - (11)
Loss from discontinued operations - (11)
- ---
----- ---
NET (LOSS) INCOME $(559) $64
===== ===
(LOSS) EARNINGS PER SHARE - BASIC & DILUTED
(Loss) income from continuing operations $(0.11) $0.01
Loss from discontinued operations 0.00 0.00
---- ----
Net (loss) earnings per share $(0.11) $0.01
====== =====
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING 4,892 4,866
===== =====
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING 4,892 4,882
===== =====
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,
2009 2008
---- ----
REVENUES
Operating revenues $28,405 $31,263
Non-recurring retroactive billings - 1,503
- -----
Total revenue 28,405 32,766
------ ------
DIRECT EXPENSES
Operating direct expense 23,475 25,840
Non-recurring retroactive billings - 1,223
- -----
Total direct expense 23,475 27,063
------ ------
GROSS PROFIT
Operating gross profit 4,930 5,423
Non-recurring retroactive billings - 280
- ---
Total gross profit 4,930 5,703
----- -----
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 5,324 5,250
DEPRECIATION AND AMORTIZATION 123 178
--- ---
(Loss) income from operations (517) 275
OTHER INCOME (EXPENSE)
Interest income 32 12
Interest expense (55) (101)
Other income, net 52 63
Legal expense related to pre-acquisition activity of
acquired company (12) (138)
--- ----
17 (164)
-- ----
(Loss) income from continuing operations before
taxes (500) 111
INCOME TAX EXPENSE (11) -
---- ---
(Loss) income from continuing operations (511) 111
---- ---
LOSS FROM DISCONTINUED OPERATIONS
Loss from operations, net of tax benefit of $0
for 2008 - (12)
Loss from discontinued operations - (12)
- ---
----- ---
NET (LOSS) INCOME $(511) $99
===== ===
(LOSS) EARNINGS PER SHARE - BASIC & DILUTED
(Loss) income from continuing operations $(0.10) $0.02
Loss from discontinued operations 0.00 0.00
---- ----
Net (loss) earnings per share $(0.10) $0.02
====== =====
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING 4,903 4,863
===== =====
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING 4,903 4,868
===== =====
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
March 31, September 30,
ASSETS 2009 2008
------ ---- ----
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents $3,126 $5,213
Accounts receivable, net of allowance for doubtful
accounts of $12 and $2 as of March 31, 2009 and
September 30, 2008, respectively 12,801 12,892
Prepaid workers' compensation 562 562
Other current assets 660 607
--- ---
Total current assets 17,149 19,274
------ ------
EQUIPMENT AND IMPROVEMENTS:
Furniture and equipment 3,299 3,299
Computer equipment 619 619
Computer software 1,171 1,166
Leasehold improvements 20 20
-- --
5,109 5,104
Less accumulated depreciation and
amortization (4,533) (4,409)
------ ------
Equipment and improvements, net 576 695
--- ---
TRADENAME 4,569 4,569
GOODWILL 10,305 10,305
OTHER ASSETS 121 151
--- ---
TOTAL ASSETS $32,720 $34,994
======= =======
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS EXCEPT PAR VALUE OF SHARES)
March 31, September 30
LIABILITIES AND SHAREHOLDERS' EQUITY 2009 2008
------------------------------------ ---- ----
(unaudited)
CURRENT LIABILITIES:
Notes payable $1,500 $1,500
Current portion of capital lease
obligations 66 69
Accrued payroll 10,384 10,585
Accrued pension liability - 70
Accounts payable 1,556 2,578
Accrued expenses and other current
liabilities 1,455 2,008
Liabilities from discontinued operations 42 66
-- --
Total current liabilities 15,003 16,876
CAPITAL LEASE OBLIGATIONS, net of current
portion 97 128
OTHER LONG TERM LIABILITY, net of current
portion 78 104
-- ---
Total Liabilities 15,178 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 4,885 at March 31, 2009 and 4,874
at September 30, 2008, respectively; outstanding
4,883 at March 31, 2009 and 4,843 at September
30, 2008, respectively 5 5
Additional paid-in capital 69,006 68,844
Accumulated deficit (51,445) (50,934)
Accumulated comprehensive loss - (5)
Treasury stock, 2 shares at cost at March 31, 2009
and September 30, 2008 (24) (24)
--- ---
Total shareholders' equity 17,542 17,886
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $32,720 $34,994
======= =======
TEAMSTAFF, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL AND OPERATING DATA
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(Unaudited)
Reconciliation of Non-GAAP Items:
For the Three For the Six Months
Months Ended Ended
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
---- ---- ---- ----
NET (LOSS) INCOME $(559) $64 $(511) $99
Gross profit from non-
recurring retroactive
billings - (249) - (280)
- ---- - ----
ADJUSTED NET LOSS $(559) $(185) $(511) $(181)
===== ===== ===== =====
GAAP based diluted net
(loss) earnings per share $(0.11) $0.01 $(0.10) $0.02
Adjustments:
Gross profit from non-
recurring retroactive
billings $- $(0.05) $- $(0.06)
-- ------ -- ------
Adjusted diluted net loss
per share $(0.11) $(0.04) $(0.10) $(0.04)
====== ====== ====== ======
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 six month comparative adjusted net (loss)income to show what results would have been in the three and six months of fiscal 2008 had the non-recurring retroactive billings not occurred.
SOURCE TeamStaff, Inc.