Annual Shareholders Meeting
August 21, 2007
NASDAQ: TSTF
Nursing Innovations sm
A Division of TeamStaff Rx ®
CONFIDENTIAL
1
Forward-Looking Statements
This presentation contains “forward-looking statements” as defined by the Federal Securities Laws. TeamStaff’s actual results could differ materially from those described in such forward-looking statements as a result of certain risk factors, including but not limited to: our ability to continue to recruit qualified temporary and permanent healthcare professionals and administrative staff at reasonable costs; our ability to retain qualified temporary healthcare professionals and administrative staff for multiple assignments at reasonable costs; our ability to attract and retain sales and operational personnel; our ability to enter into contracts with hospitals, healthcare facility clients, affiliated healthcare networks, physician practice groups and the United States government on terms attractive to us and to secure orders related to those contracts; our ability to demonstrate the value of our services to our healthcare and other facility clients; changes in the timing of hospital, healthcare facility clients’, physician practice groups’ and U.S. Government orders for and our placement of temporary and permanent healthcare professionals and administrative staff; the general level of patient occupancy at our hospital, healthcare facility clients’ and physician practice groups’ facilities; the overall level of demand for services offered by temporary and permanent healthcare staffing providers; the ability of our hospital, healthcare facility and physician practice group clients to retain and increase the productivity of their permanent staff; the variation in pricing of the healthcare facility contracts under which we place temporary and permanent healthcare professionals; our ability to successfully implement our strategic growth, acquisition and integration strategies; our ability to successfully integrate completed acquisitions into our current operations; our ability to manage growth effectively; our ability to leverage our cost structure; the performance of our management information and communication systems; the effect of existing or future government legislation and regulation; our ability to grow and operate our business in compliance with these legislation and regulations; the impact of medical malpractice and other claims asserted against us; the disruption or adverse impact to our business as a result of a terrorist attack; our ability to carry out our business strategy; the loss of key officers and management personnel that could adversely affect our ability to remain competitive; other regulatory and tax developments; the effect of recognition by us of an impairment to goodwill; the effect of adjustments by us to accruals for self-insured retentions and other one-time events and other important factors. These factors are described in further detail in TeamStaff’s filings with the U.S. Securities and Exchange Commission.
CONFIDENTIAL
2
Our Mission
Become “The Provider of Choice” for
Medical Staffing Needs in Government
And Public Healthcare Facilities.
3
CONFIDENTIAL
Nursing Innovations sm
A Division of TeamStaff Rx ®
• Leading provider of staffing services to federal healthcare facilities
• Based in Monroe, Georgia; Acquired June 2005
• 100% Past Performance rating
• Contract duration typically 3-5 years
• Vendor/Facilities management contracts
• Currently has personnel onsite at 70 federal government facilities
• Revenue of $43.8 million in fiscal 2006
• Experienced national provider of allied travel professionals
• Based in Clearwater, Florida
• Primary focus is diagnostic imaging and radiation oncology professionals
• Expanding existing database to include physical therapists, respiratory
therapists and pharmacists
• Contract duration typically 13 weeks
• Revenue of $21.1 million on Fiscal 2006
• Decade of experience in travel nurse staffing
• Acquired November 2004
• Consolidated travel staffing operation in TeamStaff Rx during fiscal
2007
• Operates one of the largest per diem offices in Memphis, TN
• Revenue of $10.5 million in fiscal 2006
Company Overview
4
Management Team
Rick J. Filippelli, President, CEO and CFO
Joined TeamStaff as CFO in September of 2003 Former CFO of Rediff, a publicly-traded small cap information technology company
Sixteen years of financial management experience with GE Capital including three years as CFO of a $2 billion insurance subsidiary
“Big 4” public accounting experience
Certified Public Accountant
Cheryl A. Presuto, Controller
TeamStaff Controller since August of 2004
TeamStaff Accounting Manager from January 2002 until August 2004
Fifteen years Accounting experience, including nine years of financial management at publicly traded companies
Former Controller of Courier News, a division of Gannett, Inc.
Terry Merlin, Director of Sales and Marketing
Joined TeamStaff as Director of Sales and Marketing in March of 2007
Former President of NI Healthcare Resources, a division of Talent Tree
Served as Vice President of Business Development and Director of Nursing Operations for HCA, Inc. from September of 1996 until April of 2003
Former ICU/Emergency room Staff Nurse and Assistant Nurse Manager of Emergency Care at Tampa General Hospital
Kevin Wilson, Director of Government Sales
Joined TeamStaff as Director of Government Sales in June of 2007
Over 15 years of Government Sales experience
Former Director of Business Development for Varec, Inc. (Formerly Endress & Hauser Systems and Gauging
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William H. Alderman
Over 15 years experience providing investment banking services across multiple
industries, with a particular expertise in financings, and mergers and acquisitions in
the aerospace and defense industry.
Currently President of Alderman & Company representing some of the world’s most
respected aerospace and defense companies.
Held senior positions in investment management and corporate development at GE
Capital, Aviation Sales Company and as Managing Director of aviation investment
banking practice of Fieldstone.
Received a M.B.A. from J.L. Kellogg Graduate School of Management and is also a
graduate of Kenyon College and the Taft School.
Frederick Wasserman
Currently is a financial management consultant. Was Chief Operating/Financial
Officer for Mitchell & Ness Nostalgia Co and served as President and CFO of
Goebel of North America.
Current Director of the Aftersoft Group, Inc. a software provider to the after-market auto
industry, a Director of Acme Communications, Inc. and Allied Defense Group, Inc.
Served as the Interim President and CFO of Papel Giftware.
Served as senior executive and held managerial roles at both Chelsea Marketing and
Sales and The Score Board, Inc.
Served as a public accounting professional at Most, Horowitz & company; Coopers &
Lybrand; and Richard A. Eisner & Company.
New Board Members
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Top U.S. Healthcare Staffing Providers
Revenue
Rank
Company
Headquarters
2006
2005
Services Offered in 2006
Grownth
1
AMN Healthcare Services Inc.
San Diego, CA
$1,081,703
$705,843
LT, P, PR, TN, TA
53.2%
2
Cross Country Healthcare Inc.
1,2
Boca Raton, FL
$655,152
$645,393
A, CTS, ET, P, PD, PR, TN
1.5%
3
CHG Healthcare Services Inc.
3
Salt Lake City, UT
$470,000
$405,209
T,P,M
16.0%
4
Medical Staffing Network Holdings Inc.
Boca Raton, FL
$385,450
$402,507
A, PD, TN
-4.2%
5
Nursefinders Inc.
Arlington, TX
$338,000
$262,000
A, JB, MF, P, PD, TN
29.0%
6
Maxim Healthcare Services Inc.
Columbia, MD
$318,100
$294,000
A, LT, MF, P, PD, PR, TN
8.2%
7
On Assignment Inc.
Calabasas, CA
$287,566
$237,856
A, TN
20.9%
8
InteliStaf Healthcare Services Inc.
Oak Brook Terrace, IL
$260,969
$274,215
A, P, PD, TN, VMS
-4.8%
9
Jackson Healthcare Staffing
4
Alpharetta, GA
$233,119
$101,034
A, LT, PR, TN
130.7%
10
SHC Services Inc.
5
Park City, UT
$193,080
$156,267
A, P, PD, TN
23.6%
11
U.S. Nursing Corp *
Denver, CO
$190,800
$180,000
N
6.0%
12
Medical Doctors Associates
Atlanta, GA
$146,000
$144,000
A, L, TP
1.4%
13
Favorite Nurses/Favorite Temps*
6
Overland Park, KS
$132,500
$125,000
A, PD, TN
6.0%
14
Soliant Health
7
Jacksonville, FL
$99,000
$67,000
A, PD, TN
47.8%
15
CareerStaff Unlimited Inc.
8
Irving, Tx
$86,788
$71,000
A, LT, PR, N, P
22.2%
16
Interim Healthcare*
Sunrise, FL
$84,800
$80,000
LT, TN
6.0%
17
TeamStaff, Inc.
9
Somerset, NJ
$63,750
$51,200
A, N, PD, TN
24.5%
18
ATC Healthcare Inc.
Lake Success, NY
$71,528
$67,937
A, P, PD, TN
5.3%
19
VISTA Staffing Solution Inc.
10
Salt Lake City, UT
$61,000
$52,000
LT, PR
17.3%
20
Clinical One
11, 12
Wakefield, MA
$60,634
$46,803
A, JB, ME, MS, P, PD, TN, LT
29.6%
21
Emerald Health Services
Los Angeles, CA
$54,339
$30,365
TN
79.0%
May 17, 2007 © 2007 by Staffing Industry Analysts, Inc. www.staffingindustry.com
Healthcare Staffing
Revenue (in $000’s)
Companies in italics are private * = estimate 1 Cross Country 2006 revenue includes revenue of $46.9 million from other human capital management services (including educational training and retained search); human capital management services revenue was $46.0 million in 2005. 2 Companies reporting changes or gains from extraordinary items of discontinued operations that may significantly affect comparisons. 3 formerly CompHealth Group Inc. 4 Total revenue $260,991 5 dba Supplemental Health Care 6 Favorite Nurses/Favorite Temps 7 Soliant Health is part of MPS Group 8 CareerStaff Unlimited Inc. is part of Sun Healthcare Group 9 Total revenue $75,000 10 Acquired by On Assignment Jan. 4, 2007 11 Clinical One is part of Vedlor 12 including Locum and Delta
Key to "Services Offered" symbols:
A= Allied; C= Contract Trial Staffing; ET= Education and Training; JB= Job Board; LT= Locum Tenens; MF= Medical Financial; MS= Managed Services; N= Nursing; PD= Per Diem
Nursing; PR= Pyhsician Recruiting; P= Permanent Placement; TA= Travel Allied; TN= Travel Nurse; VMS= Vendor Management Systems.
Source: Company reports, company Web sites, and Staffing Industry Analysis.
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Temporary Healthcare Staffing Market Growth
2005-2007
Source: Staffing Industry Analysis
CONFIDENTIAL
8
TeamStaff participates in three segments of an $11B growing industry
($ billions)
2005
2006 P
2007 P
Per Diem Nursing
$4.1
$4.1
$4.1
Growth Rate
-3.0%
-1.0%
1.0%
Allied/Other
$2.6
$2.9
$3.2
Growth Rate
9.0%
10.0%
11.0%
Travel Nursing
$2.1
$2.3
$2.5
Growth Rate
1.0%
8.0%
9.0%
Locum Tenens
$1.2
$1.4
$1.6
Growth Rate
12.0%
14.0%
14.0%
Total
$10.0
$10.6
$11.4
Growth Rate
2.5%
6.0%
7.0%
US population is aging
US population over 65 is expected to grow from 13% to 20% by 2030
Declining health of the population
Roughly 47% of Americans live with chronic medical conditions
Advances in medical technology
Improved medical technologies increasing the need for specialized
technicians
Aging population of healthcare providers
Average age of a nurse is 47, up from 42 years in 1996
Regulatory
- Minimum nurse-to-patient ratios
- Overtime limitations
Industry Overview: Attractive Future
Dynamics For HealthCare Professionals
CONFIDENTIAL
Source: BMO Capital Markets Equity Research
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Key Initiatives Driving Return to Profitability
Travel Allied & Nurse
Hired a Director of Sales and Marketing.
Tied compensation of sales team to gross profit (vs. hours).
Reorganized sales team by region and modality; currently adding to staff.
Successfully Implemented Gross Margin Improvement Plan consisting of higher bill
rates and more prudent expense controls.
Hired advertising agency; launched print campaign and updated Nurse and Allied
Traveler Website.
Implementing an integrated front office system which will increase productivity and
further reduce costs.
Identified and replaced “C” performers. Process ongoing.
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Key Initiatives Driving Return to Profitability
Government
Hired a Director of Government Sales.
Focus will be on large “unrestricted” contracts and Department of Defense penetration.
Direct Placement of Pharmacists increasing gross profit.
Significant contract in Southwest expected to ramp-up within 30 days.
Government Contract “Bidding Season” July to September for October start dates.
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Corporate
Consolidated Gross Margins are up 250 BP’s over last two quarters.
Total headcount reduced approximately 15 percent over last two quarters.
Recurring SG&A as a percentage of Revenue – 16.9% in 3Q07 vs. 18.8% in 1Q07.
Examine re-branding our Corporate identity which should help top line growth.
Key Initiatives Driving Return to Profitability
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RS Staffing Investigation Update
Subpoena received at offices of RS Staffing in April 2007
Employed the Legal Services of Greenberg & Traurig
The Company is fully cooperating with the investigation
TeamStaff and related companies are not a target of the investigation
TeamStaff has filed a Notice of Indemnification against the former
owners of RS Staffing. TeamStaff is offsetting the remaining $1.5M
note payable with legal and related fees incurred in accordance with
the Purchase Agreement
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CONFIDENTIAL
Income Statement
Year Ended
3Q07
2Q07
1Q07
9/30/2006
($ in Thousands, except per share data)
Revenue
17,223
$
17,762
$
17,547
$
74,968
$
Gross Profit
3,099
2,617
2,714
12,511
GM%
18.0%
14.7%
15.5%
16.7%
SG&A Expenses excluding Severance
2,916
3,253
3,303
14,037
Severance Expenses
324
263
0
0
Total SG&A Expenses
3,240
3,516
3,303
14,037
Fee Income
33
45
49
152
Operating EBITDA excluding Severance
216
(591)
(540)
(1,374)
Operating EBITDA
(108)
(854)
(540)
(1,374)
Depreciation & Amortization
85
86
91
381
EBIT
(193)
(940)
(631)
(1,755)
Legal expense related to pre-acquisition activity
(1,053)
Interest Expense, Net
(31)
(44)
(32)
(455)
Pre-tax Loss
(1,277)
(984)
(663)
(2,210)
Tax Benefit (Expense)
0
13
95
(16,017)
Net Loss from Continuing Operations
(1,277)
$
(971)
$
(568)
$
(18,227)
$
EPS from Continuing Operations
(0.06)
$
$
(0.05)
(0.03)
$
(0.95)
$
Fully diluted shares outstanding
end of period
19,296
19,243
19,254
19,278
(Unaudited)
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CONFIDENTIAL
Balance Sheet
6/30/07
9/30/06
($ in Thousands)
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents
$ 2,054
$ 2,157
Accounts receivable
7,611
8,712
Prepaid workers’ compensation
303
1,094
Other current assets
508
923
Total current assets
10,476
12,886
Equipment and improvements, net
717
879
Tradename
4,569
4,569
Goodwill
11,986
11,986
Prepaid workers’ compensation, net of current
0
350
Other assets
86
106
Total Assets
$ 27,834
$ 30,776
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CONFIDENTIAL
Balance Sheet
6/30/07
9/30/06
($ in Thousands)
(Unaudited)
Liabilities and shareholders’ equity
Current liabilities:
Bank Line of Credit
$ -
$ -
Notes payable
1,500
1,500
Current portion of capital lease obligation
65
61
Accrued Payroll
1,818
1,687
Accrued Pension Liability
280
210
Accounts Payable
3,026
3,207
Accrued Expenses & other liabilities
2,203
1,818
Total current liabilities
8,892
8,483
Capital Lease Obligations, net of current portion
199
247
Accrued Pension Liability, net of current portion
134
388
Liabilities from discontinued Operations
105
454
Total liabilities
9,330
9,572
Total shareholders’ equity
18,504
21,204
Total liabilities and shareholders’ equity
$ 27,834
$ 30,776
16
SG&A Expenses
($ in Thousands)
17
Qtr Ended
Qtr Ended
%
6/30/07
12/31/06
Change
Employee Costs (A)
$ 1,501
$ 1,866
(20%)
Occupancy
176
181
(3%)
G & A
874
990
(12%)
New Business
364
266
37%
Total
$ 2,916
$ 3,303
(12%)
% of Revenue
16.9%
18.8%
(A) Excludes impact of severance
Summary of TeamStaff Opportunities
Long-Term Growth of Healthcare Staffing Industry
Added two experienced Sales Directors to Drive Growth in Travel
and Government Sectors
Restructured Sales Force Focused on Top Line Growth
Substantial Infrastructure Cost Reductions used to Fund New
Business Development
Executed on Gross Margin Improvement Plan
$0.8 million Sequential Quarter Reduction in Loss from Operations
Company Positioned for Profitability in Fiscal 2008
18