EXHIBIT 99.1
[TEAMSTAFF LOGO OMITTED]
CONTACT INFORMATION:
TEAMSTAFF, INC. CCG INVESTOR RELATIONS
300 Atrium Drive 19900 MacArthur Blvd. #110
Somerset, NJ 08873 Irvine, CA 92612
(732) 748-1700 (949) 851-1109
T. KENT SMITH, PRESIDENT & CEO CHRISTI MOTTOLA
MANAGING PARTNER
cmottola@aol.com
TEAMSTAFF ANNOUNCES FIRST QUARTER 2004 FINANCIAL RESULTS
AND PROGRESS ON POST-RESTRUCTURING GROWTH PLANS
Somerset, NJ - February 17, 2004- TeamStaff, Inc. (NASDAQ: TSTF), one of the
nation's leading providers of healthcare staffing and specialty payroll
services, today announced that it has filed its Form 10-Q for the fiscal quarter
ended December 31, 2003. Additionally, TeamStaff announced financial results for
the quarter ended December 31, 2003. As a result of TeamStaff's sale of its
Professional Employer Organization (PEO) segment, all results reported in this
release have been reclassified to show PEO and certain related corporate
expenses as discontinued operations.
"As our restructuring strategy gains momentum, critical milestones were achieved
during the first quarter of fiscal 2004. These milestones are essential steps
toward repositioning the company for a return to profitability," said T. Kent
Smith, TeamStaff's President and CEO.
First Quarter highlights included:
o Sale of PEO division - provided $7 million of upfront cash; up to $2.5
million currently in escrow to be released after a 90 day determination
period; potential return of up to $5 million in prepaid workers'
compensation premiums as well as reduced Letter of Credit requirements as
the program runs off over the next several years.
o New President of TeamStaff Rx - TeamStaff hired Tim Nieman in December of
2003 to run its medical staffing division.
o Expanded sales force - TeamStaff is in the process of tripling its medical
staffing division sales force. The added investment in sales will emphasize
relationships and constant interaction with prospective and existing
clients.
o Introduction of our vendor integration program (VIP). This web-based
application provides one-stop shopping for our clients. VIP centralizes the
management of our customers' multiple orders, invoices, vendors and
locations freeing them of associated paperwork while providing significant
cost savings.
o We are pursuing alliances and sub-contracting relationships with national
travel and per diem nursing firms.
TeamStaff's revenues from continuing operations for the three months ended
December 31, 2003 were $9.7 million, compared with $18.5 million in the first
quarter last year. The 47% decrease relates to lower revenues in our medical
staffing division. We believe this relates to current economic conditions, in
that hospitals have experienced lower admissions and have stretched their
current permanent staff. This, in turn, has led to less demand for temporary
healthcare professionals. Longer term, we believe the demand for temporary
personnel will increase, driven in part by an aging population and an improving
economy. Additionally, we are substantially expanding our sales and marketing
efforts in order to increase our contact with current and prospective clients
and gain market share in the relatively high-margin healthcare and allied
staffing segments..
TeamStaff's loss from continuing operations was $0.5 million or ($0.04) per
share in the first quarter of fiscal 2004 compared to earnings of $0.03 million
or $0.02 per share in the first quarter of fiscal 2003.
Net loss, including discontinued operations, was $1.8 million or ($0.12) per
share compared to profit of $0.1 million or $0.01 per share in the first quarter
of fiscal 2003. The net loss for the first quarter of fiscal 2004 was affected
by a $1.3 million loss or ($0.08) per share from discontinued operations and
disposal of the PEO business segment, compared to $0.2 million loss or ($0.01)
loss per share from discontinued operations in the first quarter of 2003.
Commenting on TeamStaff's first quarter performance, Mr. Smith stated, "Although
our first quarter results were well below last year's, we met our internal
targets. They are consistent with where we are in our turnaround strategy, as
well as consistent with a temporary downturn in the medical staffing industry.
We firmly believe that execution on our initiatives, coupled with an improving
economy, will drive our return to profitability in the fourth quarter of fiscal
2004."
ABOUT TEAMSTAFF, INC.
Headquartered in Somerset, New Jersey, TeamStaff serves clients and their
employees throughout the United States as a full-service provider of payroll and
medical staffing solutions.
TeamStaff Rx provides medical allied health professionals and nurses to doctors'
offices and medical facilities throughout the United States on a temporary or
permanent basis and offers programs and services designed to assist medical
facilities in managing their temporary staffing costs. DSi Payroll Services,
TeamStaff's payroll processing division, provides customized payroll management
and tax filing services to select industries, such as construction and general
contracting.
For more information, visit the TeamStaff web site at www.teamstaff.com.
This press release 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: (i) regulatory and tax developments; (ii)
changes in direct costs and operating expenses; (iii) the estimated costs and
effectiveness of capital projects and investments in technology infrastructure;
(iv) ability to effectively implement its business strategies and operating
efficiency initiatives, including, but not limited to, its new business strategy
for TeamStaff Rx; (v) the effectiveness of sales and marketing efforts,
including TeamStaff's marketing arrangements with other companies; (vi) changes
in the competitive environment in the temporary staffing and payroll processing
industry; and (vii) other one-time events and other important factors disclosed
previously and from time to time in TeamStaff's filings with the U.S. Securities
and Exchange Commission. These factors are described in further detail in
TeamStaff's filings with the U.S. Securities and Exchange Commission.
For further information please contact: T. Kent Smith, President & CEO of
TeamStaff, Inc., +1-732-748-1700; or Christi Mottola, Managing Partner, CCG
Investor Relations, +1-949-851-1109, cmottola@aol.com, for TeamStaff, Inc.
(Financial tables follow)
# # #
TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED
--------------------------
December 31, December 31,
2003 2002
(unaudited) (unaudited)
------------ ------------
REVENUES $ 9,738 $ 18,457
DIRECT EXPENSES 7,508 14,934
-------- --------
Gross profit 2,230 3,523
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 3,074 3,120
DEPRECIATION AND AMORTIZATION 73 74
-------- --------
(Loss) income from operations (917) 329
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OTHER INCOME (EXPENSE)
Interest income 5 24
Interest expense (27) (66)
Other Income 71 171
-------- --------
49 129
-------- --------
(Loss) income before tax (868) 458
INCOME TAX BENEFIT (EXPENSE) 330 (185)
-------- --------
(Loss) income from continuing operations (538) 273
(LOSS) FROM DISCONTINUED OPERATIONS:
(Loss) from operations, net of tax benefit to $325 and $183
for the quarters ended December 31, 2003 and 2002, respectively (530) (188)
(Loss) from disposal, net of tax benefit to $483 and $0
for the quarters ended December 31, 2003 and 2002, respectively (779) -
-------- --------
(1,309) (188)
-------- --------
Net (loss) income $(1,847) $ 85
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EARNINGS (LOSS) PER SHARE - BASIC & DILUTED
(Loss) income from continuing operations $ (0.04) $ 0.02
(Loss) from discontinued operations (0.08) (0.01)
-------- --------
Net (loss) income $ (0.12) $ 0.01
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BASIC AVERAGE SHARES OUTSTANDING 15,714 15,791
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DILUTED AVERAGE SHARES OUTSTANDING 15,714 15,793
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TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
December 31, September 30,
2003 2003
(unaudited)
------------ -------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,294 $ 4,329
Restricted cash 3,629 1,264
Accounts receivable, net of allowance for doubtful accounts of
$209 and $142 at December 31, 2003 and September 30, 2003, respectively 3,969 4,926
Prepaid workers' compensation 5,033 3,645
Other current assets 2,889 1,447
-------- --------
Total current assets 19,814 15,611
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EQUIPMENT AND IMPROVEMENTS
Furniture and equipment 2,795 2,628
Computer equipment 368 1,073
Computer software 1,120 1,060
Leasehold improvements 224 146
-------- --------
4,507 4,907
Accumulated depreciation and amortization (3,253) (3,689)
-------- --------
1,254 1,218
DEFERRED TAX ASSET 16,542 14,875
TRADENAME 4,199 4,199
GOODWILL 1,710 1,710
OTHER ASSETS 294 555
ASSETS HELD FOR SALE 1,167 22,449
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TOTAL ASSETS $ 44,980 $ 60,617
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TEAMSTAFF, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
December 31, September 30,
2003 2003
(unaudited)
------------ -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 60 $ 61
Accounts payable 1,313 669
Accrued payroll 2,977 2,856
Deferred tax liability 1,053 538
Accrued expenses and other current liabilities 2,218 3,181
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Total current liabilities 7,621 7,305
LONG-TERM DEBT, net of current portion 82 94
ACCRUED PENSION LIABILITY 1,338 1,724
LIABILITIES HELD FOR SALE 2,672 16,384
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Total liabilities 11,713 25,507
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COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock, $.10 par value; authorized 5,000 shares; 0 issued
and outstanding - -
Common Stock, $.001 par value; authorized 40,000 shares;
issued 15,721 and 16,267 at December 31, 2003 and September 30, 2003
respectively; outstanding 15,714 and 15,714 at December 31, 2003 and
September 30, 2003, respectively 16 16
Additional paid-in capital 62,962 65,256
Retained (deficit) earnings (29,419) (27,572)
Accumulated comprehensive losses (269) (273)
Treasury Stock, 7 and 553 shares at cost at December 31, 2003 and
September 30, 2003, respectively (23) (2,317)
-------- --------
Total shareholders' equity 33,267 35,110
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 44,980 $ 60,617
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