Exhibit 99.1
[TEAM AMERICA LOGO]
COMPANY CONTACT:
S. Cash Nickerson, Chairman and CEO
(888) 522-6008 Ext. 114
cnickerson@teamamerica.com
TEAM AMERICA ANNOUNCES 1ST QUARTER EARNINGS
WORTHINGTON, OHIO - MAY 12, 2003. TEAM America, Inc. (Nasdaq: TMOS), a leading
business process outsourcing company specializing in Human Resources, announced
today results for the first quarter ended March 29, 2003. Unaudited statements
show revenue for the first quarter was $14,389,000 compared to $13,549,000 for
the same period in 2002, net loss was $630,000 compared to a loss of $1,222,000
in 2002 and net loss attributable to common shareholders for the quarter was
$630,000, or $0.08 per share, compared to a net loss attributable to common
shareholders of $1,517,000, or $0.19 per share, for the same period in 2002.
Gross profit for the first quarter 2003 decreased to $4,393,000, or 4.95%, from
the 2002 period. The first quarter 2003 results reflect the Company's transition
to fully insured workers' compensation programs. During the 2003 quarter, the
Company increased its reserves for its historic loss sensitive workers'
compensation programs by $150,000.
Operating expenses decreased by $1,023,000, or 18.2%, from the 2002 period.
Selling, general and administrative expenses decreased by $600,000,
administrative salaries decreased by $120,000 and the Company did not incur
systems and operational development costs in 2003, resulting in a decrease in
operating costs of $302,000. The decrease in selling, general and administrative
expenses, as well as administrative salaries, are a result of previously
announced and implemented corporate and operational restructuring.
S. Cash Nickerson, Chairman and CEO, stated "I am pleased with the substantial
improvement in the Company's first quarter results compared to last year, as
reflected by the $794,000 improvement in operating loss. We are continuing our
efforts to review and implement processes to enhance the Company's performance
in 2003." Nickerson added, "I am especially pleased with these results in light
of our ability to reduce risk by moving from a loss-sensitive program to a fully
insured workers' compensation program."
TEAM America, Inc. (Nasdaq: TMOS) is a leading Business Process Outsourcing
Company specializing in Human Resources. TEAM America is a pioneer in the
Professional Employer Organization (PEO) industry and was founded in 1986.
Headquartered in Columbus, Ohio, the Company is one of the ten largest PEOs in
the country serving more than 1,400 small businesses in all 50 states. For more
information regarding the Company, visit www.teamamerica.com.
Forward-Looking Statement. Certain statements made in this release, including
statements about future revenue and earnings and expectations are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on current
expectations, estimates and projections about the Company's business based, in
part, on assumptions made by management. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements due to numerous factors, including those described above and the
following: changes in demand for the Company's products and services, product
mix, the timing of customer orders and deliveries, the impact of competitive
products and services and pricing, difficulties encountered in the integration
of acquired businesses and other risks discussed from time to time in the
Company's Securities and Exchange Commission filings and reports. In addition,
such statements could be affected by general industry and market conditions and
growth rates, and general economic conditions. Such forward-looking statements
speak only as of the date on which they are made, and the Company does not
undertake any obligation to update any forward-looking statement to reflect
events or circumstances after the date of this release.
TEAM AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(000'S OMITTED EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
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MARCH 29, MARCH 30,
2003 2002
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(UNAUDITED) (UNAUDITED)
Total Revenue $ 14,389 $ 13,549
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Cost of Service 9,996 8,927
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Gross Profit 4,393 4,622
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Administrative salaries 2,702 2,822
Other selling, general and administrative
expenses 1,606 2,206
Restructuring charges (16) -
Systems and operations development costs - 302
Depreciation and amortization 317 302
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Total operating expenses 4,609 5,632
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Operating Loss (216) (1,010)
Interest expense, net (421) (212)
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Loss Before Income Tax (637) (1,222)
Income tax expense (benefit) (7) -
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Net Loss (630) (1,222)
Preferred stock dividends - (295)
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Net loss attributable to common shareholders $ (630) $ (1,517)
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Basic and diluted net loss per common share $ (0.08) $ (0.19)