TeamStaff Inc. (TSTF) filed Quarterly Report for the period ended 2009-03-31.
Teamstaff Inc. formerly Digital Solutions Inc. provides a wide range of employer services and human resource management. The company's services include professional employer services which provide the administration of the human resource function workers' compensation employee benefits a 401K plan payroll and payroll tax service preparation. TeamStaff Inc. has a market cap of $9.5 million; its shares were traded at around $1.93 with a P/E ratio of 8 and P/S ratio of 0.1.
Highlight of Business Operations:
TeamStaff’s total revenues for the three months ended March 31, 2009 and 2008 were $13.7 million and $17.3 million, respectively, which represents a decrease of $3.6 million, or 20.7% over the prior fiscal year period. As described in greater detail in note 4 to the consolidated financial statements included in this Quarterly Report on Form 10-Q, included in revenues for the three months ended March 31, 2008 is $1.25 million in non-recurring retroactive billings to the DVA. Operating revenues for the three months ended March 31, 2009 and 2008 were $13.7 million and $16.1 million, respectively, which represents a decrease of $2.3 million or 14.5%. The decrease in revenues from continuing operations is due primarily to the impact of the current economic downturn on the results of TeamStaff Rx coupled with reduced overtime and net reductions in headcount at certain Government facilities. Operating revenues for the three months ended March 31, 2009 and 2008 include $11.5 million and $12.6 million, respectively, related to TeamStaff GS.
TeamStaff’s revenues for the six months ended March 31, 2009 and 2008 were $28.4 million and $32.8 million, respectively, which represents a decrease of $4.4 million, or 13.3% over the prior fiscal year. Included in revenues for the six months ended March 31, 2008 is $1.5 million in non-recurring retroactive billings to the DVA, which were subsequently paid. Operating revenues for the six months ended March 31, 2009 and 2008 were $28.4 million and $31.3 million, respectively, which represents a decrease of $2.9 million or 9.1%. The decrease in revenues from continuing operations is due primarily to the impact of the current economic downturn on the results of TeamStaff Rx, reduced overtime and net reductions in headcount at certain Government facilities, offset by the performance of TeamStaff GS in the first quarter of fiscal 2009, which saw its continuing revenues for the quarter ended December 31, 2008 increase by approximately 10% over the same period last year.
Direct expenses for the three months ended March 31, 2009 and 2008 were $11.5 million and $14.4 million, respectively, which represents a decrease of $2.9 million, or 19.9% over the prior fiscal year period. This decrease is primarily a result of lower revenues. Included in direct expenses for the three months ended March 31, 2008 is $1.0 million related to non-recurring retroactive billings to the DVA. As a percentage of total revenue, direct expenses for the three months ended March 31, 2009 and 2008 were 83.9% and 83.1%, respectively. Direct expenses for the six months ended March 31, 2009 and 2008 were $23.5 million and $27.1 million, respectively, which represents a decrease of $3.6 million, or 13.3%. This decrease is primarily a result of lower revenues. Included in direct expenses for the six months ended March 31, 2008 is $1.5 million related to non-recurring retroactive billings to the DVA. As a percentage of total revenue, direct expenses were 82.6% for both the six months ended March 31, 2009 and 2008.
Gross profit for the three months ended March 31, 2009 and 2008 were $2.2 million and $2.9 million, respectively, which represents a decrease of $0.7 million, or 24.8%. This decrease is primarily a result of lower revenues. Gross profit, as a percentage of revenue, was 16.1% and 16.9% for the three months ended March 31, 2009 and 2008, respectively. The key driver for the period over period decrease was an unfavorable health insurance adjustment booked during the second quarter of fiscal 2009. Included in gross profit for the three months ended March 31, 2008 is $0.25 million related to non-recurring retroactive billings to the DVA. Operating gross profit for the three months ended March 31, 2009 and 2008 were $2.2 million and $2.7 million, which represents a decrease of $0.5 million, or 13.9%. Gross profit for the six months ended March 31, 2009 and 2008 were $4.9 million and $5.7 million, respectively, which represents a decrease of $0.8 million, or 13.6%. This decrease is primarily a result of lower revenues. Gross profit, as a percentage of revenue, was 17.4% for both the six months ended March 31, 2009 and 2008. Included in gross profit for the six months ended March 31, 2008 is $0.3 million related to non-recurring retroactive billings to the DVA. Operating gross profit for the six months ended March 31, 2009 and 2008 were $4.9 million and $5.4 million, which represents a decrease of $0.5 million, or 9.1%.
Loss from continuing operations for the three months ended March 31, 2009 was $0.6 million, or ($0.11) per basic and diluted share, compared to income from operations for the three months ended March 31, 2008 of $0.1 million, or $0.01 per basic and diluted share. Loss from continuing operations for the six months ended March 31, 2009 was $0.5 million, or ($0.10) per basic and diluted share, compared to income from continuing operations for the six months ended March 31, 2008 of $0.1 million, or $0.02 per basic and diluted share.
Net loss for the three months ended March 31, 2009 was $0.6 million, or ($0.11) per basic and diluted share, compared to net income of $0.1 million, or $0.01 per basic and diluted share. This represents a decrease of $0.7 million in net income from the second fiscal quarter of 2008 to the second fiscal quarter of 2009. Adjusted to eliminate profit from the non-recurring retroactive billings, the results for the three months ended March 31, 2008 would have been a net loss of $0.2 million, or ($0.04) per basic and diluted share. Net loss for the six months ended March 31, 2009 was $0.5 million, or ($0.10) per basic and diluted share, compared to net income of $0.1 million, or $0.02 per basic and diluted share, for the six months ended March 31, 2008. This represents a decline of $0.6 million in net income. Adjusted to eliminate profit from the non-recurring retroactive billings, the results for the six months ended March 31, 2008 would have been a net loss of $0.2 million, or ($0.04) per basic and diluted share.
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