TeamStaff Inc. (TSTF) filed Quarterly Report for the period ended 2009-06-30.
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 $7.2 million; its shares were traded at around $1.48 with a P/E ratio of 12.3 and P/S ratio of 0.1.
Highlight of Business Operations:
TeamStaff’s total revenues for the three months ended June 30, 2009 and 2008 were $13.1 million and $17.8 million, respectively, which represents a decrease of $4.7 million, or 26.2% 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 June 30, 2008 is $2.0 million in non-recurring retroactive billings to the DVA. Operating revenues for the three months ended June 30, 2009 and 2008 were $13.1 million and $15.8 million, respectively, which represents a decrease of $2.7 million or 16.8%. The decrease in revenues from recurring 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 June 30, 2009 and 2008 include $11.3 million and $12.6 million, respectively, related to TeamStaff GS.
TeamStaff’s total revenues for the nine months ended June 30, 2009 and 2008 were $41.5 million and $50.6 million, respectively, which represents a decrease of $9.1 million, or 17.9% over the prior fiscal year. Included in revenues for the nine months ended June 30, 2008 is $3.5 million in non-recurring retroactive billings to the DVA. Operating revenues for the nine months ended June 30, 2009 and 2008 were $41.5 million and $47.0 million, respectively, which represents a decrease of $5.5 million or 11.7%. The decrease in revenues from recurring 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 recurring revenues for the quarter ended December 31, 2008 increase by approximately 10% over the same period last year. Operating revenues for the nine months ended June 30, 2009 and 2008 include $34.8 million and $39.4 million, respectively, related to TeamStaff GS.
Direct expenses for the three months ended June 30, 2009 and 2008 were $11.0 million and $14.5 million, respectively, which represents a decrease of $3.5 million, or 23.8% over the prior fiscal year period. This decrease is primarily a result of lower revenues. Included in direct expenses for the three months ended June 30, 2008 is $1.7 million related to non-recurring retroactive billings to the DVA. As a percentage of total revenue, direct expenses for the three months ended June 30, 2009 and 2008 were 84.0% and 81.4%, respectively. Direct expenses for the nine months ended June 30, 2009 and 2008 were $34.5 million and $41.5 million, respectively, which represents a decrease of $7.0 million, or 16.9%. This decrease is primarily a result of lower revenues. Included in direct expenses for the nine months ended June 30, 2008 is $3.0 million related to non-recurring retroactive billings to the DVA. As a percentage of total revenue, direct expenses were 83.1% and 82.2%, respectively, for the nine months ended June 30, 2009 and 2008.
Gross profit for the three months ended June 30, 2009 and 2008 were $2.1 million and $3.3 million, respectively, which represents a decrease of $1.2 million, or 36.7%. This decrease is primarily a result of lower revenues. Gross profit, as a percentage of revenue, was 16.0% and 18.6% for the three months ended June 30, 2009 and 2008, respectively. Included in gross profit for the three months ended June 30, 2008 is $0.3 million related to non-recurring retroactive billings to the DVA. Operating gross profit for the three months ended June 30, 2009 and 2008 were $2.1 million and $3.0 million, which represents a decrease of $0.9 million, or 30.7%. Operating gross profit, as a percentage of revenue, was 16.0% and 19.2% for the three months ended June 30, 2009 and 2008, respectively. Operating gross profit is lower as compared to the prior year due to a higher percentage of Government revenues which carry a lower gross profit, increased health benefit expenses, lower overtime at certain government facilities and lower turnover among our government contract employees, resulting in higher vacation expense. Effective July 1, 2009, billing increases to certain government facilities were granted that are expected to help offset these additional expenses going forward. Gross profit for the nine months ended June 30, 2009 and 2008 were $7.0 million and $9.0 million, respectively, which represents a decrease of $2.0 million, or 22.0%. This decrease is primarily a result of lower revenues. Gross profit, as a percentage of revenue, was 16.9% and 17.8%, for the nine months ended June 30, 2009 and 2008, respectively. Included in gross profit for the nine months ended June 30, 2008 is $0.6 million related to non-recurring retroactive billings to the DVA. Operating gross profit for the nine months ended June 30, 2009 and 2008 were $7.0 million and $8.5 million, which represents a decrease of $1.5 million, or 16.8%.
Loss from continuing operations for the three months ended June 30, 2009 was $0.5 million, or ($0.11) per basic and diluted share, compared to income from continuing operations for the three months ended June 30, 2008 of $0.6 million, or $0.12 per basic and diluted share. Loss from continuing operations for the nine months ended June 30, 2009 was $1.0 million, or ($0.21) per basic and diluted share, compared to income from continuing operations for the nine months ended June 30, 2008 of $0.7 million, or $0.14 per basic and diluted share.
Net loss for the three months ended June 30, 2009 was $0.5 million, or ($0.11) per basic and diluted share, compared to net income of $0.5 million, or $0.11 per basic and diluted share. This represents a decrease of $1.0 million in net income from the third fiscal quarter of 2008 to the third fiscal quarter of 2009. Adjusted to eliminate profit from the non-recurring retroactive billings, the results for the three months ended June 30, 2008 would have been net income of $0.3 million, or $0.05 per basic and diluted share. Net loss for the nine months ended June 30, 2009 was $1.0 million, or ($0.21) per basic and diluted share, compared to net income of $0.6 million, or $0.13 per basic and diluted share, for the nine months ended June 30, 2008. This represents a decline of $1.6 million in net income. Adjusted to eliminate profit from the non-recurring retroactive billings, the results for the nine months ended June 30, 2008 would have been net income of $0.1 million, or $0.01 per basic and diluted share.
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