Patience is finally paying off.......
TeamStaff Announces Second Quarter and Year-To-Date Revenue and Earnings Revenue in Both Periods Grew 99% Over Prior Periods Second Quarter Earnings Grew 52% Over Last Year's Quarter; Year-To-Date Earnings Grew 50% Over Last Year's Period SOMERSET, N.J.--(BUSINESS WIRE)--May 16, 2001-- TeamStaff, Inc. (NASDAQ: TSTF - news), one of the nation's top Professional Employer Organizations (PEO's), announced revenue and earnings for the quarter and year-to-date ended March 31, 2001. Revenue in the second fiscal quarter increased 99.0% from last year's same fiscal quarter to $158,371,000. Year-to-date revenue grew 99.6% to $323,070,000 from last year's six-month fiscal quarter. Driving this growth were the performance of former Synadyne and HR2 businesses which were acquired in April and October of calendar year 2000 and therefore not included in last year's quarter and year-to-date numbers. These two acquisitions accounted for $66,273,000 and $132,247,000 of the revenue growth for the quarter and year-to-date ended March 31, 2001, respectively. The Company's other businesses grew 15.7% and 17.9% for the quarter and year-to-date ended March 31, 2001 respectively.
EBITDA (earnings before interest, taxes, depreciation and amortization) grew 21.9% to $1,118,000 in the quarter ended March 31, 2001 from $917,000 reported in the quarter ended March 31, 2000. On a year-to-date comparison, EBITDA grew 33.5% to $2,846,000 in the six month period ended March 31, 2001 from the $2,132,000 reported in the same period last year. Despite this performance, workers' compensation profit in the PEO business dropped by $900,000 and $1,200,000 for the three and six-month period ended March 31, 2001, respectively, when compared to the same periods ended March 31, 2000. The decrease in profit is related to one of the Company's market centers and accounted for $534,000 and $622,000 of the decrease for the three and six-month periods ended March 31, 2001, respectively. This market primarily services the construction industry and has incurred workers' compensation claims that are greater than the Company's expectations for this market. The Company continues to review its options in this area. The remaining workers' compensation shortfall represents an increase in the amount accrued for workers' compensation charges in order to estimate what these claims will develop to ultimately. As previously disclosed, the Company increased prior periods' workers' compensation charges in the third and fourth quarters of fiscal 2000 and the current year's workers' compensation charges in the fourth quarter of fiscal 2000. The Company continues to evaluate its workers' compensation reserves at the end of each quarter to make its best estimate as to how the claims will ultimately develop and adjust its reserves and estimates accordingly.
Despite the workers' compensation decline, net income in the second quarter ended March 31, 2001 grew 52.0% to $301,000 from the $198,000 reported in the same period last year. The shortfall in the workers' compensation profit was offset by the profit achieved on the former Synadyne business as well as the earnings growth in the Company's other lines of business. Net income is $0.04 per fully diluted share in this quarter vs. $0.02 per fully diluted share earned in the same period last year. For the six months ended March 31, 2001 net income grew 50.3% to $941,000 from the $626,000 reported in the same period last year. This represents $0.12 per fully diluted share in this six-month period vs. $0.08 per fully diluted share earned in the same period last year.
Commenting on the results, Donald W. Kappauf, President and CEO said, ``we continue to execute on our plan for both growth in revenue and earnings. Our upward trend, coupled with our recently announced alliance partner agreements to sell other services to our clients and employees, and the proposed merger with BrightLane.com has made the Company stronger than ever. I believe we are well on our way to achieving our goal of $1 billion in revenue in fiscal 2002.''
In addition to its Professional Employer Organization, TeamStaff also operates three other employer outsourcing services. Through TeamStaff RX, TeamStaff provides temporary and permanent medical staffing services throughout the country and is the largest provider of medical imaging personnel in its field. TeamStaff also operates DSI, its niche payroll service bureau offering payroll and tax processing to over 750 clients and 30,000 employees mostly in the construction industries in New York and New Jersey as well as TeamStaff Solutions, a Manhattan based provider of technical personnel and transaction processing for government agencies. For more information, visit the Company's web site at www.teamstaff.com.
(The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) changes in TeamStaff's direct costs and operating expenses; (iii) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (iv) TeamStaff's ability to effectively implement its eBusiness strategy; (v) the effectiveness of TeamStaff's sales and marketing efforts, including the company's marketing arrangements with other companies; and (vi) changes in the competitive environments in the PEO industry. These factors are described in further detail in TeamStaff's filings with the Securities and Exchange Commission.)
Contact:
Team Staff, Inc.
Donald W. Kappauf, President & CEO
Donald T. Kelly, Vice President & CFO
732/748-1700
or
Cameron Associates
Clarence A. McGowan, 212/245-8800 |
