Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting August 3 rd , 2004 NASDAQ: TSTF
Slide 2: TeamStaff Board and Management
TeamStaff Board and Management Board of Directors Chairman , T. Stephen Johnson Vice-Chairman , Karl W. Dieckmann Directors Martin J. Delaney Ben Dyer Rocco J. Marano T. Kent Smith Management Team
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation 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:
Slide 4: Agenda
Agenda 1. Welcome and Introductions 2. Company Overview & Turnaround Progress 3. Healthcare Staffing Industry Trends 4. TeamStaff Rx Growth Strategies 5. DSI Growth Strategies 6. Financials 7. Summary
Slide 5: Overview of TeamStaff
Overview Of TeamStaff 8 th Largest Public Top 3 in Segment HealthCare Staffing Industry Allied Health Travel Segment $4.4 Million Revenue 39% EBITDA* LTM Payroll Industry Construction Segment TeamStaff is a 35-year-old leader in two attractive market segments: Healthcare staffing and payroll adminis
Slide 6: Our Turnaround Progress
Our Turnaround Progress New & experienced leadership team Sold PEO Re-Positioned TeamStaff Rx Expanded remote sales force and relationship selling Created One-Stop Shop with three Alliances Introduced VIP Program as differentiator Restructured and lowered corporate overhead costs by $3.5 million, or
Slide 7: The Past Months Have Been Stormy, But Analysts Forecast Growth
The Past 18 Months Have Been “Stormy,” But Industry Analysts Forecast Growth Ahead Change vs. Prior Year +26% +25% -8.5% -3% +10% Source: Staffing Industry Analysts, Inc. estimates and projections U.S. Healthcare Staffing Market
Slide 8: Industry Dynamics Are Very Attractive
Industry Dynamics Are Very Attractive U.S. population over 65 is expected to grow over 14% by 2010, increasing need for healthcare services Legislative mandates on overtime and staffing ratios increase shortage Nursing Supply/Demand Imbalance
Slide 9: TeamStaff Rx Participates In Two High-Margin Segments
TeamStaff Rx Participates In Two High-Margin Healthcare Staffing Industry Segments of a $10.4 Billion Industry Locum Tenens (Physicians) $1.0 Travel Nursing $1.6 Source: Staffing Industry Analysts, Inc. estimates and projections Per Diem Nursing $5.6 Allied Health/Other $2.2 TSTF-20% TSTF-80%
Slide 10: TeamStaff Rx Is Third Largest Travel Allied Healthcare Provider
Nurse Allied Medical Staffing Network (MRN) -- $513 Maxim -- $298 Favorite Nurses --$200 Nursefinders -- $185 ATC Healthcare (AHN) -- $149 AMN HealthCare (AHS) -- $714 Cross Country (CCRN) -- $687 Intelistaff/StarMed -- $234 US Nursing -- $190 On Assignment (ASGN) -- $117 CompHealth -- $290 Club Sta
Slide 11: Three Major Healthcare Staffing Industry Trends
There Are Three Major Healthcare Staffing Industry Trends, Repeating The 1990s Clerical/Light Industrial Staffing Experience Roll-up potential Alliances struck Acquisition possibilities Larger, quality providers survive and benefit Purchase additional service offerings to create 1-Stop Shop Purchase
Slide 12: TeamStaff Rx's Growth Strategy
TeamStaff Rx’s Growth Strategy Is Guided by Hospitals’ Desire to Have Fewer, Higher Quality Vendors Who Offer More Services Travel Per Diem Permanent Placement Acquisitions Alliance (tbd) Acquisitions Alliance (PPR) Alliance (Top 5 Firm) Organic Growth Organic Growth Add Selected Modalities Acquisit
Slide 13: Customer Ratings of TeamStaff Rx
While Customers View Healthcare Staffing Firms as Lagging in Quality, TeamStaff Rx Ratings Were 95.1% During 2004 Source: Staffing Industry Analysts, Inc. 2003 Survey of Staffing Purchasers; TeamStaff Rx Customer Survey Industry standards for Client Satisfaction ranks as follows: 7% = A Ranking, 10%
Slide 14: TeamStaff Rx Sales Force Will Double By End of 2004
TeamStaff Rx Sales Force Will Double By The End of 2004, With Most Geographically Distributed Region #1 Region #2 Region #3 Region #4 Govt. Services Admin Northeast Territory Southeast Territory Central Atlantic Territory Metro Memphis Territory Mid America Territory West Coast Territory Telemarkete
Slide 15: Appetite for Acquisitions to Increase Offerings and Scale
Although We Have an Appetite for Acquisitions to Increase Our Offerings and Drive Scale, Sellers are in Short Supply and There is an Abundance of Eager Buyers Source: Healthcare Staffing Summit – June 15, 2004 (Jack Lyons, Lyons Hollis Associates, Inc.)
Slide 16: Our VIP Program Was the First for a Travel Allied Company
Our VIP Program Was The “First” for a Travel Allied Company Cost-Containment Model Saves 5% to 20% Optimized Vendor Management Technologies Automated ‘One-Click’ Reporting Onsite & ‘Virtual’ Account Managers Streamlined Procedures & More
Slide 17: Construction
Construction industry niche market with client retention in excess of 90% LTM Revenues $4.4 million with 39% EBITDA* Doubling the size of the sales force Targeting new geographic territories Broadening the client service offering Freshening marketing efforts—advertising, website, lead generation and
Slide 18: Public Staffing Firms 2004 Sequential Quarterly Revenue Results and Guidance
Public Staffing Firms 2004 Sequential Quarterly Revenue Results and Guidance Reflect The Industry Downturn, While Rx Has Started Recovering AMN ( Travel Nurse) Cross Country (Travel Nurse) MSN (Nurse Per-Diem) ATC Healthcare (Nurse Per-Diem) TSTF Rx (Travel Allied) (4.9)%*** (4-6)% Flat (3.4)%** 10.
Slide 19: Continuing Operations: Quarterly Revenues/EBITDA
*Excludes former CEO and CFO severance and supplemental retirement plan obligations *Note: a presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP and a reconciliation of the differences between the non-GAAP measures presented above and the
Slide 20: Rx Gross Margins Are Improving
Rx Gross Margins Are Improving With Focus Fiscal ‘04 16.0% 16.1% 17.0% 19.2%
Slide 21: Analysis of Annualized Corporate Expenses
TeamStaff, Inc. Analysis of Annualized Corporate Expenses June 30, 2004 vs. September 30, 2003 ($ in Thousands) Expense Corporate Overhead: 6/30/2004 9/30/2003 Reduction Salaries and Related $ 2,264 $ 4,172 $ 1,908 Insurance 1,687 Audit Fees Investor Relations IT and Related (non employee) Legal Fee
Slide 22: Balance Sheets
Balance Sheets 1.2 1.8 Restricted Cash 9/30/03 Total Current Assets $60.6 $39.3 Total Liabilities and Stockholders’ Equity 35.1 31.4 Stockholders’ Equity 25.5 7.9 Total Liabilities 16.4 1.2 Liabilities Held for Sale 1.8 1.7 Other Liabilities $7.3 $5.0 Current Liabilities 4.9 3.6 Accounts Receivable
Slide 23: Summary of TeamStaff Opportunities
Long-term growth of Healthcare Staffing Industry Rx turning while Industry projected to return in 2005 Sales force expansion and local, relationship selling One-stop shop with Alliances VIP Program as a differentiator Appetite for acquisitions to bolster offerings & scale Experienced staffing indust