Dlh Holdings Corp. · NASDAQ:DLHC
Dlh — Teamstaff — Shareholder Meeting (August 2007)
18 slides from Dlh's shareholder meeting presentation, Aug 21, 2007
Slide 1: Annual Shareholders Meeting August 21, 2007
Annual Shareholders Meeting August 21, 2007 NASDAQ: TSTF Nursing Innovations sm A Division of TeamStaff Rx ® CONFIDENTIAL 1
Slide 2: 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 3: Our Mission
Our Mission Become “The Provider of Choice” for Medical Staffing Needs in Government And Public Healthcare Facilities. 3
Slide 4: Company Overview
Company Overview • Leading provider of staffing services to federal healthcare facilities • Based in Monroe, Georgia; Acquired June 2005 • 100% Past Performance rating • Contract duration typically 3-5 years • Vendor/Facilities management contracts • Currently has personnel onsite at 70 federal gove
Slide 5: Management Team
Management Team Rick J. Filippelli, President, CEO and CFO Joined TeamStaff as CFO in September of 2003 Former CFO of Rediff, a publicly-traded small cap information technology company Sixteen years of financial management experience with GE Capital including three years as CFO of a $2 billion insur
Slide 6: New Board Members
New Board Members William H. Alderman Over 15 years experience providing investment banking services across multiple industries, with a particular expertise in financings, and mergers and acquisitions in the aerospace and defense industry. Currently President of Alderman & Company representing some
Slide 7: Top U.S. Healthcare Staffing Providers
Top U.S. Healthcare Staffing Providers Healthcare Staffing Revenue (in $000’s) Revenue Rank Company Headquarters 2006 2005 Services Offered in 2006 Grownth 1 AMN Healthcare Services Inc. San Diego, CA $1,081,703 $705,843 LT, P, PR, TN, TA 53.2% 1,2 2 Cross Country Healthcare Inc. Boca Raton, FL $655
Slide 8: Temporary Healthcare Staffing Market Growth
Temporary Healthcare Staffing Market Growth 2005-2007 ($ billions) 2005 2006 P 2007 P Per Diem Nursing $4.1 $4.1 $4.1 Growth Rate -3.0% -1.0% 1.0% Allied/Other $2.6 $2.9 $3.2 Growth Rate 9.0% 10.0% 11.0% Travel Nursing $2.1 $2.3 $2.5 Growth Rate 1.0% 8.0% 9.0% Locum Tenens $1.2 $1.4 $1.6 Growth Rate
Slide 9: Industry Overview: Attractive Future Dynamics For HealthCare Professionals
Industry Overview: Attractive Future Dynamics For HealthCare Professionals US population is aging US population over 65 is expected to grow from 13% to 20% by 2030 Declining health of the population Roughly 47% of Americans live with chronic medical conditions Advances in medical technology Improved
Slide 10: Key Initiatives Driving Return to Profitability
Key Initiatives Driving Return to Profitability Travel Allied & Nurse Hired a Director of Sales and Marketing. Tied compensation of sales team to gross profit (vs. hours). Reorganized sales team by region and modality; currently adding to staff. Successfully Implemented Gross Margin Improvement Plan
Slide 11: Key Initiatives Driving Return to Profitability
Key Initiatives Driving Return to Profitability Government Hired a Director of Government Sales. Focus will be on large “unrestricted” contracts and Department of Defense penetration. Direct Placement of Pharmacists increasing gross profit. Significant contract in Southwest expected to ramp-up withi
Slide 12: Key Initiatives Driving Return to Profitability
Key Initiatives Driving Return to Profitability Corporate Consolidated Gross Margins are up 250 BP’s over last two quarters. Total headcount reduced approximately 15 percent over last two quarters. Recurring SG&A as a percentage of Revenue – 16.9% in 3Q07 vs. 18.8% in 1Q07. Examine re-branding our C
Slide 13: RS Staffing Investigation Update
RS Staffing Investigation Update Subpoena received at offices of RS Staffing in April 2007 Employed the Legal Services of Greenberg & Traurig The Company is fully cooperating with the investigation TeamStaff and related companies are not a target of the investigation TeamStaff has filed a Notice of
Slide 14: Income Statement
Income Statement (Unaudited) Year Ended 3Q07 2Q07 1Q07 9/30/2006 ($ in Thousands, except per share data) Revenue $ 17,223 $ 17,762 $ 17,547 $ 74,968 Gross Profit 3,099 2,617 2,714 12,511 GM% 18.0% 14.7% 15.5% 16.7% SG&A Expenses excluding Severance 2,916 3,253 3,303 14,037 Severance Expenses 324 263
Slide 15: Balance Sheet
Balance Sheet 6/30/07 9/30/06 ($ in Thousands) (Unaudited) Assets Current Assets: Cash and cash equivalents $ 2,054 $ 2,157 Accounts receivable 7,611 8,712 Prepaid workers’ compensation 303 1,094 Other current assets 508 923 Total current assets 10,476 12,886 Equipment and improvements, net 717 879
Slide 16: Balance Sheet
Balance Sheet 6/30/07 9/30/06 ($ in Thousands) (Unaudited) Liabilities and shareholders’ equity Current liabilities: Bank Line of Credit $ - $ - Notes payable 1,500 1,500 Current portion of capital lease obligation 65 61 Accrued Payroll 1,818 1,687 Accrued Pension Liability 280 210 Accounts Payable
Slide 17: SG&A Expenses
SG&A Expenses ($ in Thousands) Qtr Ended Qtr Ended % 6/30/07 12/31/06 Change Employee Costs (A) $ 1,501 $ 1,866 (20%) Occupancy 176 181 (3%) G&A 874 990 (12%) New Business 364 266 37% Total $ 2,916 $ 3,303 (12%) % of Revenue 16.9% 18.8% (A) Excludes impact of severance 17
Slide 18: Summary of TeamStaff Opportunities
Summary of TeamStaff Opportunities Long-Term Growth of Healthcare Staffing Industry Added two experienced Sales Directors to Drive Growth in Travel and Government Sectors Restructured Sales Force Focused on Top Line Growth Substantial Infrastructure Cost Reductions used to Fund New Business Developm